Summary of HR Mariam

7/29/2019 Summary of HR Mariam

1/24

Unite 1:The potential benefits of a strategic approach: Guests (1992) model of HRM is based around four goals of: -Strategic integration with planning to

ensure coherent HRM policies- Commitment of the employees to the organisation and to high performance- Flexibility of both organisational structure

and functions, based on a multi skilled workforce- High quality of goods and services. This model is based on three dimensions commitment, flexibility

and quality to ensure beneficial outcomes such as high job performance, coping with change, cost effectiveness and low levels of absence and low staff

turnover.

Approaches to the strategic management of people: The best practice view: A best practice is a method or technique that has consistently shown results

superior to those achieved with other means, and that is used as a benchmark. In addition, it used to describe the process of developing and following a

standard way of doing things that multiple organizations can use. The notion of best practice - sometimes called 'high commitment' HRM - proposes that

the adoption of certain best practices in HRM will result in better organizational performance. This view starts from the premise that a single set or

bundle of HR policies and practices will lead to better organisational performance, sustained over a lengthy period, whatever the prevailing business

circumstances. EXAMPLES: According to Pfeffers 1994 model that shows the seven important practices: (providing employment security, selective hiring,

extensive training, sharing information, self-managed teams, high pay based on company performance and the reduction of status differentials) and

according to Guest 2001 and the case study of study pack that mention 18 practices: Realistic job previews; Use of psychometric tests for selection; Well-

developed induction training; Provision of extensive training for experienced employees; Regular appraisals; Regular feedback on performance from

many sources; Individual performance-related pay; Profit-related bonuses; Flexible job descriptions; Multi-skilling; Presence of work-improvement

teams; Presence of problem solving groups; Information provided on firms business plan; Information provided on the firms performance targets; No

compulsory redundancies; Avoidance of voluntary redundancies; Commitment to single status; Harmonised holiday entitlement. However, there is a

huge number of studies which provide evidence of best practices, usually implemented in coherent bundles, and therefore it is difficult to draw

generalized conclusions about which is the 'best' way

The best practice model offers the following advantages:- Focus on staff as resources with the associated investment in high performance strategies:

development, reward and recruitment practices- Emphasis on the professionalism of personnel practice- Involvement and empowerment of staff-

Advanced management skills- Ethical HR practice- Emphasis on organisational flexibility, quality and integration of activities.

Some problematic aspects of this view are as follows:- Perception of the effectiveness of those practices which emphasise skills of implementation- A

suggestion that best practices do not fit business strategy, which is worrying when linked to the relevance of people management at the top of the

organisation- A problem of real strategic choices HR is driven by outside factors which point us toward the next model of SHRM, the best fit view.

Criticisms of the best practice view as a way of managing people have been constructed on the grounds of:- Cost of implementation- Tensions between

the need for production and cost minimisation on the one hand, and issues of flexibility, creativity and skills enhancement on the other- The restricted

applicability of the model mainly to the western private sector, where there is wider scope for managerial choice legally and economically- The doubtful

ability to assess the impact of HR interests using financial measures- The belief that it is easier to establish and sustain the model on green field sites.

Examples: (Macmillan 2003) The concept of best practice has been employed extensively in environmental management. For example, it has been

employed in aquaculture such as recommending low-phosphorus feed ingredients, in forestry to manage riparian buffer zones, in livestock and pasturemanagement to regulate stocking rates, and in particular, best management practices have been important to improving water quality relating to

nonpoint source pollution of fertilizers in agriculture

The best fit view (link HRM to business strategy):Best fit argues that HRM improves performance where there is a close vertical fit between the HRM

practices and the company's strategy. This link ensures close coherence between the HR people processes and policies and the external market or business

strategy.The success of a best fit model depends on its ability to:-Integrate into the strategic plans of the organisation- Provide horizontal or vertical

integration of the key policy areas- Best fit allows organisations to determine whether a hard or a soft approach needs to be taken given the prevailing

circumstances. A hard view might include outsourcing, enhanced productivity, and emphasis on tighter contracting. A soft view relies on involvement,

partnership and communication and sharing.

Disadvantage: can overlook employee interests- Some firms are good all-rounders so HR practices unlikely to be based on one strategy- There is always

tension- Can be too focussed at expense of flexibility and agility- While practices may meet existing strategies, things change quickly so HR strategy cannot

be too parochial.

Best fit integration Best fit integration is an open template to interpret the environment in which business operates and to evaluate the integrated

reaction or responses that are necessary.Best practice differs in that the outcomes are not prescribed. Best practice does not emphasise fit or matching

but is solution oriented.

LEVEL OF INTEGRATION REQUIRED TO MEET THE BEST FIT MODEL (BULLER):- A one-way response level where business strategy informs HR strategy- A

two-way response level where the relationship between the two is interdependent but not fully integrated- A fully integrated, reciprocal level with top-

down, bottom-up strategy formulation.

EXAMPLES: of best fit strategies: Steel mini mills in USA: when it uses differentiation strategy, it has 65% adopted high commitment Managemenet,

however, when it uses low cost strategy it has 95% adopted cost minimisation. Apparel in clothing industry: by using differentiation strategy it has high

fashion, lean production, multi skilling, team work however, by low cost it has low employee interaction, efficiency at expenses of HR

Resource-based approach: emphasises on the internal capabilities and resources of the organisation in formulating strategy to achieve a sustainable

competitive advantage in its industries. There are significant problems with the principles of the two previous models:- They represent rational and linear


2/24

approaches to strategy- The emphasis on the fit of strategy, structure and HR policies does not focus on the distinctive resource capabilities of individuals

within the organisation- The lack of evidence indicating that explicit HR strategies have an impact on organisational performance.

A resource based model has a different perspective from other approaches. Whilst conventional HR approaches start with external factors such as threats

and opportunities, the resource based view looks. first at the organisation and its potential, and develops ways to exploit or enhance the available

resources. In a resource based model, the SHRM role becomes one of creating systems and procedures that focus not on external relationships but on how

staff and their abilities are used. The resource based model recognises that many aspects of capability can be formally defined in skill terms and developed

accordingly. However, the truly distinctive aspects are often hard to define and are formed through informal processes of learning in the workplace.

Storeys view is that sustained competitive advantage derives from assets that add value, are unique or rare, are difficult to imitate and cannot be

substituted. Mueller (1998) develops the resource-based view with five propositions concerning the organisations assets.

Proposition 1 is that they must be developed in slow, incremental and uncertain ways, not in any linear or planned way- Proposition 2 is that they require

broad-based commitment over a lengthy period, not a single initiative- Proposition 3stresses the importance of routinising skill formation activities and

Formal and informal learning activities must be effectively captured by the organisation- Proposition 4 concerns the development of cultures that will

allow potential to be used and developed. Challenge rather than conformity, is encouraged as a strategic end, while balancing the need to store

organisational value- Proposition 5 is that organisations need to build barriers to imitation and loss of their resources, both in patents, copyright, and so

on, and their people resources.

RBV criticism:-How resources develop and change over time. - It is difficult to implement.

Example: Apple: it focuses on its internal resources (employees skills, competencies, resources) which are hard to imitate from its competitors that make

Apple as the market leader.

Due to the different changes that are going on in the business world, as well as the realization of different businesses and firms that the employees are

considered as an asset as well as important resource of the organization, more and more companies are focusing on planning and implementation of

different strategies that will focus on the integration or connection of the human resource with the success of the entire business, together with the

process of setting standards, goals and visions.

