TO WHAT EXTENT CAN PRIVATE SECTOR APPROACHES TO HUMAN RESOURCE MANAGEMENT BE DIRECTLY TRANSFERRED INTO THE PUBLIC SECTOR? AN ILLISTRATION OF THE NHS CASE.
INTRODUCTION
Since the advent of new public management reforms, private sector managerial approaches are fast gaining attention in various public sectors. This is due to the belief that on-going global economic constraints and fiscal crises are demanding for more organisational effectiveness with minimal cost, and private sector practices are believed to be more efficient than its public sector counterpart. It is within this context that human resource management practices are being transferred into the public sector for better performance.
However, several literatures have debated
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274) is a process used to assess a team or individual’s abilities towards performance development and improvement. This process involves setting a goal towards an outcome, monitoring and evaluating via performance indicators, and rewards as well as penalties as the case may be. However, in the public sector, arguments have ensued that performance management often contradicts the blue print of public services or is rather strategically used by politicians to assert some form of control over the sectors and not to perform its intended purpose. Performance indicators albeit is fast becoming popular both in the public and private sectors, has a measurability often argued to be complex in the public sector as opposed to the private sector where only monetary values and profits are measured. Even though, the ultimate goal of this HR tool is to drive performance either in the private or public sector, the role of targets in the public sector is often debated as many studies have demonstrated their obscurity by questioning whether ratings or indicators can actually measure performance accurately. However, over the last decades, some studies have agreed that HRM tools have to a certain extent a drive on organisational performance both in the public and private sectors (Carter and Robinson, 2000, Boxall, 2003). In the NHS, the labour government has initiated performance management via the NHS STAR RATING as a tool to drive performance and accountability.
In order for an organization to achieve long term success, it must consistently evaluate those plans and consider all of the organization’s entities and how they link together. By appraising the existing performance management process, it forces deeper analysis of the process, as well as its intended and unintended influences towards employees and the organization.
Performance management system makes a clear link between the performance and compensation, and allows the employees to understand the areas which need to be improved and directs them to appropriate training opportunities to enable improvement in performance to take place. Joseph Martocchio says, “Work with line managers to design the performance appraisal plan which best fits the specific duties and responsibilities of particular roles” (Martocchio, 2011). Compensation and reward decisions are likely to be arbitrary in the absence of a good performance management system. In short, performance management is a key component of talent management in organizations. It allows assessing the current talent and making predictions
Performance management is a tool that managers use to ensure that their companies remain at the top of their competitive edge. The Chartered Institute for Personnel Development (CIPD, 2008), defines performance management as a method by which individuals and teams are managed in a way that achieves high performance at an organisational level. The individuals within the organisation share an understanding of the achievement goals of the organisation. In order to achieve this, a general strategy is created, with each individual within the organisation understanding his or her role and requirements within such a strategy
Performance management is the process of planning work assignments, setting expectations, monitoring processes, rating performance, and rewarding performance. Performance management systems are used by organizations to identify, measure, and develop the performance of individuals and teams. The goal of an effective performance management system is to strategically align employee performance with company goals and objectives (Smither & London, 2009). In order to achieve optimal performance, organizations are tasked with implementing innovative solutions that ensure performance management systems that deliver real results and improve performance (MacMillan, 2015). Organizational leaders are responsible for understanding the performance management system in order to focus on employee efforts that will help in achieving both individual and organizational goals (Opm.gov). In this paper, the author will suggest the key processes that DSM needs to provide within its system in order to successfully link its key success factors (KSF). The author will select three drivers, and examine the central manner in which DSM management has aligned its business strategies to performance management. Lastly, the author will critique DSM’s competitive advantage by using three of the six assessment points outlined in the textbook.
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.
As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.
Human Resource Management is a vital function in any organisation and operates in legal and social environments that are becoming increasingly complex. It is defined as the process and practice of managing and advising executives on staff recruitment, selection, retention and development (Clegg, Kornberger & Pitsis 2011). In the post-bureaucratic era, these management styles have altered to cater towards satisfying employees through intrinsic rewards by providing pride, relationships, meaning and a sense of accomplishment through their work (Clegg, Josserand & Teo 2006). Throughout this essay, the evolution of human resource management from the bureaucratic era’s ‘hard theories’ to the post-bureaucratic era’s ‘soft theories’ will be
For the past three decades, privatizing some Human Resource functions or the whole HR department in the public sector became prominent, as Public Human Resource Management (PHRM) was
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.
In an era of increasing competitiveness, globalization, economic rationalization, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalize on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor.
Today 's fast-paced, competitive business environment has resulted in "rediscovery" of the human resource management function as a group that may be able to enhance firm competitiveness and performance by being "strategic" (Dyer & Kochan, 1995; Ulrich, 1997). Strategic Human Resource Management is a term describing an integrated approach to the development of Human Resource Strategy that will enable the organization to achieve its goals (Armstrong, 2005). Whiles strategy is an action that managers take to attain one or more of the organization’s goals. Strategy presents a general direction set for the company and its various components to achieve a desired state in the future. This results from the detailed
Osborne and Plastrik (2000) in ‘The Reinventors’ Field book’ appreciates the ‘performance measurement’ as a tool to hold institutions accountable and to introduce rewards (incentives) for the performance. It further enables citizens to judge and value the interventions made for them and provide data for the
Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align
Resolving the tension between a traditional administrative and a new strategic role. Human resource management , 36(1), 49-58.
Performance management is one of the most important activities of HR. It is not enough to simply go through the business as usual and much disliked annual exercise of assessing performance and driving rewards based on a performance assessment. The information system will be drive and modifies goals as needed, assesses performance against goals, and provides instant feedback which will give them an indication of their strength and weaknesses thus focusing on skill development and motivate employees to stay with the organisation. However this may lead to Substitution of individual judgments and Challenge the nature of an organisation and the role of management