N630M2 Human Resource Management

Introduction:

In this era of globalization, organizations have realized the importance of retaining the talented employees. In fact, employees and the human capital are considered as the core competency of organizations. Therefore, the need of the hour is to have effective talent management and performance system in place. One of the ways to keep employees talent updates is through training and development programs. The essence of the training is to continually guide employees on expectation of their role and the importance on how to engage with external third parties.

Al Ariss & Cascio (2014) points out that there is the need to constantly keep the employees engaged either through eLearning or on the job development in order to drive for increased performance and productivity. These are further buttressed to include defining the expectations and objectives for employees, providing holistic support, apply different channels of online development for varying employee needs, positive view and apply employees weakness to strength, and consider opportunities for feedback to employees.  Dries (2013) also reminds us of the possible resistance to PMS and eLearning based on the culture of the environment where the employees work, reference is made to research work done in United Arab Emirates (UAE) organizations.  In addition, online PMS provides key leverage for management to measure performance on time, tracking and updates are provided, extensive benchmark externally are applied, holistic assessment of improvement approaches, and ensuring best practices are benefits of the tool when applied to energize employees to be high performance.

Background of research area

The objective of this paper is to discuss that how re-skilling architecture in talent management helps to generate value for organisation. The paper would discuss the various aspects of talent management system for contemporary organization. It can be said that training and development programs are an important step to increase the retention level of employees. Kroll and Moynihan (2015) carried out a survey to ascertain the extent to which individuals exposed to trainings will make use of data and strategic objectives related to performance as opposed to those individuals who were not exposed to training; they also carried out a survey to ascertain the impact training has on the performance of employees and the value of training. Kroll and Moynihan (2015: p. 413) highlighted that trainings help to diminish uncertainty, skepticism and trepidation; the resultant effect is that employees are more appreciative, accepting and comfortable with the impending changes. As part of their concluding comments, the authors note that it is not enough for organizations to provide the adequate resources for trainings but to also address the “specific capacity gaps” (p. 418). However, authors also concluded that training and development is crucial to keep employees motivated and this essentially increases the chances of employee retention.

Nature, scope and methodology

This paper is based on secondary research. The study is based on the analysis of various past studies in this area.

Literature Review 

Adamsen & Thomsen (2015) argued that managers must be thinking of the individual's development rather than what happened in the past, especially in a world where there is a huge talent shortage. The millennial generation is always looking for new challenges to develop themselves. Performance management can be very useful for organizations if used well, it can help lead to developing employee talents which causes greater productivity as an outcome. The literature review for this paper would be discussed under three key areas. These are:

Talent management and value creation 

It would be correct to say that talent management and organizational value creation goes hand in hand. It is important to mention that trainings for management is also crucial via communication, this is called escalation process in our company, business negativities are escalated to managers to resolve problems, however it still involves employees to be part of the process. Therefore, managers should be responsible and should be trained extra to be able to allocate staff accordingly in terms of employee characteristics in the means of the staff being capable of many situations. With this allocation they should then be helped to develop careers further for the aid of the business (Collings, 2014).

There is a notion of building stakeholder value in employees in organizations, by helping employees feel empowered. The human management theory focuses on the belief that once employees have been made to feel as if they are a part of the organization, they are more prone to participate exhibiting favorable behaviors and promoting the organization both internally and externally. Cerdin & Brewster (2014) takes it further by talking about employees and self-determination.

Talent management and value magnification

Talent management and value magnification can be made with continuous improvement in existing talent management and performance management system. An upgrade on global talent development program focusing on developing managerial talents at global, regional and area levels should be used to ensure smooth and timely strategy diffusion top down. For example, the talent management system of McDonald seems to include 1) clarifying the responsibilities with franchise 2) ensuring a good monitoring and feedback mechanism with franchise 3) developing talents to strengthen the connection between HQ and operation globally. Its success stories worldwide might suggest that these are the key components a company with franchise business model needs to consider when implementing PMS. It also suggests that the level of PMS customization according to business model can potentially be massive and complicated (Festing & Schafer, 2014).

Talent management and value retention 

Wright (2013) explains the desired scenario for setting teams and individual employee’s objectives as follows; organizational strategy has been updated and communicated downward in the organization to enable each manager to understand the organization goals and the role they will play at their level, together with their team members, in reaching those goals. This will enable them to set the targets for themselves and the members of their teams. Targets that arise from this approach have a balanced scorecard approach and cover financial targets, plans for strategic competitive advantage, and operation effectiveness through quality, efficiency and customer service up to talent retention.

There are times when the end customers establish the relationship with the particular employees of executives of employees. Moreover, the employees are the face of organizations (especially for the firms in service sector). Therefore, it can be said that the inability to retain the talent can result in bad customer experience.

It is correct that rewards and recognition is a primary factor for employees to move their job. This is the reason that the talent management system should be in line with the performance management system to focus on regards and recognition. The documentation of the review meeting between the employee and manager is particularly to track the progression of performance rather than use it against the employees for negative review of salary cut.  Documentation is just part of the ongoing process and should not be set aside because of tendency for negative use. When performance management system are well designed and successfully implemented, documentation is just part of the process to record all the necessary details established through performance of the employees and trace the solution to immediate challenges that employees may be experiencing. This also includes all the achievement and success of the employees in some other areas of interest to the organization.