The best practice approach:On the other hand, the best practice approach consider that there is a exact set of human resource practices that can be

applied in almost any organizational context that helps to increase the performance that helps to deliver outcomes that are valuable for all the

stakeholders, particularly employees. As a result, the said approach covers different related prescriptive models of human resource management such as

high-commitment, high-involvement, high-performance work system, and mutual gains models (Shields 2007, p. 90). The best practice approach is based

on the idea that there is a set of best HRM practices and that applying them will help to superior organizational performance. There are different critics

and commentators that are attacking the idea of best practice. This is because the best practice or universalist views by pointing out the discrepancy

between a belief in best practice as well as the resource-based view that pertains on the intangible assets that includes HR, which allows the firm in orderto do better than its competitors. The major question is how can the universalism of the best practice be linked with the view that only some resources

and routines are significant and vital by being rare as well as imperfectly limitable? Aside from that, it is also hard to accept that there is a universal best

practice, because one practice that have been successful for one organization, doesnt necessarily mean that will work on others (Armstrong 2006, p. 65).

Lists of best practices: A number of lists of best practices have been produced, the best known of which was produced by Pfeffer (1994)- employment

security- selective hiring- self-managed teams -high compensation contingent on performance- training to provide a skilled and motivated workforce-

reduction of status differentials- sharing information. The following list was drawn up by Guest (1999):- Selection and the careful use of selection tests to

identify those with the potential to make a contribution- Training, and in particular a recognition that training is an ongoing activity- Job design to ensure

flexibility, commitment and motivation including steps to ensure that employees have the responsibility and autonomy to use their knowledge and skills

fully- Communication to ensure that a two-way process keeps everyone fully informed- Employee share ownership programmes to increase employees

awareness of the implications of their actions for the financial performance of the firm. What works well in one organization will not necessarily work well

in another because it may not ft its strategy, culture, management style, technology or working practices. Becker et al (1997: 41) remark that:

Organizational high-performance work systems are highly idiosyncratic and must be tailored carefully to each firms individual situation to achieve

optimum results.Some authors criticise this model for several reasons:- Disconnection from company's goals and context- Disregard of national

differences such as management practices and culture12- Inconsistency between the RBV's emphasis on in-immutability and best-practice universalism

The Best Fit Approach: The best fit approach focuses on the importance of making sure that the HR strategies are suitable to the different circumstances

of the entire organization, together with culture, operational processes as well as external environment. Thus, it focus on the idea that different human

resource (HR) strategies have to focus on a given needs of both the organization and its people (Armstrong 2006, p. 138). Due to the said reason, most of

critics and commentators believe that best fit approach is more important and vital than the best practice.The process starts with the analysis of the

business needs of the firm within its context such as culture, structure, technology and process that indicate what has to be done. Afterward, it can be

useful in order to choose and mix different best practices ingredients, as well as develop an approach that applies those that are applicable in a way that is

aligned in order to identify different business needs (Armstrong 2006, p. 139). However, 'best-fit' approach has been criticised for the following reasons:-

Lack of alignment with employee interests, compliance with prevailing social norms and legal requirements- Too simplistic view of business strategy (the

reality is more complex than only innovation, cost-reduction and quality-enhancement strategy in the Schuler and Jackson model)- Too much focus on

existing competitive strategy (reactive) rather than ongoing environmental changes (proactive).

Comments on the concept of best fit The best fit model seems to be more realistic than the best practice model. As Dyer and Holder (1998: 31) pointedout: The inescapable conclusion is that what is best depends. It can therefore be claimed that best fit is more important than best practice. But there are

limitations to the concept of best fit. Paauwe (2004: 37) argued that: It is necessary to avoid falling into the trap of contingent determinism *ie acting as if


3/24

the context absolutely determines the strategy+. There is, or should be, room for making strategic choices. There is a danger of mechanistically matching

HR policies and practices with strategy. It is not credible to claim that there are single contextual factors that determine HR strategy, and internal fit

cannot therefore be complete. As Boxall (2007: 61) pointed out: It is clearly impossible to make all HR policies reflective of a chosen competitive or

economic mission.Purcell (1999: 35) refers to the concept of idiosyncratic contingency, which shows that each firm has to make choices not just on

business and operational strategies but on what type of HR system is best for its purposes. He also commented that: The search for a contingency or

matching model of HRM is also limited by the impossibility of modeling all the contingent variables, the difficulty of showing their interconnection, and the

way in which changes in one variable have an impact on others, let alone the need to model idiosyncratic and path dependent contingencies (ibid:

37).Lawler (1995, p. 14) states that all organizational systems must start with business strategy because "it specifies what the company wants to

accomplish, how it wants to behave, and the kinds of performance and performance levels it must demonstrate to be effective." Business strategy, driving

individual and organizational behaviors, is the touchstone for the development of the reward strategy.

Unite 2: The main challenges that prevent HR departments from deliver SHRM: According to Torrington (1996) there are three challenges faced by HR

specialists: -Confidence: different aspects may affect the confidence of HR staff:The HR staff is being reactive rather than proactive. In other words,

reactive HR focus more on setting polices and regulations that are needed only when the problem arise rather than being proactive by responding to the

needs and the problems before they occur by setting effective solutions, programs, polices to manage, motivate and attract the employees in order to

have best possible performance. (Chroc.com) by Neil KokemullerAlso, when we have HR staff which is not strategic and is not coordinated to the business

strategy, the confidence of the personnel specialist will be affected negatively. Another reason of lack confidence is when the HR staff is being more

employee focused by giving great attention to the employee relations and how to address employee issues rather than being business focused and

working across all the functions of both HR and the business as a whole. (businessfinancemag.com) by Joanne Sammer -identity: The personal activities of

HR have not change but we notice that only the name is changed from personal to HRM- direction: HRM department directed to be involved in strategic

policy making but in implementation it doesnt.

According to Mabey & Lawton (1998) there are other three challenges the HR specialists face when developing HR strategy:- The challenge of managing

intangible assets. This means the ability to access scarce skills and to cope with the implications of new forms of organizations- The challenge of managing

strategic change, including trends towards flexibility in organisations and in job design, the breakup of bureaucracies and of traditional structures of

employment. These changes create major challenges for working attitudes and relationships and require a sustained and holistic approach to people

management- The challenge of innovation in terms of what organisations produce by way of goods and services, and the way they approach the task.

Development, innovation and creativity become core intangible assets, a focus for managing people strategically. In other words, bringing the design tasks

of innovation together with a focus on innovatory behavior.

According to the case study (Yes, Personnel does make a Difference) by David Guest and Kim Hoque, (People Management, November 1999)The

problems faced by personnel specialists include the cultural or soft issues:- direct influences in policy outcomes - status of personnel role on the Board

of Directors- responsibilities/authority - business expansion/pro action.

The ways to respond to these challenges: According to Torrington (1998) concludes that the prospects for the strategic development of HR functions arethreefold:- First, to avoid being reactive the HR should create different solutions to the HR implications of change- Management should not devolve entire

responsibility for HR policy to line managers. This dilutes effective people management across the organization. (Direction)- HR personnel must focus on

the process of how people are employed, deployed, empowered and motivated, because preoccupation with organisational employment systems focuses

exclusively on performance. (Identity)

According to Guest, in order to deal with those challenges the company should perform HR polices that reflect new divisions of labor that helps in keeping

the firms organized by determining where each employee will work, and dividing the responsibilities and task that should be done by each employee to

achieve the org goals. Also, create polices that balance the employee commitment to work, non work activities and perhaps multiple organizations. Also,

Offer differing levels of commitment and flexible policies to fit these differing employee expectations and offer contractual flexibility.

