HR management assignment report help: Training and development – Performance management (Organization)
Executive summary:
The main aim of the report is to talk about human resource management, its performance management and training & development of an organization. For that the report has been continued in several segments in which first it defines the activities in human resource management and its uses from different organizations’ perspective. To make it understandable, a particular enterprise has been chosen for the discussion so that an overall idea about HRM practices and perspectives could be taken. In contrast, various HRM theories have been taken into consideration for description. Additionally, report also delineates the importance of human resource functions that provide a hand in effective management of people and organizational objectives’ achievement. On the other hand, it also illustrates and talks about the challenges that can be faced by any organization in terms of human resource management and its functions. Afterward, the strengths and weaknesses have been put across and defined when both performance management and training & development work together and are incorporated into the strategy made by the organization.
Introduction:
Human resource management is regarded with an organization’s human capital or workforce or employees. It refers to employee’s selection, performance evaluation, training & development and then rewarding. Therefore, it can be concluded that human resource management is considered with proper managing of human resource of the organization in a well structured and throughout way. It takes care of the better human relations, better performance by the people and training & development of them in the organization. In simple words, it is said that human resource management brings the better results with the collaboration of the employees of the organization (Ahmad & Schroeder, 2003). Here, to evaluate the performance management and training & development functions of HRM, an organization Fashion Aussie has been chosen. This company sells readymade clothes all over the world. The company operates many of its retail stores and has a good team of people working and offers good-quality products to its customers. The company manufactures the stylish and branded material which makes it quite easy to attract the people.
Performance management demonstrates the ongoing function of an organization’s business and dictates that all the activities and functions are being performed to achieve the objectives effectively. It does not evaluate the performance at an organizational level but also assess the performance of an individual or a group and the processes that are being utilized by the company to build a brand and high-class quality for their company. Similarly, it is seen that an enterprise allocates its employees to the systems according to the strategic objectives they have set and the work priorities of business. Every company has different kind of performance management systems in practices on the basis of the nature, size and the preferences for their management. Additionally, this entails the training & development of the employees after performance evaluation which can further leads to the growth in sales and revenue (Rausch & Peter, 2011).
Training & development refers to a subsystem of an enterprise through which uncertainty is decreased and learning behaviors are developed in a well-structured format. It is mainly concerned with human resource management which ensures that employees’ performance can be improved through training and then they can be mould according to organizational settings. In support, not only new entrants or employees are provided training & development, but also the existing employees are developed timely. It is also termed as talent development of human resources which aims at development and process of changes in a company, its workforce, stakeholders and group/team within the premises.
Performance management at Fashion Aussie:
The performance management system is regarded with the frameworks which evaluates personality, key competencies and performance of the individuals. As far as Fashion Aussie Company’s performance management system is considered, it reveals both the strengths and weaknesses of its employees with reference to their skills which can be worked upon further by providing them training and development. Performance management framework of the company mainly illustrates the five following stages:
- Planning: At this stage, the company gets proactive and plans the resource allocation, selection of the best people, need for the training sessions, financing, and motivational theories and model.
- Monitoring: This stage involves the proper evaluation of the implementation plan for performance management so that present and future errors can be identified for making improvements. In addition, company also looks at the quality of its employees in manufacturing, marketing & sales, and attracting the customers. After viewing all the aspects, the enterprise decides to make changes in terms of resource allocation according to their specialization so they could bring efficiency to the work (Scholl & Richard, 2002).
- Developing: Once, all levels of activities and employees are monitored purely on the basis of their performance, the areas for future development are identified. In Fashion Aussie, they found that employees have multiple tasks to do at a time which resulted in reduction in their level of energy and satisfaction and hampered their performance as well. In this context, major steps were taken by the management to allocate their work as per their area of interest so that they could enough time to deal with the work. However, all the employees were motivated to work together for a common goal of brand creation for the company Fashion Aussie.
- Rating: Every company has a scale on the basis of which they rate each of their employees based on performance and his/her achievement. For an appropriate rating system, incentive and bonus plans are brought forward so that employees focus on work and perform better to get incentives and reward (Chapman & Alan, 2006).
(Source: Analytix, 2012)
- Rewarding: Rewarding is the final part of their model, employees are rewarded with reference to fiscal or non-fiscal rewards. By doing this, company encourages the employees and ensures the future growth of the company. Furthermore, company takes 360 degree feedback and management by objectives systems into account while evaluating the performance. According to the company, it is one of the best performance appraisal systems which suits the organization’s nature and reveals their feedback based performance (Denisi & Griffin, 2001).
