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High Performance Work Practices

University: Anglia Ruskin University London

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 13 / Words 3295
  • Paper Type: Assignment
  • Course Code: MOD001182
  • Downloads: 68

INTRODUCTION

The high-performance work system is a set of management practices that attempt to create an environment within an organization where the employee has greater involvement and responsibility (Sikora, Ferris and Van Iddekinge, 2015). In this context, the following report will focus on understanding the meaning of high-performance work within an organisation. In this report, an overview of Performance Management and High-Performance work will be described. By analysing the views of authors and researchers an argument will be created that provides explicit understanding about the high performance working within an organisation. Eventually, by analysing the case study from the CIPD report, an understanding conceptual framework that underpins Performance Management, Process of Performance Management, Employee skills and training needs and the crucial role of line managers and HR in enabling and managing High Performance and Productivity will be made in this report. In order to attain desired goals and objectives of the organisation, it is essential as well as crucial for all employees to work with high performance. The purpose of this project is to enhance the understanding of the high performance working within an organisation and to identify the benefits and challenges of it.

Academic Discussion

Performance management is referred to process by which managers and employees work collaboratively and devised strategies to monitor and review employees' work objective and overall contribution to the organisation. Rather than establishing annual performance review, performance management is the continuous process of setting objectives, determining progress and providing coaching and mentoring, obtaining feedback so that employee are meeting their objectives and career goals. Hoque, Bacon and Jones, (2018) defined performance management is the step by step process through which organisation and management involves their employees as individuals and members of a group so that continuous improvements in organisational effectiveness can be accomplished. Performance management is the practice in which management and employers assess the level of performance of employees, analysed their workplace behaviours and dedication towards work which helps the organisation to accomplish its aim and objectives. Mazzei, Flynn and Haynie, (2016) elaborated that performance management is the whole work system from the beginning of the job till the employee leaves the organisation. Performance management is not just an annual appraisal meeting, it is more than self evaluation of employees. In performance management managers evaluate the performance of employees as well as work abreast with them in order to enhance the growth and development of employees. Jeong and Shin, (2017) argued that authors have defined performance management in limited context. Performance management is broader approach of performance appraisal. In this management and managers appraise the performance of employees but also nurture their skills and competencies so that their growth and development can be made. Performance management system may contain various components such as development of explicit job description, recruitment plan of employees, appraising employee performance, evaluating performance of employees and developing measures in order to improve his or her level of performance (Topcic, Baum and Kabst, 2016). Thus, from the definitions proposed by authors it can be understood that performance management is the process of evaluating and raising the skills of employees so that their skills can be enhanced and performance can be improved.

Karatepe and Vatankhah, (2015) defined high performance work practices is the practices followed by the organisation and employees where management construct an environment which suits the employees so that their level of performance can be improved effectively and efficiently. Murphy, Torres, Ingram and Hutchinson, (2018) said that employees who majorly participate in conceiving, designing and implementing workplace processes are more engaged and perform better. In order to accomplish the goals and objectives of the organisation it is essential and important for management to construct a robust and efficient environment which motivates employees greatly and improve their performance. Ultimately, high performance working is the process of establishing a culture where there is peace, transparency, harmony, trust and no obstructions in communication. It is all about eroding the traditional hierarchical structure which has been followed by many organisations and transforming it into more flatter and efficient structure that motivates and boost up the level of performance of employees. Wu, Bacon and Hoque, (2014) said that The Untied Kingdom Commission of Employment and Skills defines High Performance work as a casual approach of managing organisation aim and objective which stimulate more effective involvement of employees and commitment in order to achieve high levels of performance. Russell, Ferris and Sikora, (2016) argued that this definition is still incomplete as authorities have focused only on building and constructing environment that boost up the performance of employees. High performance work is the practice in involving employees in developing an environment which stimulates their growth and development. In order to sustain in competitive environment, it is essential and crucial for the organisation to create an environment that rejuvenates employees performance and enhance their skills and abilities. High performance work is fall within three broad areas which are high employment involvement, human resource practice and reward and commitment practice. High performance working allows employees autonomy in their work style due to delegation and decentralisation and reinforcement of self management. High performance work practices are most effective when used in bundles (Berry and Kato, 2018). This means organisations have freedom to pick and choose the practice which best fit with their needs, strategies and overall objectives. Thus, it implies the high performance work is very important and essential for organisations to build an environment of trust and support which motivates and rejuvenates employees and they become more committed towards the organisation. It fosters growth and development employees as well as organisations. Authors and researchers have provided various definition of high performance work and performance management which initially means the same. Researchers argued that both the factors are very crucial and essential for the growth and development of the organisation which helps them in enhancing the effectiveness in the performance and aid in providing competitive advantages simultaneously.

Understanding of performance management conceptual framework:

Performance management is crucial factor for each business in order to examination of business performance in relevant manner. Varied of issues has been facing by companies regarding to their performance management which is needed to be improved by evaluating performance management of each business in respective form.