Trends in the management of HR functions that address some of the historical criticisms of HR departments:- Auditing performance: The objective of

auditing HR function is to ensure that the investment in personnel and training can be justified in business terms. It is therefore based on cost

effectiveness, contribution, service and the way best practice is followed. Starting with the trends in management of HR functions the auditing

performance can consider the strengths based approach to benchmark the effectiveness and the cost efficiency in particular areas of the organization. Is it

necessary in every stage/ process or working package to introduce the strengths based approach? Can areas/jobs be identified where skills only are

required? Where needs to be a strengths focus, thinking in terms of budgets? Lastly the additional value can be measured, ceteris paribus; then report

implications to reform HR strategy over again. The advantages of audits are: Legitimacy and credibility / Value for money / Effectiveness of service

delivery / Relevance of service delivery / Basis for adopting service focus.Devolution: The objective of devolution is to ensure a more business led

personnel response to employment issues. It involves the reallocation of personnel activities from specialists either: To line managers / To other

specialists, such as the financial controller or company secretary / To other locations away from the main headquarters of the organisation. Devolution of

any of these activities can be a function of either a decision making authority or the day to day management of activities, or both. Hall & Torrington(1998)

suggest that devolution of the following activities is most prevalent: Work organisation / Training / Recruitment and selection / Appraisal / Employee

relations. However, there are no simple and straightforward criteria to guide devolution of activities. Organisations do not necessarily devolve the same

policies or indeed to the same degree within the policy areas. However, some activities are more or less likely to be devolved. HR departments frequently

retain strategic areas of the HR function such as policymaking, pay review processes and the design of appraisal schemes. It may also retain operational

areas such as the monitoring of performance, provision of advice about disciplinary cases and the coordination of training. Activities that are likely to be

devolved are the interview process, disciplinary interviews, job needs analyses and the negotiation of overtime and other work practices.The benefits ofdevolution that you may have suggested include:-Enhanced ownership/importance of people issues- Better working relationships between managers and

employees -Empowerment for manager- Responsive decision making in other departments- Higher operational problem solving skills- Flexibility- Better
http://businessfinancemag.com/author/joanne-sammer-0130http://businessfinancemag.com/author/joanne-sammer-0130


4/24

working relationships between personnel and line managers- HR is freed up for a diagnostic and evaluative role. The disadvantages might include:- Loss of

integration of policies- Dilution of the strategic content of HR- Loss of professionalism and commitment to HR issues.Decentralisation of HR function:

Generally, organisations tend to centralise activities to achieve greater control of processes and costs, whereas decentralised activities are thought to

allow companies to become more flexible, to speed up decision making and to become closer to their customer base. A large organisation with a single

product will tend towards greater centralisation while multiple products and/or markets will require decentralisation. There are implications too for the

management of people. Centralised structures tend to emphasise the development of specialist skills and knowledge. Decentralised structures lend

themselves well to developing flexible management and employee skills and cross-functional working. Hall & Torrington (1998) outline three different

forms of decentralisation to illustrate the main issues of influence on HR decisions:- Type A may have either a HR unit reporting directly to a head of

department or one reporting indirectly to a central head of HR- Type B is the reverse of type A. It may have either a HR unit reporting directly to a central

head of HR or one reporting indirectly to a head of department-Type C has only a HR unit reporting directly to a central head of HR.DISADVANTAGES OF

DECENTRALISATION: services become fragmented and unintegrated, subject to short-term response, rather than longer-term development of

organisation-wide competitiveness. Outsourcing: As with many business functions, outsourcing has become an important method of achieving flexibility

and reducing costs. The arguments for outsourcing HR services can be summarised as follows:- Outside organisations can afford to retain a greater level of

specialist knowledge that can be called upon when needed. - HR activities are not core skills and therefore can be more easily bought in without loss of

competitiveness or risk to business performance. The business of the business is not HR management. - Professional skills have a greater impact when

brought in. Outside consultants have a better change impact rather than insiders. However, like devolution we must be careful to look at what is being

outsourced. Core activities such as maintaining employee records, operating grievance and discipline procedures, collective bargaining, recruitment,

training, reward and so on have not been outsourced. These are seen as central functions, which are either dependent on internal relationships being

established or are areas that are confidential or legally sensitive, centrality ensures internal accountability. Outsourcing is a critical step for the

organisation that has longer term implications for the knowledge and commitment of one of its key functions. Any decision to do so would need to be

based on a careful evaluation of costs, quality of service and impact on the longer term adaptability and flexibility of the organisation. This decision willhave significant implications for the reaction and cooperation of line managers and other staff. In short, it is a matter of confidence, identification and trust

in a key aspect of the business.Example:According to Fowler, 1997 in his case study how to outsource personnel outsource HR departments has many

advantages: cost effectiveness, higher level of specialisation and new ideas. Yet, it has some problems such as: cultural issues, and hard to trust

outsourced parties when you sharing your organisation knowledge and competencies.

ROLES OF HR FUNCTION: Torrington (1996) defines four roles for HR based on metaphors of:- Strategic practitioner, aligning business and HR strategy-

Administrative expert, building an efficient infrastructure in which organizational processes can operate- Employee champion, increasing employee

commitment and capability and providing for the employee voice- Change agent, managing transformation and ensuring capacity for change.

Ulrich (1997) displays in the following model the interrelationships between different strategic aspects of the roles of an HR department.- Strategic

PartnerThe strategic role focuses on aligning HR strategies and practices with business strategies. The LMs acts as a strategic partner in ensuring the

success of the business strategies. By fulfilling this role, a LM increases the ability of a business to implement its strategies. Strategic HR is owned,

directed, and used by LMs to make effective HR strategies happen Choi and Wan Ismail (2008)-Administrative ExpertCreating an organizational

infrastructure has been a traditional HR role. The second role, the administrative expert or functional expert is constructed around the task of ensuringthat traditional HR processes such as staffing and training are carried out efficiently and effectively. Ulrich (1997) further explained that an administrative

expert ferret out unnecessary costs, improve efficiency and constantly find new ways to do things better- Employee Champion Ulrich (1997) described

employee contribution role for HR champions are those encompassing their involvement in the day-to-day problem, concerns, and needs of employees.

The metaphor for this HR role is employee champion. These champions personally spend time with employees, train and encourage managers in the

other departments to do the same. Later, Ulrich and Brockbank (2005) has revised these roles and split this role into two, which are employee advocate

and HR developer. Employee advocate role focuses on the needs of todays employees through listening, understanding, and emphasizing. On the other

hand, a human capital developer role centred on managing and developing human capital (individuals and teams), and focuses on preparing employee to

be successful in the future.- Change AgentThe fourth HR role is based on a strategic focus on people and aims at managing transformation and change

faced by companies. The role of change agent subsequently directs focus to the requirement of ensuring that the organisation has the competence to

handle change by assisting employees in their attempts to embrace and execute change (Ulrich, 1997). Change agents are accountable for the deliverance

of organisational transformation and culture change, and this role, in turn creates value by ensuring that the whole organisation is able to change

according to the circumstances by building the capability to change into its core competences Lemmergaard (2008).

Evaluation of HR functions: Developing people, bringing out talent, supporting the organizational strategy, and being corrective in situations where there

are deficiencies are the functions of HR. The key areas for evaluation are:1. HR Policy Formulation: Includes strategic policy and how well it supports

organisationalstrategy and goals, and development of core competencies,culture change, etc. How well does policy support devolution offunctions

where appropriate (e.g. education and training,recruitment)? How well do the enabling policies (to developskills, career management, rewards,

recognition) work? 2. Planning: How effective is HR planning, recruitment planning, careerplanning, succession and workforce planning? How well is

workforce diversity, job design, organisational structure andchange planned? 3. Development: How effective is foundation and induction training,

professionaldevelopment, leadership and management training, careerdevelopment, mentoring, staff assignments and movement?4. Staff relations:

Areas for assessment include management of industrialrelations/employee relations, enterprise bargaining, grievanceresolution, communication,

promotion of teamwork.5. Performance: Is there a business code of conduct (covering ethics) and howwell is it adhered to? How effective is induction,

how isperformance managed, how are staff supervised, how effective isthe appraisal programme? Are rewards and recognitionprogrammes effective in

enhancing performance?6. Staffing Practices: How effective is appointment and selection? How competitive isremuneration (and does it attract staff of

the right calibre tosupport organisational aims)? How effective is delegation? Howeffective and fair is the job classification system, work levelstandards?

