Managing People in a Global Context

(MPIAGC)

HR Report
UWE Student ID : 21031033VC Student
ID : S2100445

Karthik Edassery
1. ABSTRACT 

This human resource report addresses the main people management issue affecting
Aakash Educational Services Ltd and put forward a few recommendations to mitigate
the issue on the basis of popular theoretical concepts and supporting literature.
 
1.1 INTRODUCTION TO STUDY

Every HR team has its challenges with employee management as well as policies

that are not consistently enforced in the company. Every organisation depends on its
employees for the various skills and expertise they provide. Therefore in this context,
performance management and evaluation programs have been crucial in assisting
organizations in achieving their efficiency objectives (Stevers & Joyce, 2000:22).

1.2 COMPANY PROFILE

Aakash Educational Services Ltd (AESL) is one of India's leading educational

organisations in the 'Ed-tech' domain, offering exam preparation programmes to
students preparing for a variety of entrance exams, including medical and
engineering exams, as well as other Foundation exams, as well as JEETS, NTSE,
NSPE, and GATE. Aakash describes itself as a "premier educational organisation"
that offers extensive test preparation facilities for medical, engineering, school/board,
and competitive scholarship exams through more than 200 centres located across
India. This report critically analyses the major people management issue prevalent in
AESL and its resulting impact on various aspects of employee welfare, as well as
make a few recommendations for resolution of the issue based on previously
published human resource management theories and implementation models.

1.3 METHOD

As a former employee of AESL, I have a close working relationship with people at

various levels within the organisational hierarchy and a wealth of first-hand
knowledge and insight into how the organisation operates in terms of human
resource management, which has aided me in developing a fair understanding of
various internal and external people management issues that have persisted within
the organisation over the last few years. Further research was carried out through
the exploration of the experience and perceptions of employees on the existing
system of performance management and assessment and review of various
employees’ work experience in AESL. Performance standards have been identified
as perceived by various members of the staff.

2. PROBLEM STATEMENT 

The most serious issue with people management in AESL is the organization's highly
ad hoc structure and antiquated approach to performance management. While many
managers and executives believe performance appraisal and performance
management are interchangeable terms, this is not the case. This could be because
the majority of the studies in this domain so far has primarily focused on scores and
rating scales, and the people who assess and make the ratings focused more on
accurate performance appraisal than on implementing effective performance
management (Vagneur & Peiperl, 2000).
In light of the above, It is easy to determine Aakash’s ideologies from the senior
management's dictatorial attitude and how it reiterates down the organisational
hierarchy. It could very well be the 1970s management style. Instead of engaging the
employees in performance management, it was always on their managers to develop
ideas and put pressure on the employees to execute the ideas.

3. CRITICAL ANALYSIS AND EVALUATION

The principle of performance management is to define, assess, and improve

organizational performance through correlation of purpose and objectives.

It is critical to recognize that workers' preferences and behaviours will have an

impact on the partnership between human resource management activities and the
success of performance management programs, all the more so when working with a
highly diverse workforce drawn from diverse segments of an already multicultural
community. Employee perceptions of human resource management practises can
vary significantly, despite the services are given to all employees being similar.
Individual variations in attitudes and responses to an organization's policies may be
attributed to a variety of factors, including an employee's previous experiences and
values, their thinking process and work-culture expectations, and the generation to
which they belong.

3.1 IMPACT OF THE ISSUE 

3.1.1 Wrong Feedback and Performance Evaluation

A dysfunctional performance management system can result in contradictory and

disparate performance standards and evaluations. While the bulk of performance
management assumptions are unconscious, managers are somewhat more inclined
to incorporate biased evaluations because there are no objective feedback data or
measurement indicators available. As a consequence, performance feedback can be
incorrect.

3.1.2 High Attrition

Employee engagement can be rapidly eroded by the unsystematic performance

improvement systems currently in place. For example, when a performance plan is
vague, workers do not understand how their daily work corresponds to the
organization's objective. There is no sense of change or growth—both of which are
necessary components for cultivating committed and high-performing employees.
Furthermore, if workers perceive the policy to be unjust, they are more likely to be
dissatisfied with their work and their future in the company, likely to have low morale,
work at reduced levels of enthusiasm, or even quit the job (Kettner, 2017).

