ASSIGNMENT COVER SHEET

UNIVERSITY OF SUNDERLAND

BA (HONS) BUSINESS MANAGEMENT

Student ID: 199186406/1

Student Name: NGO LAM OANH
Module Code: HRM 325
Module Name / Title: Strategic Human Resource Management
Centre / College: HCMUTE
Due Date: 17th July, 2020 Hand in Date: 17th July, 2020
Assignment Title: STRATEGIC MANAGEMENT of HUMAN RESOURCES

Students Signature:

Ngo Lam Oanh

 Module Code: HRM325
Module Title: Strategic Human Resource Management
Distributed on: Hand in Date: 10th July 2020 - JIRA

Assignment: First Sit Location On and Off-Campus

2020-2021

Introduction to Task:

You are about to embark on starting up your own business enterprise/venture. You have
been asked by the Government’s Trade and Industry Department to submit an
academically authoritative and reliable paper which will explain how you will
strategically manage your Human Resources as your business develops throughout its
business life-cycle, Kochan and Barocci (1985).

Your paper will:

Critically explain what HRM strategic perspective(s) will inform the overall HRM
Strategy for your new business and why is your strategic perspective chosen in
comparison with other HRM strategic perspectives, throughout the business life- cycle?

Explain how you will manage the performance of your workforce, whilst showing an
understanding of the advantages and disadvantages of your proposed Performance
Management System.

Your paper will be supported throughout with authoritative and reliable academic
sources

Guidance

Consult with your tutor if you are uncertain about any aspect of the assignment.

Instructions on Assessment:

You will need to research appropriate authoritative and reliable academic literature and make
use of both lecture and seminar input. Use examples and in particular any organisational
comparisons that may be appropriate. Always reference your work using the correct
conventions.

All of your work will be supported with authoritative and reliable academic sources
throughout!

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 Presentation and Word limits for assignments
The presentation for this assignment will be:
 Front Sheet. (Provided).
 Contents page.
 Executive Summary.
 Introduction.
 Main body.
 Conclusion.
 Appendices, if needed.
 Reference List.

The word count is to be declared on the front page of your assignment. The
word count does not include:

 Front Sheet, (provided).

 Contents page
 Executive Summary.
 Reference List
 Appendices
 Appropriate tables, figures and illustrations

Please note, in text citations [e.g. (Smith, 2011)] and direct secondary
quotations [e.g. “dib-dab nonsense analysis” (Smith, 2011 p.123)] are
INCLUDED in the word count.

Summarising and compressing the information in your assignment into the word limit is
one of the skills that students are expected to acquire, and demonstrate as part of the
assignment process.

Submission of Assessment:

A single electronic document containing all reports and other documentation (i.e.
explanations, output reports and page images of graphic tools etc. pertaining to all tasks).
Font size should be at least 11, and 1 ½ line spacing should be used.
The word count is 3500 words [+/- 10%] not including any appendices.

The document should be properly structured with a table of contents, reference list (online
and literature sources) and appendices (where necessary).
Produce clear and specific reasoning to justify answers.
Work containing viruses, or work that cannot be opened, will result in a fail grade being
awarded for this assessment.
The document should be submitted via JIRA for Campus International Option A students
and by e-mail for re-sit student(s).
It is advisable to retain a copy of your assignment for you own records.
Your mark and feedback will be made available to you electronically once the internal

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moderation process has taken place, you should note that at this stage marks are still subject
to external examiner and academic board approval.

Referencing your work

In this institution the Harvard method of referencing is used.

The Harvard method of referring to publications and of arranging references uses the
author's name and the date of the publication. References are listed at the end of the text
in alphabetical order by author's name. The general format of a journal reference is
shown below:
Smith, J. (1999) How to succeed! Journal of Entrepreneurs , 1(2), p. 34-56

Author’s name and initials are listed first, followed by year of publication in brackets.
Then there is the title of article and the journal where article appears, which is
underlined or in italics. Finally, state the volume and issue Number (in brackets) along
with the pages where article can be located.

A short guide to Harvard referencing will also be available on the Sunspace site under
the module assessment navigation button.
Academic Integrity and Misconduct:

Your attention is drawn to the University’s stated position on plagiarism. THE WORK OF
OTHERS, WHICH IS INCLUDED IN THE ASSIGNMENT MUST BE

ATTRIBUTED TO ITS SOURCE (a full bibliography and/or a list of references must

be submitted as prescribed in the assessment brief).

