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Contemporary issues on performance management
Performance management and human resource development
Contemporary issues on performance management
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Forced ranking is a harsh performance management approach, this method ranks employees, and those employees with a higher ranking are rewarded, while lower performers are terminated. This method is one as a Human Resources Manager, I do not agree with at all. Consequently, I do not consider that it is effective, I believe in giving lower performers a fighting chance to become a more efficient employee. Some industries utilize this tactic, and in their eyes, it works for them, however, in my esteemed opinion, enhanced hiring practices up front should be a priority. Hiring the best candidate up front could save the company and the employee’s time and money. In looking at the companies utilizing this method, they have had lawsuits that could have …show more content…
Astoundingly, I was appalled at the amount given by Microsoft. Incredulously, Microsoft executives believe that 15 percent of their employees should be terminated annually. Microsoft culls one in every fifteen employees each year (Bethel, 2011). Superior hiring practices could help in this situation, is their Human Resources Department making a mistake when hiring or are people being terminated without proper opportunities to improve? Those numbers are frightening to me, and I do not understand how this system does anything positive for the morale of the people. Personally, I would be working in fear that I could be one of the fifteen even if I worked …show more content…
This process can cause an organization to pay out legal fees, for lawsuits that ensue due to this type of ranking. Although maybe some organizations seem to consider the program is working if you are terminating one of every fifteen you are hiring then something is not going that great. If an organization does an astute job upfront in hiring the right people for the job, then those numbers should significantly change. Truthfully, Employees deserve a chance to improve, improvement plans with performance reviews are helping our factory, we are teamwork-driven, and the teams are becoming increasingly successful since we hold them accountable for the team’s performance. Additionally, this type of performance management, in my opinion, is auspicious to do, to grow our own talent, and help all involved to succeed including the
Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.
1. I believe the criteria that should be used to determine potential layoff candidates are job seniority, job performance, acquired skills, and the ability to further develop and assist the company in moving forward. With seniority, employers can determine which employees are the most loyal to the company and those that are the most familiar with their jobs and the objectives of the company. Performance is also an important facet to consider; it makes no sense to retain a poor to average performing employee because they have more seniority than recently hired, exceptionally performing employee that is more likely to contribute to the company’s advancement. I also believe that employees with useful skills should be given preference over unskilled employees who may not be preforming adequately or require additional training to attain the skills needed to do their jobs. Finally, in their ultimate decision of who to layoff, companies
When one thinks of the perfect job they consider a lifelong career where they can achieve loyalty and commitment to a company, and in hopes of receiving the same back from their employer. In some cases this is not always the outcome; today many employees are experiencing betrayal from companies they had once devoted their lives too, but these companies concerns are not their employees but the profit that they are making from these employees. The Ford Motor Company, one of the largest car manufacturers in the world is currently in need of recreating their business structure, which ultimately results in a company downsize. The company has recently made the decision to decrease their workforce between 25,000 to 30,000, this decision is largely due to the $5.8 billion third-quarter loss this year (Bush). Though the company hopes to increase productivity and profit by the downsize, their will be tremendous effects on those who are forced to leave their careers, and also those who are lucky enough to stay with the company.
Without understand the negative impacts of turnover, a company may be placing itself in a position that will ultimately lead to their demise. We are going to solve our problems and set our company on the path to success, a success that is not only reflected in our bottom line but also our employees’ morale.
Wrongful terminations can be drastic on the organization and very costly. Therefore, it is critical to minimize wrongful terminations in order to decrease litigation costs. In essence, the manner in which human resources can mitigate wrongful termination claims is to, at the very beginning, set and follow solid recruitment and selection tactics to ensure the company is making smart hiring decisions (Mayhew, 2017). Hence, it is key to make certain that the organization is looking for candidates that reflect the mission, vision, and goals of the organization. Further, the candidates should employ some key professional attributes that other top performing candidates have within the organization (Mayhew, 2017). A key strategy for human resources would be to set clear expectations up front of what is expected of the employees in their tasks
A solution to address issues with the current rating scale would be to utilize Management by Objectives (MBO) and a ranking system like a forced distribution. By having set objectives that employees are compared to, it reduces the ambiguity of the pervious system. The ranking mechanism aids in identifying the best workers and makes it easier to compensate them properly as a result.