How flexible is the work environment and is it inkeeping with technological developments? How equitable arestaffing practices in promotion, rewards,

separation?7. Health and Safety: What level of training is there for occupational health and safety? How do you rate the work environment and culture?How is staff with disabilities and long-term illnesses supported? How well are injuries handled?


5/24

Unite 3: HR Planning: Planning the right man for right job and developing him into effective team member is an important function of every manager. It is

because HR is an important corporate asset and performance of organizations depends upon the way it is put in use. HRP is a deliberate strategy for

acquisition, improvement and preservation of enterprises human resources. It is a managerial function aimed at coordinating the requirements, for and

availability of different types of employees. This involves ensuring that the organization has enough of right kind of people at right time and also adjusting

the requirements to the available supply. HRP is a forward looking function and an organizational tool to identify skill and competency gaps and

subsequently develop plans for development of deficient skills and competencies in human resources to remain competitive. Human resource planning is a

decision making process that combines three important activities: - Identifying and acquiring the right number of people with the proper skills- Motivating

them to achieve high performance, andCreating interactive links between business objectives and resource planning activities.The basic goal of human

resource planning, then, is to predict the future and, based on these predictions, implement programs to avoid anticipated problems. Very briefly humans

resource planning is the process of examining an organizations or individuals future human resource needs (for instance, what types of skills will be

needed for jobs of the future) compared to future human resource capabilities (such as the types of skills employees or you already have) and developing

human resource policies and practices to address potential problems for example, implementing training programs to avoid skill deficiencies. Human

resources planning based on HR guiding principles ensures a well-structured component that synchronizes organizational philosophy and human

resources strategy: Stressing HR Importance: One of the beginning principles of HR planning stresses the importance of human resources. Engaging

leadership that understands the impact of a functional human resources department is the best way to adhere to this principle. The Encyclopedia for

Business, 2nd Edition, states: "Business consultants note that modern human resource management is guided by several overriding principles. Perhaps the

paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful

without effectively managing this resource." One way to realize the importance of HR is to envision an organization with neither a productive workforce

nor the type of support that human resources planning and management provides- Integrating Human Resources: Human resources serves the needs of

the organization, top to bottom, including every member of its workforce. Therefore, integration of human resources functions with overall organizational

goals is an HR principle that cannot be overlooked. The importance of integrating HR and company objectives builds on the previously mentionedprinciple: stressing the importance of human resources. Human resources activities that are merely an extension of management are signs of poor

planning and failure to embrace forward-thinking ideas that improve the company's profitability. An "Entrepreneur" magazine article appropriately titled,

"Integrating the Human Resource Function with the Business" reinforces this proposition when it states: "It is not enough for the human resource function

to be responsive to management, "customer-oriented," or even aligned as partners with management." That said, a holistic approach to the integration

principle of human resources planning ensures human resources will be fully committed to and a part of organizational goals- Processing HR: Human

resources information technology (HRIT) contributes greatly to the functionality and accuracy of human resources activities. Many organizations purchase

sophisticated human resources information systems (HRIS) that minimize, or even eliminate, human error in processing employment data. Smaller

organizations sometimes rely on outsourcing their HRIS needs for managing processes such as recruitment, payroll and compensation. Technology

supports an important principle of human resources planning -- human resources data processing in the most efficient and accurate way possible.-

Centralizing HR Functions: Tying together the principles of human resources planning requires centralizing the HR functions. Systematic processes and

organization adds a component to HR that employees will appreciate. A one-stop shop for meeting the needs of the employer and employees unifies

human resources activities and adds value to department functionality. Centralization involves the decision-making, staffing and organizing of HR

functions; however, it also addresses the need for physical resources such as an applicant processing area, private conference and interviewing space, and

storage for employment and medical-related files. Human planning stages: 1. Reconciling future resourcing needs with future HR plans.2. Considering and

applying HR policy so as to have an impact upon the flows of human resources in an integrated way. This includes the pattern of engagement of staff and

their movement through the organisation and the stages of exit.3. Assessing the effectiveness of the HR policies in accessing, creating and using human

resource capability. The stages of HR planning process: 1. Investigation and analysis: The organisation must gather knowledge about:The external

environment and labour market, looking at for example, national training plans and the location of markets- The internal environment and labour market:

the age and gender balance of the workforce, the number of employees, wastage rates and so on- The organisations systems, resources, culture, practices

and industrial relations- Commercial performance requirements such as sales targets, product mix, market segments and profits.2. Determination of

demand: Demand forecast is the process of estimating the future quantity and quality of people required. The basis of the forecast must be the annual

budget and long term corporate plan, translated into activity levels for each function and department. Demand forecasting must consider several factors

both external as well as internal. The external factors are competition, economic climate, laws and regulatory bodies, changes in technology and social

factors. Internal factors include budget constraints, production levels, new products and services, organizational structure and employee separations.3.

Determination of supply: Supply forecasting measures the number of people likely to be available from withinand outside an organization, after making

allowance for absenteeism, internalmovements and promotions, wastage and changes in hours and other conditions ofwork4. Decision-making: The

organisation must then make plans to balance supply and demand of skills. The influences will include skill levels, development and the cost effectivenessof accessing a wider skill base. The areas in which decisions will be taken include: - recruitment - retirement and redundancy - selection and assessment

outsourcing - promotion and reward - development and retraining - organisation development and culture - the type of employment contracts -

performance management - employee relations. Professionalism in HR Planning is vital for organisational success. The first aspect of professionalism is

understanding the customer requirements and providing customer satisfaction.Professionalism is integrated with HR planning stages and requires that HR

practices be fair, open and transparent. Today, there is a legal obligation for organisations to ensure equality in the areas of race, disability, age, sexuality,

gender and religion. Professionalism in this area requires the adoption of formalism in capturing customer requirements and selection criteria, and

checking adherence against the agreed criteria. This applies to all aspects of HR practices including recruitment, selection, promotion, and separation.

Professionalism is also enhanced by engendering, within the organisation as a whole, a culture of equality and respect. One way to promote this is to

ensure workforce diversity training is provided to all levels of staff.

Competencies: This paper examines competencies and competency use in competency-based human resource management (CBHRM). Considerable

confusion has arisen with respect to the use of competencies in both the private and public sectors. Several researchers (Antonacopoulou & Fitzgerald,

1997; Austin et al., 1996; Lado & Wilson, 1994) have expressed concern about the lack of clarity with respect to specific competency issues. What follows

is a discussion of these issues and an exploration and clarification of their respective roles in the strategic management of human resources in the publicsector. CBHRM identifies and assesses different competencies that make up an individual's overall competence and matches them with required job


6/24

and/or organization competencies Knowing which competencies are required as compared to which competencies are available to an organization can

help inform and direct HRM interventions related to compensation, recruitment, promotion, training, and organizational culture. Competency-Based

HRM Advantages, CBHRM models can:- directly link individual competencies to organizational strategies and goals- develop competencies profiles for

specific positions or roles, matching the correct individuals to task sets and responsibilities- enable continual monitoring and improvement of competency

profiles- facilitate employee selection, evaluation, training, and development- assist employers in hiring individuals with rare or unique competencies that

are difficult and costly to develop- assist organizations in ranking competencies for compensation and performance. Therefore, any investment an

organization makes in competency model development work has benefits beyond the usefulness of the results for HRD purposes.'' outcomes.