It is also important that the managers should keep in mind that these bits of documentation are part of employees’ profile. The documentation composes of tracks of the ongoing reviewing trends, changes in performance as a result of change in the behaviors and attitude of the employees in response to advice from its manager or tracks of repeated issues. Documentation gives a vivid picture of employees on the job that is worth looking at in the organization. Documentation provides management with a guide to improvement (Cappelli & Keller, 2014). They are able to see areas of weakness, as well as strengths of the employees.. However, this is not to confirm that documentation cannot be used for evidence for promotion review either for discipline or dismissal. It depends on the content of the documentation that has been established from ongoing review meeting. Documentation can actually safeguard the organization from litigation and all sorts’ legal damages. It can be also used to expose the tendency for biasness in performance appraisals (Thunnissen & Boselie, 2013). The essence of the documentation is to tract the events of performance management process in place in the organization so that the reviewing process can be accomplished its original aims and objectives. When there is interaction and effective two way communicated process in an organizational performance system, documentation just follows a natural official process of tracking record without biasness but when there is top-down communication process in an organization, then, there is high tendency to see documentation as instrument of warfare which is changing the primary objectives. The managers and leaders also have an important role to create the value and to retain the talent. These basically come down to the inability of senior management to commit to programs, a lack in the ability to manage projects within medium level management & inefficient levels of training for employees (Jeyachandran, 2012). 

Conclusion: 

It is important that organizations should have a strong talent management system in place. A well-implemented performance management system should establish free-flow processes that can enhance the achievements of the aims and objective of the organizations. Although, the Omega Inc. had a performance management system in place but there is no free flow of process that can enhance achievement of the organization therefore the aim is defeated. The employers had target as sales quotas but the employees who are supposed to achieve this do not have any means of monitoring their own progress towards the quotas. The performance feedback was just reiteration of formal monthly sales targets that has little to say about current efforts being pushed by the employees. Although, discussion might have been done along the line between the manager and the employee, but there was no documentation to track anything of importance either to the organization or the employees. The proof that performance management system is wrong shown in the declining sales which was the meant to increase to meet the organization aims and objectives (Aguinis, 2013).

This brings to aspect of traditional appraisal system that is making it to go into obsolete. The traditional appraisal system often does not make provision for feedback and open discussion between manager and it subordinate employees. Appraisals were characterized of one-way communication and top down and at the end create impression to the employees that it is management thing. The managers in turns see it as necessary routine, feeling forms that empowered him over its subordinates. The divers perception of this appraisal system washes down the importance and original intention by the organization and therefore achieve very little in the strategic target of the organization. On the other hand, effective feedback in Malaysian Teachers performance organization procured job satisfaction even they score low in performance appraisal and this will increase self-esteem and moral (Rahman, 2006).

References:

Adamsen, B. and Thomsen, S.E., 2015. Bounded Rational Managers Struggle with Talent Management-An Agent-based Modelling Approach. In AISB Workshop.

Aguinis, H. (2013) Performance management. 3rd ed. Upper Saddle River, NJ: Pearson/Prentice Hall.

Al Ariss, A., Cascio, W.F. and Paauwe, J., 2014. Talent management: Current theories and future research directions. Journal of World Business, 49(2), pp.173-179.

Cappelli, P. and Keller, J.R., 2014. Talent management: Conceptual approaches and practical challenges. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), pp.305-331.

Cerdin, J.L. and Brewster, C., 2014. Talent management and expatriation: Bridging two streams of research and practice. Journal of World Business, 49(2), pp.245-252.

Collings, D.G., 2014. Integrating global mobility and global talent management: Exploring the challenges and strategic opportunities. Journal of World Business, 49(2), pp.253-261.

Dries, N., 2013. The psychology of talent management: A review and research agenda. Human Resource Management Review, 23(4), pp.272-285.

Festing, M. and Schäfer, L., 2014. Generational challenges to talent management: A framework for talent retention based on the psychological-contract perspective. Journal of World Business, 49(2), pp.262-271.

Jeyachandran, S. (2012) ‘Communication is the Key to Effective Construction Management in Small and Medium Enterprises.’ Language in India. Feb2012, Vol. 12 Issue 2, pp.284-292.

Kroll, A. & Moynihan, D. P. (2015) ‘Does Training Matter? Evidence from Performance Management Reforms’, PublicAdministration Review, 75(3), pp. 411-420

Rahman, S. A. (2006)“Attitudes of Malaysian teachers toward a performance-appraisal system” Journal of Applied Social Psychology, 36 (12), pp. 3031-3042.

Thunnissen, M., Boselie, P. and Fruytier, B., 2013. Talent management and the relevance of context: Towards a pluralistic approach. Human Resource Management Review, 23(4), pp.326-336.

Wright, P. (2013), 'Some Practical Thoughts on Annual Performance Management Process', People & Strategy, 36 (2), pp. 54-57.