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HRM Functions and Practices

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HR department has a critical role in performance management which is all about setting the performance standards, checking the progress and ensuring a strong succession plans is built for the organization. Performance management therefore provides the structured and feedback to managers in a normal way. The role of HR in performance management is to ensure development of the consistent and painless performance management system within the organization (Lewthwaite, 2006). HR is consist of several processes which some of them include; compensation and benefits, training and development, and talent management. Therefore, the performance management has to be connected with the mentioned HR processes.

The role of HR in performance management is also to make the process clear, transparent and consistent across the organization. HR has to ensure that the performance management process is easy as possible, and they have to concentrate their attention in collecting the most important information. More importantly, performance management has to show some consistency with the business strategy, and in order to achieve this, employees need to be provided with the right tools such as competency measurement tools. Managers should assist employees understand how they can develop skills and talents. The key to achieve consistency in performance management and organization’s strategic plan is to identify the right staff members and make them participate in talent management initiatives, not by objective data but by subjective data.

There are three different types of performance appraisals which are trait appraisal, behavioral, and result based. To begin with the trait appraisal, performance can be improved using trait, and trait refers to characteristics possessed by an individual such as attitude, appearance, loyalty, adaptability and judgment. The main problem with this strategy is the fact that it is subjective in nature, a good example is where a company expects its sale representatives to be well groomed and dressed in a professional way, therefore in this case dress code have some level of objectivity. The second system is behavioral appraisal system which is more of actions rather than characteristics as traits. To be effective in performance, the behaviors have to relate to the type of performance being appraised. For example, a company may employ those behaviors which displays team building and corporate when developing team building appraisals. Finally, we have result-based performance appraisal system; this system tend to seek and measure employee performance by examining the level to which the organization’s objective have been met (Poister, 2015).

A.P Moller-Maersk Group was founded as a shipping company back in 1904 by Arnold Peter and his father. From the case study is very clear that Maersk has been faced with serious HRM issues such as poor employees’ turnover, strategy for training employees, hiring experienced individuals outside the company, and finally re-hiring former Maersk employees. Among the mentioned performance appraisal system, trait appraisal is more effective in appraising Maersk customer services. Why say so? Taking a close look at some of the problems faced by Maersk Company HR department, they are more trait related such as talent possessed by employees. Therefore, using trait system can appraise employees’ performance based on aggressiveness, personality, and reliability. Maersk Company can adopt the use of trait appraisal system, and through this they can create a positive working environment that boost employees’ emotions. By observing these, the Company can end up with a group of employees who align their performance efforts to the Company’s vision of positive workplace resulting in a loyal and cohesive workforce.

Rating scales utilized in performance management systems basically indicates the level of employees’ performance or achievement. Performance rating scales includes numeric, letters and graphical scales. To begin with, in numeric performance rating scale, employees are rated on numeric scale such as 1 to 5 or 1 to 10, and by employing the use of numbers, employees can track performance using a scale that is a beat easy to understand for the employees and managers included (Poister, 2015). This type of scale is always accompanied by a rating document that tend to explain why a specific rating is given. The second rating scale employs the use of letters, and sometimes is referred to as alphabetic. It entails the use of letters as indicators of achievement. For instance, managers can come up with a rating system in which traditional alphabetic values are located to every letter. A good example is where A and C are used, where A represents an excellent performance while C represents satisfactory performance. Finally we have graphical rating scale, and this type of scale often features a Likert scale from 1-3, 1-5 as it continues. An example of 1-3 graphical scale response could be; 1: poor 2: average, and 3: Excellent. Graphical rating scale doesn’t always provide details by what it means by either rating someone with a 1 or a 3 leaving a gap for confusion.

References

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Lewthwaite, J. (2006). Managing people for the first time: Gaining commitment and improving performance. London: Thorogood.

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Poister, T. H., Hall, J. L., & Aristigueta, M. P. (2015). Managing and measuring performance in public and nonprofit organizations: An integrated approach.

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