Performance and Reward Strategies for Business Success
The economy will be recovering and demand for the capable and experienced industry professionals will grow. This will be particularly done at the executive and management levels. Competition needs to keep high performing and valuable employees at all time is high. Reward system and strategic performance of employees will be considered high. This is one of the most effective ways to keep the enterprise top management and performers grow profit. A balanced ownership plan and compensation will incentivize the performance and improvise the retention and recruitment efforts and company will be able to achieve its goals. Key economic Perspectives from different organizations like CFMA have predicted the relatively robust economic growth.
The retention and hiring gap is the continuous impact of economic downturn. During the time of recession, projects may get slowed and businesses will be required to downsize the workforce. Companies need to assess the own operations for the development of production and positive work environments will be retaining the high level and attracting performers. Reward system is an effective strategy which is fundamental towards business performance. Most of the professionals realize the need for robust high performance and reward strategies and must not reward one behavior when there is a different outcome.
Traditional models and approaches towards performance management has presented a methodology for the development of mission, goals and objectives and management of performance. Existing approaches will not meet with the objectives and this is due to flaws in implementation (Schmidle, 2011). Action must be taken towards the demotivated staff and different forms of control are inappropriately known as the police performance. There are different alternative approaches used in strategic compensation. The companies need to make attempts in incorporating the ethical concerns over the stakeholder and performance management approaches. This will be having a lot of impact over the dialogue and performance measure and performance improvement design used. The main ethical principles are respect for individual, procedural fairness, decision making transparency and mutual respect (Curseu, 2015).
The manager finds themselves in the position where the decision is to be taken on a regular basis. The guidance takes place through own principles and morals and each situation must be viewed objectively and proper ethical decisions taken. The first principle-respect for each individual-All the team members must be treated respectfully (Schwartz, 2011). People need to work with different cultural belief system and different religiously and this must be treated fairly. Desired performance must be defined in the actionable and tangible goals. Right measurements must be done for measuring the things right. Rather than having intangible vision and mission statement, management must look at the hard activities that will drive the performance results and this is ultimately economic results. Procedural fairness requires having control over the policies and methods that can be implemented within the team (Taylor, 2014). It is essential that all the processes must be fair to all the employees. Another ethical principle-transparency in decision making-The employees need to have an understanding of what the decisions are to be taken. The employees do not need to make the arbitrary choices based on the decisions and working together as the team. In mutual respect-the manager need to treat every employee equally and have proper respect for everyone (Eremin, Wolf and Woodard, 2010).
Ethical Principles for Performance Management
Benefits and compensation are key principles for retention and recruiting the best talent for every job in the industry. Employers find this tough and retaining the best talent. Maximum number of companies will be offering the competitive packages. A small company may find it difficult to compete with big companies as small company may not have the financial measures. Businesses need to strategically plan for competing with benefits and compensation programs.
Identification of employee objectives-Corporate culture will be attracting similar type employees (Sum Chau, 2008). An important aspect is to understand what the different workers want by talking to existing employees and industry data. Older employees are concerned with health care benefits and retirement and few employees want growth opportunities like education funding. Wherever possible, check for the competitor benefits and compensation program contain. Everyone is intended to make as much money possible (Yang, 2011).
Setting the budget-A realistic approach is required for the company’s budget. Determination of total amount that can be spent on any employee is required to be calculated by the management. Valued employees will be paying for work efficiency. A factor which costs for the employee that includes the payroll costs, compensation, taxes and bonuses is necessitated. Determination of what is affordable in immediate benefits and compensation is deemed priorities. For instance- a vacation package or a retirement plan to the employees must be given for a specific period of time. This is known as vesting and promotion of loyalty amongst the personnel can be evaluated. If an employee do not wish to stay with the company after the given minimum time, the company can have access to funds that have been spent on vested plans (Folz, Abdelrazek and Chung, 2009). There are annual reviews and employees are provided with performance metrics that can qualify for the rise in pay.
Plan Implementation-The implementation of a compensation plan requires incorporating and writing a new and updated personnel manual. Compensation numbers will be private and the rules of receiving the strategic compensation benefits will be listed to everyone for reviewing it. Everything must be stated in detail. Listing of vacations and sick days must be listed. A discussion can be taken place what changes are required to be made for the schedule change and approval made for the overtime. The benefit packages like retirement plans and health care plans with eligibility rules must be stated. The new plan must be told to the employees as they can review the same. The management needs to share the plan with new personnel’s and clarity must be focused.
The competitors can have a broader compensation and benefits program. The company needs to be creative in the strategy building. For instance-a flexible schedule must be offered to the employee and how to get the commitment. Lower wages can be offset through high bonus package for having the successful sale. The management must have a strategic view of how to do the performance appraisal of the employee.
