Course Work Example on HRM and Performance Management

1.1 Changing the landscape HRM

Various functions of human resources have evolved since time immemorial. For the human resource practitioners to perform efficiently in their duties, they need to concentrate on the needs of the business. This is by, for instance, exploring their competitive place in the market. The external environment of firms is characterized by aspects such as technological advancements, globalization and changing demographics (Armstrong and Baron, 2006).

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1.2 The Difference Between HRM and Personnel Management

For changing the HRM landscape to be successful, it may be efficient to analyze various aspects. One of these is personnel management and HRM. Personnel management entails a short-term, reactive and marginal aspect while HRM is long term, strategic and proactive (Storey, 2007). Becker and Huselid (2006) further pointed out that personnel management follows a bureaucratic structure, is centralized and has formally defined roles. On the other hand, HR has devolved, organic and flexible aspects.

1.3 Soft and Hard Approaches of Human Resource Management

There is also the element of soft and hard HRM. Soft HRM depicts human resource practices that consider the significance of various aspects of employees. These are commitment, motivation, involvement and empowerment among others. As such, HRM is viewed as an aspect of employee champion.' On the other hand, hard HRM is the HR practices that are strictly directed at obtaining individual goals (Storey, 1992).

1.4 Best Practice: Internal vs External Fit in HRM

The implementation of best HR practices in an organization results in improved overall performance and well beings of the society and individuals as well. On the other hand, the best fit model holds the postulation that HR policies should be developed to support competitive strategy and behavior of workers. In this way, the HR outcomes will be more favorable. The internal fit refers to the policies while the external fit is the operating location.

1.5 Resource Based View in HRM

This aspect is chosen by other firms rather than best practice and best fit. Competitive advantage by organizations can thus be attained through focusing on the development of internal resources. Human capital is considered to be quite vital in this case (Barney, 1991).

1.6 Human Resource Performance Management

It results in the association of the involvement of every personnel and the general organizational performance. PM is mostly associated with the goal setting theory where increasing challenges for employees lead to more motivation and efficient performance (Loo-See and Leap-Han, 2013).

1.7 Motivation Theory in HRM

According to goal setting theory, goal setting helps motivate employees. Goal setting theory entails coming up with objectives to be attained and thus enable the employees to stay motivated. With expectancy theory, other elements are considered to motivate people. They include rewards, establishing a positive correlation between performance and efforts and creating the impression that a satisfactory performance will lead to an anticipated reward (Nohria, Groysberg and Lee, 2012).

HRM assists in developing teams and culture in an organization. It further boosts engagement and advancement of the workers as well. In the context of culture, there are low and high backgrounds. In low context cultures, there is greater social and job mobility and thus short personal relationships. The cultural patterns also change in a quick manner. On the other hand, high context cultures are slow to change, and personal associations last for long. Furthermore, the insiders and outsiders are closely eminent (Pilbeam and Corbridge, 2002).

2.1 Performance Management

One performance management best practice is recognizing and rewarding performance. Performance management rewarding employees practice entails a whole series of incentives in a financial and non-financial form that is employed by an organization to show their appreciation and recognize the efforts, performance, and skills on the job. The aspect of recognizing and rewarding performance depicts acknowledging the work of employees and thus motivating them to continue performing efficiently. Moreover, there will be a reduction of the rate of turnover in which the staff will be engaged, and higher rates of retention achieved as well. Also, the performance level of the personnel will also be high as they will be motivated and driven to comprehend the goals and values of the organization (Becker and Gerhart, 1996). It is also necessary to note that the reward will be given according to individual and organizational performance. As such, it is extended to all the departments and the entire company as well (Nohria, Groysberg, and Lee, 2012).

2.2 Underpinning Theory and Performance Management

a) Goal Setting Theory of Performance Management

Goals usually have a pervasive effect on the behavior of personnel and performance of the company as well. It has been depicted that people who are given precise, robust but achievable goals usually perform in a better way as compared to those who are given easy and general or no goals at all. On the other hand, people must have sufficient capability, receive the goals that have been set and further accept feedback that is related to performance (Nohria, Groysberg and Lee, 2012). Goals should be specific as it will result in a higher level of return. With specific goals, members of the organization are aware of what to work hard for and thus gives them an opportunity to measure their progress individually. Moreover, with specific goals, other desirable organizational objectives come to the picture. They entail a reduction of the levels of turnover, absenteeism and unpunctuality (Locke and Latham, 2004). Goals should also be challenging but attainable as well according to this theory. An easy goal will not result in an increase in performance. However, as much as goals may be challenging, they should also be developed to be within the competency of the employees. With tough goals, performance will decline.

