Part A
Organisations in any part of the world consist of people, specifically called human resources, who have vital skills and abilities which are necessary in order for companies to continually exist and eventually develop. These employees, from the subordinate workers to the executive officers, have individual needs and aspirations which should always be considered and acted upon. Thus, human resources should not be perceived and treated as machines or mere business assets.
Moreover, corporate employees should be treated and valued as individuals who are able to contribute to the productivity and growth of the organisation they work for. For this to happen, corporations should put into practice processes and methods that would eliminate obstacles to organisations, such as deficiency of knowledge and information, inadequate training, and the like; hence the need for strategic and effective human resource management.
Many academics and practicing managers regard performance management as one of the most valuable human resource tools. It is a vital component in recruiting and hiring employees, where it is used to validate selection tests, and in staffing, where transfer, layoff, termination, or promotion decisions are made on the basis of management results. In compensation administration, performance management forms the basis for the administration of merit pay systems. Most important, performance management can be used as a motivational tool for communicating performance expectations to employees and providing them with feedback. Actually, performance management is indispensable in training and development activities to assess potential and identify training needs.
Actually, several authorities in HRM and Personnel Management stressed that there is no difference between human resources and personnel management. Some of them stated that the two provisos can be used interchangeably, with no disparity in sense. Indeed, these two terms are frequently used interchangeably in classified ads and job descriptions.
Although these two ideas can be used interchangeably, there is still a difference in terms of their philosophical nature. Basically, personnel management is more directorial in nature, observing with employment law, dealing with payroll, and managing related tasks. Human resources, on the other hand, is responsible for managing a labour force as their most important assets that contributes to organisational success.
From this idea, it can be stated that human resource management has a broader scope than personnel management since the former conforms to training, empowerment of personnel and enhancement of contribution to the organisation. In addition, human resources is said to add in and extend personnel management errands, while looking for to create and increase groups of workers for the gain of the organisation. A chief goal of human resources is to allow employees to do the job to utmost level of effectiveness.
On the other hand, personnel management can contain directorial responsibilities that are both conventional and routine. It can be illustrated as hasty, providing a reply to hassles and concerns as they are presented. In contradiction, human resources management involves continuing tactics to direct and build up an organisation’s labour force. It is practical, as it engages the incessant growth of roles and strategies for the principles of improving a company’s workers.
Performance management is an important process for influencing both the extrinsic and intrinsic motivations of employees, that is, increasing employees’ perceptions and understanding of job tasks and subsequently their job satisfaction. For example, elements of performance management may provide the employee with a more accurate understanding of job tasks (task identity and task significance) through objective setting, leading to a clear sense of direction. Performance management also serves to focus employee efforts and attention on critical tasks through the use of performance feedback, which therefore assists employees in reducing job errors and minimizing the risks of learning through trial and error. In addition, where employees desire jobs that allow them to make good use of their skills and talents, performance management increases job task “fit” (skill variety) through the identification of training and development needs that are consistent with individual and organizational goals.
Basically, HR professionals have been found to report that strategic planning is part of their function. This reveals a transition from mere administrative functions to strategic planning role. The goal of the strategic HR management in an organization therefore, is to assess, deploy and allocate resources providing the management with a competitive advantage. To provide the foundation for value, HR staff should have a deep understanding of the business it supports, its key challenges and strategic direction. By understanding the business, HR management will be in a better position to develop innovative solutions to critical business issues. This is where the recruitment and selection function comes in. These two functions are viewed as critical issues to the business. A company’s future success depends heavily on employee involvement; therefore HR’s vision must address its approach to talent acquisition, development and retention. It will need to define the characteristics of effective and efficient potential employees, identify the best methods to find and recruit them, foster management systems that enhance creativity and innovation, and develop carefully linked reward and recognition programs. Through an alignment of these processes to the overall objectives of the organization, HR is on the way to playing a strategic role in the recruitment and selection process.