P 3.1 Goal setting theory

Goal setting theory: Goals setting theory defines that, effects of setting goals on subsequent performances. Each business must need to set up specific goals in effective ways to motivated is to goals achievement of company's professionals. The goals setting principles says that, set up goals of the organisation must be in clear form and specific which can be achieved by particular timelines of completion. Apart from it, goals theory defines that, goal of firm must be challenging, commitment, feedback, task complexity etc. so it assists them to making major focus on improving performance of the business in respect to achievement of desired goals of enterprise. The theory also describe that, each task associated to performance management and process of performance management in relevant formate in order to completion of various tasks of the firm in sufficient manner. (Katzenbach and Smith, 2015) A clear, measurable goals is more achievable than one that is poorly defined. In another words, it can be said that, the gaols of Aspect capital, Bacardi & Martinin UK, Data connection s and Flight Centre must be in clarity mode which can be measurable of each employees of the firm in order to increment in performance effectiveness of these countries.

Criticism based on theory:

From the analysis of these companies by goals setting theory, it can be said that, as per the performance review of Aspect capital, Bacardi & Martinin UK, Data connection and Flight Centre organisations. All these companies need to setting goals in a great way to encourage achievement and stay motivated. However, goals of these companies might be different from each other but they have to clarity of their goals which can be understandable by each employees of these firm (Kehoe and Wright, 2013). So they can pay attention to focusing upon performance management of all above mentioned companies in perfect form. Moreover, the set up goals of the company should be in the form of challenging way which can overcome difficulties level of the organisations in order to motivating workforces of company. In another side, task complexity of its various functionalities is negative part of this theory, several times, it has seen that, most of the employees of these firm not capable to completion of crucial tasks in given timelines. A goal is really tough to make sure that, its professionals are giving much time to improving performance and HR professionals of the company need to make sure that, they hire top candidates exclusively at the entry level, which has potential to improvement in performance level of the firm.

P 3.2 Process of performance management

Performance management is a collective approaches of understanding which defines that, individual making contribution to accomplishment of an organisation's goals in respective manner. Performance management is one of the critical task for Aspect capital, Bacardi & Martinin UK, Data connection and Flight Centre organisations that underpins performance management, process of performance management, employees skills and training needs and that crucial role of the line manager and HR in enabling and managing high performance and productivity (Grumanand Saks, 2011). So there are numbers of issues which is being used in such areas where something new activities can be applied in such areas where execution of the business can be improved in perfect form.

Planning: Planing can be one of the effective methodology for Aspect capital, Bacardi & Martinin UK, Data connection and Flight Centre organisations in respect to betterment of their performance in their specific industries. The Line manager and human resource department of these companies require conducting regular training and development program to encouraging its employees to performing their each difficult task in easy way (Bach, 2013). So proper planning should be there as per their predetermined goals and objectives of the firm, so they will be able to execution of their organisational task as per planning. Its HR professionals also need to offering attractive rewards and pay scales to its employees which can encourage them to making significant betterment within their corporation performance in relevant form.

Coaching: Coaching could be one of the effective way in which Aspect Capital is using nine key attributes to shape the culture of the businesses and teamwork. Beside from it, Bacardi & Martinin UK is implementing the strategy of appropriate training and recruitment to increasing the match between potential and existing employees and the needs of value based organisation (Van Dooren, Bouckaert and Halligan, 2015). Apart from it, Data connection and Flight Centre companies are using recruitment and conduct respective personal development plans of each employees in order to completion of various tasks of the business functionalities in better way. So it can be said that, these companies can organise crucial couching program to learning new approaches of doing things in business. So its employees will be able to capable in order to completion of various tasks of the business.

Feedback: In order to high performance involvement of these business, all above these companies need to make sure that, its employees are working in the industry according to preplanned of action. Receiving appropriate feedback from the employees can enable business' professionals to building an environment within the firm, where they can display their high performance volume in effective way (Jeffers and Reinders, 2013). Feedbacks from the employees can help to generate critical ideas about the firm by which they can make improvement in the performance of the business at great manner. They have to maintain quality circles for improvement and innovation within their products and services as per modern demand and changes in their specific industries. So line manager and HR professionals of these firms can get feedbacks from its employees in order to implementation of necessary changes in organisation structure to betterment of high performance scale of the firm.