Please note that this is intended to be an individual piece of work. Action will be taken
where a student is suspected of having cheated or engaged in any dishonest practice.
Students are referred to the University regulations on plagiarism and other forms of
academic irregularity. Students must not copy or collude with one another or present
any information that they themselves have not generated.

For further information on academic integrity and misconduct see

https://docushare.sunderland.ac.uk/docushare/dsweb/View/Collections-8155

Students are required to submit their coursework through JIRA. Only assessments submitted
through JIRA will be marked. Any other submission including submission to your study
centre in hard copy will be treated as a non-submission.

If your centre supports Turnitin©, a copy of your Turnitin© originality report must be
submitted in conjunction with your assignment.

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HRM325 Specific Assessment Criteria

HRM325-Strategic HRM
Criteria Referred Referred 3rd 2:2 2:1 1st 1st
(0-19) (20-39) (40-49) (50-59) (60-69) (70-79) (80-100)
Awareness of No evidence of Very little, Some evidence of Good evidence of Very good Excellent evidence Outstanding
Topical Issues research or inadequate appropriate appropriate evidence of of appropriate evidence of
Critically identifies reading. research and research and research and appropriate research and reading appropriate research
reading reading, but lacks reading giving a research and giving an insightful and reading giving
strategic HRM
academic argument. well-balanced reading giving a and well- balanced an insightful and
issues, prioritises overview. well-balanced overview well- balanced
these and applies Little evidence of overview overview
topic specific preparation and Shows a good Shows an excellent
concepts in a critical heavy reliance on knowledge and Shows very good awareness of the Shows an
manner. few sources. understanding of awareness and an subject and an outstanding
the subject. ability to discuss ability to discuss awareness of the
Evidence of some key points in a key points in a subject and an
research beyond critical way. critical and ability to discuss
core material. insightful way key points in a
critical and
insightful way
Analysis and Wholly descriptive Wholly descriptive Engages with key Predominantly Predominantly Analytical and Outstanding
Evaluation with many key and failing to issues but in a descriptive but analytical with good comparative with analytical and
Systematic omissions. mention key points. descriptive way some evidence of links to research substantive links to comparative work
analytical thought publications and research with substantive links
interrogation of the
development of a publications and to research
theoretical models Some key points coherent academic development of an publications and
of SHRM. Extracts and arguments discussion. excellent academic excellent academic
essential elements of considered but not discussion. discussion of these.
HRM practice for fully developed Evidence of an
discussion and appreciation of Critical appreciation Outstanding critical
relates to the wider conflicting points of conflicting points appreciation of
contexts, model and of view of view and how conflicting points of
perspectives in they relate to each view and how they
other relate to each other
relation to strategic
Human
Resource
Management.

4
Integration of No evidence of Very little, Some understanding Clear evidence of Significant, relevant Significant relevant Outstanding
Theory and understanding or inadequate, and integration and understanding and understanding and and correct significant relevant
Practice integration and evidence of application of application of integration and understanding and and correct
application of understanding or relevant theory but integration and application of integration and understanding and
Able to filter theory
relevant theory integration and with errors relevant theory, relevant theory with application of integration and
and critique into application of largely correct with few very minor relevant theory in an application of
coherent and relevant theory minor errors of errors of minor insightful and relevant theory in an
consistent detail detail critical way insightful and
arguments. Shows critical way
evidence of
undertaking relevant
reading and backs
up discussions with
a credible evidence
base in order to
consider the
issues raised by
the assignment.

Practical No conclusion and Conclusion Conclusion is Conclusion relates Conclusion relates Conclusion is Conclusion
Implications and / or unrelated to the relevant but unclear to the identified clearly and logically concise and demonstrates
Conclusion Clearly recommendations preceding in some aspects, topic and to the to the identified insightful; relates outstanding insight
discussion or requires further preceding topic and to the clearly and logically and
identifies the
to the assignment justification discussion with preceding to the identified comprehensiveness in
consequences of brief. reasonable discussion; well topic and to the addition to the other
case issues and Recommendations justification justified and preceding good qualities
considers the impact Recommendations are limited explained with discussion; excellent mentioned
of solutions in are limited and / or Some articulation mention of justification and
practice. largely unrelated recommendations limitations discussion of Extremely detailed
Acknowledges the limitations and well justified
feasibility of Recommendations recommendations
recommendations are detailed and Well justified
relevant and justified recommendations
and produce a clear
and justified
conclusion.