3.1.3 Negative Work Environment

If an employee performs well and believes their performance was unfairly evaluated,
he or she may have little motivation to stay with the organisation (Aguinis, 2013).
Even if an employee does not leave the company, he or she can withdraw and
become disengaged due to low self-esteem. And, low self-esteem is frequently
accompanied by resentment towards the company and the management.

3.1.4 Disrupted work-life balance

Being in a results-driven and highly competitive market where benchmarking is a

critical factor to consider in order to stay on top, AESL's quest to increase operational
efficiency has taken a toll on employee performance. Financial benchmarking and
cost-cutting initiatives have resulted in a significant skill gap in senior management
and executive understaffing. This is a grave misstep in terms of performance
management because it results in 12 to 15-hour work shifts and additional workload
to cover for vacant positions. This adds to the overall work pressure at AESL,
contributing to the hectic work environment and interfering with the employees' work-
life balance. 

4, RECOMMENDATIONS

4.1 Developing a performance management system

Employee success metrics are essential for the determination of clear goals for
employees. Additionally, they motivate employees to attain optimal outcomes in
order to facilitate company success. A performance management strategy will entail
the following: explaining the organization's mission/strategies to its staff; establishing
specific performance goals to fulfil the needs of each employee's team, and regularly
evaluating certain individuals against their agreed-upon defined targets. Continuous
review of the performance improvement framework, ideally in coordination with
stakeholders, to ensure It contributes to the organization's improved efficiency. The
cognitive opinions on performance measurement and appraisal processes of
individuals are key to the long-standing success or failure of a performance
management system (DeNisi, 1996:360).

The development, planning, managing, reviewing, and rewarding phases of a

performance improvement framework are depicted in Figure 1. Clear and
comprehensive success metrics for employees are critical in assisting businesses in
operating in compliance with their corporate strategy and achieving their competitive
targets.

4.1.1 Phase 1: Planning

By aligning employees' performance with the organization's priorities and objectives,

planning tends to foster commitment and understanding (Schneier, Beatty and Baird,
1987). Supervisors and subordinates collaborate to establish organisational
objectives as well as individual goals. On the other side, objectives provide the
context in which a person would be evaluated based on his or her own results and
output, using predefined assessment criteria. Usually, planning entails defining the
primary benefit factors for clients, which may be the organization's owners,
consumers, or workers. After identifying the key value drivers, the main success
goals and action plans are developed. In this context, the key value drivers refer to
the primary factors that contribute to economic wealth for key stakeholders, which
could involve performance, service efficiency, and preparation.

The word "goals" refers to something which people, agencies and organizations
should accomplish over a period of time (Armstrong and Baron, 2004). It can be
interpreted either in terms of sales objectives or tasks that have to be achieved within
defined time limits. They can be linked to job, or they can be personal, in the context
of personal development goals.  Additionally, Armstrong and Baron (2004) mention
that goals must be established and decided upon. The goals are related to the work's
ultimate purpose and identify success areas – all aspects of the job that lead to the
job's overall purpose being accomplished. Following that, targets are established for
each performance region.

Agreement on a comprehensive growth strategy for workers is used as part of the

preparation process. Typically, this strategy should be built on the necessary
capabilities, behaviours, and experience, collectively referred to as core
competencies, to accomplish the goals and priorities set. Additionally, the strategic
plan will involve long-term developmental initiatives that are often motivated by
opportunity and superior success.

4.1.2 Phase 2 – Managing Performance 

The performance management cycle's second phase is managing. This move

establishes a distinction between performance assessment as a mechanism and
performance evaluation as a task. (Schneier et al., 1987). 

Schneier et al. (1987:98) also state that every employee is accountable for their own
job success.

This includes the following: 

1. The modification and revision, as situations vary, of original targets,

performance levels and areas of work competence
2. requesting feedback from a supervisor, 
3. maintaining a positive attitude about work, 
4. providing feedback to a supervisor, 
 5. employees and supervisors collaborating to manage performance
management practices and,
6. suggesting career development opportunities.

