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ESOFT Metro Campus

Assured Diploma in
Human Resource
Management

Ijaz Hussain
[Date]
Assured Diploma in Human Resource Management | Ijaz Hussain

Human Resource
Management
ESOFT METRO CAMPUS
Assured Diploma in Human Resource Management

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Assured Diploma in Human Resource Management | Ijaz Hussain

1. Acknowledgement
I would like to convey my heartiest gratitude to the lecturers who have helped me to build up
my knowledge and provided the guidance and ideas to success this effort in many ways. It was
a great advantage for me to completing this assignment in a proper manner.

Furthermore, I would like to express my thankfulness to ESOFT Metro Campus for providing
me with the opportunity to pursue this Assured Diploma in Human Resource Management
successfully. Also, convey my gratitude to my family and my friends for their unconditional
support.

Finally, yet importantly, I would like to express acknowledge with sincere gratitude for all
other people who helped me to success this report in numerous ways.

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2. Executive Summary
The success of an organization depends upon its employees. Employees who have been well-
trained and developed are considered as a cornerstone of an organization's success. HR
professionals play a vital role in it in order to determine the company's performance as well as
how successful the company can be. Therefore, effective Human Resource Management is the
key for organizations despite the size and the environment where it operates. Staffing, Training
and Development, Performance Management, Remuneration and Workplace Health and
Safety as well as Corporate Culture are all aspects of effective human resource management.
Management can effectively develop their business processes if they grasp these elements well.
For the smooth functioning of the entire organization, it is essential to build up and apply the
appropriate human resource management practices.

Organizations nowadays face fierce competition with the constantly changing business
environment along with massive technological advancements. Furthermore, globalization and
limitless customer demands have presented additional challenges to organizations. As a result,
in order to overcome these challenges and sustain in the market, organizations have found the
extreme necessity of developing their personnel by applying structured and well planned HR
strategies. To cope up with the competition in increasingly competitive markets, businesses
must constantly improve the quality of their products and services which they offer to their
clients. Human resource is a must to deliver a quality output that focuses on company’s
customers. Structures, methods and technologies do not offer quality unless the people in
charge of the company fully utilize their talents to work for the business's success, profit and
growth. HR is not just a cost function but also an investment that pays off in the long run for a
company. Workers who is well managed and perform incredibly can effectively address their
customers which result in a multifold return on investment for the entire organization.

This report discusses how an HR manager may contributes to the development of staff in
various departments while evaluating the role and responsibilities of line managers for the
smooth functioning, analyzing the importance for human resource planning and how it takes
place, recruitment and selection techniques, reward system, the link between motivational
theory and reward systems, explaining and giving remedies for employee turnover and finally
explaining the factors that the management should consider in planning the monitoring and
assessment of work performance of individuals at Konnect BPO Technologies as the selected
company.

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Contents
1. Acknowledgement ......................................................................................................... 3

2. Executive Summary ....................................................................................................... 4

3. Introduction to the Company .......................................................................................... 7

4. Employee Development ................................................................................................. 9

5. The Role of Line Managers .......................................................................................... 10

6. Importance of Human Resource Planning..................................................................... 12

7. Stages of Human Resources Planning .......................................................................... 13

8. Recruitment and Selection Process ............................................................................... 15

9. Link Between Motivational Theory and Reward Systems ............................................. 16

10. Remedies for Employee Turnover ................................................................................ 18

11. Employee Performance ................................................................................................ 19

12. References ................................................................................................................... 22

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Figures

Figure 1: Core Values - Konnect BPO Technologies…………………………………………7

Figure 2: Key Services - Konnect BPO Technologies………………………………………...8

Figure 3: The Role of HR Manager in Employee Development……………………………..10

Figure 4: The Role of Line Manager for Smooth Functioning of HR……………………….11

Figure 5: The Importance of Human Resource Planning…………………………….……....12

Figure 6: Stages of Human Resources Planning……………………………………………..14

Figure 7: Advantages of Good Reward System……………………………………………...17

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3. Introduction to the Company

“We Love What We Do”