Generic Assessment Criteria – Undergraduate Bachelor’s degree

These should be interpreted according to the level at which you are working

Categories
Grade Relevance Knowledge Analysis Argument and Structure Critical Evaluation Presentation Reference to Literature

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86 – The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also
100% unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary
in all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument, interpretation or discourse.

76-85% The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence
showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the
categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse and there may be some evidence of originality

The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also
70 – clearly articulated t evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied At this level it is expected that the standard of the
75% work will be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of
argument, interpretation or discourse.
Directly relevant to A substantial Good analysis, Generally coherent and May contain some Well written, with Critical appraisal of up-to-
60 – the requirements of knowledge of clear and orderly logically structured, using distinctive or standard spelling date and/or appropriate
69% the assessment relevant material, an appropriate mode of independent thinking; and grammar, in a literature. Recognition of
showing a clear argument and/or theoretical may begin to formulate readable style with different perspectives.
grasp of themes, mode(s) an independent position acceptable format Very good use of source
questions and in relation to theory material. Uses a range of
issues therein and/or practice. sources

Some attempt to Adequate knowledge Some analytical Some attempt to construct a Sound work which Competently written, Uses a variety of literature
50 – address the of a fair range of treatment, but coherent argument, but may expresses a coherent with only minor which includes some recent
59% requirements of the relevant material, may be prone to suffer loss of focus and position only in broad lapses from standard texts and/or appropriate
assessment: may with intermittent description, or to consistency, with issues at terms and in uncritical grammar, with literature, though not
drift away from this evidence of an narrative, which stake stated only vaguely, or conformity to one or acceptable format necessarily including a
in less focused appreciation of its lacks clear theoretical mode(s) couched more standard views of substantive amount beyond
passages significance analytical purpose in simplistic terms the topic library
texts. Competent use of source
material.
40 – Some correlation Basic Largely A basic argument is Some evidence of a A simple basic style Some up-to-date and/or
49% with the understanding of descriptive or evident, but mainly view starting to be but with significant appropriate literature used.
requirements of the subject but narrative, with supported by assertion and formed but mainly deficiencies in Goes beyond the material
the assessment but addressing a little evidence of there may be a lack of derivative. expression or format tutor has provided. Limited
there are limited range of analysis clarity and coherence that may use of sources to support a
instances of material pose obstacles for point.
irrelevance. the reader.

35 – Relevance to the A limited Heavy Little evidence of coherent Almost wholly Numerous Barely adequate use of
39% requirements of the understanding of a dependence on argument: lacks development derivative: the writer’s deficiencies in literature. Over reliance on
assessment may be narrow range of description, and may be repetitive or thin contribution rarely goes expression and material provided by the
very intermittent, material and/or on beyond simplifying presentation; the tutor.
and may be reduced paraphrase, is paraphrase writer may achieve
to its vaguest and common clarity (if at all) only
least challenging by using a
terms simplistic or
repetitious style

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 UNIVERSITY OF SUNDERLAND HO CHI MINH CAMPUS

BA (HONS) BUSINESS MANAGEMENT

STRATEGIC HUMAN RESOURCE

MANAGEMENT FOR CU CHI’S BEEF

Word count: 3787

Student name: Lam Oanh Ngo

Student number: 199186406/1

Course: HRM325 – Strategic Human Resource Management

Lecturer: Dr. Willibeth C. Candol

Tutor: Du Pham

Module leader: Andy Clark

Date of submission: 17th July, 2020

  
Table of Contents
Executive summary..................................................................................................................2

1. Introduction to CU CHI’S BEEF...................................................................................3

2. Business Life Cycle...........................................................................................................4

2.1 Start up:......................................................................................................................4

2.2 Growth:......................................................................................................................5

2.3 Maturity:.....................................................................................................................8

2.4 Decline:......................................................................................................................9

3. Performance Management (PM)..................................................................................10

3.1 Concept of PM:........................................................................................................10

3.2 Organisational Performance Management (OPM):.................................................11

3.3 The Balanced Scorecard:.........................................................................................12

3.4 Purpose of Employee PM:.......................................................................................13

3.5 Performance Management Cycle:............................................................................14

3.6 Stages of PM:...........................................................................................................14

3.7 Performance Appraisal (PA):...................................................................................15

3.8 Elements of PA Process:..........................................................................................15

3.9 Purposes and benefits of PA:...................................................................................16

3.10 Pros and Cons of Different PA Forms:....................................................................17

3.11 Developing HPWS:..................................................................................................19

4. Conclusion.......................................................................................................................20

References...............................................................................................................................21

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Executive summary
Human Resource Management (HRM) is all related activities, policies and
management decisions that affect the relationship between the business and its employees.
However, with an ever-changing economy of today, Human Resource Management requires
a strategic vision and a corporate operational strategy. Therefore, the concept of Strategic
Human Resource Management (SHRM) has been generated and recognized by business
practitioners and professionals.

