Does Performance Appraisal process will be a challenge for an Organization?

What is Performance Management and Appraisal System?

Loyal employees tend to perform their job to the best and in return they expect rewards and recognition from the organization. This will boost their morale and enhance productivity.

As per Armstrong (2017) performance is an outcome of three main elements of facts and things, How things are done and motivating the people who have done it.

Continuous improvement of performance by individuals and teams by setting which are aligned to the overall objectives of the organization.

It involves Agreement between employer and employee and feedback about to where they heading.

The process involves with clear  simple goals which are measurable.They are simple and aligned to organizational goals. It's transparent and regularly assesed against themselves on given criteria.

As per the research done by Hamukwaya and Yazdanifard (2014) there are pros and cons of a performance appraisal system.

Advantages includes - Retention of qualified competent people, create willingness to take up challenges in job role, Motivates employees who are success in evaluation process, Improves efficient administration, Ability to achieve overall organizational objective.

Disadvantages of Performance appraisal system includes - Negelegence of unrewarded tasks, Demotivation of low rewarded employees, Lack of openness among the employees, The majority of the staff cannot be satisfied, Competition between employees instead of corporation., High cost involved for paper works and operating systems.

As per Farnham and Pimlot (1999) performance appraisal is used identify what are the  improvements can made in employee side and give them opportunity to improve their skills to perform more effectively in future. from the organization perspective they use appraisals to measure what level and type of work which the employees will capable of doing in future and they gives continuous training for the selected employees.

Employees are often dissatisfied with performance evaluation methods since it's mainly an activity between managers and employees. Managers also reluctant to engage in the process of it's confrontational nature.

As a whole the so called multinational companies have moved to explore new dimensions  to reward employees rathar than sticking into traditional employee appraisal methods such as annual reviews and mid year reviews. The main reasons are as described above the disadvantages of the appraisal process faced by organizations as a whole. 

As highlighted by Macmillan futuristic organizations are bringing new strategies an laying plans to address the negative side of the appraisal system expecting good results and enhanced performance.
They may use the tactics as

• Handling staff with respect
• Providing training to raters
• Rewarding managers for conducting performance appraisals.
• Choosing appropriate raters such as other organizations, peers, workers ,customers as in the case of 360 degree feedback.

References

Armstrong, M and Taylor, S.(2017) Armstrong's handbook on Human Resource Management Practice. London: Kogan page

Hamukwaya, S. and Yazdanifard, R ( 2014) How a proper Performance Related Reward System can contribute to work performance excellence, vol 2

Farnham, D. and Pimlott, J. (1999) Understanding Industrial Relations,4th Edition, Cassell Educational Ltd. London.

MacMillan, A. (2015) Importance of Performance Management process and Best practices to Optimize monitoring performance, Work reviews/Feedback and Goal management. https://www.successfactors.com/en_us/lp/articles

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Compensation & Benefits a challenge for an organization

The performance of an organization largely depends on the performance of their employees. To upkeep the staff in long run their perks and salaries must be kept aligned with competitors . It is commonly believed that job satisfaction will result proved performance. 

Compensation is general term refers " Something given or received as an equivalent to service or work provided". As per Mcnamara (2006) in an organization, compensation includes wages / salary structures, merit based programs, bonuses, commission based progarms and other benefits.

The other benefits includes retirement plans, health insurance covers, vacation pay etc.

Compensation is primary motivation factor for any kind of employee who works for an organization. People look for jobs not only to show their talents but also to compensate in terms of salary and other fringe benefits.

Employee benefits focuses on providing financial security for the employee as well as their family members. Google company being one of the great places to work offers number of benefits for their employees including vacation and paid time off, employee discount, Gym membership, pet friendly workplace, company car etc.

A company like google can afford for such benefits for their employees based on their income levels and profitability. But in terms of other growing companies it's a huge challenge for every sectors of organizations in the world.In twenty first century money is treated as most intrinsic motivation factor since it provides the carrot that most people want. (Armstrong, 2014)

Although different people have different kinds of needs and wants in an organization the monetary benefit which they get from the organization by way of incentives and performance bonuses will boost their satisfaction and productivity.

As per Armstrong (2014) to overcome the job dissatisfaction which creates due to repetitive works in workplace organizations tend to design work which will boost productivity. In terms of employees side they benefits in non monetary ways such as job satisfaction and feeling of personal accomplishment. 

By looking into above we can conclude that offering compensation and benefits in attractive manner will upkeep the valuable human resource in any kind of organization and attract more diversed, talented people for the organization which will be a financial cost for the organization in return and will be a challenge for the 21st century.

References

Mcnamara, C. (2008). Employee benefits and compensation: Basics about employee motivation : Nuts and bolts guide  to leadership and supervision in business. Minnesota: Authenticity consulting LLC.

Armstrong, M (2014), Armstrong's Handbook on Human Resource Management Practice, 13th edition. pg 181-182

Armstrong, M (2014), Armstrong's Handbook on Human Resource Management Practice, 13th edition. pg 136 and 145

Organizational challenges

In an organization, managing of human resource is most challenging task. To manage the employees of the organization well qualified and experienced HR team is a must. There are four types of daily operational challenges to be managed by HR team. It includes

• HR Selection
• Learning & Development
• Compensation
• Performance appraisal.

HR Selection.