Konnect BPO Technologies is a notable and rapidly growing outsourcing service provider in
Sri Lanka. The company was founded in 2016 and provides its clients with continuous high-
end services and intensive outsourcing options in order to help them achieve their objectives
and standardize their business operations by assisting them with services that bring in revenue
through data innovation and skill empowerment. Konnect BPO is a global outsourcing
company with over 150 employees who handle over 9000 calls per day from more than 18
different local and global clients (Konnect BPO, 2021). Their in-house team has an extensive
experience in offering BPO services allowing them to identify brands that rely on their services.
One of the key reasons that Konnect BPO's clients chose them as their solution provider is their
collaborative mindset. Another key benefit is that it is a worldwide outsourcing partner that
understands their customers' business needs and implements the necessary labor arrangements
that are adaptive, practical, efficient and cost-effective.

WE CREATE WE SUPPORT

Develop remarkable software with the Assist clients in developing reputable


help of in-house teams who brands through innovation allowing them
understand customer needs and tailor to boost customer engagement and grow
it to their liking to meet the needs. and stabilize their businesses.

WE PROMOTE WE MONITOR

When partnering to deliver business Business solution provider with a focus


solutions that best match with their on cost control and increased business
demands, do the best to put themselves efficiency as well as monitoring to ensure
in the shoes of the client believing that the company's values are upheld.
customer happiness always comes first.

Figure 1: Core Values - Konnect BPO Technologies

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Konnect BPO technology has a wide range of experience with call center management and
therefore can deliver their clients a competitive advantage. They have the ability to handle a
large volume of calls while still being professional and specialized. According to Konnect, they
believe that all customers should be treated professionally and attentively (Konnect BPO,
2021). Their technology strengthens this belief by ensuring that without exception all incoming
calls achieve the needed customer service requirements.

Voice Services

Konnect services are available in all three languages on 24 / 7 basis,


Service monitoring to improve the quality of the service, Skill based routing
(Calls are directed to expert agents of the particular topic), Customer focused
language services, Customer query response, maintaining service quality
through continuous supervision, Analysis of report based on service
monitoring, Continues training improvement on service, Call recording
services.

Inbound Contact Center Solutions

Outsourcing inbound contact center services allows companies to focus on


their core business activities while also providing greater flexibility and cost
savings. As a result of the successful client services, consumer contentment
also rises.

Outbound Contact Center Solutions

Their team of professionals at Konnect, outbound contact center takes the


liberty of initiating outbound calls on behalf of their clients to the listed or
existing customer. Their server is used for a variety of purposes including
conducting open research and surveys, telemarketing or call-promotions,
fundraising calls and sales.

Figure 2: Key Services - Konnect BPO Technologies


Apart from the key services, Konnect also provides Outsourcing Adhoc Support, HR
Outsourcing, Professional Agent Services including inquiry handling, technical support,
telephone answering, customer surveys and also medical answering services (Konnect BPO,
2021).

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4. Employee Development
Employee development is an integral Human Resource Management function within the
organization and it refers to the growth of individual employees as well as the company's
capabilities (Jehanzeb & Bashir, 2013). Therefore, there is a direct link between employee
growth and their performance. Employees who are more developed tend to be more satisfied
with their work, more committed to it thus their performance will improve. As a result,
organizational effectiveness will be attained as employee performance improves. When the
employees grow and develop their skills, the organization will automatically experience growth
and expansion (Nassazi, 2013). In truth, human resource professional is the organization's face.
The role of Human Resource Manager in such development is vital as he is the person who is
responsible in overseeing the HR functions such as recruiting, interviewing and hiring fresh
talent as well as consulting with top management on strategic planning and acting as a liaison
between management and employees (Hutzschenreuter & Horstkotte, 2012). Employee
development can be accomplished through a variety of methods including training programs,
evaluations, educational programs and even from feedbacks.