This assignment will critically explain the concept of SHRM to a new start-up business. The
discussion consists of different strategic perspectives such as Best-fit, Best Practise,
Resource-based View, etc. in comparison under the basis of business life-cycle model.
Moreover, Organisational Performance Management and Employee Performance
Management are also included in the examination.

2
1. Introduction to CU CHI’S BEEF
CU CHI’S BEEF (CCB) is a JSC company specialising in selling and distributing beef
from Cu Chi District – famous place for delicious and high-quality beef in Southern Vietnam.
The company's main source of beef comes from beef farms and households. Therefore, in
order to have a stable supply and quality assurance standards set by the Ministry of
Agriculture and Livestock as well as the Department of Food Quality, Hygiene and Safety,
company has signed a cooperation agreement to support these groups in the process of raising
cows. CCB also ensures that beef is processed, cooled and packaged using Oxy-Fresh
technology at the company's factory, to prevent bacteria from entering. So as to save the
nutrients and the optimal deliciousness of the meat, the company continuously preserves beef
at temperatures of 0-4 degrees Celsius from the factory to the hands of consumers.

With the mission of bringing consumers high quality beef, CCB not only distributes
products through channels such as company-owned retail stores, supermarkets, electronic
shopping channels but also in chain of minimarket such as Bach Hoa Xanh and Vinmart.

In the context of academically authoritative and reliable paper, the author as an owner would
like to provide the Ministry of Trade and Industry the report of how the company
strategically manages its HR throughout CCB business life cycle.

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2. Business Life Cycle
2.1 Start up:

In this first phase of the cycle, CCB chooses to apply Best-fit/Contingency approach when it
helps the company to create HR strategies which fit both external and internal business
contexts. Those strategies generated must align with the organisational strategy. Best-fit
benefits CCB with determination of appropriate Soft or Hard approach should the company
pick [CITATION Uni07 \p 19 \l 2057 ] The model also provides horizontal fit when the HR
practises are more consistent, and/or vertical fit depending on how effectively the HR
practises [ CITATION Bak14 \l 2057 ]..

By applying Matching model developed by Devanna, Fombrun and Tichy from Michigan
school, CCB can keep the alignment with the organisational objectives through effectively
utilising HRM functions. Moreover, the model provide the company with flexibility for
surviving, generating output and undergoing changes[CITATION Cha20 \l 2057 ].

Figure 2.1: The Matching model (Source: shodhganga.inflibnet.ac.in)

Competitive advantage is considered a special weapon that each and every business should
have in order to compete with competitors and survive in the marketplace. It helps the
business to stand on the market with created values regarding to changes and risk of
elimination of the field. Thus, it is essential for businesses to have at least one competitive
advantage which is compile with the strategic organisational objectives. Under this demand,

4
Michael Porter (1982) introduced the Competitive Advantage model and it is now widely
using around the globe.

Then, Schuler and Jackson (1987) developed the model based on the Porter’s theory.
According to them, there are three strategic orientations in this competitive advantage model
– Cost reduction, innovation and quality enhancement [ CITATION Sus10 \l 2057 ].

It is best suitable for CCB to use Cost reduction strategy in this start-up phase. No or lowest
revenue that the company could earn at this stage of the cycle. As a result, cutting least
essential costs helps CCB extend the time to maintain the business activities until it reaches
the next phase. Also, the approach supports CCB on applying some pricing strategies when
launching products such as discount, promotion, etc.

2.2 Growth:

Best practice/Universalist approach is applied by CCB in this growth phase. The approach
provides the company with a bundle of successful HR policies or practises that they are
believed to suit most of business contexts to increase the organisational performance
[ CITATION HRM18 \l 2057 ]. The bundle can possibly promote higher working motivation
of individuals, and attract as well as retain super human resources and talents who help CCB
gain sustainable competitive advantage [ CITATION Bak14 \l 2057 ].