P3.3 Employee skills and Training needs

Skills of employees are very important elements or factors that influence performance of an individual as well as entire business. These skills are responsible for the accomplishment of individual or organisational goals and objectives. It might be possible that an employee has effective knowledge or skills to perform a task or role given to him. Organisations focus on recruiting highly skilled employees so that they can improve business performance or profitability. Furthermore, these skills are needed to be developed so that it can provide more effective outcomes. In order to develop employee skills organisations uses different types of training methods which can support them to create a highly skilled and effective staff to improve performance of the company. Different organisations adopt diverse ways of training employees as described below -

Aspect Capital

The Aspect capital is financial service provider organisation. It has around 69 employees. The company is popular for providing high levels and consistent returns on investment to the customers through quantitative investment methods. In order to develop the skills and performance of their employees the organisation focus on developing a culture plan for them which helps them to work in a team. The human resource management in Aspect capital develop effective all round training program in order to provide overall development opportunities to the employees. There are various rewards and commitment tools used to motivate employees such as Quarterly individual bonus

Bacardi & Martini UK

The Bacardi and Martini UK is a well known drinks manufacturing organisation with an annual turnover of £400m. The organisation have more than 550 employees that support the business to perform in a profitable manner. The organisation is popular for being a leader and inventor of ready to drink market. In order to maintain the leading position in market Bacardi focus on behaviour code known as PACT – Productivity, Accountability, Creativity and Teamwork. It also uses Agile team in order to bring innovation. Other tools used to develop effective skills among employees are Employee engagement survey and Moral indicators. The organisation offers various family-friendly policies and benefits in order to motivate employees.

Data Connection

Data connection is an organisation providing software support services to the customers. It has an effective workforce of around 290 employees. It has a good brand value in the industry by acquiring contract from some successful and biggest clients all around the world. The organisation focus on recruiting the best talent from globally with an objective of quality delivery. The organisation utilises internal employee survey in order to analyse and measure employee's skills as well as performance. It also uses tools such as Quality circles for innovation and improvement. The HR management in organisation also focus on recruiting top candidates at the entry level and provide them opportunity for life long development. The organisation offers significant entry salaries and profit sharing through employee trust(Detsimas and et.al, 2016).

Flight Centre

Flight centre is a well known travel agency in UK having more than 550 employees and turnover of £19.4m annually. It is one of the fastest growing travel agencies in the world with around 1000 locations. It focuses to bring coherence to a global team through the practice of “One Best Way” and a variety of communication devices – some traditional and some innovative. Organisation uses the “One Best Way” system to enhance staff mobility globally and deliver customer satisfaction, incentive employee performance through ownership, self-managed teams, transparency and ‘no-cap’ performance based reward. Flight centre use a flat hierarchy to encourage ‘unity’ and the emergence of leaders and leadership. It also adopts training and development, including the use of a learning centre, are fundamental in providing new skills and leadership; • Use of many company benefits such as Money Wise and Health Wise, to support the well-being of staff

P3.4 Crucial role of line managers and HR in enabling and managing High Performance and Productivity.

Aspect Capital

A significant proportion of Aspect Capital’s bonus system takes into account an employee’s rating on the following nine attributes: • Teamwork • Initiative • People Management • Project Management • Attitude • Attention to Detail • Professionalism • Communication • Productivity

Bacardi & Martini UK

PACT is not just concerned with what people do, but also how people do it. Hence, Bacardi-Martini has also introduced the ‘behaviour code’, which establishes the expected social behaviour to underpin performance: • Focus on the situation, issue or behaviour, not on the person • Maintain the self-confidence and self-esteem of others • Maintain constructive relationships • Take initiative to make things better(Certo and et.al, 2018).

Data Connection

Each manager makes an assessment of the staff for whom they are responsible, which then builds up into the unit’s contribution which, in turn, builds up into a company list. In the final analysis, Data Connection has an overall list where every member of staff is ranked and the profit share is allocated based on that ranking.

Flight Centre

The “One Best Way” approach has an added benefit for staff mobility, both in geographical and developmental terms. While there are many units throughout the world, staff can move from one branch to another, or set up their own branch, knowing that the basic operating systems will be the same

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Conclusion

The above report concluded that a High-performance work system is a set of management practices that attempt to create an environment within an organization where the employee has greater involvement and responsibility. The report also included an understanding of the performance management conceptual framework. Various Goal setting theories are also described in this report along with the employee skills and training needs.

REFERENCES

  • Sikora, D.M., Ferris, G.R. and Van Iddekinge, C.H., 2015. Line manager implementation perceptions as a mediator of relations between high-performance work practices and employee outcomes. Journal of Applied Psychology, 100(6), p.1908.
  • Hoque, K., Bacon, N. and Jones, M., 2018. Are high‐performance work practices (HPWPs) enabling or disabling? Exploring the relationship between selected HPWPs and work‐related disability disadvantages. Human Resource Management, 57(2), pp.499-513.
  • Mazzei, M.J., Flynn, C.B. and Haynie, J.J., 2016. Moving beyond initial success: Promoting innovation in small businesses through high-performance work practices. Business Horizons, 59(1), pp.51-60.
  • Jeong, I. and Shin, S.J., 2017. High-Performance Work Practices and Organizational Creativity During Organizational Change: A Collective Learning Perspective. Journal of Management, p.0149206316685156.
  • Topcic, M., Baum, M. and Kabst, R., 2016. Are high-performance work practices related to individually perceived stress? A job demands-resources perspective. The International Journal of Human Resource Management, 27(1), pp.45-66.

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