STRATEGIC HUMAN RESOURCE

MANAGEMENT
Assignment on Effective strategies of performance
management

Submitted To
DR. MOHAMMAD MOTAHARUL ISLAM
ASSOCIATE PROFESSOR
DAFFODIL INTERNATIONAL UNIVERSITY

Submitted by
Shah Md. Sazzad Mahmud
ID: 182-14-2778
Major: HRM
Daffodil International University

Date of Submission
04-04-2020
Following these 10 strategies for effective performance management and see our team achieving
some outstanding business results, as talked about in the next section.

1. Ask for your employees’ opinion:

When we asked about companies’ opinion that time, we must have to show our emotion
about how much we want to sacrifice for the employees. At that time the employees are
motivated when they see my feel or emotions for employees. And that time they provide
satisfactory and appropriate answer. And it will also increase productivity and
effectiveness also. So, it must have the knowledge about employees right to increase
productiveness and effectiveness.

2. Customize the training plans for employees:

Remember you cannot treat all your employees alike. It is wise to understand their
individual learning styles and then design an exclusive training program accordingly.
Every employee has his own strengths, weaknesses, fears, and ideas and it would be wrong
to use a ‘one-size-fits-all’ module to train all of them. They all need a different medium
and a different dose of encouragement and motivation.

3. Encourage transparency and remember it starts with you:

Transparency must have to start by me. Because on transparency it depends all of our way.
If we hide any types of issue and we misuse any type of data and that hide from all of other
employee or people that time we lost our everything from the employee. Such as trust and
respect from the other people. Who are inter related with the company other institution? It
is so much sensitive because most of person cannot maintain transparency issue because
of the interpersonal skill. So, we must have reduced these types of transparency issue.

4. Remember to recognize and reward the exceptional:

We all need a pat at the back, irrespective of our age. So, remember to recognize and
reward the hard work of your employees. Choose an appropriate way to show your
encouragement a bonus, a promotion or even if that means just to appreciate them in the
public eye. When you do this, you do not just reward one for his or her hard work but
encourage others to work hard as well. Then any person think positive and increase their
production capabilities more and more. By this way a person can highly motivated to
increase their productivity in his or her own line.

5. Remember the 7 Cs of communication:

The correct way of communication is half the work done for a good leader. If you wish to
have success for your organization, avoid miscommunication, confusion, and inaccuracy.
The 7 Cs of communication-clear, correct, concrete, concise, coherent, complete and
courteous goes a long way, whether it is one-to-one communication, emails or phone calls.
Remember, communicating well with your team helps you create a good equation with
them in the long run.
 6. Set clear goals:
At first we must have the goad very clearly. But in every situatin everyone has the goal but
that goal is not clear. For this blur goal setup sometime it is very difficult to achieve the
goal in actual way. When you set clear goals for your team: you give them a clear sense of
direction, encouragement and a sense of teamwork. Having goals that are unclear and
ambiguous are not just frustrating for the team but they suck in a lot of energy and breed
non-productivity in business performance.

7. Evaluate employees’ knowledge and skill:

One of the golden rules of the performance management system is to evaluate one’s
employee’s knowledge and skills from time to time. This helps to find out their learning
needs and fill any gaps if required. The training programs can thus be specifically designed
keeping in minds the needs and requirements of the employees of the organization.

8. Bring consistency in behavior:

Consistency has always been an integral part of any success story. It does not just stop at
rewarding the right behavior once; it needs to be rewarded consistently. Similarly,
unacceptable behavior has to be consistently discouraged.

9. Remember you are ‘the example’:

Before you expect anything from your team, remember you are the example they are
following! Whether it is the behavior, work ethics or maintaining the quality of work, you
have to be their ideal example. So strive to be perfect (in front of your team) if you are
looking for perfection.

10. Create career opportunities for your employees:

When you offer the required training to your employees so they can move ahead in their
career or create job profiles that require such trained employees, you create opportunities
for your employees and give them a chance to climb up the career ladder. While the above-
mentioned strategies are nothing like strict instructions, incorporating these basic
principles that form a part of any healthy performance-oriented workplace is known to
bring improvement in the business performance.

There have also some strategies how Effectiveness of Human Resource Management in Improving
Performance

➢ Understanding the Strategic Role of Human Resource

In today’s business environment, organizations need to be constantly evaluating their

internal and external environment for challenges and opportunities to remain competitive
and to sustain growth. Political, economic, social, and even psychological changes within
our societies create significant impact on organizations. Given any significant change or
event, how ready are we as an organization to react in order to remain competitive?

Many factors are driving changes in organizations today including the use of technology,
globalization, changes in workforce demographics, eliminating the bureaucracies in
organizational structures, and balancing work-family issues. Understanding the potential
of an organization’s resources and optimizing the output of such resources given the
changes, provides the impetus for HR being the key source of creating the competitive
advantage for the organization.