In relation of managing HR policies and practises, Harvard model by Beer and his colleague
(1984) is also applicable in this stage. The model emphasises that businesses need to concern
about the interests of their stakeholders (including shareholders, employees, government,
community, etc.), long-term consequences of HR policies and practises, and relevance of
business situational factors (such as technological condition, management philosophy,
strategy, workforce conditions, unions, and so on). The author stresses that employee act as
the most influence factor in the model, and the utilisation and inter-relationships of above
factors create valid and reliable direction to achieve HRM objectives [CITATION Cha20 \l
2057 ].

5
 Figure 2.2: Harvard model for HRM (Source: shodhganga.inflibnet.ac.in)

Among the practises models, CCB embraces the seven practises of High Performance Work
System of Jeffrey Pfeffer emphasising on better employees management with related aspects
such as training, engagement, communication, compensation, and so on [ CITATION
Bak14 \l 2057 ]. The seven practises are:

- Providing security to employees: All employees always want to have a stable and
unthreatened job which is able to provide themselves and their family. By having the
safe feeling, employees can pay more attention to the work perhaps resulted in better
performance. This practise also benefits the company with higher levels of retaining
people.

- Selective hiring – Hiring the right people: Human is now one of the prior fundamental
aspect which makes up the success of the business. As a result, having a right source
of employee brings the most valuable competitive advantage for company’s
sustainability. There are three key characteristics of candidate that employers try to
uncover: ability, trainability and commitment.

- Self-managed and effective teams: In the process of achieving organisational goals,

6
 teamwork plays a crucial role, especially high-performance teams. Values are
provided by teams because though the different members contribute different ideas,
they all pursuit a common goal related to organisational achievement. Therefore, the
practise effectively encourages individuals work in teams.

- Fair and performance-based compensation: One of the common ways to retain right
hired employees is through compensation. The amount of salary the company pays for
the person must be fair enough in comparison to that person’s performance and
contribution. This also promotes employees’ outcome maximisation and ownership.

- Training relevant skills: To adapt with changes, it is vital for businesses to invest in
training. Through appropriate training, employees can at the same time fulfil their
missing skills and update new required skills in order to keep track with the field.
Thus, business can remain its competitive advantage or develop in higher level thanks
to training.

- Creating a flat and egalitarian organisation: This practise promotes egalitarian culture
in organisation. Every employee should be valued and treated equally. By having a
fair working atmosphere, people will more mutually respect and more openly to share
ideas.

- Making information easily accessible to those who need it: According to Pfeffer,
organisational information should be shared to employees. People feel trusted, involve
more when their business is openly transparent about its strategy, financials and
operations. Also, employees need information of business situation so as to contribute
proper ideas [ CITATION Eri20 \l 2057 ][ CITATION gcs19 \l 2057 ].

In this phase, CCB applies quality enhancement strategy from Competitive advantage model.
This strategy requires employees’ commitment of quality and continual improvement.
Therefore, the very first job of CCB HR department is to design specific but flexible job
descriptions and job classifications and feedback system. Clear job descriptions not only help
CCB recruit right candidates but also inform employees with related responsibility.
Employees who is working under quality enhancement are required more flexibility with
position/work changes, so a job classification system is needed. Evaluation and feedback
system are essential because they allows CCB to give out appropriate training needed for
potential individuals as well as underperformance employees [CITATION Sch89 \p 210 \l
1066 ].

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 2.3 Maturity:

Resource-based view (RBV) is used in this phase of the cycle. This approach supports CCB
to identify the competitive advantage from internal resources. Jay Barney believed that the
internal environment of the organisation is the decisive factor for the competitive advantage
and this model emphasizes the importance of resources such as the ability to innovate,
reputation, structural creativity, value chain, knowledge, talent and flexibility improvisation.
Accordingly, these resources become competitive advantages when they are valuable, rare,
hard to copy and cannot be replaced [ CITATION Pan09 \l 2057 ].

Later, VRIO framework as a part of Resource-based view was born to helps business analyse
internal resources and interpret them into sustainable competitive advantage. The original
framework was VRIN, but Barney introduced the developed version VRIO in 1995. VRIO is
the acronym of value, rarity, imitability and organisation. A competitive advantage found
from internal resources must imply all these four factors in order to become sustainable
competitive advantage [ CITATION Moh18 \l 2057 ].

