Performance Management in 'X' Manufacturing
prepare a presentation in which you summarise the guidelines in the document attached in a way that is interesting and informative for potential users. In other words, they should sell your key ideas and thus gain support for your guidelines. Your presentation should consist of between 4 and 6 power point slides
Performance Management in ‘X’ Manufacturing
Guidelines for Human Resource Management on the Floor
The modern day business world is globalised, more demanding and changing rapidly in response to technological advancements (Kazlauskaite and Buciuniene, 2008). Present day organisations therefore need to work hard to develop and maintain a competitive advantage relative to their competitors in their respective industries. Many conduct their operations while maintaining the understanding that their human capital (their human resources) are important assets (Liu et al, 2007) and a potential source of such a competitive advantage (Guthrie, 2001; Agarwala, 2003; Ahmad and Schroeder, 2003). Human resource management (HRM) is also an important contributor to organisational performance (Sun et al, 2007; Katou and Budhwar, 2009). As a result, organisations (including X Manufacturing) are increasingly adopting active HRM practices and processes to manage their employees.
This organisation will therefore be adopting a ‘high-performance’ or ‘high-commitment’ workplace culture. This means that it will adopt complementary bundles of HR practices which work together to improve overall organisational performance. HR practices of relevance here include ensuring employment security for our employees; selective hiring; teamwork; training and development as well as performance-related pay (Gould-Williams, 2003; Boxall and Macky, 2007).
Therefore, the organisation is providing these guidelines for line supervisors to give them guidance on how to manage their workers at all stages of their association with the firm: recruitment; selection; training; development and during their career progression through the organisation.
Recruitment and Selection
The recruitment process is more than business as usual but rather gives organisations the unique opportunity to develop a pool of potential employees that look attractive to the organisation. Similarly, these applicants are also attracted to the organisation (Terjesen et al, 2007). X manufacturing is therefore dedicated towards attracting a pool of potential employees and making their choices of employees that are most suited to the available openings (Behrends, 2007).
The following are the guidelines for managers’ actions during the process of recruitment and selection:
1) Establishing Recruitment Objectives and Strategy (Breaugh and Starke, 2000)
Setting Recruitment Objectives:
To establish the recruitment objectives, for each department, start the recruitment process with the following questions: What type of individuals do we need for the position? What specific knowledge, skills and abilities (KSAs) must the individual possess? How wide an applicant pool would be useful?
The answers to this question help determine the recruitment strategy. This strategy includes choices such as useful recruitment sources, ideal recruitment times and messages for potential applicants.
Developing a Recruitment Strategy:
Commonly used recruitment sources include newspaper advertisements; direct unsolicited applications; employee referrals, school/university recruitment and online recruitment (Breaugh and Starke, 2000; sParry and Tyson, 2008).
Line managers or supervisors might find the following useful in making their choices: the greater the level of expertise and/or knowledge required for a job, the more specialised/selective the potential sources of applicants. As an example, for positions requiring specialised knowledge, it might be more useful to recruit from university/college job fairs, university career offices or through professional bodies or offices. This is in contrast to web-based applications that might result in a very large pool of applicants who might not necessarily be qualified for the position (Parry and Tyson, 2008).
2) Selection Activities:
Traditionally, selection in the organisation has depended on structured interviews. However, with the current move towards a flatter organisational structure characterised by relatively semi-autonomous teams working towards pre-defined goals, the selection process is going to extend beyond identifying if the candidate possesses needed KSAs.
Therefore, selection of candidates occurs at the conclusion of a multi-stage process. First step in the staffing and selection process will be competency-based interviews, behavioural-based interviews based on competency models (Gangani et al, 2004). This is the first stage that helps to ensure that the candidates presenting for the second selection stage possess the competencies that ensure good performance in the specific job.
Next, the structured employment interview which will help assess the candidates social skills and personality traits, characteristics that are often very good predictors of capacity to work cooperatively as a member of a team (Gangani et al, 2004; Morgeson et al, 2005). Questions used for the interview should be developed from the job descriptions including work roles, required KSAs, work styles and other relevant traits that are linked to excellent performance. All candidates must be asked the same questions in an interview carried out by multiple interviewers.
Situational judgement tests will help you assess the candidate’s knowledge about team-working, good knowledge being typically associated with good contextual (cooperative team working) performance. Hypothetical cases and situations will help the assessors determine the candidate’s interpersonal, self-management and communication skills (Morgeson et al, 2005).
These three processes work together to enable the line managers/superintendent determine if a candidate possesses the overall capacity to fit into the vacant position
Training and Development
The global economy is characterised by increased competition and rapidly changing technologies, customer awareness and requirements (Katou and Budhwar, 2009). One of the means by which organisations such as X manufacturing can distinguish themselves is based on the knowledge, skills, attitudes, commitment and motivation of their employees (Walker et al, 2007). As a result, it is important that supervisors identify the KSAs that are necessary for excellence in their work teams, assessment and evaluation of employees to determine their levels of expertise can then be followed by the provision of training. In addition to increasing overall team effectiveness and efficiency and competitive business positioning employee training and development has been found to increase employee satisfaction and motivation, factors that contribute positively to their performance (Lee and Bruvold, 2003; Beaver and Hutchings, 2005; Aguinis and Kraiger, 2009).