Since Konnect is engaged in service industry, the quality of the service highly depends on
talented human resources which is a great advantage in enhancing the satisfaction of existing
customers and attracting potential customers as well (Sultana, et al., 2012). In order to do so,
it is important to have self-empowered and talented employees. In order to retain the top talent
and improve their performance, providing adequate Training and Development by the
management is a must. It is essential to improve the performance of the employees which
ultimately leads to increase the productivity of the organization that eventually delivers a
quality output to its customer base (Saengchai, et al., 2019). In that case, organization needs to
implement proper training and development strategies. Such effort linked with the rest of HR
functions is also crucial to succeed in this initiative. When an organization's selection process
is complete, newcomers typically require some type of training in order to adapt to the
organization's procedures and systems. Teaching operational or technical workers how to
accomplish the job for which they were employed is highly advantageous to get their maximum
contribution. Effective training improves employee performance and provides performance
improvement-related benefits for both the employee and the organization by favorably
affecting employee performance through the development of employee knowledge, skills,
ability, competences and behavior (McDowall & Saunders, 2010). Individual and group
performance improves as a result of decreased employee frustration, grievances, absenteeism

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and turnover. Direct satisfaction accompanying with such sense of achievement and knowledge
develops their inherent capabilities and improve their performance more than ever (Rothwell
& Kazanas, 2006). A human resource manager held responsible for motivating employees to
engage in employee development programs. Because employees who acquire new skills and
develop their talents on a regular basis will perform better than those who just come to work
and wait to pick up their pay cheque.

An HR Manager held responsible to,

Make employees believe that the organization's future is solely on their


arms.

Make employees feel valued.

Encourage them to update their experience and expertise on a regular


basis so that they can become indispensable resources for the company.

Ensure those who performed well, been rewarded.

Allow employees to realize the consequences of not attending to


training programs.
Employees who attend training sessions needs to be given certificates of
attendance as an appreciation.

Organizing WebEx sessions for their further development.

Figure 3: The Role of HR Manager in Employee Development

5. The Role of Line Managers


A line manager is in charge of overseeing and managing workers in order to achieve corporate
objectives. They serve as the primary point of communication between management and
employees. On a daily basis, they provide advice, education, motivation and feedbacks to the
workers. The line managers are in charge of implementing strategies, ensuring that the
strategies devised by senior management are carried out satisfactorily. They are also in the best
position to spot obstacles and make directions to have corrections if things go wrong. Line
managers should have leadership traits such as task communication, active listening, grievance
resolution and task delegating (Elegbe, 2010). They are accountable for executing and
developing employees and practice policies and practices in accordance with company
objectives and core values using their such capabilities.

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At Konnect also there are multitude of line managerial functions directly involved in its
operations. They held multitude of responsibilities which in turn supporting the HR manager
to smoothly functioning the company personnel.

Assist to recruite the right talent for the job

• Since line managers closely work with ground level employees, they are well
aware of what kind of skills needed to perform paticular jobs. Therefore,
they support the HR division to recruit the best talent for the existing
vacancies.

Training, Coaching and Mentoring new comers

• Once new comers join with the company, it is essential to give them an
initial training. Line managers are the perfect fir for this.

Planning & Communicating the activities of their


department
• Planning their department's goals, objectives and duties as well
as effectively communicating the organization's goals defined by
management are all in line manager's hands.

Ensuring Quality Standards & Employee


Performnace Levels
• Assuring that quality standards are upheld at expected levels, Providing
performance reviews and evaluating employee performance ,
motivating personnel to ensure productivity and engaged them with on a
regular basis and providing higher authorities with performance goal
reports are all their responsibilities.

Managing the resources within their control

• Increase operating efficiencies and minimize time and cost to fulfill the
objective sets of the organization.

Meetings with employees on a regular basis

• Providing the teams with a blueprint, direction to work on, arranging


regular meetings with employees to discuss progress and identify issues,
measuring performance metrics against pre-determined criteria and taking
corrective action as needed, ensuring that the organization's policies and
laws are obeyed in a well manner.