HR’s Role in Ethical Performance Management-Performance has been understood as the achievement in any organization with relevance to set goals. This includes achieved outcomes and accomplishments through the contribution of teams and individuals to the achievement of strategic goals. This term performance will encompass the behavioral and economic outcomes (Auden, Shackman and Onken, 2006). Performance can be viewed comprehensively by incorporating results and behaviors. The role of a manager is seen in different parts-Doing, Being and relating. Doing focuses on effective management of activities and Being focused on the different competencies which are relevant to the performance. Performance can be linked with the potential of the individual and how productive processes can be managed in output. The potential of a manager can be determined when set of task will be assigned and this is in relevance with performance standards. Task related activities refer to the achievement of allocated tasks and meet the expectation in a task environment (Koliba, Campbell and Zia, 2011). Performance refers to the achievement of managers and how this role is created for the achievement of a purpose. The actual performance comprises of several forces. These are internal and external to the organizations. Few organizations will not take forces systematically (Lyons, 2009).
Identifying Employee Objectives
Effective Performance Management-Transparency in decisions related to performance measurement and improvement are followed. These include work planning, guidance, performance review, monitoring and work allocation. All these variables must be effectively communicated to the managers in the organization. Effective participation of personnel in decision making process and managing their talent rewards and merit is necessary. Providing more responsibility and authority to the managers in a matter of key concern. Values involve ensuring and treatment to key stakeholders of the organization (Kapucu, 2009). Treating the people as living forms rather than just employees forms the foundation. Congenial work environment-the environment must be conducive and people must be able to share the experiences. The employees must be well informed about the mission, values and objectives for management and development of individuals for better performance. External environment needs to be effective and overcome the impediments and obstacles in the pathway of managerial performance (Breul, 2007).
Performance Evaluation of Employees-This serves the number of aims in organizations. Management will utilize the human resource evaluation for personnel decision. Evaluation techniques will provide input for essential decisions like promotions, terminations and transfer. Evaluations need to identify the development and training needs. Performance appraisal pinpoints the competencies and employee skills which require programs to be developed to remedy (Rivenbark and Kelly, 2006). Performance evaluations are used as criteria on which selection and training programs will be validated. There are instances where newly hired personnel cannot give effective performance and requires training effectiveness to be measured. Evaluation can fulfill the purpose of giving feedback to personnel on how the organizations look at the performance (Marcoulides, 2008).
Organizations and management staff may experience an array of pressures which can create prerequisites for ethical conflicts and dilemmas. Economic pressure needs to be combined with increased external and internal competition that is being starved by the people to achieve more resources. This also implies reduced funding. Uncertainty and political upheaval are leading towards increasing anxieties around staffing and job security. This also includes the power dynamics and interaction patterns. Social factors are not properly managed through the workers. Increased globalization requires enhanced cultural sensitivity among international companies. Ethical and legislative changes in areas like privacy and data protection will create new responsibilities. Environmental pressures involve needing to respond towards the climatic change and conflicts with human behaviors and economic pressures.
There are other reasons which are identified as to why legal conflicts like inequalities attempt of reducing the performance demands and stakeholder interests. However, performance evaluation has been utilized as the basis for reward motivation and allocation. The expectancy motivation model shall provide the linkage between effort and performance. In an expectancy model, the individual performance evaluation is a must. To maximize the motivation, people will be required to take in the effort which leads to favorable performance evaluation and leading to a reward system. Adopting the motivation model, objectives needed to be achieved through and measuring criteria must be clear. The organization needs to make performance objectives must be clear and employees can lead the satisfactory payoffs on achievement of the organization performance objectives. The individuals need to work considerably at potential levels and achieving the desired level of performance (Pichler, 2012). The potential legal and ethical issue confronted by the company has been illustrated in different international cases. By gaining shared information, fairness, personal contacts and honesty and having supplier relations is necessitated. Consideration of company value and track record of potential job personnel and undermining of positioning of a company and credibility in marketplaces gain attention. Ethical issues arise in different companies and have a potential negative consequence over the small and medium enterprises.
Conclusion
Globalized business undergoes reputational damage and having the detrimental impacts which are widely spread through the different channels. The role of a human resource manager within the organization is measured at different points. This requires the nurturing of ethical organizational culture. The staff recruitment which can set the organizational ethical tone and uphold the ethical climate and resolution of ethical conflict is a must. Moral Maxims will be provided with initial guidance to employees confronting the ethical dilemma on the spot. HR managers will benefit through refinement of ethical reasoning and utilization of systematic analysis for enhancement of ethical judgment. A process for analysis of ethical situation or problem with the application of ethical protocol shall be made into the organizations. Specifying the ethical issues and its reasoning to reach the ethical judgment is a must. The procedure will start with the cultivation of ethical sensitivity and awareness and take proceeds for identification of ethical issues. Selection of ethical theory and specification of alternatives and justifying the decisions and final monitoring of decision outcomes must be done by the HR managers. Performance Appraisal is one of the tools for implementing Human Resource policies and follow the ethics of rules will perceive the whole system as ethical
References
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