Competency-based HRM Disadvantages: However, less valid and reliable competency-based HRM models can result in negative outcomes. For example,

they can:- develop less meaningful competencies in organizations without clear visions of their goals or strategies- be quite expensive and time-consuming

to administer- reduce core organizational competencies understanding as a result of poor employee buy-in- preserve the organizational status quo and in

adequately address soft, integrative and/or innovative competencies such as intercultural or cross-cultural competency- add nothing in organizations that

have difficulty in differentiating between successful and unsuccessful performance and when the competencies are too ''generic"Conclusion:

Competencies and competency-based human resources management (CBHRM) are in common practice in many organisations. To survive in a turbulent

and dynamic business environment organisations have to adopt competency based human resource management practices, which are vital to productivity

and performance excellence. Human Resource Management in the organisation have to give keen importance to these process since competency

determine the organisation effort to compete with quality and quality. Employees in the organisation are more concerned about their advancement in

their career. In addition to the competency consideration career also to be considered by the Human Resource managers in the individual planning level.

Career-based and competency-based approaches of Human Resource Management have productive result in the productivity and business surplus in

many organisations. Human Resource Managers have to look more in the area of CCHRM (Career Competency Based HRM) effort as a panacea to

productivity and quality assurance in the wake of acute business competition.

Introduction; Organisations in the modern days are undergoing heavy transformation in the wake of industrialization and

globalization. Here, Human Resource Management practices are getting wider acceptance in the developmental and

transformational process. Organisation management is giving more push in understanding and developing the competency

of employees and make use the tool competency mapping, for the improvement of productivity and in maintaining a

positive work culture. This application of the competence approach covers the operational areas of human resource

management in the organization viz., selection, remuneration, vocational training, evaluation and promotion. The

competency mapping works at the enterprise level than outside realm. The objective behind this effort is to identify the

best, better and good and average effort on the part of the individual workers and support the best effort, encourage the

better effort, empower the good effort and train the average effort of the workers towards the best performance.

Competency-based methodology was pioneered by Hay-McBer company founder David McClelland, a Harvard University

psychologist in the late 1960's and early 1970's (Czarnecki, 1995). Competence and Competency: The word competence is

having several meanings. Some consider competence as job based while some others consider it as individual based. Dubois(1993), a leading expert in the applied competency field, defines competence as "the employee's capacity to meet (or

exceed) a job's requirements by producing the job outputs at an expected level of quality within the constraints of the

organization's internal and external environments." Boyatzis (1982), competency as "an underlying characteristic of the

person" which could be "a motive, trait, skill, aspect of one's self-image or social role, or a body of knowledge which he or

she uses". Person based competencies" includes further Self-Confidence, Creativity, and Cognitive Capacity competencies

etc. While some other authors strongly argued that competence is related to the job and area of expertise. These

conflicting arguments are still continuing. While this author likes to indicate that there is no right answer to the question -

what is a competency? What is important is that organizations adopt a definition that makes sense, meets its needs, and is

used consistently in HR operations and applications. Competencies are general descriptions of the abilities necessary to

perform successfully in areas specified. Competency profiles create skills, knowledge, attributes and values, and express

performance requirements in behavioral terms...The review of competency profiles helps managers and employees to

continually reassess the skills and knowledge needed for effective performance. Competencies dominantly compared as

general description of the abilities that are necessary to perform a task effectively. Competency lies on the many factors in

the work performance. It may relate to the routine works, non-routine works, team efforts, control, coordinating and

guiding workers, allocation of resources, analysis, diagnosis, design, planning, execution and evaluation. Competency is"a

cluster of related knowledge, attitudes, skills and other personal characteristics that Affects a major part of one's job,

Correlates with performance on the job, Can be measured against well-accepted standards, Can be improved via training

and development" (Source: Scott Parry 1998, Project Management Competency Development Framework, PMI). A

competency is what a successful employee must be able to do to accomplish desired results on a job. Competencies are

built up over time and are not innate. It typically takes experience on the job to build competencies. Knowledge, Skills and

Abilities (KSAs), by contrast, might be brought into the job by entry-level employees. Competence Levels: Different

activities required different competency levels in the discharge of responsibilities and duties associated with the functions.

Many competencies like behavioral competency, Knowledge competency, motivational competency, language

(communication), value competency etc are required for effective performance. The behavioral competency involves

member's attitude and feeling towards the work and work performance that results in good or poor performance. The


7/24

behavioral competency is closely related to motivational competency. How an individual worker thinks about the work

organisation and work performance. The knowledge competency involves the awareness; knowledge and expertise related

to the job, technology and procedures related to work. The language competency is related to individual workers ability to

understand and communicate the things precisely in a two way process. Competency Mapping: A competency is something

that describes what, where, how and when a job to be done as per the requirement of the organisational objectives.

Competency mapping is a process of identifying key competencies for a particular position in an organisation, and then

using it for job-evaluation, recruitment, training and development, performance management, succession planning, etc.

Competency mapping process is designed to consistently measure and assess individual and group performance to

accomplish the objectives of the organization and it further help to fulfill the expectations of customers. It is used to

identify key attributes (knowledge, skills, and behavior attributes) that are required to perform effectively in a job

classification or an identified process. Competency mapping involves two sets of activities. One is related to the work

activities and work process and the other is related to the individual and group performance. It is about identifying

preferred behaviors and personal skills, which distinguish excellent and outstanding performance from the average. Steps

in Competency Mapping: Understanding the core competencies that required for the organisation is the initial steps in the

competency mapping. Many competencies are required for the organisation in the effective performance of various

functions. While certain competencies like, decision-making skill, communication skills, problem solving skills, team-building

skills etc are included under core competency areas. These skills are essential in all the functional areas of management.

Methods like brainstorming and participative focus group discussions etc can realize the core competencies required for the

managers. After the identification of the core competencies the next step is to relate these competencies with various

functions in business management. Since the core competencies varied in marketing, finance, purchase, operations

management, production etc, the competencies required to perform different connections also varied. For this effort the

position and responsibilities of each functional person need to be assessed into. A job analysis is to be done in the initial

stages. By understanding the core responsibilities and core competencies, the job description viz., written document of the

functional responsibilities, to be prepared in relation to different positions and departments. The job description and the

cop potencies identified are the base upon which the training and development programmes, mentoring programmes and

coaching to be extended to the members by the superiors in the organisation. The Human Resource management needs to

prepare a plan of action for each individual member considering the actual competency and the expected competency. This

process creates awareness in the individual about his behavioural traits in detail, and helps him chalk out an individual

development plan. By forecasting the expected performance the impact analysis of the process can be done. The

competency mapping process also has to make provision of career development. The core competencies that required toperform higher responsible jobs also to be identified and members should expose to such requirements. Example: Apple

Core Competencies: Company executives wanted employees to be highly focused on a few key competencies: for example,

user friendly interfaces, powerful software architectures, and effective distribution systems. However, senior executives

recognized that measuring performance along these competency dimensions could be difficult. As a result, the company is

currently experimenting with obtaining quantitative measures of these hard-to measure competencies. Use of Competency

Mapping: Competency mapping can play a significant role in: Recruitment and selection-Performance management-

