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Introduction

Human resource management is considered as critical process that helps in effective management of workforce so that goals and objectives can be accomplished in appropriate manner. It is also referred as process that allows management to focus on diverse activities such as recruitment, selection, offering induction, training and development program, organisational policies design, motivation, employee relation, etc (Dowling, Festing and Engle, 2008). It has been noticed that human resource management allows to have maximum utilization of available limited skilled workforce so that business can attain benefits in appropriate manner. However, performance management is also considered as vital section of human resource management. With an assistance of this, management can have advancement in skills of senior managers so that issues can also be resolved in desired way (Edenborough, 2007). Performance management also allows to improve skills so that organisation can perform in effective manner as compared to its competitors. It is also beneficial to attain competitive advantage.

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In order to have better understanding about topic, learning will focus on work culture of distributor company that operates its business in UK. Present report will focus role of performance management in human resource management so that overall performance can be improved. It will also provide information about significance of employee engagement so that better support can be provided to performance management.

Case Overview

As per the detailed study, it can be said that learning is focused on work culture of distributor company. Human resource manager (HR manager) is focused towards establishment of long term methods that helps in meeting performance standards effectively. It has been noticed that 1500 employees are having operation in the organisation so that goals and objectives can be accomplished in appropriate manner. Company is mainly controlled by family members who are more focused towards traditional methods. Moreover, autocratic management style is being adopted by firm that impacts the morale of employees in negative manner. In order to gain competitive advantage the business firm need to focus on application of modern performance management concepts and practices. Recently owner of distributor firm has attended conference regarding performance management so she is looking forward to bring changes. It is beneficial to improve the skills among members and lead business to various advantages.

Performance Management

Performance management is considered as combination of diverse activities that helps in make sure that goals are being accomplished in effective and efficient manner. With an assistance of performance management system the business organisation can focus on performance of department and employee. It is a process that enhances morale of HRD to align resources and systems in such manner that the priorities and objectives can be meet effectively (Kearns, 2010). In addition to this, human resource management of distributor firm is looking for change in its functional strategies which allows management to have successful implementation of diverse development strategies. The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization (Maley, 2011). Performance management can be regarded as process that allows to have systematic working so that overall performance within organisation can be improved in appropriate manner. With an assistance of this, the promotion of diverse work activities can also be accomplished in desired manner. It also allows management to have better communication so that expectations of employees can be meet effectively (Mathis & Jackson, 2008).

Moreover, formation of competence framework is also beneficial because it helps in improving overall performance. Performance management is also considered as strategic and integrated approach so that delivery of outcomes can be improved in order to lead business to impressive level of success (Joe, 2008). Overall quality of operational activities can also be improved by having assistance of performance management system because it has direct impact on the employees skills. In this, it is significant for management of distributor firm to focus on effective designing of job roles and leadership style so that issues can be overcome in desired manner (Lucio, 2013). Training and development program allows to have improvement in skills of employees so that work activities can be accomplished in more optimistic manner. Moreover, reward system enhances the morale of employees and make sure that the workforce is performing in efficient way to meet goals and objectives.

It is significant for HRD to make sure that they are developing clear job descriptions so that understanding among workforce about work activities can be improved. With an improved level of understanding about job activities the employees can have efforts in optimistic manner so that issues can be resolved effectively. It also impacts the key result areas and performance indicators which is beneficial to have advancement in overall performance (Ruysseveldt, 2014). Selection process frameworks also need to be improved so that right people can be selected for the job. If selection of person is appropriate as per standards then it is possible that the activities can be accomplished in appropriate manner. It also has direct impact on the performance of organisation and lead business to impressive level of success (Werner, 2008). Along with this, the changes in strategies as per performance standards and employees needs is also beneficial to improve productivity so that performance can be advanced. It is also necessary for management to make sure that the benchmarks are being designed in appropriate manner so that issues can be overcome effectively (Marler, 2012).

Continuous monitoring is also one of key benefit that business firm can have by implementation performance management system. It also helps in make sure that the developments programs are being followed effectively so that employees skills can also be advanced in order to lead business to sustainable development. Changes in management style and leadership style frameworks also need to be consider effectively so that business entity can have improvement in performance (Miriam and Londregan, 2013). It is significant for HRD of distributor firm to make sure that the employees' satisfaction and improvement is key motive of designed activities. It will improve the workforce performance which will have direct positive impact on the overall performance of organisation.

Impact of Performance Management

As per the detailed study, it can be stated that the application of performance management system has great impact on the performance of organisation. With an assistance of this, the parameters of performance can be designed in appropriate manner so that overall performance can be improved (Othman and Poon, 2010). Management can also set out performance standards in desired way in order to make sure that the goals and objectives are being accomplished effectively. Moreover, the planning process can also be advanced by having assistance of participative aspects.

