School/ Department Name: School of business – Management Course Name: Human Resources in Organization

Course Code: 151HRB323

Instructor Name: Dr. Hussain Alhejji

Assessment 2 – Individual essay – Week 10

Due Date: Wednesday 24/May/2020

Due Time: Uploaded by 3:30pm in Turnitin

INSTRUCTIONS

• Please refer to the Assessment task and Guidelines on the following

DO NOT WRITE IN THE AREA BELOW:

Mark /40

Percentage  _/100

Feedback:  

Instructor’s signature:   Date: Student’s Signature:   Date:

TASK DETAILS:

Answer 5 questions only from the below 8 questions. Word limits for each answer should be around 500 words including reference.

1. What are the differences between financial and nonfinancial rewards? Discuss which rewards are the most influential for delivering higher levels of performance, and why?

Rewards are the tangible or intangible incentives issued to people to support and motivate them to do a given task. Financial rewards are the cash prizes that encourage people, especially the staff, to meet specific goals in an organization. For instance, in some organizations, high-performing employees are paid some additional cash to motivate them. On the other hand, nonfinancial rewards are the incentives given to people to help in satisfying their social, emotional, and psychological needs. They are also not measured in monetary terms. However, since money has been the most critical asset in life, most people prefer financial rewards in most organizations (Yousaf et al., 1781). This is because money has the highest purchasing power. The most commonly issued monetary awards include salary, allowances, bonuses, and retirement benefits. For this reason, financial rewards have been the most influential rewards that have been used to promote high-performance levels in an organization.

The salary is the most common financial reward used in various organizations. Most people work to earn a living in any organization. When the employers or particular organization are paid on time and are given some allowances, they are likely to work effectively (Pritchard et al., 9). This is because the payments they always receive from the work are likely to influence them to wok more so that they can make more capital to hence satisfying their daily needs. Besides, the employees’ salaries and allowances are increased over time. The more the increment in the income, the more they are likely to be encouraged to be much committed in their work. Since the increment is based on the employee’s performance, the employees tend to work more and more. With this, the productivity of each employer is expected to rise hence increasing the production of the organization as a whole. The bonus is also a reward offered to an employee in addition to his salary or income as an appreciation for the excellent performance at work. The wage incentives used are also essential to increase the productivity of a specific group or an individual. Various organizations set limits for given outputs and reward the employees who can reach the particular limits set. This initiative is crucial in delivering high-performance levels in an organization since most employees may be making much effort to reach the limits so that they can be rewarded.

Moreover, profits are the financial rewards used to promote the performance of a particular organization or group (Pritchard et al., 9). Most organizations mainly work to gain profit from their activities. As every person requires money to satisfy the basic need, people work in any way to earn capital. Most organizations are committed to ensuring that their employees are satisfied to ensure that they work effectively. Job satisfaction is essential in motivating the employees to participate in various organizational activities, thus increasing the organization’s production. This leads to an increase in profits within organizations. The more the benefits, the more the employers are likely to give their best employees and support, thus delivering high levels of performance in an organization.

Work Cited

Pritchard, Robert D., Kathleen M. Campbell, and Donald J. Campbell. “Effects of extrinsic financial rewards on intrinsic motivation.” Journal of Applied Psychology 62.1 (1977): 9.

Yousaf, Saira, et al. “Impact of financial and non-financial rewards on employee motivation.” Middle-East journal of scientific research 21.10 (2014): 1776-86.

2. Identify and discuss the key reasons why performance management can fail to deliver for both individual and organization.

It is crucial to understand the concept of performance management before looking in-depth as to why it fails. In this case, performance management is a concept referring to a continuous process of information sharing between a manager and a member of staff. Unlike the other methods, performance management is carried out during project implementation (DeNisi, and Murphy 2017, p.421). Performance management puts the focus on providing support for the achievement of both the organizational goals and objectives. Performance management majorly relies on communication systems in exercising its duty through the presentation of clear expectations from each employee, identification of project goals and objectives, provision of feedback, and finally, the review of results from an activity (DeNisi, and Murphy 2017, p.421). The process of performance management is a very crucial system in an organization, and it is carried out by the human resource manager in an institution. However, there are common mistakes made in the course of planning and implementing a performance management system that can lead to failure. Therefore organizations’ planning to improve the system as well those wishing to adopt it for the first time should avoid the factors discussed below since they are attributed as the causes of failure in the system.

Poor structuring of the performance management system is the critical cause of failure of the efforts. Sometimes people plan and perceive it as a one-time event; therefore, little emphasis is placed on developing sustainable structures (Ahmed et al. 2016, p.7). The process occurs recurrently, therefore, well-made performance management. If well-designed, the performance management process is in a position to facilitate the achievement of its goals, which is to create improvement in the organization’s general employees’ performance. With a well-planned performance management system, the members of staff are in a position to gain a better understanding of the organizational strategies and put more effort towards achieving the goals and with a higher level of motivation.

Secondly, poorly set goals as well contribute to the failure of performance management. In these cases, performance management does not put into consideration individual employee goals and only focuses on those optimizing employee performances (Ahmed et al. 2016, p.7). The employees’ goals mainly act as their source of motivation, and therefore they drive them to perform better in the assigned task.

The poor communication system of what the managers expect from employees is also attributed to a failure in performance management. It is crucial to have the managers inform the staff members of the impact of their performance on organizational and personal goals. Employers should encourage employees to engage in a continuous learning process as it impacts performance management (Ahmed et al. 2016, p.8). In addition to this, the necessary resources required for employees to improve their skills and knowledge should be availed as well.

Performance management failure is as well attributed to biases that develop as a result of putting excess emphasis, especially on one single recent occurrence. Commonly, this is the mistake made by most managers. Recency bias is termed as a risk bias and which can destroy or enhance the success of a performance review. Recency bias should, therefore, be avoided as it can cause complete performance management system failure (Ahmed et al. 2016, p.9).

