Contents

Performance

management

and

its

values

.. 2
1.1

Introduction

..

............... 2
1.2

Goals

of

performance

management

............... 2
1.3

Important

elements

of 3

performance

management

.
1.4

Tools

for

performance 3

management

The pros and cons of flexible working .... .................. 4

2.1

Pros

of

flexible

working....

......... 4
2.2

Cons

of

flexible

working....

......... 4

Developments in performance management .... .................. 5

3.1

Challenges

in

performance

management..

......... 5

Human Resource Practises ..... .................. 6

4.1

Example

1.

............................................................... 6
4.2

Example

2.

............................................................... 7
4.3

Example

3.

............................................................... 8

References ......... . 8

...

1 Performance Management and its values 1.1 Introduction In todays era there is a significant boost in importance given to the performance of an organization (Neely and Waggoner, 1998). Up to the present time this significance was mainly prioritized and held by the people directly involved in the practical implementation and working until recently where it is even being focused academically as well as it is believed to have a major contribution to the field (Thorpe and Holloway, 2008).
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The performance management can be explained as a methodical and efficient procedure for rectifying, enhancing and refining performance of an organization by means of development in performance of teams and entities associated with it (Armstrong, 2006). According to (Lockett, 1992) the enhancement of an individual with experience and dedication functioning towards approaching and securing common significant goals in an organization where their performance and effort is praised and valued is referred as effective performance management.

1.2 Goals of Performance Management

According to (Armstrong, 2006) The main theme of performance management is to develop such a culture within an organization where all the entities and teams related with it are willing to take up the responsibility in order to continuously enhance the credibility and functional ability of the overall business and not only the business gains benefits from it but even the individuals seek to improve their own skills and abilities from effectual leadership provided to them as part of the organizational structure. One of the most important aspects of performance management is to bring in focus the factors for the individuals that are directly interlinked in achieving the goals. Performance management is precisely regarding alignment of personal goals with organizational aims and objectives safeguarding that the associated people follow the fundamental values of the corporation. It is a source of defining and deriving the basic expectations in regards to the responsibilities, abilities and conduct. The intention which you interlink with performance management is to develop and further enhance the capability of the individuals to meet and beat the initial
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expectations and to work with their complete potential for the benefit of the company and themselves. Another integral part of performance management is to assure that the related individuals are always made available of appropriate leadership and backed up with effective support (Armstrong, 2006).

1.3 Important Elements of Performance Management According to (Fletcher and Williams, 1996) five important elements associated with performance management for a better understanding are: 1. Elaboration of performance 2. Importance of values 3. Significance of alignment 4. Management of expectations 5. Importance of behaviour

1.4 Tools for Performance Management According

to

(Armstrong,

2006)

the

major

tools

of

performance

management are: Performance and development reviews or appraisals Personal development plans 360 degree feedback Performance related pay Learning and development opportunities Objectives and performance standards Measurement techniques

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The pros and cons of flexible working

According to (Alexander, 2011) flexible working is more appealing to the people who are more autonomous, focused and motivated. Flexible working is categories in various kinds and types and with different methods and approaches compelling and appealing different individuals. The elements working against flexible working is its financially uncertain nature, stressfulness and isolation from co-workers as compared to full time work in a specific location.

2.1 Pros of flexible working More Independence Diversity in work Better balance between life and work Multiple income opportunities Additional choice of working locality and style Freedom from organizational politics to an extent Saving commuting time spent Opportunity of developing multiple and or substitution career path Additional choice of taking time off

2.2 Cons of flexible working

Time Management Stress Uncertain financial income Isolation in terms of colleague contacts No fixed routine Requirement to market yourself (in regards to freelance work) Lack of understanding from others that opt for more conventional opportunities
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Causing stress in closer relationships Hardship in switching off by the end of the routine. Stress in close relationships.

1 Developments in Performance Management An extensive research based on the findings in USA and UK shows that new perceptions on performance managements are based on the following characteristics:

Prominent focus on front-end planning as compared to back-end analysis a more comprehensive definition of performance based on job responsibilities recognition of multiple factors directly effecting the overall

performance results (Armstrong, 2006) 3.1 Challenges in Performance Management The following are the main concerns that are associated with performance management: Performance management is directly linked with results, effects, procedure and inputs: The performance management may though directly be related with the results and effects (impact made on performance) but it is equally concerned with the procedure involved to secure the results and the input in regards to the skill and competency level of the individual or the team. Challenge of Planning: As it is important to plan ahead of time to secure future success it is imperatively challenging to define expectations as aims and objectives in the initial route map.
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 Measurement and Review Challenges: It is generally referred that if you cant measure it than you cant manage it, performance management has an essential challenge of measuring the outcomes and reviewing the progress of achievement. Challenge of continuous improvement: Establishing a culture in which all the team members from individuals to leaders support continuous improvement and enhancing and strategy. Challenge of continuous development Challenge for communication: Communication between the managers and the team members should take place regularly in order to cater any issues and or check and align the progress with the aims and final goals. Challenge of satisfying the expectations and needs of the stakeholders.
Challenge of ensuring a support and implementation of fair and

transparent policy. 1 Human Resource Practise The main focus of Human Resource management should be of

contributing towards the organizational success factors. The following figure (Figure 1) expresses the four major elements (productivity, service and quality) that human resource activity should support to achieve the organization goals.