To create value and deliver results, HR professionals must begin not by focusing on the
work activities or work of HR but by defining the deliverables of that work. HR’s roles in
building a competitive organization include management of strategic human resources,
management of transformation and change, management of firm infrastructure and
management of employee contribution (Ulrich, 1997a). Although these roles are valid and
have proven to be value-added in recent years, there is now the critical need to move
beyond the strategic business partner role to players in the business (Ulrich & Beatty,
2001). Players, according to Ulrich & Beatty, contribute to the profitability of the
organization, they deliver results and they do things to make a difference. The roles of
players are to a) coach b) design, c) construct, d) change the organization, e) creating
followers, and f) playing by the rules. Another perspective on the role of HRM suggests
that in leading-edge companies, HR professionals play four key roles: a) strategic business
partners, b) innovators, c) collaborators, and d) facilitators (Schueler & Jackson, 2000). As
a strategic business partner, HR professionals should understand the nature of the business
from strategic, operational, financial, and other aspects necessary to be part of an effective
team managing an organization. Functioning as an innovator, HR professionals are
challenged to continuously search for strategies that will create value for the organization
and not merely function in a reactionary mode. Furthermore, HR professionals will also
serve as collaborators with senior leaders and all employees to implement business
strategies forming the strategic link throughout the organization. As facilitators, HR
professionals function as the change agent providing rationale, support, and readiness for
planned changes designed to support the business strategies.

The fundamental role of HRM is essentially to maximize profitability, quality of work life
and profits through effective management of people (Casio, 2003). Given this premise, it
can be easily inferred that HR’s role is to help create value to the organization. Figure 1
illustrates some of the external challenges and changes facing organizations, their impact
on the organization, and how HR is impacted.

➢ The Importance of Measuring Human Resource’s Activities

Even though HR professionals are convinced that their efforts add value to the
organization’s bottom-line, there is frequently little evidence to demonstrate such belief. A
recent survey of 54 companies in the Midwest, USA conducted by the author revealed that
51 of the 54 companies conducted little or no assessment of their HR department’s efforts
and therefore could not have provided any quantitative measures of HR’s value to the
organization. In addition, a study conducted by Becker, Huselid, and Ulrich (2001)
indicated that less than 10% of the 968 firms that participated in their study had a formal
estimation procedure to measure HRM.

Measurement in most HR departments is usually restricted to processes measuring costs

and not showing value added (HRPS, 1993). There is now the imperative need to justify
each dollar invested, compare strategies to determine maximum worth, and to decide on
where to invest especially as companies scramble to survive after the September 11
tragedy. Pepitone (1997) reiterated that HR leaders should know how to prove the value-
added of their services because management is increasingly requiring departments to give
evidence of their worth. In addition, Sorensen (1995) stated that the best way for Human
Resource to gain credibility so that it can make meaningful changes is for practitioners to
measure the cost and effectiveness of what they do. And they must put that into language
that senior executives understand: financial results. HR managers need to measure the cost
and effectiveness of their activities far more closely than they have in the past. Many
organizations have been forced and are continuing to determine ways of being more cost-
effective. Many of the other functions including finance, accounting, and marketing are
able to show a return on investment for their respective efforts, so given the increased
emphasis on HR practices, it is imperative for Human Resource to be able to show its
effectiveness in creating value for the organization. The new HR is a transformed role
comparing itself to any other function, not only through espoused value creation strategies,
but through outcomes, qualitative and quantitative measurements, and direct relationships
to profitability.

➢ Human Resource’s Activities & Outcomes

Even though there are several classifications or groupings of HR activities, the author uses
seven groups of activities seen as being most strategic and influential in realizing the
strategic business objectives of the organization. Today’s economy dictates that
organizations continually assess the external and internal environment and make relevant
changes in order to remain competitive. The author examines each of the clusters and
provides a description of each, its importance in achieving the business strategy, and how
it can be measured to determine its effectiveness.

➢ Strategic Planning

The role of the HR function has changed tremendously over the past 10 years where HR
functions have previously been viewed as not being an integral core of the business and
merely viewed as an administrative function to today’s economy where HR practitioners
are more frequently considered business partners. Being a business partner, the ideal
situation would be the inclusion of the HR leader in the strategic business planning
(SBP). “In the most fundamental sense, SBP involves choosing how an organization will
compete” (Rothwell, 1994).The questions of what product to produce, where should the
product be sold, how many to make available, how the products and services differ from
the competition are included as part of the business planning process. Business strategy
can also be defined as the “process by which the basic mission and objectives of the
organization are set and the process by which the organization uses its resources to achieve
the objectives”(Tichy, Fombrum, & Devanna, 1982).