According to Armstrong and Baron (2004), managers can use performance

management as a tool to ensure that they are managing efficiently. Lastly, this
means that they have ensured that the people or teams know what they should be
expected to know and can do, and have the capabilities to develop them, while also
receiving information about how they are doing.

It is therefore important to ensure that managers consider the impact of their own
behaviours on the people they hire and are inspired to recognize and exhibit
healthier behaviours (Armstrong and Baron, 2004). Performance appraisals can be
seen as learning experiences in which individuals are encouraged to explore how
and in what ways they wish to develop. This would result in the creation of a
professional development strategy detailing the measures they want to follow to
progress and improve themselves with the assistance of others.

Employee performance input has a significant positive effect on personal and

organizational performance by clarifying tasks, increasing self-efficacy, creating
behavioural incentive contingencies, and enhancing self-regulation measures
(Ashford & Cummings, 1983). During the appraisal/review conversation, the
manager's job should be to provide positive feedback, praise as well as critique, and
threaten the employee.
Employee performance feedback has strong beneficial impacts on personal and
company performance by clarifying roles, improving self-efficacy, establishing
behavioral reward contingencies and enhanced self-regulatory controls (Ashford &
Cummings, 1983). The manager's role during the appraisal/review discussion should
be to offer constructive input, to compliment as well as criticize, and to challenge the
employee. 

Coaching is an effective teaching and learning method. Coaching develops the

abilities and skills of the person so that he or she can enhance work efficiency and
accomplish organizational goals. Coaching/training is being more acknowledged as a
critical duty of management and may play a major role in a performance
development program. Coaching can be done during the review meetings as well
(Cunneen, 2006)

4.1.3 Phase 3 – Rewarding 

Performance training can preferably be targeted at performance deficiencies found

during the performance assessment phase. (Teke, 2002). Some of the problems
must be linked to perceived learning differences in order for instruction to be focused,
specific, and relevant.
Quality data can be heavily relied upon when evaluating training requirements
annually.

Teke (2002) suggests that It is important to use many different training/development

interventions, as well as on-the-the-job feedback, in order to acquire new skills. high
potential employees are less likely to choose to remain in their current organization
and work on their own merit if there are not enough professional opportunities for
growth.

It is therefore essential that the training approach, the training planning process, and
the success improvement strategies be intertwined with the retention strategies.
Because of an increase in talent acquisition emphasis, success management is
being redefined to become more focused on the identification, nurturing, and
retention of talent. (Teke, 2002). 

Development programs are designed to meet the demands of succession planning

while also fostering leadership abilities. However, placing an excessive emphasis on
talent acquisition can have a detrimental effect on overall growth needs, and any
attempt should be taken to ensure that growth is equitable, open, and based on
improving organizational capabilities. (Teke, 2002).

Pay-for-performance and conducting performance based salary review would work

more effectively in AESL because: (1) workers view pay differentials equally when
briefed about the appraisal process; (2) employees are allowed to share appraisal
results; and (3) employees would understand that reasonable standards are included
throughout the appraisal process. Strategic human resources strategy has
conceptualized the phenomena as ‘ package effect’, due to the nature of influence
and importance being extended over time (Huselid, 1995).

5. RECOMMENDATIONS 

The following proposals should be taken in light of the study results and their literary
contextualization.

AESL must define specific organizational goals that provide measurable

performance requirements and expectations for all business divisions and
employees. 

The success criteria for the employees should be discussed and decided upon. 

1. Quality metrics or primary performance benchmarks should be decided upon

in advance by all staff, regardless of their organizational status.

2. As a follow-up to the previous recommendation, it is recommended that an

organization adopt a single performance management scheme.

3. AESL must provide a performance management framework that includes

phases for planning, managing, reviewing, and rewarding performance.

4. A continuous feedback mechanism, both formative and summative, should be

incorporated.
 5. It is advised that performance assessment discussions be strengthened and
held more often for the sake of openness, in order to reestablish an
organizational culture of confidence.