This widespread use can be attributed to human resource specialists, academics, and consultants who proclaim that performance management is a critically needed tool for effective human resource management ( and , 1984). This, in turn, is based on the belief that an effectively designed, implemented, and administered performance management system can provide the organization, the manager, and the employee a myriad of benefits (, 1987). The literature on performance management generally suggests that the management process can increase employee motivation and productivity, provide a solid basis for wage and salary administration, facilitate discussions concerning employee growth and development, provide data for human resource decisions, and provide managers with a useful communication tool for employee goal setting and performance planning ( , 1991).
Clearly, performance management is a very effective tool for controlling behavior, especially if important organizational rewards (merit pay, promotion, etc.) are linked to management ratings (, . 1991). The unbridled use of management as a control device frequently reduces employee trust in the management process, a key component of employee management acceptance. (, . 1991) There is a tremendous amount of research on “ideal” rating formats along with strategies for reducing rating error, much of it in laboratory settings. ( and , 1984) Psychometricians argue for the measurability of work behavior and output, but critics argue that most laboratory studies are not externally valid due to the many uncontrolled variables (e.g., low rater motivation, politics, time pressures) that influence real performance management systems. (, 1991)
Critics of the psychometric tradition argue that performance management systems promote a false measurement precision based upon the use of quantitative scales, when, at best, performance management systems promote ordinal (more or less) judgments. Critics argue that management systems can make accurate assessments at the extremes, but inaccurately measure employee performance in the middle ranges.
There are several enduring issues relative to performance management system implementation. They include the controversy over combining developmental and administrative purposes, the absence of rater training, the lack of organizational commitment and top-level support, ubiquitous rating errors, employee dissatisfaction with the amount of performance feedback received, and the absence of specific performance documentation, among others. Included are several emerging implementation issues related to the need for increasing the sources of performance information and problems raised by inadequate literacy levels.
Actually, performance management system appraisal is needed in any organization and it is not a waste of time because it is only through it that the enhancement of broad cross-functional involvement in decision-making and calculated risk taking by providing tremendously greater visibility with accurate, reliable and relevant information is possible. An appraisal of the system of measuring performance would give management the insight that they need in determining if the current performance management of the organization is handled in alignment with company objectives.
If the organization expects a certain level of performance from the employees, they should therefore design a reward system which would bring about the desired level of performance. For example, if the organization wants teamwork within the firm, efforts exerted inside a team should be rewarded considerably more than efforts exerted individually. As rewards have been known as the greatest, and possibly, only motivator, that and performance expectations should be parallel with each other.
Establishing performance standards for a performance appraisal should reflect basic core competencies and should assist evaluators in considering performance of the staff being appraised. Good criteria for such evaluations are as follows: (1) job knowledge; (2) productivity/getting things done; (3) interpersonal skills; (4) problem solving; and (5) communication.
Part B
Pro-forma’ Training Plan for NuVision Incorporated Store Managers
Objectives After completing this training, the Store Manager should be able to:
v understand the role of Trainings in organizational development
v learn proper dissemination of training instructions
v accurately list the training needs of staff and report the findings of that analysis
Timing
Section topics
Learning objectives
Instructional techniques / strategies
Assessment of learning outcomes
2 hrs
Importance of Trainings
To be able to understand the role of Trainings within the organization
On line facilitation utilising video-conferencing.
Online examination: multiple choice type of questionnaires.
3 hrs
How to disseminate training instructions to staff
To properly disseminate the training instructions imposed by HR officials
On-line discussion group
Reading:
, & , 2002, ‘ ’, , no. 2, .
On-line submission of 500 word essay outlining the proper way of disseminating information and instructions to staff.
2 hrs
Understanding the needs of staff
To determine the needs of staff and evaluates their performance.
1. On-line discussion group.
2. On-line facilitation
On-line short answer questions
2. Discussion group evaluation
Part C
Kirkpatrick Model is the well-known and used model for measuring the effectiveness of the training program. It is usually divided into four different levels namely, reaction, learning, behavior and results. Actually, the model illustrates the effectiveness of the training program within the organization. Thus, it is also assumed that training programs usually affect the ROI or the return of investment of an organization.
