Impact of Performance Management on the Staff Motivation Level

Discuss about the Organizational Culture and Innovation Behavior.

This report analysis is based on various aspects of human resource management, which include strategies of human resource management, design of the organization, ethics and culture of the organization, organizational behaviour of the employees, performance management and motivation. Strategic human resource management is the mainly the process of rewarding, attracting and developing and ultimately trying to retain the employees for the advantage of the employees and the organization (Alvesson & Sveningsson, 2015).

Strategic human resource management program is designed by an organization to support the organizational goals and the goals of the employees. This program contributes in the success of the organization. It aims in utilizing the opportunities and the talent in the human resource department of the organization to add strength to the other departments so that they become more effective. This helps in developing the training and recruitment plans for the organization. This is the process of utilising the HR techniques to create a stronger organization (Armstrong & Taylor, 2014).

This analysis will be done based on the case and problems related to MiningCo. The effect of the introduction of performance management programs in the organization will be analyzed. Further, the issues of retaining employees in the isolated sites will be taken into consideration. A team to manage the crisis in the situations where there is a talent gap will be formed. The rewarding system of the team will be discussed (Azanza, Moriano & Molero, 2013).

The problems related to retention of the employees in the organization, the organizational culture and the design of the organization is discussed. The impact of external factors on the structure and employees of the organization is discussed in detail. The analysis of this report is aimed towards the board of MiningCo. and the recommendations and solutions to these problems is provided.

MiningCo. is a company which mainly has its operations in locations which are isolated. The staffs of these locations attend work in a rotational basis. The first case is about the analysis of the impact that the implementation of a performance management system has on the motivation level of the staff working in these locations.

Human resource managers in an organization perform the activities related to the development of the performance of the employees and motivating the employees. Performance is one of the initiatives taken by the human resource managers to track and improve the performance of the employees, which in turn improves the performance of the organization (Bratton & Gold, 2012). Performance management program in an organization involves activities like, setting the goals, reviewing the progress of the employees with respect to these goals, communicating with the employees in a regular basis, giving feedback to the employees regarding the improvement in their performance, implementing programs for the development of employees and further rewarding the achievement of the employees.

Impact of External Factors on MiningCo. and Its Employees

Performance management can be defined as the systematic way by which the thorough performance of the organization is improved with help of the improvement of the employees in the organization. It is the way by which superior performance is promoted with the help of communication of the goals to the employees and by defining the roles to be played by them in the achievement of these goals. Performance management system came into play from the 1980s. Performance management or total quality management programs is important for an organization so that superior standards can be achieved and quality of the performance of the employees can be improved (Büschgens, Bausch & Balkin, 2013). There are a series of steps involved in the performance management system, mainly,

• Development of job descriptions which are clear for the employees and also developing performance plans which comprises of two main components which are, performance indicators and key result areas (KRA).
• The selection of the correct people with the implementation of suitable recruitment process.
• Working out the goals and the standards of performance so that the overall productivity and the outcome can be measured with respect to the set benchmarks.
• Recognizing the needs for training and development programs and also measuring the results achieved according to the standards that have been set and implementing programs required for the development of employees.
• Discussing the development of performance of the employees in a quarterly basis and further evaluating their performance in the basis of the performance plans set by the organization.
• Effective system of rewards and compensation designed to recognize the employees and motivate them.
• Support for career development and guidance provided to the employees.
• Trying to understand the reasons for displeasure of the employees towards the organization, so that the problems can be solved and the employees can be retained in the organization (DuBrin, 2013).

It can be said that performance management system is the platform that is set to reward the excellence of the employees by mainly aligning the achievements of the employee with mission of the organization and its set objectives and further helping the employee and the organization to understand the importance of a particular job and also realizing its outcomes. The expectations of the performance of the employees including the actions, behaviours and results are depicted clearly to the employees with the help of this program (Goetsch & Davis, 2014).

 It helps the employees in understanding the expectations the organization has from them and the jobs that need to be performed to fulfil these expectations. Performance management system is a proactive process by which the performance of the employees can be managed to drive the employees and the organization towards the desired goals and results (Haines & St-Onge, 2012).