360 degree feedback system: Fashion Aussie is a company which has daily basis contacts with the employees and gets feedback from them. It also adds that business has strong and regular relationship between the workers and the customers associated with it. This system is regarded as the most appropriate for performance evaluation framework because it helps knowing the customers’ preference based on the feedback received from them. In this feedback process each member of the company from junior level to top level managers. Consequently, the company adds that the system exercised in the company should be clear and impartial enough so that every employee could be involved in this at its early stage. The system also requires the commitment of both middle level employees as well as top management mainly (Alexander, 2006).
(Source: Dosh, 2007)
Furthermore, 360 degree feedback system reveals the leadership quality of the employees including the quality of delegation responsibility. Next, it has the capability to dictate the level of adaptability, kind of relationship among employees, personal development, communication and need of training and development. It demonstrates both positive and negative aspects of the employees and processes.
System’s benefits to the organization: Through this feedback system, company gets to know the feedback of its employees and then creates better development opportunities for their career. Apart from this, it also helps Fashion Aussie to reinforce its organizational culture, company’s values & beliefs, and its key strengths. By getting this system into business’ practice, company receives a major benefit of increasing customer satisfaction as they also become a part of it. Similarly, the company grants training & development sessions for future growth, employee’s involvement and to make them learn on working effectively to win the customers’ heart (Silverman, Karrin & Carter, 2005).
Benefits to the employees:
It emphasizes on both junior and middle level management rather than focusing on top management regardless of their designations in the company. Being a part of Human resource management, confidentiality of feedbacks and other information is made certain. The system also provides an overall idea on how the people of the organization perceive each other. It does not only provide the quantifiable data on employees’ soft skills but also exposes the blind spots which can be improved under training and development process (Kamen & Pady, 2003).
In addition, following key components of effective performance management can also be noticed.
- Performance planning: It includes the entire planning related to performance management in which both appraisee and reviewee plans jointly. At this particular stage, employees set the target then decide the area of performance to be covered over a year for that and within the performance budget.
- Performance appraisal and reviewing: It is the most used component of performance management by the company Fashion Aussie. In this process, employee presents a self-appraisal report to appraiser which is filled by him/her based on performance and achievements over a year. After it, the appraiser’s work starts and he comments regarding final ratings on that in quantifiable and measurement terms. This process considers the vital roles of both the employee and the appraiser so that areas of improvement are identified and tried to overcome.
- Feedback: Through a clear and transparent feedback, employees get to know their weak points at workplace which they can improve upon and the key strength points which they can develop for their future growth. Appraiser also provides employees the feedback regarding their level of achievement according to the company’s business expectations.
- Rewarding high level performance: It is the most beneficial stage of this process as the employees get motivation and public recognition through rewards. An employee is rewarded on the basis of their achievements and high level of performance which is above expectation from company’s point of view. This reward directly influences their self-esteem and achievement orientation.
- Plans for performance improvement: Employees are engaged at this stage of process and new goals are set for them to accomplish effectively. A deadline is also set for the accomplishment of work and the employees are clearly communicated about these deadlines and specifications for the work. Employees feel motivated and enthusiastic on that they have been involved in goal setting process.
- Potential appraisal: The final component of performance management states that employees are moved in both ways vertically and laterally in their job which makes them knowledgeable in multiple fields. It can be performed in a company by implementing proficiency mapping and several effective techniques for evaluation. In addition, potential performance appraisal offers significant input for planning of succession and job rotation of the employees.
After reviewing performance management, another HRM theory is training & development. It is linked with human resource management because scope of HRM is undoubtedly so vast to define. The entire day activities of an employee from the time he/she make an entry in the organization and by the time he/she leaves the company is covered under HRM. Therefore, not only recruitment & selection, payroll & incentives, and performance management or appraisal are a part of human resource functions but also training & development, retention, industrial relations, etc are crucial functions of human resource management.
Training and development:
Training and development is taken into care after performance management because employees’ areas of improvement are identified so that they could be trained and developed. There are two approaches considered in training and development, one is traditional and second modern approach.
Traditional approach: According to traditional approach of training and development, managers are born not made by their training or development. Moreover, training was considered costly and not has worth enough to make development in an individual. Fashion Aussie did not imply this traditional approach and taken it as a negative approach for their company.
Modern approach: According to this modern approach, training & development is concerned more with retention of the employees than as a cost aspect. Therefore, Aussie Company implemented this in business’ practices and focused on corporate training as well. This resulted in creative and smart working workforce which automatically yielded the high level of production, productivity and increased their concentration and provided overall profitability (Lewis, 2012).
