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Contemporary issues on performance management
Performance management and human resource development
Contemporary issues on performance management
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Forced ranking is a harsh performance management approach, this method ranks employees, and those employees with a higher ranking are rewarded, while lower performers are terminated. This method is one as a Human Resources Manager, I do not agree with at all. Consequently, I do not consider that it is effective, I believe in giving lower performers a fighting chance to become a more efficient employee. Some industries utilize this tactic, and in their eyes, it works for them, however, in my esteemed opinion, enhanced hiring practices up front should be a priority. Hiring the best candidate up front could save the company and the employee’s time and money. In looking at the companies utilizing this method, they have had lawsuits that could have …show more content…
Astoundingly, I was appalled at the amount given by Microsoft. Incredulously, Microsoft executives believe that 15 percent of their employees should be terminated annually. Microsoft culls one in every fifteen employees each year (Bethel, 2011). Superior hiring practices could help in this situation, is their Human Resources Department making a mistake when hiring or are people being terminated without proper opportunities to improve? Those numbers are frightening to me, and I do not understand how this system does anything positive for the morale of the people. Personally, I would be working in fear that I could be one of the fifteen even if I worked …show more content…
This process can cause an organization to pay out legal fees, for lawsuits that ensue due to this type of ranking. Although maybe some organizations seem to consider the program is working if you are terminating one of every fifteen you are hiring then something is not going that great. If an organization does an astute job upfront in hiring the right people for the job, then those numbers should significantly change. Truthfully, Employees deserve a chance to improve, improvement plans with performance reviews are helping our factory, we are teamwork-driven, and the teams are becoming increasingly successful since we hold them accountable for the team’s performance. Additionally, this type of performance management, in my opinion, is auspicious to do, to grow our own talent, and help all involved to succeed including the
Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.
1. I believe the criteria that should be used to determine potential layoff candidates are job seniority, job performance, acquired skills, and the ability to further develop and assist the company in moving forward. With seniority, employers can determine which employees are the most loyal to the company and those that are the most familiar with their jobs and the objectives of the company. Performance is also an important facet to consider; it makes no sense to retain a poor to average performing employee because they have more seniority than recently hired, exceptionally performing employee that is more likely to contribute to the company’s advancement. I also believe that employees with useful skills should be given preference over unskilled employees who may not be preforming adequately or require additional training to attain the skills needed to do their jobs. Finally, in their ultimate decision of who to layoff, companies
has many issues that need to be addressed. We believe that a wage and compensation plan is the utmost priority right now to address the issue of the high employee turnover rates that they are experiencing. The Human Resource Management department (HRM) recognizes that monetary compensation is not the only way to motivate and retain employees, but at this moment it is highly recommended. The president of the company has even stated that he “is willing to pay more if the workers would just work harder to get more product out of the factory to justify the increase.” HRM believes that a fair employee wage and compensation package will motivate the employees to do just
Economic growth and employee turnover is one of the most critical issue facing corporate leaders today. As a result there is a shortage of skilled workers. We have explored several aspects of the workforce stability. The employee retention issue continues in the face of unprecedented churning in the employment market. Human Resource Managers are provided with a wide range of tools to control employee turnover. Workforce stability can be a HR Manager’s competitive advantage in these turbulent times. This is one of the hottest topics for corporate leaders in all fields in the United States and globally.
When one thinks of the perfect job they consider a lifelong career where they can achieve loyalty and commitment to a company, and in hopes of receiving the same back from their employer. In some cases this is not always the outcome; today many employees are experiencing betrayal from companies they had once devoted their lives too, but these companies concerns are not their employees but the profit that they are making from these employees. The Ford Motor Company, one of the largest car manufacturers in the world is currently in need of recreating their business structure, which ultimately results in a company downsize. The company has recently made the decision to decrease their workforce between 25,000 to 30,000, this decision is largely due to the $5.8 billion third-quarter loss this year (Bush). Though the company hopes to increase productivity and profit by the downsize, their will be tremendous effects on those who are forced to leave their careers, and also those who are lucky enough to stay with the company.