Figure 4: The Role of Line Manager for Smooth Functioning of HR

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6. Importance of Human Resource Planning


Planning before every activity will give greater results. Likewise, it would be beneficial for an
organization to have an effective human resources plan for the smooth functioning of HR. It is
important for a company to take steps to ensure that human resources are effectively used.
Effective human resource planning is critical at different phases of an organization's
development and it is necessary to match the job description to the employee. To be more
accurate, the very first step in the HR process is human resource planning. HR Planning often
known as employment planning, labor planning or personnel planning, manpower planning, is
a component of overall organizational planning and is the process which an organization
determines that it has the correct amount and type of people, at the right time and in the right
place, capable of successfully and efficiently accomplishing certain tasks that will assist the
company achieve its overall goals (Byars & Rue, 2006). It converts the organization's goals
and expectations into the number of employees required to achieve those goals. The actual
HRM process begins with an estimate of the quantity and type of personnel the firm will require
in the coming time.

Organization

Organizational
HR Planning
Planning

Identifying Future Cope up with


Staffing Needs unexpected changes

Provide the foundation Investment


for other HR functions Perspective

Obtain a pool of highly Expansion &


skilled personnel Diversification Plans

Human Resource Management

Figure 5: The Importance of Human Resource Planning

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Despite the environment or the type of business involved in, every organization requires an
effective HR Plan to due to many reasons.

Whether that is a case of excess labor or a case of labor scarcity, it paints a picture of poor
planning or a lack of planning in an organization. Companies subsequently provide schemes
like the Voluntary Retirement Scheme (VRS) to remove additional labor as a result of surplus
labor. Therefore, it is preferable to plan ahead of time for personnel. This issue will be resolved
thanks to HR planning. Furthermore, as the first step in all HRM functions, HR planning offers
the necessary information for other HRM functions such as recruiting, selection, training and
development, promotions and so on (Lindner, 1998). Organizations nowadays face fierce
competition with the constantly changing business environment along with massive
technological advancements. Furthermore, globalization and limitless customer demands have
presented additional challenges to organizations. Changes in the corporate environment such
as competition, technology, regulatory guidelines and the global marketplace affect the nature
of jobs. This entails changes in people demand, work content, required qualifications and
experience needed. HR planning assists the company in adapting to new changes (Hoffmann,
2014). Investment in human resources is seen as a better notion in the long run success of the
company as a result of such transformations in organizational strategy. Most significantly,
organization does not remain the same on a daily basis. More employees are required as a result
of expansion and diversification efforts. An organization's specific personnel requirements in
the future can be determined through effective HR plan. Jobs have gotten more hard as a result
of the changing business climate and there is a growing demand for energetic and competent
people to fill the roles. Attracting and keeping highly qualified, highly skilled and talented
personnel necessitates effective HR plan (Rothwell & Kazanas, 2006). In overall, the
importance of effective HR plan cannot be underestimated or ignored.

7. Stages of Human Resources Planning


As the very first step in HR process, HR planning is accompanying many stages for a successful
final result. The most important aspect in running any process is to define the organizational
goals that will be attained through such a process. Human resource planning is a component of
an organization's strategic plan (Rothwell & Kazanas, 2006). The process of human resource
planning begins with a breakdown of the organization's overall plan into departmental,
sectional and sub-sectional plans as well as functional plans such as sales, marketing and

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technical plans. This component of the overall plan involves examining the human resource
needs of each department and activities.

1. Analyzing Organizational Goals

2. Assessing existing Human Resources Inventory

3. Forecasting Human Resource Demand and Supply

4. Estimating Gaps in Manpower

5. Formulating the Human Resource Action Plan

6. Monitoring, Controling and Feedback

Figure 6: Stages of Human Resources Planning

At Konnect, like other organizations do they have a separate HR department taking care of all
HR activities. The HR department of Konnect basically analyzes the company’s overall
objectives before setting up HR objectives. Because the future objectives in numerous domains
like as operations, marketing, finance, expansion and sales provide insight into the work that
needs to be done in the company. Then after, the existing number of employees, their capacity,
performance and potential will all be assessed using the updated human resource
information system, internal sources such as personnel from within the company and external
sources such as candidates from various recruitment agencies will be evaluated to fill the
various job requirements. Since it is necessary to assess the human resources required for
various positions based on their job profiles, the internal and external resources available to
meet those requirements are also assessed. Also, the HR manager along with the team ensures
that the job description and job specification of one particular position is well aligned and so the
person's profile suited for it. Then, the HR team will compare human resource demand and
human resource supply to identify the gap and skills gap needed to fulfill the requirements.
Accordingly, the HR plan is formalized for new recruitment, training and cross - departmental
transfer in the event of a deficit or voluntary retirement plans and repositioning in the event of
a surplus. Finally, since every initiative needs to monitor closely to recognize and take

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corrective measures, the HR plan will be closely monitored throughout the time period by the
team HR.

8. Recruitment and Selection Process


Konnect is committed to hire the most qualified employees while adhering to all applicable
employment rules in the recruitment and selection process. Konnect's policy is to give all
candidates and workers an equal opportunity to work since they feel that in order to serve their
clients, they require a well-experienced and professional in-house staff.

At Konnect, they have a well-established recruitment and selection process which foresees the
ahead of time. Konnect BPO has been offering chances for call center employees while looking
for people who are enthusiastic about learning and development, who are curious, who think
outside the box, who are strong communicators along with language competencies and who
have a supportive mind and a service perspective. They take pride in recruiting, mentoring and
offering opportunity for self-improvement as well as professional growth at Konnect BPO.
They have a diversified team with members from various regions of the island from different
cultural backgrounds. They value work-life balance and are looking for self-motivated
individuals to join their team. Their recruitment process can be broken down as follows.

Recruitment & Selection Process

 A signed requisition request form is sent to HR department by the hiring manager.


 To aid in monitoring and reporting purposes, the HR department will provide a
requisition number to track it down for future purposes.
 The HR department representative also the person in charge of recruitment will meet
with the hiring manager to discuss the role and figure out the best way to find and
choose candidates.
 Recruitment sources used may include corporate website, online job platforms such as
Topjobs, social media (Facebook and LinkedIn), outsourced agency searches,
employee referrals and newspaper advertisements.
 The HR team and hiring manager will go through the resumes of qualified candidates
to determine whom should be interviewed.
 The HR department will conduct phone pre-screenings of candidates who have been
identified and then set up in-person interview sessions with the hiring manager.

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 Hiring managers then will seek advice from the HR department on interview strategies
and ultimate candidate selection.
 For each candidate interviewed, a candidate evaluation form will be completed and is
used to make a final candidate selection decision.
 Following the final candidate's selection, the hiring manager and HR department will
work to establish an acceptable employment offer such as compensation.
 The successful candidate will receive a verbal offer of employment through the HR
department from the hiring manager. The HR department will draft a written job offer
that is conditional on the successful completion of the relevant background checks
conducted if necessary.
 Finally, the HR department will shut off the requisition on the tracking report once the
candidate signs an offer letter and background checks are completed successfully.

When comparing Konnect’s recruitment and selection with the process used at ESOFT Metro
Campus, Konnect has many steps which requires considerable time to fill out an immediate
vacancy. But, Konnect is having a well-structured process where ESOFT does not use
recruitment requisitions to initiate the recruitment process. They also rarely into background
checks except in some special circumstances such as top level positions. Other than the process
being complex, everything regarding Konnect’s recruitment process is considered as good
which will eventually benefit the company in the long run.

9. Link Between Motivational Theory and Reward Systems


Motivation theory seeks to explain what employees are motivated by and satisfied with one
type of work than another. Hawthorne experiments and other research on worker productivity
has found that employees who are pleased and motivated will have higher job performance and
consequently superior job retention than those who are dissatisfied with their occupations
(Mgedezi, et al., 2014). Furthermore, it is said that dissatisfied personnel are more likely to
leave and are thus demotivated to perform well. Employee performance is higher when
employees are happy and content and management finds it easy to motivate top performers to
meet the company goals. Reward system of a company plays a vital role in it because one of
the key motivational factor for employees is pay and benefits. To inspire employees, companies
utilize both positive and negative reinforcement (Lewis & Heckman, 2006). Positive
motivation tactics can be used by managers to motivate staff to do high quality work. Negative

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motivation strategies may be used by some managers to motivate staff and prevent them from
behaving badly. Companies, on the other hand, give their employees both tangible and
intangible rewards. Management may provide weekly or monthly bonuses or free lunches to
their employees and many managers praise their top performers (Haider, et al., 2015).
Managers attempt to influence employee behavior at work so that they perform as expected in
order to achieve organizational goals are known as motivation. In reward management,
employees are valued for their productivity.

Since Konnect has been offering employment opportunities for call center employees, once
they get the required experience, they may tend to look for high paying job opportunities.
Therefore, it is essential to have appropriate reward system within the company which is
sufficient enough to motivate and retain top talent. So, the company management has
introduced performance based incentive scheme and special commission model for those who
give extraordinary performance. Not only, financial benefits but also promoting top performers
as team leaders and appreciate them for their great efforts are being practiced within Konnect.

Help to Attract & Retain Top Talent

• Top talent will be aware what they will be getting in return for their
worth.

Contributes to a Strong, Employee Friendly


Company Culture
• The way people are praised and rewarded at work has a big impact on
the overall company climate. It has an impact on how the staff
communicate with one another and with those outside of the company.

Contributes to the Well-being of Employees

• Employee emotional and physical health will improve, resulting in


increased employee engagement and productivity.

Stengthens Employee Value Proposition (EVP)

• Employees that receive a better overall package from their employer will
give a competitive edge.

Builds a Good Reputation

• Easy to convince to clients to trust the company since employees do


trust the company.

Figure 7: Advantages of Good Reward System 17


Assured Diploma in Human Resource Management | Ijaz Hussain

10. Remedies for Employee Turnover


Employee turnover results due to many reasons. Such as when an organization lacks proper
motivation tactics and poor reward systems. Employees leaving the company is not a factor to
simply think about. Management needs to think it seriously as employees those who leave
unhappily may tend to leave bad word of mouth regarding the company within the community.
Therefore, sooner the take remedies, the better the company can block negative comments.

Because, Konnect has been hiring call center staff, after they have gained the necessary
experience, they may seek for higher paying positions. Since call center associates are those
who initially communicate with clients, their presence within the company is vital. If they are
unhappy with what they do, that will negatively result on the communication they may have
with clients. Eventually, both the internal customers that is employees and external customers
will lose their interest towards the company (Sandhya, 2011). Therefore, below remedies would
like to recommend.

Remedies for Employee Turnover

 The ideal method to prevent employees from leaving is to guarantee that we hire the
appropriate people in the first place. Define the roles in terms of what the company
expects from them and tell the candidates what they will get in return for their
contributions. Then double check if the individual is not only qualified for it but also
for the company's culture (Samuel. & Chipunza, 2009).
 Make sure the company is paying the staff a fair rate and providing them with
competitive benefits. Therefore, having competitive reward system and motivational
strategies are a must to retain best talents.
 Encourage the staff to be pro-social. Employees will be happier, healthier and less
likely to leave if they are presented with the opportunity to engage with others through
activities of connection and appreciation. Management may also offer individuals a
sense of ownership of the company by motivating them to be on the watch for positive
behaviors to praise (Rao, 2012).
 Management may think of employee happiness as subjective and fuzzy. Employee
happiness is a critical predictor of job satisfaction, tardiness and company value
proposition (Glen, 2006). Therefore, investing in their happiness will pay off in terms
of engagement, productivity and of course yes as retention.

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 Nowadays, employees place a high emphasis on development potential. They tend to


think of their own growth while contributing into company's success. In fact, many
professionals found a strong link between a lack of development opportunities and a
high likelihood of turnover. There, a question arises as to why employees would want
to retain with the company unless it is not making efforts to develop them.
 Having performance reviews will help the management to determine as to what extent
their workers have performed. But, few of them believe reviews are truthful and least
of them believe that the methods are encouraging. Therefore, conducting fair
performance reviews and ensuring equal promotional opportunities are essential.
Performance reviews provide a great opportunity to build trust and strengthen the
relationship with employees. Improve performance management by revamping reviews
and watch employee happiness and trust skyrocket (Rao, 2012).