Training and Development- Succession planning- Job enrichment and job enlargement- Organizational development

analysis, Exampleof making performance management Competency Based: According to Dubois D. D., Rothwell W. J the

organization's leaders need to be willing to support change in this area of critical importance to organizational

performance. It requires a major change in their thinking about performance management. They must commit resources to

the systematic assessment of employees' competencies, plan and make available job-specific training opportunities and

coaching, set performance goals and develop work plans, monitor performance, collaborate with employees on a plannedschedule regarding their performance, and deliver both good and bad news about performance in an open and supportive

manner. They must also create and implement an ongoing communication strategy for keeping all employees informed

about the features, processes, and benefits of the competency-based system.First ExampleA Model for Competency-Based

Performance ManagementNext, we take a look a competency-based approach to performance management, using the steps to guide the

discussion.Step 1: Define the work and the competencies required to perform it The first step in competency-based performance

management is to define the employees' work by means of effective work analysis. In most cases, this includes naming the specific outputs

or results that employees are expected to produce. These outputs or results must align with the organization's strategic goals or objectives,

and the relationship must be made very clear to the operating manager and the employee. If the work is not considered strategic

meaning that the outputs or results do not contribute directly and overtly to the organization's successthen there is little justification for

completing it, and it should be eliminated from the employee's list of required tasks . After this process of elimination is completed, the

work that remains is therefore strategic to the organization's success. Employees who are performing unnecessary tasks can be reassigned

to activities that are meaningful both to them and to the organization. Process improvement alone is a significant reason for undertaking

work analysis. Also key to our approach to performance management is the identification of the competencies employees must have and

use in appropriate ways to produce the expected measurable outputs or results.Steps 2 and 3: Identify the employees to do the work and
http://flylib.com/search/en/authors/dubois+d+d/http://flylib.com/search/en/authors/rothwell+w+j/http://flylib.com/search/en/authors/rothwell+w+j/http://flylib.com/search/en/authors/dubois+d+d/


8/24

assess employee competencies Next, employees are identified to perform the work, generally using selection methods . The degree to

which they possess and can consistently demonstrate the key competencies required for successful performance is determined through

the application of competency assessment methods.Step 4: Identify and document competency gaps Competency gaps for which

development is needed are identified and documented.Step 5: Prioritize employee development needs priorities for developing employee

competencies are determined, and a plan for developing the competencies is prepared.Step 6: Establish work goals, plans, and standards

with the employees After reviewing the plans, operating managers and employees establish goals, plans, and standards to which both

parties agree. Standards set a minimum expectation for measurable results. Goals establish desirable targets.Step 7: Implement

competency development activities Employees begin training or engaging in other learning activities to acquire or build the competencies

identified in Step 1 and work toward accomplishing work goals or objectives.Step 8: Monitor performance As employees continue to

accomplish their work goals or objectives over the performance period, operating managers monitor their performance and provide

feedback. Work goals and plans are formally reviewed according to schedule and are modified as warranted. To be most effective, these

reviews should include discussion of how employees use their competencies to achieve the expected work results as agreed in Step 6. This

approach to performance management builds and enhances the organization's competency bench strengthits competency pool. The

competency development plan may be modified as necessary.Step 9: Conduct performance reviews Competency-based performance

management utilizes both temporary reviews and performance period reviews. Planned temporary reviews enable both employees and

managers to address issues that could affect successful performance. This type of review can be an advantage for employees, providing

scheduled opportunities to inform managers of roadblocks to performance that could affect their ability to produce the expected outputs

or results. Use of interim reviews eliminates surprises for employees and their organizations. When the performance period ends,

managers and employees meet to review employee performance over the entire period and complete a performance appraisal.

The Advantages and Challenges of Competency-Based Performance ManagementThe benefits of applying a competency-based approach to performance management can bedramatic. The process encourages frank and no adversarial communication between employees and their managers. It is not unusual for employees to express their concerns

in performing work that is not aligned with their competency strengths or interests. And it is not only the less productive employees but often excellent performers as well

who will express these concerns. It a lso gives employees the opportunity to convey their interests and satisfaction in performing work that is aligned with their competencies.

In a competency-based approach, employees' work results are al igned with achievement of the organization's strategic objectives, and the contributions of the results are

identified in specific, and usually measurable, terms. Work that is identified as nonstrategic and can be eliminated allows available resources to be used in other, more

productive ways. The approach affords the opportunity to identify and develop needed competencies. In turn , competency assessment results provide training needs

assessment data that can be used to plan and deliver employees' training in a targeted manner. It also gives employees information that is essential for their life and career

development and provides them with opportunities to plan to meet their needs Outputs or results expectations and metrics for employees are clarified at the outset of the

performance period in a competency-based approach. In addition, the approach is an incentive and retention tool especially for exemplary or high performers as they value

the recognition and rewards that such a system could bring to their work situation. They appreciate knowing what is expected of them because they can then create ways to

exceed performance expectations. In summary, a competency-based performance management approach establishes a work environment in which the roles, relationships,

and responsibilities of both managers and employees are well defined and clearly stated. This straightforward and mutually understood system builds trust as it ensures

accountability and improves performance. The decision to adopt a competency-based performance management system does present challenges, however. The

organization's senior managers must provide strong, long-term support for the project and act as role models for the process. Required resources need to be available over

the long term . Managers will face increased workloads as a competency-based approach requires them to provide employees with additional and more effective feedback aswell as accept responsibilities for addressing performance obstacles. There must also be a strong alignment between the organization's strategic direction and the benefits

and costs of adopting this system. Managers need to accept responsibility to problem solve. And the organization must be willing to commit project resources to

communicating the competency-based approach to all employees, even if the system is planned for only a small segment of the organization. Employees are likely to be

curious about a system that will affect their performance and work lives. Managers must be trained on their roles and responsibilities as well as how to use the system to

carry them out. Competency-based training should be consistent with the corporate culture, which means that vendor training is not always appropriate for designing and

developing an organization's competency-based performance management system. The organization should be prepared to design, develop, and deliver the necessary

training for its own competency-based performance management system.http://flylib.com/books/en/2.309.1.57/1/

Unite 4: Introduction: The main features of the performance management systems will be outlined. Therefore the main order of PMS will be delineated and then servedwith specific features in the same chronological order. The two different approachespeople based approach and process based approach- are outlined first, because the

strategic choice of one of them will make the reader seeing it from a different perspective. Performance based hiring is a new tool of PMS and is additionally outlined in the

appendix 2. The reader needs to have basic HR knowledge to fully understand the topic. Definition Performance Management: The objective target of performance

management is a systematically, multidimensional performance-measure, -navigation andcontrol; additionally the pursuit of different performance areas (e.g. employees,

teams, departments and processes) with the target of continuous improvement of the performance of individuals and the organization. In the performance management

learning effects and employee motivation must be established and maintained. Performance management systems have various features to achieve the objective targets. Themain features however are:1. Objective setting 2. Ongoing review of objectives3. The development of personal improvement plans linked to training and development4.