The workers should also accept the aims of an organization in an efficient manner. As such, the personnel should be involved in the process of setting the goals as it will then enhance their levels of commitment. Additionally, members of an organization will comprehend the goals in a better way once they participate in the setting process (Nohria, Groysberg, and Lee, 2012). According to Locke and Latham (2004), feedback is also crucial as far as the attainment of the goal is concerned. With feedback, members of the organization will accomplish their performance goals. Feedback enables people to determine the nature of the adjustments to their performance that are then required to advance. Also, it also assists people to determine their level of performance and whether it is on the right track or improvements are needed.

b) Expectancy Theory in HRM

This approach is usually depicted as a process theory. It gives reasons as to why people generally prefer one behavioral option over another one. People are often motivated to carry out a particular activity as they have the perception that their actions will result in an outcome that they also desire. As such, this theory proposes that being motivated at work depends on the apparent connotation between the performance and results and modification of the behavior of people by outcomes that they will receive (Nohria, Groysberg, and Lee, 2012). Giving individuals financial reward means that they have to feel that if they increase efforts at work, they will attain a certain level of the organization and thus get the bonus reward being offered by the firm. On the other hand, if they fail to put in an effort at work, they will not receive any form of financial reward. As such, a balance needs to be developed in this case whereby if there should be a financial bonus, then it will not be quite easy to achieve. This thus calls for the need for clear achievement standards to be set in the company (Locke and Latham, 2004).

2.3 Performance Management Tools

a) 360 Degree Feedback in Performance Management

This tool captures the contribution of personnel from various stakeholders such as subordinates, colleagues, the supervisors and even clients in some cases. They are involved in conducting a performance appraisal. Besides, the person being appraised is also given an opportunity to evaluate their performance and the ratings obtained are added to the general feedback mix. The majority of the 360-degree feedback programs usually concentrate on leadership positions that are a bit higher in the organization (Carson, 2012).

In this tool, various people, including peers and managers of the workers partake in filling out an anonymous online feedback form. The questions contained in the form entail a broad range of the workstation capabilities. The problems found in the forms will then be measured on a rating scale. Furthermore, rates are also asked to provide written comments. As such, the individual who receives the feedback also fills out a self-rating survey that comprises similar survey questions that others are also given in their forms (Caldwell, 2003). The 360-degree tool is utilized by managers and even leaders in the organization to obtain a better comprehension of their faults and strengths. The tool has a feedback system that spontaneously formulates the results and presents them in a format that assists the feedback recipient to come up with a development plan. Responses obtained from individuals are usually combined with those from other people in a similar rater category. In this way, anonymity is preserved, and workers are given a perfect depiction of their highest inclusive flaws and strengths (Carson, 2012).

The 360 performance management tool comprises four components in the form of appraisals. They include peers, subordinates, superiors, and self-appraisal. The subordinates evaluation gives an opportunity for the employee to be reviewed by using parameters such as motivating abilities, leadership qualities and communication among others (Carson, 2012). As for the self-appraisal, employees are given an opportunity to analyze their strengths and weaknesses as well as their achievements and then criticize their performance. The actual performance and responsibilities of the personnel are usually rated by the superior (Caldwell, 2003).

The 360-degree tool has various advantages and disadvantages. On the positive side, it gives a more inclusive interpretation on the performance of workers and further advances the reliability of the performance appraisal. The opinions that are collected from most of the employees also tend to be more persuasive. Furthermore, some individuals may have undervalued themselves. However, upon obtaining feedback from the utilization of this tool, they will be motivated. The culture of an organization is also improved and viewed to be more honest once a huge number of the personnel partake in the performance appraisal process. The duties that employees have to clients is also increased as a result of the employment of this tool (Carson, 2012).

On the downside, the 360-degree tool usually takes a lot of time to design and can also prove to be quite complicated to the company. Tension may also develop among the personnel once the feedback takes a lot of time to be communicated. Honesty is essential in the utilization of this tool and as such lack of it can result in environmental suspicion (Caldwell, 2003).

2.4 Hofstede Model of Cultural Dimensions in MNC

1. Individualism/Collectivism

It depicts the extent to which people in the society are independent or exist in groups. In some cultures, there is a high value for personal relationships instead of tasks to be conducted in a group. In the individualism aspect, there is a high value for personal achievement, opportunity, freedom, advancement and recognition. Hofstede individualism score measures the degree to which there is a belief that people should take care...