Best Practice Performance Management Schemes

This research paper is based on the development and implementation of completely integrated performance management system. The organizations are enjoying many benefits by implementing the performance management system. It has helped in improving the productivity of employees in most of the organizations. It is to be understood that apart from advantages, the system also carries some disadvantages. It is time consuming and there are chances of biases entering into the system.

In today’s competitive and ever changing economy, the challenges of Human Resource Management (HRM) is becoming more demanding of strategic responses to its functions as the new era unfolds. The primary function of human resources is to use strategic goals and objectives in order to improve performance outcomes and develop organisational culture that foster innovation and flexibility. Staffing, training and performance management are important functions of human resources, if carried out effectively the success of a setting becomes imminent.

Performance management is the process a business uses to assess and determine the efficiency in achieving set objectives. A durable performance management system relies on a trusting relationship between employees and employers. When employees doubt the credibility of employers, they also distrust the results of any performance management metrics that are produced. Inconsistent feedback from management can result in poor performance and cause confusion or resentment among employees, which further leads to distrust towards the performance management reports.

This study is exclusively conducted for Reliance Retail Limited. This deals with everything related to Performance

The first port of call, or initial point of contact, for performance management is usually the

3. Show your scores on each skill, before, after, and the difference, if any, in a fully labeled table.

There is a growing recognition as evidenced by academic literature that the adoption of best practice performance management schemes are important to attract and retain high performing talent in the workplace (MacDuffie 1995; Delaney and Huselid 1996; Delery and Doty 1996; cited in Marchington and Grugulis 2000). As described in the works of Jeffrey Pfeffer (1994, cited in Marchington and Grugulis 2000) it is believed there exists a set of universally applicable ‘best’ human resource practices which if implemented in the workplace can lead to enhanced firm performance. This implies that a one-size-fits-all recipe must be inherent in best practice human resource management. This paper challenges this notion and opposes the existence of one

valid approach, it takes a significant amount of time and requires the use of valuable

This literature review aims to examine and evaluate the existing literature, which relates to the role of performance management in both controlling and developing employees. In the beginning, the review will emphasize on defining ‘performance management’, its brief history, evolution, and definitions through the existing literature available. In between this literature review, will highlight the issues related to performance management, which act as a hindrance in its perfect execution in organisations. The latter part of this literature review will focus on the examination of existing research if any, which has aimed to identify a link or no link between performance management and controlling and developing employees.

The yield expected from successful human resource management (HRM) or development (HRD) differs greatly depending on where the organisation is based, its’ culture, resources, size and socio-economic climate. Therefore, it is imperative that the development and delivery of improved human capital via HRM is rooted in the needs of the organisation rather than opting for an ‘off the shelf’ closed option such as ‘Best Practise’ or high performance work practices. Theorists have yet to settle on a definitive model for best practise, which itself suggests a certain degree of flexibility is built into the interpretation of what it could be. Here lies the first contradiction to the pro best practise argument as these rigid principals are yet to be

People are the key to business success. However nowadays of business this is often neglected and people are seen to be a necessary expense. A successful business does not just rely on a person’s power instead it involves continuous effective teamwork and communication. Storey (1995) defines that human resource management is an individual approach to employment management which seeks to achieve competitive advantage through the strategic deployment of a highly committed and capable workforce, using an integrated array of cultural, structural and personnel techniques.

Instead, human resource practices of ‘best fit’ are more effective when they are designed to fit certain contingencies in the organization’s specific context. Consequently, ‘best practice’ is perceived to improve performance within an organization when a select bundle of policies is implemented and the employees are managed more efficiently. Jeffrey Pfeffer’s (1994) work under this conception offers a list of seven practices assumed to be most beneficial to an organization for achieving competitive advantage ‘through people’. (1) The importance of employment security is emphasized because it is unrealistic to expect such hard work and commitment from employees without some expectation of security on their part. (2) Selective hiring is a source of sustainable competitive advantage through its “capturing” of particularly exceptional human talent (human capital). (3) Self-managed teams require efficient teamwork, and are seen as a route to achievement of more creative solutions. Employees deserve to be rewarded for

Armstrong M. and Baron A. (2005) _Managing Performance: Performance management in action_. London: CIPD in Foot, M. and Hook, C. (2008) Introducing Human Resource Management, 5th Edition, Pearson Education Limited, Harlow, England, pp. 239.

Performance management mostly is not successful as expected in the public sector. According to Her Majesty’s Inspectorate of Constabulary for Scotland (2005) a thematic inspection of performance management noted that though performance management was “substantially developed”, a long way is still needed to go before everyone was responsible for providing a good service and “many areas of performance management in the early stages of implementation existed as well”. There are many implementation reasons causing these problems, for instance, the reduction of government spending (Gianakis, 2002), or purely a tool for management rather than a tool for

Best practice approach makes enterprises adopt HR policies. And it is more possible that HR practices can create a high commitment workplace. It will improve organization performance (Nickson, 2007, p.11). According to Pfeffer (1998), people should be the key and given top priority, and not the profits. The ‘best-practice’ approach is very similar with the ‘soft’ HRM model. There are seven factors of successful organizations, which include: