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WEEK-4

HRM 6010

ADVANCED ORGANIZATIONAL BEHAVIOR

Prof. Marry Brooks

Alpitabahen Patel

J02063909

5/31/2020

Best practices in performance management and compensation of teams in organizations

Top managers design performance Management policies and Human Resource that helps to define access, quantify, evaluate, and offer expectations on individual and group performance. Organizations across the globe strive to upgrade their performance from the employees to the managers to meet the company's objectives in a more competitive world. Through Performance Management Systems, organizations aim at employees to do the required tasks the right way, handle the barriers of performance and deliberate on ways of doing things for optimum results and promote socialization (Horwitz, 2016). Through the success of performance and engagements within the organization, employees are subject to social adaptation and social competence. More so, evaluation and appraisals in the production of employees, the organization provides a perfect environment for interpersonal interactions that contribute to an efficient human capital within the culture of the organization (Ratkovic-Njegovan & Kostic, 2014).

Organizational culture plays an essential role in the influence of various programs, employees, and performance. Studies show that if employees are engaged in the same norms within the organization, the chances of accomplishment in achieving the organization's expectations and goals are higher. Senior managers and HR are encouraged to device a formidable culture to improve employee's performance. The culture should be designed to improve the ways of employee's performance and quality. The organization's culture and values influence everyone involved in the company right from the clients to the top management (Shahzad, 2012).

Human resources have to formulate methods of practice that would facilitate change within an organization by engaging every stakeholder within the organization's community. The most effective channels for performance are clear expectations, feedback reliance, and provision of avenues for employees to flourish (Kinicki, 2018). In this paper, we highlight some of the organization's engagements that promote performance.

Setting goals is an essential practice that management should implement on local levels in their organization's culture. Other than setting bigger goals to be centrally managed by senior managers and leaders at companies' headquarters, intentions and expectations should be set at customer, employee and team unit levels to be overseen by unit leaders. Once goals are clarified, it is easier to provide a working environment for individuals and teams to innovate like S.C. Johnson Company, which was able to achieve its goal of reducing greenhouse gas emissions by 7% (Kinicki, 2018).

Human Resource and senior management should strictly follow up on the existing systems of Performance Management not at annual intervals but quarterly and monthly frequency through team leaders by monitoring and measuring performance checklist of employees (questions on their performance and their recommendations). Tracking, control, and measuring of performance are fundamentally based on time management, quality, and quantity of work done and relevant financial gains (Kinicki, 2018). It is also essential for managers to highlight performance indicators that will guide whether the goals are met or not (McNamara, 2006).

This is a success roadmap that is used to correct, motivate, and support efforts made by employees. It is also a crucial stage of engaging in constructive criticism from employers (Horowitz, 2016). Real-time engagements between leaders and employees and clients should happen regularly to analyze progress, expectations, and reviews of employees through conversations. Negative feedback is encouraged to be delivered carefully with good intentions without causing psychological damage to employees to avoid unproductivity. On circumstances employee doesn't meet the expectations; on-site pieces of training should coach them for skills improvement.

After tracking performance from team leaders, senior management should reward the best performers annually by cumulating monthly or quarterly feedback and reviews. Types of rewards are Extrinsic (financial and non- monetary benefits) and Intrinsic (meaningfulness and achievements). Some of the reasons why rewards fail to be useful are delay in rewarding, use of demoralizing practices like lay-offs, less impactful bonuses, overemphasis on monetary rewards, or rewarding top managers excessive compared to other employees. On the other hand, prizes can be efficient if employees are involved in creating a reward system that is valuable to their needs.

Most organizations use compensation as a way of keeping their best performers. Not only does it help in retaining the best talent but also keeping the organization's knowledge and culture longstanding. However, it is essential to note that a not well-designed compensation and Pay- per- Performance systems lead to unhealthy competition between employees, who are expected to work as a team.

Effective Performance Management starts by hiring or training of better managers who would evaluate employees without backsliding. Some companies like Cigna, Delloite, and Adobe have overhauled their performance management systems and developed new ones with commitments of creating a well-managed workforce (Kinicki, 2018). With all the systems put in place, it is required for organizations to engage in leadership development programs and training in managing people, critical thinking, and strategic planning for competent management (Horowitz, 2016).

In instances, the performance does not rise to the expected standards, and it is essential to go back to the drawing board and come up with a new Performance Development Plan or upgrade the existing one. Sometimes organizations need to repeat the process of the current Performance Management Plan, correcting and improving until it works. Note that sometimes fail to achieve the desired performance outcome does not mean there is underperformance in the organization. It may arise because of unrealistic goals set by the executives or lack of sufficient resources like human resources or finances to achieve the goals (McNamara, 2006)

In conclusion, it is vital for Human Resource and top management of organizations to collaborate with the employees do design performance management plans that will sync with the organization's culture, set realistic goals that will be achieved at teams level, promote organizations socializing and add value to their livelihoods.

REFERENCES

Kinicki, A. (2018). Organizational behavior. McGraw-Hill Education

Horowitz, R. (2016). Performance Management Best Practices: Leadership & Talent Management. Kwela

Ratkovic-Njegovan, B., & Kostic, B. (2014). Undefined. Journal of Engineering Management and Competitiveness, 4(1), 34-40. https://doi.org/10.5937/jemc1401034r

McNamara, C. (2006). Field guide to consulting and organizational development: A collaborative and systems approach to performance, change and learning. Authenticity Consulting.

Shahzad, F. (2012). Impact of Organizational Culture on Organizational Performance: An Overview.