Question:
Coursework TWO
(Contributes 50% to total mark)
Word count: 3000 (excluding references and bibliography)
(Via Turnitin on the M20HRM Moodle Page)
Essay Format
Learning outcomes – the following will be fully or partially achieved.
1 Systematically decide and communicate strategic performance aims, objectives, priorities and targets.
3 Devise and sustain arguments for using appropriate performance management techniques, rewards and sanctions to improve performance.
4 Demonstrate the communication skills required when managing achievement and underachievement.
TASK
A recent CIPD survey, Outlook: Views of the profession, Winter 2016-17 asked HR professionals about their organisation’s priorities, both now and in three years’ time, and in particular how aligned they considered their HR activities were in achieving them.
The top three priorities identified were:
- Cost Management
- Talent Management
- Increasing Organisational agility and productivity
Select any TWO of the above priorities and
- Critically evaluate the extent to which your organisation’s performance management system (PMS) contributes their achievement. (60% weighting)
- Identify and justify recommendations to improve greater alignment between the two selected business priorities and the performance management system. (40% weighting)
Answer/Solution:
Introduction
Performance management is a strategic practice in the management process. In this case, Ferreira and Otley (2009) noted that the process guides an entity in equipping leaders, workers and stakeholders at distinct levels. This is achieved through the use of particular tools and techniques for often planning, progressively monitoring and periodically measuring and review of the organization performance using different metrics for efficiency, effectiveness and impacts. Additionally, Noe et al. (2006) demonstrated that Performance Management System (PMS) includes a framework that offers a description and representation of the extent in which an organization cycle and performance planning is actualized. This also involves the process of measuring, reviewing, reporting and subsequent process of improvement which is supposed to be carried out, organized and successfully managed. This framework is also inclusive of a process of determining all the different role players in an organization. Human resources priorities include the processes that an organization puts in place to ensure that their team successfully works to attain their goals within a particular set timeline. Hence, the performance management system can be adopted as a strategic approach for facilitating different organizations to achieve their HR priorities. This report will argue that performance management system can successfully be used in achieving specific organizational priorities today and in future. To demonstrate the rationale of this assertion, cost and talent management will be utilized as the HR professional’s organization priorities. Additionally, an identification and recommendation on improving an enhanced alignment between the cost and talent management priorities and performance management system will equally be developed. This report will be segmented into two broad categories.
Performance Management System and HR Professionals Priorities
One of the fundamental success factors of the highly performing entities is prioritizing their human resources. As noted by Bowen and Ostroff (2004), in the modern organization practices, HR executives are challenged in developing an efficient and effective, simplified but result oriented solution to the people side of the business. For instance, cost management can be used by HR professionals in determining the best practice in overcoming the political and economic uncertainties. This can include strategies to cut costs, restructure employment payments based on performance and increase organization efficiency in targeting new clients. Additionally, the talent management can be used as a strategic process where the managers identify the employee’s potential, develop their needs and later manage them effectively.
In a general perspective, it is worth noting that PMS and HR professionals priorities links at the point where the need for the development of a roadmap for the creation of a unique competitive advantage exists. This is through outlining the strategic approach of the organizations leveraging on the existing human capital for the sake of addressing the challenges faced and consequently lead to achievement of the set business objectives. As noted by Ashton and Morton (2005), the most efficient HR professional priority must showcase the ability to create value through the existing organization workforce. This is also inclusive of the guidelines for the organization to adopt in the event of competing for new talents and retaining of existing talents.
Cost Management
In the context of the organization, PMS facilitates a successful cost management as the organizations and HR professionals are already conversant with the value of automating their employee performance management process. This is in tandem to Brignall and Modell (2000) assertions that organization performance management system practitioners must be better placed to enhance the employee performance management solution to the executive management. This is the best approach that the organization PMS facilitates the process of cost management. There are three critical strategies that the HR professionals enhance cost management through PMS. They include a reduction of the employee turnover, an increase in the human resources productivity and lastly the improvement of the employee coaching within set cost values. According to Norreklit (2000), the process involved in replacing an employee can be twice as high as the employee remunerations. As a consequence, through the PMS enhancing a low employee turnover increases a more saving of the company resources used in compensation of their employees. This process is reinforced by the application of the balance scorecard models and setting Key Performance Indicators used in the identification of the employee’s value to the organization. This is carried out in tandem with ensuring that all employees are conversant with their fundamental contributions to the short and long term set goals by the organization.
Additionally, the realization of cost management is facilitated by PMS through guaranteeing an increase in the HR productivity. Focusing on the best practice as highlighted in Kaplan and Norton (2001), one of the cornerstones of enhancing an increase in the productivity is with an emphasis on the process of effective performance management. In the context of our organization, the process involves the goal setting and alignment, periodic review and touch points by the management and offering the employees more ownership over the set process. To enhance the effectiveness of the strategies adopted, rewards and recognition have increasingly been integrated into the PMS. Theoretically, the economic changes inclusive of the globalization and Brexit currently plays a significant role in determining the direction of change in an entity which is hedged on the perceptions of the HR professionals on its implications to their practice. It is incumbent upon the HR professionals to ensure that they are adeptly prepared for the potential reduction of movement freedom and take immediate strategies to manage emanating costs from the uncertainties.
The rationale of the above analysis is hedged on Kaplan and Norton (2001) who noted that recognition assists the employees in receiving a balance of positive and negative feedback. For instance, in the periods characterizing economic turnaround such as Brexit and global financial crisis, enhancing positive feedback to the employees guarantee the sustainability of the organization practices. Hence, the rewards and recognition strategy incorporated in the PMS assists in reinforcing the right behaviors and culture and leveraging on social engagement (Buyya et al., 2000). All these practices have a significant role to play in enhancing a successful cost management practices. The success of the PMS set by the organization HR professionals is hedged on the fact that PMS does not terminate once the performance appraisal is delivered. Nevertheless, managers have the role of adopting an integrated practice to employee learning. This is inclusive of the establishment of development plans that have a potential of supporting the achievement of employees goals, career interests, and potential. Addition, cost management enhances the process of management of the organization business and talents needs which is a prerequisite of evaluating effectiveness when adopted as a tool for growth and success.
Talent Management According to Lewis and Heckman (2006), talent management can be identified as a systematic process used in the attraction, development and retaining of the best human resources in an organization. In the context of my organization, the organizational leader mostly regards the best human resources as the individuals who are extensively productive in their current placement. Additionally, they must reveal a potentiality of accelerating in their job positions to position themselves in higher levels of responsibility. As noted by Collings and Mellahi (2009),………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….Please contact us to receive guidance and support on this assessment in full and based on your instructions and expectations
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