➢ Acquisition of Employees

In the era of increasing globalization and the struggle to create sustainable competitive
advantages, organizations are continuously evaluating their strategies to ensure that they
have the expertise needed to help achieve the mission of the organization. The economic
challenges due to the consequences of the 9/11 terrorists attacks on the United States also
continue to affect organizations’ financial position and subsequently on recruitment and
selection strategies. Gatewood & Feild (2001) define selection as a “process of collecting
and evaluating information about an individual in order to extend an offer of employment.”

➢ Training and Development

The American Society for Training & Development estimates that US organizations are
spending more than $60 billion annually on employee training and development. Given
this significant investment, it is reasonable for one to ask about the benefits of such
investments, especially since more companies are seeing a need for lifelong learning and
are integrating technology in their strategies. Swanson (1995) defined employee training
and development as the process of systematically developing expertise in individuals for
the purpose of improving performance. The argument as to whether T & D helps to create
a competitive advantage has shown that conceptually, it can be a source of competitive
advantage. Nevertheless, there still is a critical need to develop frameworks and strengthen
the argument for being aware of the actual benefits provided by this
intervention. Developing a framework for assessing the financial benefits of T &D,

Fitz-enz (2002) suggested that in addressing the results of the training process, the
following questions be answered:

1. How well did the employee learn?

2. How effectively did the employee apply the learning from a business standpoint?
3. What difference did it make to the business perspectives?
In sum, measuring the impact of a training initiative regardless of the scope, size of
investment, and number of employees involved, there is the imperative need to determine
the purpose of doing the training and if the goals have been met at various intervals after
the intervention had been completed.

➢ Organization Change and Development

Given the continuing changes in the global economy, demands of customers, preferences
and values of employees, it is a necessary component of the HR strategy to ensure that the
organization is adapting to the external and internal variables it current faces and would
likely face in the future in order to meet its stakeholders’ expectations. The pace of global,
economic, and technological development makes change an inevitable feature of
organizational life (Cummings & Worley, 2002). A growing importance and competency
expected from the HR professional, therefore, is his or her ability to plan and implement
the necessary changes for the purpose of improving performance. Swanson (1995) defined
organization development (OD) as the process of developing and implementing planned
changes in organizations for the purpose of improving performance. The opportunity for
HR through its organization development interventions is to create organizational
effectiveness at the individual, department, function, process, and organizational levels.

➢ Performance Management

“Performance management systems make clear to employees what is expected of them and
assure line managers and strategic planners that employee behaviors will be in line with
the company’s goals” (Noe, Hollenbeck, Gerhart, & Wright, 2003). Many organizations
still rely on the performance appraisal viewed as an annual ritual and primarily the
responsibility of the HR function. In today’s economy and the utmost of managing
performance to create a competitive advantage Noe, et al (2003) grouped performance
management into three categories of defining performance, measuring performance, and
the feedback aspect of performance.

➢ Rewards System

The starting point for any reward system design process needs to be the strategic agenda
of the organization (Lawler, 1990). By understanding where the organization is
positioning itself for various intervals in the future, an organization could design the reward
system to provide incentives specifically designed to foster behaviors, attitudes, and
outcomes among the workforce that directly correlate with the strategic agenda of the
organization. As indicated by Lawler (1990), numerous studies including (Vroom, 1964,
Lawler, 1971, and Kerr, 1975) have shown that effective rewards systems can significantly
increase the motivation of individuals to increase their performance. As inferred from
these studies, the fundamental intent of rewards in organizations is to provide incentives to
achieve individual and organizational behaviors that would enable the organization to
create competitive advantages and maximize the value of the shareholder’s investment.

➢ Organizational Behavior & Theory

Key aspect of successful leadership is the ability to understand one’s workforce, be able to
influence their behaviors, and predict their behaviors given any specific conditions. Today,
the HR function may not view this as part of their core responsibility, but in reality if is
definitely their responsibility to understand the needs of their workforce and how any given
policy or practice may affect the behaviors of the employees. McShane & Von Glinow
(2002) defined organizational behavior as the study of what people think, feel, and do in
and around organizations. The importance of focusing on organizational behavior is to
assess if the way people are thinking, feeling, and behaving correspond to the strategic
intent of the organization and produce the outcomes necessary for the attainment of the
organization’s business goals.

Conclusion

Does Human Resource contribute to the bottom-lime of an organization? Given that

several large-scale studies have proven that HRM is a critical driver in an organization’s
financial performance, it is imperative for HR and other leaders to understand the critical
nature and utmost importance of understanding the effectiveness of all HR activities in
creating value for the organization. It is only through measuring of HRM that one can
really articulate the benefits of HR strategies in achieving the organization’s business
strategy and in the process enhance the credibility of the HR profession.