6. AESL would educate both senior administrators and managers on how to

properly monitor success in order to increase workers' performance, and not
to adopt disciplinary actions for under performance. 

7. The managers must be educated enough to realise that an underperforming

subordinate progressive benchmarking and refresher training if required.

8. In order to address this suggestion, the AESL senior management team

should undergo training on how performance evaluation can and should be
used, including how to view data, analyse outcomes, formulate action plans,
track and review decisions, and use performance information visibly for
employee development.

9. It is proposed that the performance management program is integrated with

other human resource management activities such as career development
and employee development.

10. It is advised that a comparative analysis be performed to determine the

potential effect of a performance bonus on the organization.

11. It is proposed that an organizational-wide exploratory analysis be conducted

in order to create a more robust performance improvement framework.

5.1 Implementing a systematic performance management system

Schneier and his colleagues came up with the Phases of Success model, which
involves classifying a performance improvement scheme into four stages: preparing,
scheduling, managing, evaluating, awarding, and revising, rewarding, and updating.
The study suggests that the current management of performance should be holistic
and resolve pre - existing gaps, with greater emphasis being given to effective
management, testing, reporting and awarding.
Therefore, it is recommended that AESL develop a performance management
system similar to Figure 2 and inclusive of all relevant stakeholders. 
 FIGURE 2: THE 3 PHASES OF PERFORMANCE MANAGEMENT SYSTEM

Source: Schneier, Beatty and Baird, (1987:98) 

Phase 1: AESL should focus on the system's implementation and planning, which
involves designing a development strategy, setting targets, communicating with
stakeholders, and receiving buy-in from all stakeholders. According to Schneier et al.
(1987), states that it will aid in the employee's motivation and understanding by
binding their activities to the organization's goals.

Phase 2: AESL should focus exclusively on monitoring and evaluating employees'

results, which involves benchmarking against established expectations, receiving
feedback, and coaching.

Phase 3: AESL needs to establish a connection between achievement and a

suitable reward, personal development, and/or disciplinary action. Griffin et al.
(1987:208) argue that salaries should be merit-based, with higher results resulting in
increased wages. When pay is not directly tied to performance, the employees can
become disengaged from the performance evaluation process.

A well-designed performance management method flow map, as shown in Figure 2,

is therefore suggested for AESL in order to solve the issue of gaps between
rewarding high performance and correcting low performance, as well as to ensure a
step-by-step, consistent process.

As shown in Figure 2, the performance management system should be as follows:

Additionally, management and personnel should adopt a performance management

strategy. The goal and objectives should be clear, as should the assistance, training,
and development that will help employees in increasing their productivity.

A periodic supervisor evaluation should be completed, and includes an analysis of

achievement according to goals, as well as the possible realignment to
accommodate for shifting circumstances.

A comprehensive analysis and assessment should be conducted to recognize

accomplishments and places for progress identified during the comparative
discussion of results toward goals.
Following the comprehensive analysis, real results should be compared to expected
output, and the result should be judged accordingly, with high performance awarded
and poor performance corrected.

Training/development interventions that are relevant to the job and daily performance
reviews are critical components of low-performance correction steps.

If a performance-related disciplinary measure fails, a robust incapacity control

mechanism should be used to address the situation on an individual level.

CONCLUSION

Workers invest a large part of their time in organizations and not just the employees
themselves, but their satisfaction and enjoyment is vital for their organizations.
The productivity of businesses is evaluated in several ways; financial performance
and development and happiness of employees are the two major outcomes (Meyer &
Gupta, 1994).

Low working conditions or biased employee feedback can lead to high attrition, Low-
self-esteem, low-performance, delay and absenteeism, both leading to weak moral
standards that in turn lead to decreased efficiency, quality issues and diminished
revenue. The task at hand for AESL is, to keep a motivated staff with successful
bosses. Data shows that an efficient performance management strategy is one way
to encourage employees.

On the basis of the results of this report, further study can be done in order that a
more complete performance improvement framework is developed at Aakash
Educational Services Ltd. It should provide revised job descriptions, standards of
performance, guidelines for improvement, and recommendations for training and
reward.

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