This system needs to be implemented in the location of MiningCo. so that the staff can be educated about the goals and objectives of the organization. Further, their performance is tracked based on the achievement of these goals.

As a Senior HR Executive of the company, I would like to recommend that a performance management program needs to be implemented in this location of MiningCo. I would like to develop a team, which will have the task of tracking the performance of the employees based on the targets that they have been provided which are aligned to the goals of the organization. Further, the team will also implement any development programs which is required for the employees to achieve the targets or goals. This program will help the employees in tracking their own performance and further achieve their  goals which will contribute in the development of the organization.

Recommendations

This case is based on the problem related to employee cross-over or rotation of staff in the isolated locations of MiningCo. which work as single entities. The sites, which are facing the mentioned problems, are those in Greece and in the Middle East.

The financial crisis in Greece had started from the year 2009, which was the result of the financial crisis that had taken place globally in the year 2008. The source of this crisis was the mismanagement, which took place in the Greek economy and also the finances provided by the government. The problems increased because Greece was a member of the Eurozone, which did not permit total control of the monetary policy to the Greek government. The financial crisis in Greece was a result of an array of debt crises that took place from the year 2008 (Karanikolos et al., 2013). The monetary policy of Greece was not under control. The economy was booming and the credits or loans were easily accessible.

The two main causes of the financial crisis that took place in Greece are,

• The government of Greece was eroded due to mismanagement of economies, including many fraud cases and public accountability was also absent.
• The membership of Greece in the Eurozone led to a barrier in the financial and political goals of the country.

There was huge mismanagement of economies and the economic performance was not reported correctly (Kinicki & Kreitner, 2012). Despite of this situation the investors could not judge the signs of warning, which were,

• Debt levels which were unsustainable.
• Extreme levels of public spending.
• Wages were high, and productivity was low due to which there was a decline in the competitiveness of the country.
• There was huge increase in credit levels.
• Tax was evaded in a huge scale.

The interest rates of credit taking were low due which there was a lot foreign direct investment. The growth was limited only to the private sector, which was unsustainable. The fiscal deficits increased in the years 2008 to 2010. The interest rates on private and government debts increased. Despite of all this, the Greek government was unable to reduce the rate of interests or underrate its currency to encourage economic growth (Mansfield, 2013).

The economic crisis in Greece had an effect on the employment of the country. The sector of paid employment was mainly affected by this crisis. From the year 2008 to 2009 there is a deficit in paid employment levels. The appointment of permanent employees has decreased in these years. Temporary or part time employment has increased (Marchington et al., 2016).

This crisis period has led to the rise of unemployment levels in Greece. The unemployment levels have doubled in the recent years. The numbers of labours have also deteriorated. The reason being that the work was uninsured, there was a lot of insecurity, payments were less and many more (Trevino & Nelson, 2016).

The reason behind the low rate of staff rotation in the site of MiningCo. in Greece are as stated in the discussion.

The other problem is the resignation of the senior executives from the site in the Middle East. The main reason behind this is the presence of ISIS in this area. ISIS has grown in the Middle East in the recent years and as a result of this, the violence in this area has increased. The areas of Iraq and Syria have become war zones. The reach of the jihadist terrorism has increased over the years (Gause, 2014). The rise of ISIS in the Middle East has been increased based on many factors which include the spread of discrimination, the regression faced by Syria and Iraq and the different interests of many international and regional powers in this area. The rise of ISIS began from the year 2011.

The protests that were organized by this group were able to attract millions of people. The initial promises made by the group which attracted so many people in the protests was not fulfilled. All these factors led to a lot of chaos in the Middle Eastern countries. This had an adverse effect on the development of these countries and the industries related to these areas. Oil industry is the main part of the economy of Iraq (Smith, 2015). The economy is mainly state dominated. The labour market is mainly dominated by the public sector as compared to the private sector. The economy is mainly driven by the oil production in the country. The presence of ISIS can therefore have a negative impact on the industrial development of Iraq and the Middle East at large.