Formal appraisal with feedback. 5. Pay review6. Competence-based organizational capability review. Comparing the process based and the people based approach In the

performance management there are two general different approaches to improve performance, the process approach and the people approach. The idea of the people

approach is that high performance will only be reached by focusing on the people. Which means having the right people for a particular job in the right quantity, trained right

in skills required, effectively led and motivated, then people automatically work right and effective. People will fulfil the job. The process approach has a predetermined set of

outcomes, which will be achieved by analysing the work required and then constructing the most efficient workflow of activities. The job evaluation is based on process

terms, which is an impersonal set of working activities. The job fulfils the people. Objective setting and measuring (referring to 1.) The setting of objective in PMS basically

asks three questions, secondly these objectives need to be measured and reviewed. The three questions are:What is the nature and scope of the performance management

objectives and measurements? How well-defined and linked are performance management objectives to corporate objectives? How are they linked into individual and

organisational capability resources? (Scrit pg. 191)Thereby there is the peoplefocus of main importance. The motivated staff will reach the objective more efficient, the

motivation from this point arises from hard factors, like reward money, development, job and career satisfaction and employment security. Possible performance objectives

are financial improvements, quality targets, and productivity targets, developing skills and getting good customer feedback. To achieve these objectives best PMS have three

core activities consisting of to develop competence (people need to have the abilities and capabilities to carry out the tasks), to meet the targets and to create an

appropriate corporate culture. A further fragmentation to meet these objectives is carried out by three other dimensions: Productivity/ output related

objectives, job related objectives and person-related objectives. The last two are interrelated to performance as well, because they tell how to achieve abetter performance, basically by good selection & delegation and rising motivation & communication. Balanced Score Card (BSC)what you get is what

you measure (referring to 2., 3.and 6.): Following Leopold, Harris and Watson the Balanced Score Card was established in 1992 by Robert S. Kaplan and
http://flylib.com/books/en/2.309.1.57/1/http://flylib.com/books/en/2.309.1.57/1/http://flylib.com/books/en/2.309.1.57/1/


9/24

David Norton, which is a concept to measure activities within an organization to achieve specified visions and strategies, to give managers a

comprehensive overview concerning performance and efficiency of a company. The new element does not only focus on the financial perspective,

furthermore on human aspects, which are the drivers of the results, so that the company can focus on long term interests. The BSC allows constant

reviews of objectives set. The BSC is a management system which consists of quantitative and measurable operating numbers, which describe the

performance of an organization out of four different perspectives. Each perspective of the BSC pursuits a particular vision and strategy. Furthermore each

BSC objective has a specified vision inherent. The BSC makes people performance measurable and controllable, further it is a tool to prove the value and

the abilities of employees and set targets from different dimensions. The vision could be: improve customer service = number of after-sales persons / total

number of employees; then benchmark with the strongest competitor. To improve quality we could measure = products sent back / total products sold.

Then a further division of that operational numbers into further operational numbers. Supplementary the BSC is a pluralistic tool which recognises that

various stakeholders of an organisation will have different ideas which measures are the important.The four perspectives of the BSC are: 1. the financial

2. customer 3. internal business and the 4. innovation and learning perspective. Team based structures (referring to 3.) Nowadays teams are considered

to be a key-performance factor concerning knowledge based working and innovation. Therefore, the trend is moving from an individual focus to a team

emphasis. The team emphasis has team performance related pay inherent to meet a better cooperational approach within teams; otherwise the team

consists of individuals each having its own (selfish) interests in a project. This new HR approach provides a more dynamic team which can be much more

independent to meet wider organizational objectives. Personal Development Plans (PDP) (referring to 3.) Referring to Leopold, Harris and Watson The

personal development plan (PDP) is a document and a process that encourages employees to carry out a systematic diagnosis of their requirements for

development, to screen these development requirements in a form that will encourage line managers and training specialists to provide the resources

and support needed to achieve them, a ongoing record comparing their learning targets against their achievements and provide others with a systemic

profile of their competencies and achievements. (Script pg. 198) Performance Appraisal Responsibility( reffering to 4) Performance appraisal is the

process the managers like to work on least, there could be many reasons for this, the major reasons for that is, lack of understanding of the importance of

appraisal process and training regarding the appraisal process which can bring in the managers interest in the appraisal process and there can be lack ofsupport in the field of training and development programme also managers need support in implementing the appraisal process. But this can be changed

by the support of Human resource manager to support the implementation of the process, they should train the managers so that they can conduct the

successful appraisal process there has to be review by the HR for the format used in the appraisal so that managers can get the best output, HR managers

can also assist the managers in developing the individual development planning and program. 360 Degree Feedback System in Performance Appraisal:

Managers should update their employees about the feedback regarding their work done in the organization weather it is previous task or the on-going

task, as it makes the employee feel valued in organization, make them understand that they are the integral part of the organization. The feedback process

will make employee learn new things about them self and other prospective of enhancing the skills, it will make employee know how their work is

perceived by others. This process will enhance the relationship between the employee and manager and improved communication and this will make the

more trust in between the manager and employee. This feedback process will make employee know where they are excelling and where they could

improve it will make them know what they should continue to do and what should they change. Employee need to have opportunities to develop their

skills and grow. The employee who learns new things and applying them in process is more likely to be retained and motivated. There are so many reasons

for companies to use a 360 degree feedback system, this system is very accurate as the ratings from different perspectives provide a more complete

picture of the eligible employees capabilities than just one perspective, this process has richer understanding of the performance of the contestants as it

provides them to gain valuable insight on how they have performed and it is perceived across different departments. This process is easy and fast to

implement in a cost effective way. Advantages of the 360 degree system:1) It provides the more comprehensive view of employee performance than the

other methods.2) It increases the credibility of the appraisal process as it includes feedback from different departments.3) The feedback from other

process can help to enhance the staffs development.4) They can directly report their problems to their managers rather than going through the normal

process. Disadvantages of 360 degree system:1) This process is very time consuming and more complex on administration.2) It may create the

environment of suspicion among the employees as the process involves different department in the process.3) Lack of confidentiality as sometimes this

process is outsourced to different outside companies and there is always a threat of disclosing sensitive information. Top-down schemes: The most

traditional form of appraisal, this emphasizes bothsubordinate feedback and the lead on objective setting coming from the top. The problems often cited

with this form are:It stresses traditional organizational hierarchies-There may be a lack of impartiality, and favoritism- There can be a lack of full

knowledge of the employee in flatter structure. Self-appraisal: If employees understand their objectives and the criteria used for evaluation, they are in a

good position to appraise their own performance. Many people know what they do well on the job and what they need to improve. If they have the

opportunity, they will criticize their own performance objectively and take action to improve it. Paul Falcone, vice-president of HR at Nickelodeon, said,

The fascinating thing is that employees are usually tougher on themselves than you will ever be.18 Also, because emp loyee development is self-

development, employees who appraise their own performance may become more highly motivated. Self-appraisal provides employees with a means ofkeeping the supervisor informed about everything the worker has done during the appraisal period.19 Even if a self-appraisal is not a part of the system,

the employee should at least provide the manager a list of his or her most important accomplishments and contributions over the appraisal period. This

will prevent the manager from being blindsided when the employee complains, perhaps justifiably, You didnt even mention the Bandy contract I landed

last December! As a complement to other approaches, self-appraisal has great appeal to managers who are primarily concerned with employee

participation and development. For compensation purposes, however, its value is considerably less. Some individuals are masters at attributing good

performance to their own efforts and poor performance to someone elses. Upward appraisal: it has been increasingly used to reflect the growing trend

for organizations to recognize that they have a duty to provideeffective working systems for employees. In upward appraisal, in a modest way, employees

are invited to provide managers with a rating on such dimensions as effective communication, involvement in decision-making, clarity of objectives and

goals, and so on. Often this rating is completed anonymously although more recent trends show managers conducting this process in staff focus groups as

a basis for getting feedback on a range of management issues that impact upon staff. Peer appraisal: involves members of teams evaluating each other.

One of the arguments for this type of system is the pressure to treat internal working relationships as internal customer relationships using similar

feedback systems to external customer feedback techniques. this method of feedback can often be further developed into full service level agreements. It

is however complex to run in order to get the multiple channels working and assimilated. There are also sensitivities involved and careful development of

staff is required in using such schemes. Multi-directional appraisal: Also called 360-degree appraisal, there are key similarities here with peer appraisal.

