Strategic HRM Report: Performance Management Strategies at Telstra

This report provides an overview of performance management within Telstra, a major Australian telecommunications company. It examines various performance management approaches, including comparative, attribute, behavioral, result, and quality approaches, detailing how Telstra utilizes these methods to evaluate employee performance. The report outlines the performance management process, including planning, assessment, recognition, and career development. Furthermore, it identifies and discusses best practices in performance management, such as clarifying roles, setting goals, providing training, and rewarding effective performance, and how Telstra implements these. The conclusion summarizes the company's effective performance management system, and recommendations are made for improvement, emphasizing clear communication, employee cooperation, and open communication to enhance the current practices.

Running head: Strategic HRM
Strategic HRM

Strategic HRM
Table of Contents
Introduction.................................................................................................................................................3
Performance management in Telstra...........................................................................................................3
Best practices of performance management................................................................................................6
Conclusion...................................................................................................................................................8
Recommendation.........................................................................................................................................9
References.................................................................................................................................................10
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Introduction
The report presents a brief overview of the performance management and its approaches and
processes in an organization. Telstra Company has been selected for the report. It explains that
how the association manages and evaluates the performance of the workers. It tells that how the
company is using the best practices in the organization in order to meet the goals and objectives.
Telstra Corporation Limited is an Australian company which head office is located in 242
Exhibition Street, Melbourne, Australia. It is a media and telecommunication company which
develops, operates and manages telecommunication networks and mobile, voice, internet access,
market voice, and other entertainment products and services. It is one of the largest
telecommunication companies in Australia. The operating income of the company is approx $6.3
billion (2016) and the revenue of the company is approx $27.1 billion (2016). The company is
expanding its business day by day. Currently, approx 36,165 employees are employed in the
company. The profit of the company is approx $5.8 billion (2016) (Jackson, Schuler & Jiang,
2014).
Performance management in Telstra
Performance management is a process which provides accountability, feedback, and
documentation for outcomes of the employees’ performance. It helps to workers to use their
abilities and skills in order to meet the organizational goals and objectives. The main objective of
performance management is to improve and promote the employees performance and
effectiveness. It is a never ending process where employees and managers work together to
monitor, plan and analyze the employees work. The performance management is the backbone of
Telstra to analyze and measure the performance of employees. The company measures and
evaluates that how much contribution has been given by the employees in order to meet the goals
and objectives. The approaches of performance management are discussed below (Camisón &
Villar-López, 2014).
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(Source: Dey & Giri, 2017)
 Comparative approach: The comparative approach includes the ranking system to
measure the performance of employees. The rank is given on the basis of highest to the
lower performer. The company uses various techniques and methods in a comparative
approach like the paired comparison, forced distribution techniques, and graphic rating
scale. The highest rank is given to potential and competent employees on basis of their
performance. The company provides the proper training and development programs to
guide and enhance the skills and potential of these performers. When the firm is leading
the small groups with similar employment profiles (Lou & Dai, 2014).
 Attribute approach: In this approach, the rating is given to employees on the basis of a
specific set of the matrix such as judgment, innovation, creativity, communication,
teamwork, problem-solving skills. It uses the group rating scale to evaluate the
performance and efficiency of employees. In group rating scale rating is given to
employees on the basis of lower to highest. This method is very simple and accurate to
measure the productivity of the workers (Paillé, Chen, Boiral and Jin, 2014).
 Behavioral approach: It is one of the important technique and method to measure the
performance of employees. It uses the behaviorally anchored rating scale and BOS
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technique to evaluate the efficiency and productivity of employees. The BARS technique
is more frequent and specific to measure the behavior of employees.
 Result approach: The report is based on the result and outcomes of the employees and it
is a straight forward and simple concept. The balanced scorecard approach is considered
as the result approach to measure the productivity and efficiency of employees. This
technique focuses on the customers, learning, growth and financial position of the
company. Productivity measurement and evaluation system is another approach of result
oriented approach. This technique is very effective to encourage the motivation of
employees. This approach identifies the objectives of the company which the firm wants
to achieve in the future. It also explains the ways and manner through which targets are
made. Further, it evaluates the employees’ productivity and performance. In the final
step, the company gives feedback to workers. It also measures the external environment
of the company (Armstrong & Taylor, 2014).
 Quality approach: It is also an important method to measure the performance and
efficiency of the employees. Mainly, this approach focuses on the customer satisfaction
by reducing and eliminating the mistakes and errors. It focuses on the system and person
factors to evaluate the productivity. The top management takes regular feedback of the
employees from the managers. This approach evaluates the system and employees in the
company. It resolves the various problems through the effective teamwork and
collaboration. It uses the various sources to measure the output of the employees (Stahl et
al, 2012).
Now it is assumed that an organization can use all these performance management approaches to
evaluate the productivity and performance of the employees. These techniques motivate the
employees for doing work more effectively. Therefore, they can easily identify the strengths and
weaknesses of the individuals. The employees’ performance improves and enhances the
communication between managers and workers. The supervisors discuss the duties and
responsibilities through effective employees’ performance and it creates the healthy working
environment. These techniques improve the employees’ performance as well as organizational
productivity (Melnyk et al, 2014).
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Performance management plays a significant role in every organization. The process of
performance management is discussed below.
Planning: It is the first step of performance management process and it plays a significant role in
the Telstra success and growth. In this stage, the company set the goals and objectives of the