Requirement for selecting a suitable candidate creates stress on HR team.may be it's due to resignation of existing staff, expansion of organization with new branch network  or  need an immediate replacement for existing staff.  As per Armstrong (2014) selecting the right person to the right position is  challenge since they have limited number of applicants. HR team adopt to following methods to select the best candidate when advertising the vacancies. 

1. Online application through Organizational website, Social media or  job boards.
2. Advertising through National newspaper or journals
3. Recruitment agencies or recruitment consultants
4. Educational establishments such as univercities, schools etc.
5. Outsourcing through recruitment agencies.

From above methods team of HR professionals will select applications and call for interviews.

upon checking applications, number of  short listed candidates will be notified and will  obtain their referells. Selected canditates will then be offered appointment.

Learning & Development

As per Walton (1999) learning and development process involves giving required skills, knowledge, competencies for the people and their team to perform their current and future task in their organization. This is challenging since it is costly activity for the organization in both long and short run. Also with the different educational levels giving them the required skills is a big challenge.

According to Harrison (2009) the main purpose of learning and development to assist for collective progress via collaborative, expert and ethical stimulation by facilitating knowledge that'll support to achieve organizational goals, and developing individual potential.

There are number of ways to offer learning and development methods  for an organization in modern context. They includes blended learning, e- learning, regular lectures, mentoring, outdoor training, coaching etc. Having arising huge cost from the organization side which needs continuous investments to improve their workforce in return organizations will get the maximum output from their human recource.

References

Armstrong, M (2014), Armstrong's Handbook on Human Resource Management Practice, 13th edition.
Walton, J (1999), Strategic human resource development, Harlow, FT Prentice hall.
Harrison, R (2009), Learning and Development, 5th Edition, London, CIPD

Workforce Diversity and Demographic Challenges

As we discussed earlier managing a diversified workforce is a huge challenge in an organization. However the the organization too has advantages such as enhance the service level and creativity by recruiting diversified employees to the organization.

As per Roosewelt (2001)Managing diversity in the organization will create a stronger and competitive enterprise within the industry.

Snell, S (2010) suggests  to retain diverse pool of HR talents in an organization the HR people must ensure the current demographic change in the organization, educate the staff diversity is not synonymous with minority, make sure to implement appropriate internal cultural changes so that minor people can work willingly in the organization.

As per the survey conducted by Society for Human Resource Management  in 2002 indicated that employees in different backgrounds needs training for better performance in the organization. Otherwise the staff turnover ratio will increase and the commitment to the organization from loyal employees will decreased.

In a workplace with different types of people, in different ages, with different thoughts, perceptions working at a same place will definitely arise a situation where all people will not agree for a certain decision. This will create a contradiction among the employees. To overcome this challenge the organization has to well manage the mutual relationship among the different kinds of people.

As per Magoshia E, Chang E (2008) managing diversified employees is a huge challenge in all over the world. If organization is able to manage them effectively it'll be a competitive advantage to compete with the peers undoubtedly.

Finally we can conclude that workforce diversity and demographic challenges will create competitive advantage for the organization with managing the people for the right direction.

Roosewelt, T (2001). Elements of a successfull diversity process, The American institute for Managing diversity, Accessed on 17/06/2018, 09.14pm.

Snell S, Bohlander G, Vohra V, (2010). Human Resources Management- A south Asian Perspective, Cengage learning (Pvt) Ltd, pg-89-93

Collison J., (2002), Society for Human Resource Management: 2002 Workplace Demographic Trends Survey, Accessed on 18/06/2018 at 06.12 am

Emiko Magoshi a, Eunmi Chang, "Diversity management and the effects on employees’ organizational commitment: Evidence from Japan and Korea” (2008)  http://www.academicjournals.org/ajbm

Work force diversity and demographic challenges

Workforce Diversity.

With the development of  science and technology, it has proved that no two humans are alike. Every human has an identical qualities, attributes and differences from each other. In an organization people a different from each others. The workforce diversity is the similarities and the differences between the employees as religion, age, race, gender, physical abilities and disabilities,perspective etc. 

Saxena A (2014)

In modern context employing diversified workforce to the organization is necessary. Organizations has also face challenges when guide them for organizational objectives as one team. with the advancement of the technology world has got more closer as ever before. Therefore people tend to explore new job opportunities in all over the world. With the competitiveness in the job market the employers too have to on board  highly effective and efficient workforce for their organization. It is a big challenge for an organization to manage diversified workforce. If we develop and implement plans to come across workforce diversity issues, we can benefit

1.organization is able to serve better for the diverse external clientele. The diverse workforce can identify requirements of different cultural and religious backgrounds (Adler, 1991)

2. Achieve creativity through workforce divesity (Morgan, 1989)

3. Workforce diversified organizations can give number of solutions for problems specially in service sector.

The major issue in the diversified work group is to maintain the cooperation among the employees.
As per Bontis and Fits-enz (2002) the human resource in an organization is a result of  talent and experiences gained from diverse workforce.

                                         Source https://pixabay.com/photo-1917895

As we discussed in above managing diversified workforce in an organization is a challenging task once it's overcome the organization can perform exceptionally well with competitors with their creative, effective and valuable diverse workforce.

Refeferences

Ankita Saxena (2014) , Workforce diversity: A key to improve productivity, Procedia Economics and finance, vol-11

Morgan R (2015), Diversity and Inclusion, Journal of the American college of Radiology, vol-12, pg975-987

Bontis, N., Fitz-enz, J (2002). Intellectual capital ROI: A casual map of human capital antecedents
and consequences, Journal of Intellectual Capital, vol-3, pp 223-246