Valuable (Yes)

Rare (Yes)

Hard to (Yes)
Imitate

Organised (Yes)

Sustainable
Competitive
Advantage

Figure 2.3: VRIO framework

At this maturity phase, it is best for CCB to apply Innovation strategy so as to generate and
maintain competitive advantage. The company can practise innovative activities such as:
lessening control over or empowering employees which enhances the personal control and
morale in work; investing in learning and development like provide relevant skills training,
improve workplace, team-building trips, which makes employees feel encouraged to generate
8
better performance, better relationships between colleague, united business culture; investing
in reward system based on personal needs, which creates employees motivation to perform
better and contribute more for the company.

Not only interested in creating a competitive advantage, CCB also needs to consider issues in
human resource management such as employee relations. The term employee relations
originally comes from the concept of industrial relations and illustrates the relationship
between employers and employees. Having good employee relations ensures the consistency
and stability in business resulting in great contribution for organisational continuous growth.
CCB will gain numerous benefits if the relationship of its managers and employees maintains
in good condition, for example, heightened employee loyalty, increased motivation, reduced
workplace conflicts, improving employees’ trust and confidence, better workplace culture,
enhancement of employees’ work-life balance, and better employee engagement
[ CITATION Van20 \l 2057 ].

2.4 Decline:

In this final phase of the cycle, it can be called decline in case CCB is not able to catch up
with the growth of the competition and is losing its market share. No more profits generated
and problems accounted with cashflow cause CCB to fail in cost payments on time. As the
result, the company exist the market field.

However, in case some saving strategies CCB applied can change the situation, the phase can
be called renewal. At this time, the company must have a newly developed product or other
competitive methods which can attract customers so as to grow profits and values.
Commonly, this situation requires new leader with different and creative set of minds
[ CITATION Syk12 \l 2057 ].

9
3. Performance Management (PM)
3.1 Concept of PM:

The author Michael Armstrong defined Performance Management (PM) as a systematic

process where performance of individuals and teams are developed for improving
organisational performance. This is the method for businesses to obtain better results relating
to strategic objectives of the organisation by thoroughly understanding and managing
people’s performance within an agreed framework of planned goals, standard and
competency requirements [CITATION Mic17 \l 2057 ]. Moreover, Berkeley University adds
to the point that this is an ongoing communication process occurring throughout the year and
the review outcomes are presented as an annual performance report [ CITATION UCB20 \l
2057 ].

A typical PM process is divided into four major categories – Planning, Coaching, Reviewing
and Action as illustrated below:

Reward & recognition Defining

Making consideration for next year's Feedback
PM cycle Approval

Action Planning

Reviewing Coaching
Reviewing performance Organising meetings
Reviewing the process Providing necessary coaching
Reviewing completion status methods
Giving actionable feedback Solicit feedback
Revisit objectives

Figure 3.1: Performance Management Process (Source: [ CITATION val20 \l 2057 ])

An effective PM system can benefit the business in general and individuals in particular in
various aspects. To begin with, employers can provide certain training areas for those who
are required, so they are able to develop their own knowledge and skills. Besides, training

10
activities help businesses build up organisational culture and employee engagement. Second,
PM is also a tool for motivating people by identifying and proper rewarding individuals who
have outstanding performance. As a result of motivation, greater employees’ morale and
loyalty are generated. It is positive that highly motivated people present better working
performance and less likely to resign. Third, the consistency in PM system creates better
employee productivity and engagement when right person is put in right position. Finally,
PM can not only sort out outstanding individuals but also underperforming ones, by
identifying these people company is able to support and provide additional training or other
proper solutions to improve their performance without using the worst resort – employment
contract termination [ CITATION Clu20 \l 2057 ].

3.2 Organisational Performance Management (OPM):

Every action of employee performance management together serves a common purpose

which is improving performance of the business. Therefore, sequence of activities in
performance management applies to organisation as well calling organisational performance
management (OPM).

Typically, OPM goes under the same process like Employee PM with higher level. This
process helps the business manage and control its resources which ought to be used in the
most proper way in order to achieve organisational goals [CITATION Geo20 \y \l 2057 ].

- A strategic approach:

Set strategic vision, objectives

Continuously review strategic objectives

Set strategic improvement plans for

employees

Assess performance with feedback

Pay review

Review competence-based
organisational capacity

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 Figure 3.2: Strategic Performance Management System

Since strategic perspective plays an important part of managing human resource, the author
blends it with 6 steps PM system shown in Strategic Management of Human Resources book
[CITATION Uni07 \p 173 \l 2057 ].