company. After the setting of plans and objectives, management and employees make policies
and strategies in order to achieve these goals and objectives.
Assessment/ evaluation: It evaluates the performance of the employees and collects feedback
from co-workers and other supervisors to measure the productivity of the employees and
organization. Through assessment, the company can judge and evaluate the skills and abilities of
potential workers. The company controls and monitors the activities of employees to evaluate
their efficiency (Bloom et al, 2012).
Recognition: It recognizes and identifies the capable employees to meet the organizational goals
and targets. During this process, the top management and workers should discuss the ways and
manners through which the company can increase its productivity and revenue. The company
should promote the competent and potential employees for doing the work more effectively. In
this process, the organization develops the capacities and capabilities to perform the task
successfully (Christiansen, 2012).
Career development: This process improves the quality of employees and it promotes the future
improvement for doing work effectively. In this way, the company can evaluate and measures
the needs, desires, and requirements of the organization and business. It will help to enhance and
increase the strengths of the workers and it eliminates the weakness and threats of the company
(Bloom et al, 2012).
Telstra uses all these processes to evaluate and analyze the performance of workers in order to
accomplish the long term goals and objectives.
Best practices of performance management
The best practices of performance management which need to be executed and implemented in
the organization. They are discussed below (Brewster et al, 2016).
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 Identify the purpose of managing performance: It is the best practice of the
performance management which should be implemented in the organization. The
company should evaluate and analyze the purpose and objective of performance
management.
 Clarification of role: Telstra should clarify the work which needs to be done to
accomplish the goals and objectives of the firm. In this way, the company should clarify
the roles and responsibilities of the workers.
 Set goals and objectives and create a performance plan: The organization should set
the goals and objectives of the company and it should establish a performance plan for
the employees. This performance plan will help to employees to evaluate and measure
their productivity and efficiency (Hill, Jones & Schilling, 2014).
 Conduct frequently and regular coaching and training programs: The performance
management is an important tool to identify the threats and weaknesses of competitors in
the market. Thus, it should conduct regular training programs and coaching for the
employees.
 Conduct a formal review of the measurement of performance: The formal
performance review is the important part of the performance management system.
Development and improvement are the best practices of the performance management. It
helps to review and analyze the productivity of the workers.
 Train the reviewers: It is the very important practice of performance management and it
emphasizes on the training of reviewers. Therefore, it is the best source to achieve the
goals and objectives and reduces the damages (Vom Brocke, 2014).
 Identify the sources of ineffective performance: It identifies the sources of ineffective
and unsuccessful productivity and performance of employees.
 Reward and recognition for effective performance: It is the excellent practice of
performance management. The company should provide reward and various kinds of
recognition such as promotion, extra benefits, bonus and incentive to potential
employees.
 Build an action plan and procedure to develop performance: The Company should
build and develop an action plan for improving the performance and productivity of the
workers and organization (Camisón &Villar-López, 2014).
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After the various researches, it has been found that all these practices play a significant role to
improve the performance and efficiency of employees. Thus, Telstra can achieve its long term
goals and objectives.
For example, Telstra is providing customer satisfaction to employees by taking the feedback
from the customers. In this process, the company is using the best practices in the organization.
The organization cannot take proper feedback from the customers without effective performance
management. The company is providing the best telecommunication and media services across
the world. In this process, the organization clear the roles and responsibilities to different
workers in order to provide the effective voice and non- voice services (Kuipers et al, 2014). The
association is providing training and coaching to employees to take the excellent feedback from
the customers. Therefore, many people give the best performance by providing customer
satisfaction to people. The company is proving mobile, fixed line and broad internet services to
people. The organization is implementing the EC system to provide the broad services to its
customers. The association provides the UPS and other mechanical services through the EC
system. Therefore, the organization is providing the excellent and most valuable services to
people across the world. Many employees are performing the excellent work by effective best
practices of the company. The company provides rewards and other benefits to employees with
the help of effective performance management practices. The organization regularly evaluates
and analyzes the performance of employees. It is taking feedback from superiors and managers
about the performance of workers. Now it is assumed that the company is using the excellent
performance management practices in the organization. Further, it provides the safe and
favorable working environment to its employees (Van Horenbeek & Pintelon, 2014).
Conclusion
The report is based on the performance management of the Telstra telecommunication and media
Services Company. Now a day’s it is providing wide range telecommunication, media, and
internet services to its customers. Now it is concluded that the company is following the effective
performance management system to improve the performance and efficiency of the company
(Bratton & Gold, 2012).
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Recommendation
There are various recommendations for improving the current performance management
practices in the Telstra. They are discussed below.
 The company should communicate the clear goals and objectives with employees to
improve the current performance management practices in the organization.
 The management should maintain the coordination and cooperation with workers to
achieve the high efficiency and productivity. It should understand the needs, desires, and
requirements of the employees. The top management should maintain the good relations
with employees and resolve their queries and grievances.
 The organization should encourage and improve the open communication to improve the
performance management system in the firm.
 It should promote the effectiveness, ethics, customs, reputation, and values to increase the
productivity and outputs.
 Telstra should maintain the favorable working environment to the workers for doing
work effectively.
 It should create a strong and effective team environment to increase the productivity of
the employees and company.
 The organization should take the regular feedback of the employees to identify and
measure the performance of employees.
 The company should support to employees for their growth and work. In this way, the
organization can improve the current performance management practices.
 The company should provide the power and responsibilities to employees. In this way,
the organization can build and improve the current performance management practices.
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