Wrongful terminations can be drastic on the organization and very costly. Therefore, it is critical to minimize wrongful terminations in order to decrease litigation costs. In essence, the manner in which human resources can mitigate wrongful termination claims is to, at the very beginning, set and follow solid recruitment and selection tactics to ensure the company is making smart hiring decisions (Mayhew, 2017). Hence, it is key to make certain that the organization is looking for candidates that reflect the mission, vision, and goals of the organization. Further, the candidates should employ some key professional attributes that other top performing candidates have within the organization (Mayhew, 2017). A key strategy for human resources would be to set clear expectations up front of what is expected of the employees in their tasks
Without understand the negative impacts of turnover, a company may be placing itself in a position that will ultimately lead to their demise. We are going to solve our problems and set our company on the path to success, a success that is not only reflected in our bottom line but also our employees’ morale.
Downs claims that downsizing is a very harsh solution to an organization in terms of financial issues. Smith, Wright and Huo (2008) support this argument and explain that downsizing should be done with significant care and requires planning. Downs argues that for an organization to defend its intellectual capital, it must carry out lay-offs wisely, treat affected employees with respect, and ensure that the retained employees' morale is not affected. The author gives some of the consideration that an organization should follow, describes the possible impacts of the situation on employees, and offers efficient approaches to
When developing a performance based appraisal system it is important for the company to clearly outline how the scale works and what the benefits are of following the scale. This type of system is all about accessing and recording performances in order to reward the employee for his or her stellar performance. Like I stated within the reinforcement theory section that any time rewards are given can lead to a negative outcome. This is my opinion of course but I’ve seen performance appraisal backfire in the same manner. A company may be in a position at one time to reward employees a certain way for completing a task in a certain manner however this is not always the case. When a company begins this approach in many cases there is no coming back. The employees will always expect the same recognition and reward for that particular job. This can lead to an employee feeling entitled which can lead to a narcissistic attitude within the job. This particular approach backfired on me when I was first made platoon sergeant and I rewarded my soldiers for being on time and improving themselves both mentally and physically, example like scoring higher on their pt test. When a particular soldier was asked why they were trying so hard the soldier answered with, “The sergeant has promised fewer duties for the top soldiers that improves the most.” As you can imagine this did not go over well with my superiors because they
Layoffs are one means by which an organization can reduce expenses with the intent of improving its bottom line. Despite being typically performed as a last resort, layoffs often have a negative impact on the remaining workforce. As a manager, there are numerous areas for concern in managing the workforce going forward. The human costs related to downsizing are “immense and far-reaching” with one of the most profound being survivor syndrome according to Hanson (2015, p. 187). Also known as survivor’s guilt, this condition relates to the emotions felt by those still employed and some of the effects include decreased motivation, moral, and job satisfaction, as well as an increased proclivity to search for other employment. This volunteer turnover being another grave concern for managers, and retention of the remaining workforce is usually dependent on their existing perception of the organization and its culture (Sitlington & Marshall, 2011). Also relayed by
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
Performance appraisal was once the unquestioned way of doing things, the familiar ritual in which employees and managers sat down for an annual evaluation. If the employees were lucky, they walked away with raises, often tied to a ranking on some sort of rigid numerical scale (Fandray, 2001). For decades, companies have used the annual employee evaluations to measure an employee’s performance to separate top performers from low performers in addition, opportunity to offer compensation and promotions.
In Microsoft training and developing employees is very important aspect of the company’s day-to-day operations. At Microsoft all employees are “thrown” into normal business operations right away. Since 1975 the company has used the method “learn as you go”. It depends heavily on learning by doing rather than learn and then do it. The company recruits young and talented specialists from colleges and universities. The company is well known to look for four important qualities in all-new hires: ambition, IQ, technical expertise, and business judgment. Experienced employees conduct interviews and it is very important to note that the team managers are the people that actually hire, not the recruiters. That gives the managers the flexibility of selecting and hiring the best of the best. It is an interesting fact that only two to three percent of all recruits expressing an interest in Microsoft are hired. Once hired the new employees are assigned to teams where they start doing projects by close supervision. The new employees are expected to know the specifics of their job responsibilities and how to perform different tasks. That is why in May 1997 Microsoft launched the new Microsoft Skills 2000 initiative. The purpose of Skills 2000 is to reduce the growing gap between company needs and available skills by reaching out to employees in the computing work force as well as those interested in developing an IS career. Microsoft pays relatively low salaries and often does not pay for overtime, but employees are compensated by excellent benefits. The company offers Savings Plus 401(k) plan, Employee Stock Purchase Plan (ESPP), paid maternity and paternity leave, tuition reimbursement, annual bonuses, etc. The company’s culture is also an important HR factor as it refers to employee motivation, development and quality of work. Microsoft has anti-bureaucratic atmosphere that gives the employees the freedom to take risks.
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and