Training & development objectives:
The main objective of the company to take training & development into account is to make certain the availability of willing, highly skilled and competent workforce in their organization. For that, the company continued their training & development’s objectives in four key categories:
Organizational objectives: In this context, the objective of training & development is to assist the company in achieving its principal objective and bringing individual effectiveness and competency forward.
Individual objective: Next objective is to assist employees in accomplishing their personal goals which in turn increases the contribution of employees to the organization’s achievements and efficiency.
Functional objectives: Here, the main aim is to manage the contribution of various different departments so that a level is set according to the suitability of company’s needs and significance.
Societal objectives: Through training & development, Fashion Aussie also ensures that it has followed ethical and all social responsibilities properly and has responded to society’s needs and challenges.
Besides, one of the researches presented that training & development has a positive effect on employees’ attitude toward work and the company which results in job proficiency. It not only improves the job performance of the employees but also prepares them for their better future prospect. It is obvious when employees will transfer their positive training & learning content to their job practically, it would definitely be a win-win solution for the organization itself. When the employees are provided training with effective tools and strategic objectives, it results in self-worth and enhancement in work performance proficiency (Cheng & Ho, 2001).
Importance of training & development:
Furthermore, training & development also assures increasing communication, growth and advancement of the employees turning in greater efficiency and satisfaction from the job. In simple words, training and development benefits an individual, organization, a team or a group and the society as well. These benefits and importance of training can be viewed in following diverse terms:
- Benefits in terms of job performance: The Company Fashion Aussie conducted several training & development programs for the employees to overcome the negative aspects and to achieve its primary objectives. For this, they conducted on-the-job training which directed to higher level of innovative and tactical skills of the employees. Training did not only enhance the procedural and declarative knowledge but also taught the workers that when to apply such skills and specific knowledge (Barber, 2004). The effective results of training programs were noticed mainly in case of salespersons that turned in their self-efficacy and high revenue generation qualities by communicating effectively (Truitt, 2011).
- Benefits in terms of organizational performance: Organization arranging training & development programs receives the best results with regard to employee’s active involvement and participation, human resources’ effectiveness and quality. This further leads to the overall profitability of the company with reference to increase in sales volume and benefits in interest and taxes (Campbell, 2001).
- Benefits to individuals: At very first, an individual learns the basics of skills to be acquired at workplace. Then, it leads them to learn communication skills and new techniques to perform well and give good results. Apart from this, leadership styles and other business practices are also followed by an individual throughout the training session. Later, an employee learns that how to manage the conflicts and to face unforeseen conditions which turns him/her into productive behavior and relationships (Bowling, 2007).
Trainings can be of many types, first induction or an orientation program which is conducted for new entrants to the company. This Australian Company Fashion Aussie conducted a well-structured induction program for its new employees in whom they were introduced to the company’s infrastructure, rules & regulations, policies & procedures. Besides, every new employee is made familiar to his/her job, workplace, superiors and subordinates. Afterward, there are on-job training, safety training, promotional, refresher, remedial and internship trainings (Chiaburu & Teklab, 2005).
Training needs analysis:
First training needs analysis and then it also develops needs analysis. Afterward, an appropriate training strategy is designed and set which could reinforce corporate strategy as well. Once, training takes place within or outside the premises, the training functions are audited and evaluated from every angle. In this regard, learning, training & development frameworks and techniques are designed that tailor to company’s particular needs. Fashion Aussie also assesses its training programs’ effectiveness to know that all the set objectives are being met properly and timely. Finally, surveys are made in the area of training and development for further advancement and enhancements.
Strengths of performance management and training working together:
A clear functioning of performance management and training can be seen together in business’s context. According to many of the authors performance management is considered with strategic and incorporated approach through which successful and effective results can be drawn out and delivered to the organization by training and developing employees’ performance and competencies of groups or individuals. Here, management of performance has to take training & development function into consideration for the betterment. The management cannot expect of high level of performance and competent quality in the employees without training & development function of HRM. On the other front, training is designed in order to meet with company’s primary objectives and learns employees the required skills and knowledge for their current job. Some of the following strengths can be viewed in terms of both these functions’ working together:
- Both these functions helps human resource management developing complete and specific job descriptions as well as employees’ performance plans which involves the key areas of improvements and result to be covered under training.
- These also led to the selection of the right person to the right job.
- A consistent coaching and feedback is provided by both of these departments to the employees throughout the performance delivery in the organization.