The model of Kirkpatrick is actually based on the evaluation of talents. This is all about of whether to recruit people who have expertise on a particular field or develop talents from within the organization has been the subject of many cost-benefit analyses for the HR field. The characteristic that makes managing human assets similar to managing other assets is the fact that each has a cost/benefit ratio. Much like a new machine, an employee in his or her prime can produce significantly more than a machine that is in need of maintenance. Combine this with the fact that as experience increases, so too do the costs associated with maintaining the asset. At some point in time, the cost will equalize with the benefit, at which point experience no longer demonstrates value.
In this era of true global competition, remaining competitive comes down to managing the capability and capacity of the organization to meet the demands of target customers – an activity that is largely dependent upon the company’s ability to recruit, retain, motivate and develop the workforce accordingly. HR management thus found a new avenue to handle, that is, talent management. There is no one best way for organizations. As with every planning stint, the decision to buy or build talent is dependent on the nature of the business, as every business has needs unique and different from the others. It must be noted, though, that the different business units within the organization have to be synchronized, especially as the talent-management crisis becomes more and more apparent in the economy.
In managing people, and the human resource development, should be able to learn to think more systematically and strategically in using the organisation’s most valuable asset and the company’s great resource and that is the people. The human resource authorities should be able to develop a thriving organisational culture and a stronger organisation by good management of the people, providing their needs and the things that they deserve in order for them to be motivated and for them to seek more improvement and career development for their sake and for the organisation’s sake as well. Thus, it is very vital for HRD model to evaluate the specifications of employees needed.
Let’s consider this model:
As seen in the model, employees may achieve their personal goals if appropriate HRD practices are employed since the model covers the needs of an employee such as motivation, benefits, appraisal, rewards, trainings, etc. Actually, the company’s goal and not only the employees personal goal is achieve if there is proper implementation of this model. With regards to ever-changing environment forces, the company should be aware of these changes and formulate long term solutions about the problems (, . 1995). The company should anticipate accurately the possibly effect of ever-changing environment forces in order to avoid downfall of business. Apparently, changes in government regulations may also affect HR models such attributes of recruits (e.g. gender, age, etc.) Executives worldwide are concerned with the effectiveness and value of the human resource function. Whether a company is streamlining HR processes, redefining the relationship between human resources and the line, or defining new competencies for HR professionals, one fact is perfectly clear. The role of the human resource function is dramatically changing ( and , 1990). Such changes are influenced by many critical issues affecting a firm. This stimulated the emergence of HR as a general management responsibility. The eight critical management issues that affect modern firms include: increasing international competition; increasing company complexity; organisational downsizing; greater government involvement in HR management; a better-educated workforce; changing employee values; more concern with balancing career and life satisfaction; and workforce diversity ( and , 2005). Because of competition, companies need more skilled workforce and greater employee commitment. One example is the shortage of skilled nurses in Western countries. Because of this problem, HR practitioners in those countries are forced to outsource human resources from Asian countries. This is further boosted with several HR directed acts passed by governments in different countries. Several examples are in the United States, which are: the American with Disabilities Act; and the Family and Medical Leave Act. Other concerns such as training, participation, career balance and diverse workforce (e.g. cross-cultural, increasing female in workforce) also join the bandwagon of taking HR to the road of change.
To conclude, the future of HR model largely depends on the findings of studies and the changes brought by development and enlightenment in management. Older functions may be replaced by new ones, or improved by better methods. Issues that should trigger change include increasing international competition; increasing company complexity; organisational downsizing; greater government involvement in HR model; a better-educated workforce; changing employee values; more concern with balancing career and life satisfaction; and workforce diversity. These changes can change HR model in hiring, training, motivation and satisfaction, company policies, and relationship with top management. However, it may be difficult to define and enumerate specific issues from those functions because of their diversity in nature.
On the other hand, HR executives are concerned with the effectiveness and value of the human resource (HR) function. Whether a company is streamlining HR processes, redefining the relationship between human resources and the line, or defining new competencies for HR professionals, one fact is perfectly clear. The role of the human resource function is dramatically changing (, 2001). Nonetheless, the general conclusion is that the future of HR is full of constant changes and improvement, or could be decentralisation or devolution for some who takes the changes negatively. It is still uncertain if the roles of HR practitioners will elevate to a much higher ground. However, it is certain that HR model will continue to assist line and top management functions by ensuring that employees are well regulated, satisfied, motivated, and useful.
References:
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