In Microsoft training and developing employees is very important aspect of the company’s day-to-day operations. At Microsoft all employees are “thrown” into normal business operations right away. Since 1975 the company has used the method “learn as you go”. It depends heavily on learning by doing rather than learn and then do it. The company recruits young and talented specialists from colleges and universities. The company is well known to look for four important qualities in all-new hires: ambition, IQ, technical expertise, and business judgment. Experienced employees conduct interviews and it is very important to note that the team managers are the people that actually hire, not the recruiters. That gives the managers the flexibility of selecting and hiring the best of the best. It is an interesting fact that only two to three percent of all recruits expressing an interest in Microsoft are hired. Once hired the new employees are assigned to teams where they start doing projects by close supervision. The new employees are expected to know the specifics of their job responsibilities and how to perform different tasks. That is why in May 1997 Microsoft launched the new Microsoft Skills 2000 initiative. The purpose of Skills 2000 is to reduce the growing gap between company needs and available skills by reaching out to employees in the computing work force as well as those interested in developing an IS career. Microsoft pays relatively low salaries and often does not pay for overtime, but employees are compensated by excellent benefits. The company offers Savings Plus 401(k) plan, Employee Stock Purchase Plan (ESPP), paid maternity and paternity leave, tuition reimbursement, annual bonuses, etc. The company’s culture is also an important HR factor as it refers to employee motivation, development and quality of work. Microsoft has anti-bureaucratic atmosphere that gives the employees the freedom to take risks.
Seniority is a common selection criteria used by many companies in determining which employees leave and who remain. Under seniority-based layoffs, the most recently hired employees are the first to be laid off. Both Fallon and McConnell (2007) and Personnel policy service inc (n.d) state that the advantage of using seniority is that it is a fair and the safest means of determining who employees to layoff. Personnel policy service inc (n.d) argues that it is also very easy to implement seniority as the selection criteria. However, using seniority as the sole selection criteria has it disadvantages. According to Personnel policy service inc (n.d),companies that use seniority as their sole selection cri...
Downs claims that downsizing is a very harsh solution to an organization in terms of financial issues. Smith, Wright and Huo (2008) support this argument and explain that downsizing should be done with significant care and requires planning. Downs argues that for an organization to defend its intellectual capital, it must carry out lay-offs wisely, treat affected employees with respect, and ensure that the retained employees' morale is not affected. The author gives some of the consideration that an organization should follow, describes the possible impacts of the situation on employees, and offers efficient approaches to
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Layoffs are one means by which an organization can reduce expenses with the intent of improving its bottom line. Despite being typically performed as a last resort, layoffs often have a negative impact on the remaining workforce. As a manager, there are numerous areas for concern in managing the workforce going forward. The human costs related to downsizing are “immense and far-reaching” with one of the most profound being survivor syndrome according to Hanson (2015, p. 187). Also known as survivor’s guilt, this condition relates to the emotions felt by those still employed and some of the effects include decreased motivation, moral, and job satisfaction, as well as an increased proclivity to search for other employment. This volunteer turnover being another grave concern for managers, and retention of the remaining workforce is usually dependent on their existing perception of the organization and its culture (Sitlington & Marshall, 2011). Also relayed by
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
While most organization want to initiate a layoff based on seniority, as it is the fairest and safest, there are other rationale methods (Fallon & McConnell, 2007). The method I would use would be based on the prior few years performance evaluations, after all, temporary employees were the first to go. If the organization wants to succeed in the future, you want the best performing employees to be apart of that success. I would choose to layoff the employees with the lowest performance evaluations over the time period (past 2-4 years). This gives management more flexibility to weed out employees who are barely performing (Reduction in Force, 2016).
Performance management is used for the basis of promotion, reduction in force purposes (talent management), gives transparency of what an organization is looking for, merit increases, and lastly it provides protection against lawsuits for unlawful termination by keeping written documentation. Performance evaluations are advantageous to both the organization and the employee. A leading advantage of performance evaluations is it gives the employee an opportunity to create and achieve smart goals. Although performance evaluations primary function is to measure whether an employee is a good fit or a bad fit for the organization, its function is so much a broader. Performance management is tool purposely used to motivate employees to examine themselves and determine if they have selected the profession that is best for them; consequently the feedback an employee receives from their superior supports them with increase their knowledge and
Performance appraisal was once the unquestioned way of doing things, the familiar ritual in which employees and managers sat down for an annual evaluation. If the employees were lucky, they walked away with raises, often tied to a ranking on some sort of rigid numerical scale (Fandray, 2001). For decades, companies have used the annual employee evaluations to measure an employee’s performance to separate top performers from low performers in addition, opportunity to offer compensation and promotions.