In addition to this, it can be said that the management of distributor firm can have better relationship with employees because it allows to have better communication. It is advantageous for employee as well as management to have frequent communication so that changes in objectives can be shared effectively (Dowling, Festing and Engle, 2008). It is beneficial to have improvement in performance because without understanding of objectives the activities can not be completed in appropriate manner that might be critical issue. Application of performance management is inclusive and collaborative process that make sure that the efforts of employees has provided benefits to organisation (Edenborough, 2007). In order to improve communication the management need to focus on participative aspects. For example, the belief in regard to management and leadership style need to be changed as per employees needs. In this respect, participative leadership style and management style can be adopted by management of distributor firm (Kearns, 2010). It allows employees to participate in decision making process so that strategies can be designed to meet their expectations. If employees needs are accomplished in appropriate manner then it will also have direct positive impact on the performance.

Performance management system also provides systematic learning about rules and policies that are being applied within organisation. Participative factors and communication allows employees to understand process in appropriate manner which allows them to have efforts in appropriate manner so that issues can be overcome. It also improves the performance and lead business to better success (Maley, 2011). Moreover, the performance management system also has involvement in planning so objectives need to designed in such manner that they can clarify the individual responsibility and duty. If employees are well known of objectives and duties then they can perform activities as per key standards so that performance can be improved. For example, the distributor company is looking forward to increase market share but employees are not clear about objective and they are having efforts to improve sales (Mathis & Jackson, 2008). It means the objective of organisation can not be accomplished which also impacts the overall performance so understanding between management and employees is significant to improve performance.

It has been witnessed that the performance management also provides support to employee development program. There are number of employees who demands improvement in performance so that their weakness can be overcome (Joe, 2008). With an assistance of performance management system the strength of workforce can be accessed to overcome weakness. Improvement in strength allows to have performance advancement and lead business to impressive level of success.

Organisational And Employee Concerns

It is significant for human resource management to have effective participation in employee development activities so that overall performance can be improved. With an assistance of this, the issues regarding employee concerns can be overcome in appropriate manner. Organisation also need to ensure that the performance management cycle steps are properly followed so that outcomes of changes can be attained in positive manner (Lucio, 2013). In initial stage company need to show concern about planning so that expectations can be identified in appropriate manner. If results are not being measured as per expectations of employees and organisation then issues can not be determined effectively (Ruysseveldt, 2014). Organisation is also concerned about monitoring of activities so that actual development can be determined. If monitoring of activities is not appropriate then business may face critical issue in respect to performance so management need to make sure about it.

Employees concern can be improvement in environmental aspects so that performance can be improved. Policies must be designed as per UK frameworks so that effectiveness of performance management can be accomplished in desired way. In addition to this, health and safety policies' application need to be improved so that overall performance can be improved (Marler, 2012). Motivation aspects also need to be concerned so that better benefits can be provided to employees in order to improve the overall performance.

Employee Engagement and Employee Involvement

Employee engagement is considered as degree of employee participation in operational activities. It has been noticed that it is significant for organization to make sure that the employees are taking participation in diverse activities so that objectives can be accomplished effectively. In addition to this, it is extent to which employees feel passionate about their jobs. It also indicates the commitment of employees towards organisation so that strategies can be designed in appropriate manner (Werner, 2008). It has been identified that if employee engagement within distributor firm is not appropriate then performance can not be improved. For example, the company is looking forward to accomplishing goals of 10 percent sales in next 6 months but employees are not committed towards work activities then it might affect the overall development (Miriam and Londregan, 2013). It means in order to have improvement in performance of organisation, it is significant for business entity to make sure that the employee satisfaction is high so that workforce commitment can be improved.

On the other side, the employee involvement is considered as direct participation of staff members in order to meet the organisational goals and objectives. It is referred as combination of activities that allows employees to take part in diverse operational activities. It has been noticed that if employee involvement in operational activities is not appropriate then overall performance of organisation may get impact (Othman and Poon, 2010). It is also beneficial to resolve the problems so that decisions can be taken into account in appropriate manner. In addition to this, it can be stated that the employee involvement also related with the workforce motivation. Increased level of employee involvement also enhances the morale of employees that allows workforce to effort in more optimistic way (Boxall and Purcell, 2011). It is also significant to have advancement in performance which provide support to performance management system. Performance management process can be an important tool for aligning workforce and driving employee high performance. It means to strengthen the performance management system it is significant for business entity to focus on employee engagement and involvement (Chen and Huang, 2009).

In this respect, the management can take feedbacks from employees in regard to performance. As per the analysis of views presented by employees the performance management system standards can be designed. It will lead business to impressive level of success and improve overall performance. Training can also be provided to improve employee engagement so that workforce commitment can also be enhanced (CHUANG and Liao, 2010). Employee commitment advancement is also beneficial to have improvement in performance and accomplish organisational goals. If employee engagement and involvement is appropriate then members can easily discuss job duties with supervisor. Improved knowledge about job duties assist in accomplishment of task so that overall performance can also be improved (Datta, Guthrie and Wright, 2013). Employees must be allowed to provide suggestions so that performance standards and indicators can be enhanced it will also lead business to impressive level of success.