- Performance management identifies the need for training & development. It makes an analysis by measuring the actual performance of the employee against company’s established performance standards. Afterward, an effective training & development program is conducted by the management accordingly (Bartel, 2000).
- It becomes a point of key strength for the company to take both into consideration because performance management designs the reward and incentive systems for the employee’s motivation which is also kept encouraged during the training.
- If performance management does not evaluate employees’ or individuals’ performance with reference to their continuity in the organization, a training & development program cannot be think of.
- The major benefit an organization can have from the working of these functions together is that by training programs, it can know the performance gap on where the employees are lacking and can improve upon. Once, then negative aspects and loopholes are identified throughout the development program, they are put before the performance management so that they can be taken on priority (Bernthal & Wellins, 2006).
- The training & development function enhances the communication level, efficiency, thinking and other strong skills of the employees which turn into better performance leading to high productivity and revenue generation automatically.
- Next, during training & development programs, workers learn the best possible way to work and desire to get better and positive results. This session teaches them working by a simple method and techniques instead of using complex methods. This again leads to the cost reduction for the company’s business and provides with it expected results (Sahinidis & Bouris, 2008).
- Here, performance management work is to rate those employees who are achieving well and are developing their way of working. Afterward, they are rewarded for their motivation and provided all the facilities they require and expects from the company.
- When performance management and training functions work together, it is performance management’s responsibility to take care of training session’s cost and effectiveness so that employees can be judged specifically on their area of improvement and could be developed in accordance.
- By working together, training program is updated by performance management timely and regularly so that whatever the company ahs new requirements for development can be taken into account at its early stage.
- Not only, the employees get benefited from the training & development programs but also both of this performance management takes care of the societal and functional benefits.
Finally, it can be said that both training and performance management reveal HR outcomes, the exact status of employee’s performance and enhance the skill, knowledge, capabilities, attitudes, behavior and motivation of the employees. On the other phase, training has also a positive impact on financial performance of the company such as it increases ROI, ROA, ROE, ROS, sales volume, and productivity. On the other hand, it also has an influence on labor turnover, absenteeism, conflict reduction and overall quality improvement (Thang, Quang & Buyens, 2010).
Weakness of functions working together:
- At the situation when employees come to know that some of the juniors do not need training and superiors need to develop themselves in some areas, it creates conflicts and a sense of demotivation among them.
- Moreover, many of the researches reveal that in this regard, HR faces a lot of challenges in terms of leadership development, and performance effectiveness measurement.
- Apart from this, when performance management analyzes the need for training and set it, it consists of some cost for the set up of training. If in any case, employees do not attend the training program properly, it costs to the organization because they hire specialists and experts from outside on a very high pay.
- Both of these functions are connected to retention. It may happen that some of the employees may not prepare for the training sessions and consider themselves up to with the expectations. This may lead to confusion in their succession planning and absenteeism (Villanova University, 2012).
Conclusion:
On the basis of overall conclusion, some decisive points can be drawn out that has been put across in the discussion. First of all, the report talks about human resource management. In this regard, it revealed that it refers to an inherent part of an organization which is totally associated with the human resources, selection & retention, performance management, training & development and HR frameworks. A company named Fashion Aussie has been selected to discuss about its performance management and training & development functions.
It is a clothing company which has various outlets in Sydney, Germany and in different countries. The company mainly focuses on the quality, it offers to its customers and the performance it receives from its customers.
Furthermore, the report states that human resource management does not only human resource welfare and management into account but also concern about society, organization as well. It can be noticed that human capital is the most important asset of an organization which can be developed and enhanced up to a limited extent through performance management and training & development.
Performance management is an essential part of the company through which an organization checks its current status and level of performance by an individual or a group. It plans, monitors, develops, rates, and provides rewards to the employees. It designs the reward and incentive frameworks for the employees those have achieved above expectation and design training programs for those who are lacking somewhere and are below expectation.
In simple words, it can be stated that performance management is a proactive step taken by the management which manages the employees of an organization. On the other hand, it is the responsibility of the management to drive the employees for better results and high level of performance.
Afterward, report has talked about training & development; it refers to the subsystem of a company. Training can be of various types such as on-job training, induction training programs, safety training, promotional trainings, etc. Furthermore, the strength that has been identified by the working of both these functions together are in terms of increasing financial performance, improving communication skill, level of quality, and productivity. On the other front, the weaknesses noticed from working of these functions together are related to demotivation among employees and risk of cost increasing. Finally, it can be said out of it that human resource faces a number of challenges with reference to achieving its competitive advantage and high-class quality amongst all.
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