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Figure 1: Management Activities 4.1 Example 1 The transition of Human Resource is not only positively affecting the larger industries but even the smaller industries. An example of it can be derived from the following: A joint venture between General Electric (GE) and a Japanese company, GE Fanuc which is a manufactures of factory automation and control products took place. The company based in Virginia with 1500 employees that time, the HR department was focusing mainly on administrative assisting activities till Donald Borwhat Jr. took over as the Senior Vice President of the Human Resource department, him and his staff than started restructuring and decentralizing the HR department so that it had
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regional and functional area HR manager associated with it. Now, today the HR managers participate in developing strategies and assure that human resource dimensions are completely covered. For example, HR manager for production has to look after 600 employees. In this role, contribution to workflow, production scheduling and other manufacturing dimensions are being taken by the HR manager. This suggests that the HR manager now has more credibility than the production department workers and is more accessible. This procedure transformed the seven level of employment directly to three and GE Fanuc hence promised to kill the anxiety and concern of unemployment to the employees that none of them will lose their jobs and the Managers and supervisors affected by the truncation of levels were offered promotions, transfers to other jobs in the company or early retirement benefits. GE Fanucs revenue hiked up by 18%, Over 50 work teams meet on regular basis to discuss approaches towards a task and business ventures, goals and tracks of the progress are also reviewed on regular basis (Scribd, 2012). 4.2 Example 2 As much as the world has progressed in several fields, innovation and the element of technology has also been part of the Human Resource field. An example of it can be derived from the following example: Harley-Davidson, the famous high-end motorcycle producer, achieved not only loyal customer base but also a devoted staff force. Although the company was enjoying its success, they knew that they were to face a number of issues that they need to cater associated with its HR to assure continuity in success and to maintain their performance. The company hence acquired services from Accenture, a company providing Human Capital Development Framework that supports and assessed the company strength and loopholes. The implementation of such a newly introduced framework to support HR services helped HarleyPage | 9

Davidson to continuously support their quest for greater performance (Accenture, 2012).

4.3 Example 3 Transition in HR management also played an important part and paid off in the case of Bank of Montreal, Quebec. The human resources at the bank had involved 35,000 employees that contributed towards the success of the bank. Such a huge number suggested a lot of focus and attention in recognizing the talent that was endorsed with the bank. A lot of specific efforts were made to emphasize on the women workers and to expand opportunities for them who were three-fourth of the bank employees. As a result now after several years, one-fourth of all the managers and executives are women. The bank has even now invested $50 million towards providing training and education to every employee each year making them focus on performance, targets and measures on as such factors as customer service, equity return and profits. All this resulted in huge success for the Bank of Montreal.

References

Accenture (2012) Harley Davidson strategic HR function [online] Available at: http://www.accenture.com/us-en/pages/success-harley-davidsonmotorcompany-strategic-hr-function-summary.aspx [Accessed January th 11 2012] Accenture (2012) HR Service innovation [online] Available at: http://www.accenture.com/SiteCollectionDocuments/PDF/102Kimbe rlyClark EngineeringHRServiceInnovation.pdf [Accessed January 11th 2012]
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Alatrista, J. and Arrowsmith, J. (2004) Managing employee commitment in the notforprofit sector, Pages 53648. Alexander, R., & AGCAS. (2011) Flexible working / Writer Rosie Alexander, AGCAS [online] Available at: http://www.prospects.ac.uk/flexible_working_print_version.htm [Accessed January 13th 2012] Armstrong, M. (2006) Performance management; key strategies and practical guideline, Page 3-11. Fletcher L and Williams, R. (1996) Performance management, job satisfaction and organizational commitment, Pages 169-179 Lockett, J. (1992) Effective Performance Management, Pages 3-9 Neely, A. D. and Waggoner, D. B. (1998) Performance measurement theory and practice, Pages 10-19 Scribd (2012) HR Management contributes to organizational success [online] Available at: http://www.scribd.com/doc/510458/Human-Resource-Management [Accessed January 12th 2012] Thorpe, R., & Holloway, J. (2008) Performance management; Multidisciplinary perspectives, Pages 23-30

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