3.3 The Balanced Scorecard:

Balanced Scorecard is a strategic management system based on measurement and evaluation

results, applied to all organizations. In other words, BSC is a method of converting vision and
strategy into specific goals, indicators and activities. It is often used in the strategic planning
process to ensure the company's efforts are aligned with its overall strategy and vision.

The BCS is the result of a 1-year research project by Robert S. Kaplan and David P. Norton
with 12 companies specialising in performance measurement. It was created to help
businesses evaluate their operations, not just by the financial eye of using revenues, costs and
profits, but more. BSC presents a balanced view that also takes into account other
perspectives on success. The approach effectively addresses the shortcomings of short-term
financial measures and reflected past results by adding measures that are the driving force for
future business development.

BSC recommends that practitioners consider an organization from four important

perspectives and build a measurement system, collect data and analyse them in relation to
each other: Financial, Internal Business, Innovation and Learning and Customer.

12
 Figure 3.3: Four Perspectives of The Balanced Scorecard

(Source: Harvard Business Review)

Based on the BSC approach, business managers can assess the parts of the business that can
create values for current and future customers and requirements for internal capacity
improvement. and investment in people, systems and processes to improve future business
performance [ CITATION Duc17 \l 2057 ][ CITATION Kap92 \l 2057 ].

3.4 Purpose of Employee PM:

Commonly, employee performance management helps communicating organisational vision

to all members so that suitable leadership and management styles can be applied. It also helps

13
employees to avoid misunderstanding and uncertainty due to the defining of performance
expectations and objectives. Furthermore, providing opportunities and better working
environment so that individuals and groups can develop and succeed. Last but not least, by
using PM, employers have a systematic reward and communicate it effectively so as to
encourage employees improve their performance [CITATION Mic15 \p 82 \l 2057 ].

3.5 Performance Management Cycle:

Being a part of the PM process, the performance management cycle serves as a model which
provides a structure process of employee development for management and employees to
better achieve the organisational planned goals. By utilising PM cycle, business obtains some
of the benefits such as greater employee motivation, competitiveness increasing and
becoming more flexible [ CITATION val201 \l 2057 ].

3.6 Stages of PM:

A Performance Management cycle consists of five phases:

lan in
P g
e w
R in g
ard i to
n
o
M ri n
g

n g
ati
R ev lo
D i n
p g

Figure 3. 4: Performance Management Cycle

Planning – at this phase, performance expectations and objectives which direct to

organisational goals are planned out for groups and individuals to achieve. It is also essential
to decide the measurements for evaluating the results. Some businesses allows their
employees to be involved in this phase so that they can have a clear vision of the process.

Monitoring – continuous performance measuring and giving feedback help employees inform
14
their working progress toward the set objectives. On process, problems or issues can be
identified and resolved as soon as possible.

Developing – improvement training, new skills learning or other methods are provided in
order to increase employees’ capacity. As a result, the employees will feel more motivated
and encouraged to perform better and be more flexible with changes at work.

Rating – performance of employees after taking developing activities are evaluated under
former planned criteria and standard. The summary of results will be recorded to make
annual review and for final phase of the cycle.

Rewarding – business rewards its individuals or group of employees who have excellent
performance with recognition and specific incentives so as to honour them for their
contribution over the year. Different organisation uses different types of reward, for example:
a sincere thank you speech, cash, certificate of recognition, household facilities and many
more [ CITATION USO20 \l 2057 ].

3.7 Performance Appraisal (PA):

Performance appraisal (PA) is also an ongoing process because it plays as a crucial element
of performance management. This process evaluates the performance of employees through
assessing their productivity, effectiveness, quality and timeline. The author Lansbury added
to that PA is not only for evaluating but also for identifying and developing the employee
performance in the workplace, which creates the more effectiveness in achieving
organisational goals and objectives as well as allows employees to be beneficial of
recognition, receiving feedback, and developing at work [CITATION Tap08 \p 65-67 \l
2057 ].

3.8 Elements of PA Process:

A performance appraisal process requires four basic elements or steps:

15
 Define
expectations

Record Measure &

performance Evaluate

Provide
feedback

Figure 3.5: Performance Appraisal Process (Source: [ CITATION Pal18 \l 2057 ])

3.9 Purposes and benefits of PA:

Business conducting PA is to [CITATION Tap08 \p 72-74 \l 2057 ]:

- Provide evaluation on performance of individuals or group of employees

- Act as a mirror for employees to make self-evaluation of how they performed/are
performing their job
- Help the business to set out the correct and relevant objectives based on the planned
agreed objectives of performance, and monitor the targets
- Act as an assurance of fair-play and justice for any job changing decisions and rewarding
among employees, and
- Create opportunities for business to find out potential individuals.