11. Employee Performance


Employee performance is measured in terms of outcomes and demonstrates how successfully
an employee meets the work criteria. Moreover, it is measured not just by what they accomplish
but also by how they accomplish it. As a result, performance management should look at how
results are achieved because this gives an organization the insight they need to figure out what
has to be done to further improve their personnel (Byars & Rue, 2006). On the other hand, it is
necessary to design systems and procedures that will aid the employees' ability to perform.
However, the overall goal of performance management is to help the business and its
individuals to achieve high levels of performance (Armstrong & Baron, 2005). Performance
can be defined as the accomplishment of a particular task measured against predetermined
criteria such as accurateness, speed, cost and how accurately employees complete the task
determines good performance. Organizations also have set of expectations for employee
performance and when those expectations are met, employees are referred to as good
performers (Sultana, et al., 2012).

Such employee performance can be achieved by effective training and development tactics
because human resource has been vital for sustained performance (Diamantidis & Chatzoglou,
2014). That is why there is a necessity of applying successful training tactics within the
organization. Because high level of performance always can be achieved through proper
training and such performance is highly advantageous for the company itself (Cook, et al.,
2016). The training function's utmost objective is to provide employees with the skills and

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knowledge they need to achieve optimal performance results, develop a pool of employees
competent to fulfill the organization's operational demands and lead to improved employee
morale, fulfillment and development (John P. , 2004).

No company in the world can avoid competition and in order to sustain in the market where it
operates, it has to be involved in with its competitors. In order to do so, they must progress in
their performance. There are factors that the management should consider in planning the
monitoring and assessment of work performance of individuals.

Key Factors of an Effective Performance Management System

 Thoroughness and Inclusiveness – Performance evaluation needs to be done


thoroughly by including all staff even managers without biases. All major job tasks
need to be assessed including behaviors and results. Include inputs from various of
sources on a regular basis to ensure inclusivity. All of the people who are affected by
the decision must be represented in the assessment process. Employees should
contribute to the system's development by advising on what behaviors or outcomes will
be evaluated and how they will be monitored (Cook, et al., 2016).
 Meaningfulness - In various manners, the performance system has to be meaningful.
Make sure that each job function's standards and evaluations are vital and applicable.
Only evaluate performance for actions that are within the employee's control. Conduct
evaluations at suitable times and at periodically. Evaluators' skills should indeed be
improved on a regular basis (De Cenzo & Robbins, 2002). Make critical administrative
decisions based on the findings.
 Practicality - Obviously, performance systems that are overly costly, time-consuming,
and complicated will not be successful. Make sure managers have access to good, easy-
to-use technologies to assist them in making decisions. Furthermore, the advantages of
adopting such a system should be considered to outweigh the expenses such as time,
effort, expenses (Khambhati, et al., 2021).
 Reliability, Validity and Specificity - In terms of consistency and accuracy, the
performance system shall incorporate measurements of performance that are consistent
and error-free. If two supervisors rate the same person on the same performance
dimensions, the results should be similar.
 Openness - There should not be any biases in the performance system. Evaluate
performance on a regular basis and provide continuing feedback is a must. Employees

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are always aware of their performance (Grover & Enz, 2005). Make the review meeting
a two-way communication process in which information is transmitted rather than
information being provided from the supervisor to the employee without their input.
Establish defined criteria and convey them on a regular basis. Make sure that the
communications are accurate, transparent, and genuine (Fajana, 2002).
 Acceptability, Fairness and Ethicality - All participants may need to agree that the
performance system is reasonable and fair. Because fairness opinions are subjective,
the only way to find out if a system is considered fair is to ask the participants about it
(Lewis & Heckman, 2006). In that way, ethicality will also be ensured.

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12. References
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Hutzschenreuter, T. & Horstkotte, J., 2012. Performance effects of top management team
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