HRM Outline Report

Annotated Bibliography Performance management - Is it worth doing? Performance management effectiveness: lessons from world-leading firms Michal Biron, Elaine Farndale, et al. (2011) "Performance management effectiveness: lessons from world-leading firms", The International Journal of Human Resource Management, (volume 22). This article discusses how insufficient understanding of some key factors can result in inconsistent effectiveness in several organizations. By investigating the performance management systems of 16 world-leading firms using the Signaling theory (Spence 1973) as the conceptual framework, they came up with a framework of four key performance management system facilitators that enhances the performance management system effectiveness. The four facilitators are: considering performance management as a strategic and tactical tool, involving senior managers in the process, maintaining clear communication, and formally training performance raters. While there are several different aspects affecting the outcomes of some firms' performance management systems, this study turns its focus on the importance of organizational signals among a sample of high-performing enterprises. Their findings address that organizational performance management can be beneficial if it is properly constructed, which means taking the four key facilitators into account and having a better understanding of the potential signals delivered to employees through the performance management system. Performance management to enhance employee engagement for corporate sustainability Molraudee Saratun, Mahidol University (2016) "Performance management to enhance employee engagement for corporate sustainability", Asia-Pacific Journal of Business Administration (volume 8), 10.1108/APJBA-07-2015-0064 This paper focuses on exploring the importance of employee engagement in an organization's success and sustainability, and the aspects that enhance employee engagement, especially the performance management factor. It is shown that employee engagement improves cultures of motivation, and commitment, increases productivity, reduces turnovers, etc. The research shows that there is a strong connection between performance management and employee engagement. In this paper, performance management is reviewed in terms of 3 processes: performance agreement (PA), ongoing feedback, and performance appraisal, along with 3 factors: employee development orientation, employee involvement, and justice and trust. This article then examines how the factors found in these 3 processes enhance employee engagement. Employee engagement is one of the key elements to determine a firm's long-term success, and this paper discusses how enhancing the performance management system can help firms achieve better employee engagement. Reference list:
Michal Biron, Elaine Farndale, et al. (2011) "Performance management effectiveness: lessons from world-leading firms", The International Journal of Human Resource Management, (volume 22). Molraudee Saratun, Mahidol University (2016) "Performance management to enhance employee engagement for corporate sustainability", Asia-Pacific Journal of Business Administration (volume 8), 10.1108/APJBA-07-2015-0064 Business case: HSBC's performance management strategies HSBC is a worldwide financial corporation with operations in over 80 countries. It has over 6000 branches located across the globe, including the US and Canada. With the workforce expected to exceed 250,000 people, HSBC focuses on investing in employee development to optimize the human capital values to remain competitive in the financial service market. I would like to further discuss HSBC's performance management system in this report. According to Vishesh Dimri - a leader in HR Consulting, HSBC ensures an overall approach towards performance management for both its employees and managers by focusing on three key factors: digital enablement, process effectiveness, and people manager capabilities (Priya Sunil, 2022). Firstly, in terms of digital enablement, the firm launched an HR mobile application for its staff to stay up-to-date with daily work performance. This application not only improves general communication but also encourages two-way communication by allowing users to capture and share regular achievements, access lists of tasks, and online learning resources (Learning On-the- Go), manage personal professional information and have a view of the entire organization chart. HSBC's process effectiveness includes the application of everyday performance concepts such as goal setting and regular check-ins to support the fulfillment of career aspirations while maintaining productivity. Dimri states that process effectiveness strengthens the relationships between managers and employees, "Managers can support their team members in the right ways and, at the right times, towards a meaningful year-end assessment". Lastly, people manager capability involves constant engagement, continuous improvement in coaching, providing guidance and supporting resources. They also hold year-end assessments as part of the performance management system, and one of the most important factors of this assessment is the "Fairness review" which is placed to ensure unbiased feedback among the employees. HSBC puts a lot of effort into continuously enhancing employees' performance either by offering various training opportunities or providing tools to improve interpersonal relationships and active communication. In the first article "Performance management effectiveness: lessons from world-leading firms", one of the four key facilitators by which organizations can enhance performance management is clear communication of performance expectations. The use of HSBC's HR mobile application
helps employees communicate more actively and reduces one-way communication. This functionality allows them to provide, request, and receive feedback continuously, enabling them to interact more clearly and proactively. Also mentioned in the article "Performance management to enhance employee engagement for corporate sustainability", employee improvement includes two-way communication between employees and managers, encouraging employees to express their points of view, hence improving overall engagement. According to Michal Biron in the first article, firms need to view performance management under the scope of both tactical goals and strategic goals. In terms of strategic goals, firms link their organizational goals with the employee's individual goals, which makes employees develop a sense of belonging, and make them acknowledge the meaning of their contribution to the company. HSBC's process effectiveness outcomes reflect Michal's argument, HSBC applies goal setting as a performance concept into everyday practice, provides fulfillment support to employees and ensures continuous productivity. HSBC's attempt to eliminate biased feedback by implementing a "Fairness review" in their year-end assessment reflects on the "perceptions of justice and trust" discussed in the second article by Molraudee Saratun. This perception states that fairness is an essential aspect of enhancing engagement and that the organization's practices are perceived as being fair by employees themselves. HSBC shows its employees a sense of fairness in both operations and evaluation processes, resulting in higher satisfaction and motivation at work. In conclusion, by using a combination of technology and strategic organizational manipulations, HSBC succeeded in retrieving and optimizing human capital to continue to be one of the largest financial service firms in the world, and they have proven it is worth the effort to invest in improving the performance management system. Reference list: Sunil, authorP., Sunil, 10 M. 2023P., Sofiah, 10 M. 2023A., Chan, 10 M. 2023T., & Sunil, 09 M. 2023P. (2022, April 4). Case studies: FedEx and HSBC's revamped Performance Management Approaches. Human Resources Online. Retrieved March 10, 2023, from management-approaches
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