The following are the guidelines for managers’ actions during the process of selecting employees and providing them with suitable training and development:
1) Training Needs Assessment (Smith-Jentsch et al, 2001; Brown, 2002)
Factors Pointing to Training or Development Needs of Employees
The search for a suitable training programme will begin with a needs assessment, which will identify what specific needs different your employees have. The following are possible factors:
Developing Employee Skills for an Existing Organisational Need
? New Employees
? Employee Reassignment
? Employee Promotion
? Post-employment Training Plans
? Problems with safety
? Poor Organisational/Work Team Performance
? Inefficiencies in the Production Process
? Persistent Inspection Failures
Changing Organisational Needs
? New Equipment or Modernisation of Equipment
? New Technology
? Changes in Laws and Regulations guiding the Industry
? Changes in Organisational Vision, Goals and Objectives
? As part of organisational career progression plans
? Employee Requests
Carry out a needs analysis at organisational; task and individual levels.
This identifies organisational training needs and the ideal conditions for carrying out such training. Consider the organisation’s strategic direction as this will help you determine KSAs that your employees might not currently possess but might need as their jobs evolve in the future. Increasing workforce diversity might need both a change in management style as well as increased training for new employees (as highlighted above). Changes in the laws and regulations of the host country might also affect the operating strategy of the company (Brown, 2002).
Identify work team tasks, work conditions and the expected work quality. Identify the required KSAs.
This examines individual employees, current performance, comparison of existing skills and competencies against the requirements revealed by the task analysis.
2) Training Design and Delivery
The nature of training that you choose will depend on the kind of skills and/or knowledge that the employees need to gain. Popular methods include technology-delivered instruction (TDI); class-based courses (Gilpin-Jackson and Bushe, 2006; Walker et al, 2007); interactive participatory workshops and on-the-job instructions. It is important to ensure that you choose the method that is best suited to the needed skills and capabilities.
It is important to decide which evaluation criteria will be used to determine the effectiveness of organisational training activities (Arthur et al, 2003). HRM practices in business organisations are not static, but rather evolve to deal with changes in the internal organisational and external business environment. This is therefore not a onetime process, but one that is conducted in response to changes in the external environment as well as to changes in organisational strategy and strategic direction. There are a number of different possible training and development evaluation frameworks, but X manufacturing will be making use of two major frameworks.
1) 360-Degree Feedback
360-Degree Feedback is also referred to as multisource feedback and involves collecting views and perceptions of an individual employee’s performance from a number of different sources. Such people typically have firsthand interactions with the employee in the work context (Bailey and Austin, 2006). The benefits of multiple assessments include the fact that it gives such employees the impression that the areas being measured are of value to the organisation and increases their willingness to improve performance. In addition, the discrepancies between self-perceptions and peers, superiors and subordinates perceptions increase self-awareness and ultimately individual performance. Furthermore, when this measure is used for appraisals, gaining information from a range of other sources (such as customers and suppliers) provides the managers unique perspectives that can be incorporated into future organisational strategies and practice (Morgeson et al, 2006).
To carry out 360-Degree feedback, use input from a range of stakeholders. This will include supervisors, colleagues/peers, subordinates, suppliers and customers (Pfau, 2002). Using all these different sources will allow for the development of a balanced assessment of the employee’s performance and an identification of potential areas for improvement.
2) Kirkpatrick’s Model of Evaluation
Use the reports as part of needs assessments to define future training and development needs for the employee. Training leads to reactions, which manifest as outcomes/learning. Such learning leads to changes in employee’s job behaviours, which ultimately lead to changes in organisational performance (Kirkpatrick and Kirkpatrick, 2010). These described levels are referred to as the Kirkpatrik’s four levels. While there are a number of newer models and approaches to the evaluation of organisational training, this model is the most popular and is still regularly used in many present-day organisations (Arthur et al, 2003). Therefore, this model will be second one used in the organisation.
This is demonstrated by employee levels of satisfaction with the training arrangements, trainers, methods and arrangements. Self-reported measures are used to determine this and as result, this will be tested by post-training questionnaires examining all these areas.
These are measures of training learning outcomes, important because in most cases, learning precedes behavioural change (Arthur et al, 2003). Trainee grasp of the ideas, skills and knowledge passed across during the training programme. This will be tested by questionnaires, tests and interviews conducted after the training programme.
This is demonstrated by changes in trainee behaviour and practice in the course of their work roles as observed by their direct supervisors, peers and/or customers.
Use financial, customer and other measures of organisational performance.
X manufacturing is an organisation seeking to improve its performance by adopting innovative HRM practices. Recruitment and selection will begin by the establishment of recruitment objectives and strategy; followed by the use of relevant selection activities. Training and development for selected and existing employees will follow a complete in-depth needs assessment including a needs analysis. The specific training programme will depend on the required skills and/or knowledge that the employees need to gain. Finally, evaluation by 360-degree feedback or the use of Kirkpatrick’s model will serve as the last part of what will become a routine cyclical organisational HR process.
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