As the HR Executive of this organization, I would therefore like to recommend an increase of security for the senior officials working in the sites in the Middle Eastern areas. In case of the sites in Greece, the labour problems can be solved by appointing more part time employees who are temporary rather than full time permanent employees. This process will be cost effective for the company and the work will also be done effectively by the employees with the help of proper training.

The third case that is to be analyzed is the formation of a crisis management team who are capable to manage any type of talent gap in the site.

A crisis refers to an unexpected or unforeseen event that leads to major chaos among the employees of an organization. When this situation occurs within an organization, it is called organizational crisis. This can also be referred to as an emergency which requires immediate action (Miner, 2015). This situation can affect the individual or a group of people or the organization at large. The reasons due to which a crisis can occur in an organization are as follows,

• Failure of technology or machine breakdown, software corruption, password errors.
• Crises can also occur when there is a dispute or disagreement among employees of the organization. This can lead to strikes or boycotts.
• The situations caused due to thefts, violence or terrorist activities are also a part of crisis.
• Minor issues that are neglected by the organization in the beginning, can result in a major crisis.
• Illegal activities of the employees which include frauds, bribery and tampering of information by the employees can lead to a crisis in the organization.
• Crisis also arises when an organization is declared bankrupt due to non-payment of dues (Nahavandi et al., 2013).

Crisis management is the process of coping with the unforeseen events that disturbs the work process of the employees and of the organization. Crisis management helps the organization to prepare themselves and the employees to deal with the sudden events. This helps the employees to adjust themselves to the changes that occur in the organization (Nelson & Quick, 2013). Employees are able to comprehend and examine the problems that have led to the crisis in the organization and deal with it as early as possible. Crisis management programs help the managers to plan the strategies so that they can come out of the crises and take proper action. Managers can also feel the signs of the problems that can occur in the organization which can lead to crisis (Pinder, 2014).

There is a specific model for crisis management as proposed by Pratt and Gonzalez-Herrero. Three different stages of Crisis Management Model were identified (Pullen & Rhodes, 2015). These are,

• The first step of crisis management involves the detection of the crisis indicators. The duty of the managers or leaders is to identify these signals of warning which leads to crisis and also train them in such a way that they can face these situations with determination and courage. Reviewing the performance of the employees is done in this step (Sparrow, Brewster & Chung, 2016)
• The next step in crisis management involves the process of planning. Action is taken by the crisis management team and strategies are devised to cope with the crisis.
• The final step in this process involves the adjustment process of the employees. The employees need to adjust to the new situation in the organization and adapt to the changes (Storey, 2014).

This crisis management model is implemented in the organization by a crisis management team. A crisis management team is constituted to safeguard an organization from the harmful effects of a crisis. This team tries to strengthen the organization so that it can deal with unavoidable risks.

As a Senior HR Executive of the company, I will recommend that a crisis management team is formed at the isolated sites of Mining Co. so that the team can deal with the issues related to the talent gap in the sites, which is harming the work process in these areas.

The team will constitute of a the Head of departments, The Chief Executive Officer, the Board of Directors, Advisors and representatives of the Human Resource  department. The main functions of this team will be

• To detect the talent gap in the sites even before it occurs.
• To identify the problems of the employees due to which the gap occurs.
• To discuss the problems directly with the employees.
• To prepare a plan and also keep back up so that the talent gap can be fulfilled immediately.
• To motivate the employees so that they can face the situation and can deal with the problems.
• To support the organization in such a way so that it can come out of any crisis at the earliest.

The team will be rewarded by incentives if the problem of the talent gap in the organization is fulfilled before it can create any type of problems for the organization.

Conclusion

From the above discussion I will conclude that the problems faced by MiningCo. can be solved if the mentioned ways are implemented. Performance management system will help in motivating the employees so that their performance can be improved based on the examination of their previous achievements. Further, this will help the organization to retain the employees who are suitable for its functions. The problem related to resignation of Senior Executive can also be solved by providing them with extra security in the vulnerable sites. The crisis management team will support the organization at time of an emergency.

References

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