However, the key difference is that multidirectional appraisal deliberately sets out to collect data from outside the immediate team and often from


10/24

external customer feedback. Its key advantage is to overcome the criticisms of impracticalities and lack of knowledge of a single appraiser. As we have

seen, it can be complex and, of course, it does expose staff to potentially hostile views, which may be outside of their total control. The term 360-degree

appraisal refers to the various sources of data: boss, peers, customers and reporting staff, in order to achieve a more comprehensive understanding of the

performance relationships. Pay Review: The annual pay review gives employees the chance to increase their income. Thereby, outcomes and job-

fulfilment play a major role. Does the employee perform better than expected or in comparison to others at same the stage his or her income can increase

by a certain percentage. The annual pay review is another tool of hard skill performance based motivation.

rformance management is an ongoing process: It is not just a set of forms, an annual ritual or check box process to meet corporate reporting

quirements; and, it is not just the system that feeds into an employee recognition or bonus scheme. It is about everyday actions that employees need to

play to improve performance. To be effective it must dynamic and operate in real-time, allowing employees to continually adjust and improve their

rformance, as required.

be effective, the performance management process must be firmly linked to and rooted in the organizations core strategy and business goals. Strategy

volves the formulation of the organizations mission, goals, objectives and action plans for achievement. Every employee must share in this. The key is to

arly articulate each employees goals, objectives and competency requirements in a way that will facilitate the successful achievement of the

ganizations strategy. In performance management, strategic and business goals should be cascaded throughout the organization. Employees should be

le to see a direct link between what they must achieve and the organizations vision, strategy and goals. These should be reflected in each employees

rformance plan as well as in the competencies needed for success. To ensure that there is complete coverage of all of the important strategic elements,

ganizations often use performance frameworks for designing strategy. The one most commonly used is The Balanced Score Card in which Vision and

rategy for the organization is considered from 4 perspectives: Financial; Customers; Internal Business Processes; as well as, the Learning and Growth

eded to achieve the vision as well as to adapt and improve. Companies will build goals into their performance management system that are aligned withch quadrant of the balanced scorecard. For example, the IT department might have business goals related to supporting customers (Customers quadrant),

oviding results within budget (Financial), creating software solutions to support processes (Internal Business Process) and ensuring it has the talent to

eate innovative software solutions (Learning and Growth). These goals for the IT department would then be cascaded down to each group and individual

rformance plan. Looking more closely, competencies translate the strategic vision and goals for the organization into the actions or type of behavior

mployees must display for the organization to be successful. Competencies effectively form a bridge between how the employee needs to behave and the

ccess of the organization. It is sometimes hard for employees to relate their work and performance to the organizations overall success. Competencies

lp them see how their attention to quality or their concern for the customer contributes to the success of their organization. They in turn feel more valued

owing the importance of their role. This helps drive change in an organization - by reinforcing those key competencies people need to be successful in their

bs. No matter what type ofperformance management process is put in place, there are always three fundamental stages in the performance management

cle: -Planning: During this stage the manager and employee meet and agree on not only what the employee must accomplish and to what standard (e.g.,

es goals), but also the competencies needed (e.g., Customer Focus; Organization; Product Knowledge; etc.) to effectively accomplish the performance

jectives. To achieve optimal performance, it is also important to define what learning and development the employee may need to address any gaps in

mpetency. -Progress Review: Throughout the cycle, both the employee and manager track the employees performance and development. Both address

e question of whether there are improvements required; and if there are any barriers to effective performance that must be addressed in order for the

mployee to perform the work to the required standard. As necessary, the employees performance plan is adjusted to address any changing circumstances.

valuation: At the end of the review period, both manager and employee reflect on the employees accomplishments against the work goals and standards

at have been agreed to at the beginning of the cycle. They also consider what has been learned by the employee during the period that can be effectively

plied within the employees current role or beyond in future jobs. They come to an agreement on how well the employee performed during the cycle and

hat needs to be considered in terms of future work goals and standards to be achieved in the next cycle. A formal rating or evaluation of the employees

rformance may be conducted by the manager, particularly if key decisions affecting the employees employment, rewards or compensation must be made.

ow Competencies are Incorporated: Typically competencies are incorporated in the performance management process in order to provide a description of

e type and level of behavior the employee must display to achieve the key goals / objectives and standards. In other words, performance outcomes

present what must be accomplished and the competencies elaborate how they must be accomplished. Evaluation of the relationship and contribution

performance management systems with strategic human resource management principles: Therefore the evaluation will be drawn alongside the

atures of PMS outlined to give a specified answer. Furthermore the SHRM principles were manly already included in task one, but they will be partially

viewed to the essential extent to give a fair evaluation. Performance management systems (PMS) are part of the strategic human resource management.

RM serves the changed environment, which is global and moving faster then ever. Global competitors can imitate everything, with the exception of highlyotivated, high skilled and highly flexible staff, which are main principles of SHRM to achieve. The SHRM principles rely heavily on attempting to manage

d form corporate cultures. This in turn relies on attempts to align individual staff culture with individual culture. The range of issues included within PMS,

r example, reward, development and so on, and the style of delivery, such as involving or judging will influence this culture. (Script pg.186) One key driver

r SHRM is the fact that work is becoming more insecure, therefore the PDP as the feature of PMS ensures the development of people and thereby as the

ople sustainability within the organization. Furthermore PDP can be seen as an application assistance in the case of redundancy. Thirdly, it recognises the

mployees performance, which the employee will be proud of and therefore more motivated. PDPs can also be used for annual pay review, where the

mployee can achieve a higher income which pushes the motivation again. Lastly, this system improves the skills though out self-control and a individuality

cus is met as well. From this perspective the key concern of SHRM is solved via PMS.As a pluralistic system SHRM also recognizes the external environment

d its stake holders. The balanced score card responds to the external environment with operational numbers. Thereby customers are respected as well;

g. to improve the point of sales with investment in business equipment and give a better climate & working environment. However, the BSC has the

arning and growth perspective inherent, which is also the development of people for long-term sustainability.The measures of the BSC provide information

firms performance targets (Script pg. 14; 18 key practices) and it links the business strategy with the HR department (best fit view). The BSC however can

used vice versa as a hard controlling tool to improve short term profits and run down everything to the as much as necessary point, which would be the

tal opposite side of SHRM.One focus of SHRM is to develop people, make them responsive to changes and regular feedback on performance from manyurces (Script pg. 14; 18 key practices). The 360 appraisal does this by giving regular feedback on performance from various perspectives. The employee
http://www.hrsg.ca/i-skillsuite-performancehttp://www.hrsg.ca/i-skillsuite-performancehttp://www.hrsg.ca/i-skillsuite-performancehttp://www.hrsg.ca/i-skillsuite-performance


11/24

o gets to know fields he or her needs to improve. Fields where he or her is good at will motivate and possible recommendations show where to work on to

prove his or her development. On the other hand it can be said that the 360 appraisal pushes weaknesses which confront the strengths based approach

a new approach of SHRM. SHRM should have the presence of work-improvement teams and the presence of problem solving groups (Script pg. 14; 18

y practices). Team based structures approach of PMS makes teams stronger throughout a pluralistic view, to move away from the individual perspective.

e Teams will work more closely together and develop better communication channels within it. The last feature of PMS outlined in this assignment

rformance based hiring suits the aim of SHRM to attract best technical/ professional talent (Script Life cycle model pg. 8). PMS & SHRM: Definition:

rformance management is about directing and supporting employees to work as effectively and efficiently as possible in line with the needs of the

ganization (Williams 2002). Performance management helps organizations sustain or improve performance, promote greater consistency in performance

aluation, and provide high-quality feedback. Performance management helps organizations link evaluations to employee development and to a merit-

sed compensation plan. Moreover, it form a basis for coaching and counse

Summary of HR Mariam

Documents

Transcript of Summary of HR Mariam