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Sample essay topic, essay writing: Introducing Performance Management - 1193 words

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.. It has increased it profits by 6% over a two year period. A CRPS is defined as, !yena process for making pay decisions that are based on assessments of both the outcomes of work carried out by the individual and the levels of the capability that has influenced these outcomes!| (Michael Armstrong 1994,2000). This system rewarded employees for both the quality of their inputs (their capabilities) and the level of their achievements (their outputs). The system was marketed and implemented as a, !yenpayment for potential!| programme.

Managers were given a one-month intensive training course to understand the policies and procedures involved and to implement a formal assessment, Absolute, method (Individuals are assessed with some reference of standard(s) of performance and not to other individuals). Employees were encouraged to meet with managers to discuss any concerns and give feedback on a quarterly basis. By linking performance to reward, management control was increased, and flexibility encouraged regarding working practices and skills deployment. Additionally, the system communicated the message that !yenchange is happening!|, and you are expected to change with it, but we will help you and reward you in this process. Therefore Company Xs!| strategic perspective on reward was that of (Open/Contingent approach Mabey & Soloman 1995) This approach argues that the content of the HR strategy in contingent on the internal and external context and the type of business strategy. In comparison to Company X, LSFO strategic perspective was that of a Closed approach as the reward system was based on !yennew pay!| (e.g

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Guest 1987). The new system neglected the !yenimportance to fairness!| with its employee base. In which individuals need to be treated fairly and to make comparisons between two variables (inputs/outcomes) this is best described by (Adams 1963) as the Equity Theory of Motivation. This theory argues that, !yenemployees will subconsciously formulate a ratio between their inputs and outcomes and compare it with the perceived ratios of inputs and outputs of other people in the same or a similar situation!|.It also failed to include the employee in the development and implementation process. This resulted in negative behaviour from the employees, and poor performance results based on the low monetary reward.LFSO!|s new system closely resembles that of a Broadband Scheme. Broadbanding, is the collapsing of a range of narrow and complex pay grades into fewer but wider pay bands.

Pay flexibility within the bands can be based on individual performance!Kcompany performance and competencies. This replaced the previous system where increments were automatic and there was no possibility of moving down. Secondly, the assessment was translated into a rating scale (A-E) and each scale was linked to an amount of performance related pay, expressed as a percentage of current salary. LFSO included a Performance assessment methods of !yenforced distribution!| !V in which individual performances are given single ratings!Kranking performance levels according to some predetermined distribution and absolute methods !V using ratings scales.LSFO PMS failed to negotiate requirements and accomplishment-based performance standards, outcomes, and measures with both the Management and employees. Its financial reward was minimal and failed to motivate.RecommendationThe key determinant for effectiveness of the new reward scheme must match the expectations of the employees involved. We therefore recommend that LSFO replace the entire PMS with a Contribution-based pay system which has proved successful in Company X.

This system would be viewed as less judgmental and more flexible than the traditional PRP. The effectiveness of this new payment system depends more on the method of selecting and implementing the system !V that is, the extent of employee participation in the process !V than in the actual choice of payment system. (Bowey and Thorpe, 1989:Geary, 1992:40) This system would reward employees for both the quality of their inputs (their capabilities) and the level of their achievements (their outputs). The introduction of this system would suggest a, !yenpayment for potential!|. As the previous system was implemented with no employee involvement, the new system would re-establish and improve the channels of communication between the management and employee base.Performance planning is therefore the starting point of the performance management system. The performance agreement is based on the joint discussions and agreement of roles, objectives, performance standards and capability requirements.

Employees are therefore expected to behave to meet these requirements. These consultation meeting will be on going over a 60 day period.This system would increase the role of the line manager, in regards to providing more feedback to and evaluating employees. They would have more !yenQuality Time!| with their employees to discuss their performance, progress, and development. By linking performance to reward management control is increased, and flexibility encouraged in regarding to working practices and skills deployment. These new attributes can than be linked to the new system, as there is strong evidence that the role of the front line managers in bringing HR policies to life is most critical factor in the link between people management and enhanced business performance (Angela Baron CIPD 2003)It would be noted to the organisation that the new PMS programme would take place over a two-year period with review meetings attended by both management and the employee representatives. These meetings would provide the transparency needed for the PMS to succeed. The two- year programme would start with an intensive one-month training and development course for managers and employee representatives.

This course would focus on the policies and procedures relating to the reward system and demonstrate possible outcomes of the rating system. As the current appraisal system lacked !yenpurpose!|. It should be suspended at this time and reviewed to establish if it is compatible with the Contribution based system. This new appraisal system should align itself with the new PMS. An appraisal procedure will then be created to account for both team and individual based standards. The manager will be responsible for setting of individual and team objectives and targets, assessing and evaluating these and feeding findings back to staff and advising the HR manager.

The HR manager will be kept regularly updated on progression or development needs of individuals and teams. An appeal procedure will also be set in place to deal with staff disagreements around these decisions. The manager will have in place a formal quality monitoring procedure and adherence to this will form part of the team and individual reward and appraisal procedure. As the BFU has started to implement a strong recruitment drive amongst LFSO employees, the management/ and HR Manager should consider meeting with the union to obtain its views on a partnership agreement with the organisation. This approach would recognise the possible impact BFU may have on the new system and would demonstrate a gesture of !yengoodwill!| by the management team. It would also address the collective representation can help achieve important business objectives, including good communication.

In conclusion it must be emphasised that an effective Performance Management system ensures that both Managers and employees understand each other!|s expectations, and how these are incorporated into the Corporate Strategy and how these impact upon their own context !V their roles, behaviours, relationships and interactions, rewards and futures. BibliographyBooksBeardwell, I. And Holden, L. (2001) Human Resource Management: A Contemporary Approach 3rd Ed. Prentice Hall.

Research paper and essay writing, free essay topics, sample works Introducing Performance Management

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