By having an effective systematic PA, the benefits it brings to not only employees but also
the managers and the organisation [CITATION Art08 \p 13-17 \l 2057 ].

For employees:

- PA provides a clearer understanding of performance objectives so that employees do not

feel ambiguous
- Employees are aware of their capability in meeting performance expectations, and notice
whether which specific training and developing courses they should take
- Employees who are allowed to attain in the process of planning performance objectives

16
 are more likely to engage in work building and express their opinions and issues
- Employees can have the opportunities to pursue higher career development.

For managers:

- Managers can utilise their staff’s working capacity as productive as possible

- Manager can sort out outstanding performances and underperformance cases to make
reward or provide proper training methods

For organisation:

- PA acts as a tool which helps business communicates its strategic vision and objectives
- PA creates the consistency in performance assessment criteria, and
- The organisation can base on the PA results to plan the future needed training and
development.

3.10 Pros and Cons of Different PA Forms:

In 1998, Corbridge and Pilbeam introduced five main types of performance appraisal in their
book [CITATION Uni07 \p 213 \l 2057 ]. Each of the technique has its own advantages and
disadvantages as table shown below:

Type Advantages Disadvantages

Top-down - It allows the manager to - It seems to be unfair since
schemes closely monitor each only reflecting perspective of
individual’s performance, one appraiser
which creates better - It provides poor assessment
communication among two due to low appraisal ratings
parties prediction and easy distortions
- It enables both manager and suffering
employee to build appropriate - High frequency of appraising
future performance plans leads to demotivation and
based upon past work reviews defensiveness from employees
Self-appraisal - Employees are given more - Counter-perception among
ownership when they have to manager and employee arises
assess their own performance when assessment results are
- Managers are able to insight skewed or too subjective
what tackles their staff are - It is hard for employees to be

17
 dealing or how to give suitable fully objective evaluating their
motivations own performance
- Better and more effective
communication when
employers understand the
concerns and desires of
employees
Upward - Employees enable to - The management can receive
appraisal contribute valuable invalid ratings from un-
suggestions which can qualified or knowledgeable
improve the supervisory lacking employees
effectiveness and leadership - Managerial authority could be
management undermined by the approach
- More accurate assessments are - The assessment results can be
provided when it is conducted bias depending on the close
anonymously relationship or perspective of
- Hidden or ignored problems of individual to him/her manager
management are revealed to
get changes
Peer appraisal - It allows employees to view - It puts employees into
their strengths and weaknesses uncomfortable position and
or working attitude from close discouraged relationship when
colleague they have to rate their
- It encourages team working colleague
environment that fellow - It causes assumptions about
members help each other to too good or bad ratings
improve performance
Multi-directional - It avoids a single appraiser’s - There could be untrue
appraisal perception evaluations about an
- Employees’ total capability individual’s capacity due to
(360-degree
reveals when they are assessed hatred or favouritism
feedback)
from full aspects including - It really takes time to conduct
customers since it requires a quite large

18
 - It encourages development in group of subjects
team working

3.11 Developing HPWS:

High performance work system (HPWS) is defined as a set of managerial practices which
aims for creating a business environment where employees are provided with more
involvement and responsibility. According to Bohlander and Snell, four major components of
this HPWS concept are: employee involvement, training, incentives and technology
[ CITATION Eri06 \l 2057 ].

Organisations adopt HPWS for a reason of increasing efficiency and productivity while
employees takes greater advantages from the concept such as employees voice gets more
respected; they have more opportunities of development training; employees definitely feel
more motivated, secure and committed; and employees can get better compensation
[ CITATION Pau20 \l 2057 ].

19
4. Conclusion
In the end, the assignment successfully examines multiple aspects and perspectives of
Strategic Human Resource Management (SHRM) by implementing on CU CHI’S BEEF
case. In the first part, four phases of Business Life Cycle are presented, therein each phase
provides applicable theory of models including Best-fit, Best practise, Resource-based view,
and some Competitive advantage approaches. The second part fully studies Performance
management (PM) in HRM. All elements, concepts, and cycle of PM are reviewed carefully
as well as methods such as Balanced Scorecard, HPWS, and Performance Appraisal in
different forms.

20
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