Issues and Ways to Overcome

As per the detailed study, there are number of issues that management of distributor firm may face while implementing the performance management system. It has been noticed that the employee performance rate is dependent upon goals that are set out by organisations. However, the goals are being changed on rapid basis so it is one of critical task to have effective measurement of employee performance (Engle, Festing and Dowling, 2008). In addition to this, it can be said that the people also take more time to provide performance feedback. It means the company may face issue in taking feedback from employees which might affect the effectiveness of overall performance management system (Ruysseveldt, 2014).

However, the overall year performance is being evaluated that also affects the morale of workforce. For example, the company is focused towards performance management system and management has evaluated that employee has made mistake before nine months. But nowadays the employee is optimistically committed towards work (Finegold and Frenkel, 2010). In this case, the overall performance is considered as bad scale. It means the organisation need to ensure that the performance management system standards are well designed so that issues can be overcome effectively (Marler, 2012). Measurement of performance must be dependent upon recent actions performed by employee. It has also been noticed that the ranking provided in performance management system may cut down the employment engagement because it impacts directly on motivation aspects. For example, the employee is rated down in performance management system then his/her motivation level will be influenced. Low level of motivation may decrease the employee engagement and commitment which might be critical issue that may affect overall performance of organisation (Werner, 2008).

In order to overcome issues, it is necessary for management of distributor firm to focus on number of activities that may cut down the issues and lead business to impressive level of success. It has been noticed that the management need to focus on activities that might improve employee participation. With an improved focus on employee participation the issues can be discussed in appropriate manner so that the strategies can be designed effectively (Miriam and Londregan, 2013). It enhances the morale of employees so that performance can be improved and lead business to impressive level of success. It can be recommended that the management need to focus on communication aspects so that understanding about goals and expectations can be improved. It also enhances the morale of workforce and ensure that the goals and objectives are being accomplished effectively (Othman and Poon, 2010).

Open communication techniques also need to be concerned so that issues can be overcome and lead business to better success. With an assistance of open communication techniques the business entity may share information about policies and duties so that employees can perform task in appropriate manner (Boxall and Purcell, 2011). It has been noticed that the open minded communication enhances the potential to express ideas and views which is beneficial to improve overall performance. If workforce is sharing issues in appropriate manner then better strategies can be designed to improve overall performance (Chen and Huang, 2009).

In addition to this, it can be asserted that the work culture also need to be consider effectively from the management of distributor firm. With an assistance of employees needs the services can be transformed so that work culture can be improved. Basic facilities and other supportive facilities can be improved to enhance the morale of employees (CHUANG and Liao, 2010). It also enhances the productivity of workforce that has direct positive impact on the organisation performance. Innovation must be considered as key aspect so that better relationship between management and employees can be build. It also provides better opportunity to have advancement in performance management system (Datta, Guthrie and Wright, 2013). Team building and collaborative activities need to be framed so that employee engagement and involvement can be improved which is advantageous for performance management system application.

Conclusion

As per the above study, it can be concluded that the performance management system is designing of activities that ensure that the employees are showing their best commitment so that goals and objectives can be accomplished. It also focuses on improvement in skills and provide befits to employees as well as organisation. With an assistance of this, issues can be overcome and lead business to impressive level of success. Moreover, the employee engagement and participation is also considered as key aspect that allows businesses to strengthen the performance management system. Participative factors and communication allows employees to understand process in appropriate manner which allows them to have efforts in appropriate manner so that issues can be overcome. It also improves the performance and lead business to better success. Performance management system also has involvement in planning so objectives need to designed in such manner that they can clarify the individual responsibility and duty.

References

  • Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
  • Chen, C.J. and Huang, J.W., 2009. Strategic human resource practices and innovation performance—The mediating role of knowledge management capacity. Journal of business research. 62(1). pp.104-114.
  • CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service context: Taking care of business by taking care of employees and customers. Personnel Psychology. 63(1). pp.153-196.
  • Datta, D.K., Guthrie, J.P. and Wright, P.M., 2013. Human resource management and labor productivity: does industry matter?. Academy of management Journal. 48(1). pp.135-145.
  • Dowling, P.J., Festing, M. and Engle, E.D., 2008. International Human Resource Management: Managing People in a Multinational Context. Cengage Learning EMEA.
  • Edenborough, R. 2007. Assessment methods in recruitment, selection and performance: a manager’s guide to psychometric testing, interviews and selection. London: Kogan Page.
  • Engle, D. A., Festing, M. and Dowling, P., 2008. International Human Resource Management: Managing People in a Multinational Context. Cengage Learning.
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