Focusing on a yearly evaluation of performance is attributed to be another cause of failure of performance management (Ahmed et al. 2016, p.8).  The organization’s overall productivity is always a threat under annual evaluation since managers are only in a position to give correction in the form of feedback only once a year.

Lastly, performance management fails in an organization that does not motivate employees either through recognition or even giving of awards. Recognition and awards act as a source of inspiration to perform better; therefore, productivity increases. It is crucial to have employees work appreciated.

Work Cited

Ahmed, T.M., Bezemer, C.P., Chen, T.H., Hassan, A.E. and Shang, W., 2016, May. Studying the effectiveness of application performance management (APM) tools for detecting performance regressions for web applications: an experience report. In 2016 IEEE/ACM 13th Working Conference on Mining Software Repositories (MSR) (pp. 1-12). IEEE.

DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management: 100 years of progress?. Journal of Applied Psychology, 102(3), p.421.

3. Discuss why the organization should provide opportunities for employees’ advancement and growth at both individual and organizational levels?

Human resource is the most valuable asset owned by each company. Rapid and sustainable business growth is realized when a company invests in the talents of its employees. Corporations are always majorly focused on hiring members of staff with the most suitable qualities to take the assigned roles, but they care about staff welfare seems to stop there. It’s, however, essential for companies to provide opportunities for employees’ advancement and growth at both individual and organizational levels (Kohli and Sharma, 2017). Employee development results in to increase in profit margins, and several sales through many organizations avoid it basing their argument on its costly nature. With well-dedicated training and development, employee engagement is fostered and translates into better financial performance in the organization. Employee development translates later into the overall growth of the business.

Opportunities for employees’ advancement and growth at both individual and organizational levels enable employers to reap from both employee job satisfaction and commitment (Kohli and Sharma, 2017). Negative feelings that majorly arise in case employees are idle are done way with such opportunities that require an employee to extra task apart from the only job-related ones. With such opportunities being provided, individuals are always willing to make any form of sacrifice for the betterment of the organization. The result is increased in productivity as people work with lots of enthusiasm and are propelled by intrinsic motivation.    Work efficiency also increases, saving the organization some of the resources. For cases of company’s dealing with sales, customer satisfaction also increases as empowered become experts in their field.

It is providing opportunities for employee professional development to increase the rate of employee retention. Statistics indicate that 94 percent of workers would provide services to an organization for long periods if it provided them with an opportunity to develop their careers. Replacing a talented member of staff is more expensive and challenging the making effort to retain those that an organization currently owns. Replacement of an employee estimates that it can cost an organization 150% of the employee’s annual salary, and sometimes even more. Failure to engage employees in the United States of America’s economy, turn over cost stands at $30.5 billion annually (Kohli and Sharma, 2017). Such cost poses a significant threat to the organization’s internal financial state and can, however, be avoided with little effort.

Employee’s advancement and growth bring out the capacity of employees as future leaders. Leadership skills are not only helpful to the employee but the company at large. Individuals with leadership talents in the future can get an appointment as the company managers. Leadership talents are essential to invest and manifest themselves in the course of duty. Empowered managers are always in a better position and effective in convincing other members of staff as well as winning their trust. Ultimately, the employees develop a sense of independence, worth, and finally become confident in performing the assigned duty. There exist considerable gaps in performance rating between empowered and underpowered employees. Empowered staff is rated high, while the underpowered ones are rated low.

Work Cited

Kohli, A. and Sharma, A., 2017. AN ANALYSIS OF EMPLOYEE EMPOWERMENT AND JOB SATISFACTION: A REVIEW. Management Dynamics, 17(1).

4. Compare and contrast diversity management and social justice perspectives of diversity? Which perspective do you agree with and explain why?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
5. Why the discussion of employment relation is always a complex? You may refer to the theoretical   framework discussed in the lecture.________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
6. Explain how HRM can contribute to improved organizational performance? In your answer, please consider the influence of HRM at the individual level and organizational level.

HRM department in an institution is crucial. The department is involved in hiring, allocating responsibilities, coordination of service delivery, and employee motivation. The decisions the department makes are therefore vital in as far as service delivery, and consequently, the employee’s performance is concerned. Such choices may either improve or deteriorate the performance of both the institution and individual employees.

At the institutional level, labor costs continue to be seen as one of the expenses that need to be minimized for an institution to gain efficiency. In this regard, the HRM must decide between either maintaining the current labor force or reduce it. The big question is whether such a reduction is geared towards cutting costs or they too create value. HRM is responsible for developing a sustained competitive advantage that will generate value (Becker and Gerhart). HR is also responsible for coming up with policies at an institution-level that are beneficial and enhance the overall outcomes of the company. The department is also responsible for making decisions on the type of activities to be implemented in an organization by line managers; well-crafted activities are beneficial. They will enhance the general productivity of the institution or a company.

Additionally, an HRM department focused on producing quality products and services will eventually enhance an institution’s overall productivity. Therefore, an innovative HRM that embraces soft models of HRM to improve quality through effective leadership (UK Essays). The productivity of an organization can also be affected by the quality, skills, and knowledge of employees employed by the HRM. HRM is also responsible for aligning the behaviors of specific employees to align with the company’s overall goals. An HRM department that is oblivious of how employees behave may lead to poor performance or productivity of particular individuals whose total effect is reduced or lower overall productivity of an institution (Jiang et al.)

On the individual level, HRM has the mandate and moral responsibility of influencing employees’ skills. This can be through occasional training and development forums. Additionally, HRM has the responsibility of motivating individual employees, which may be through rewarding good performers, better remuneration packages, and organizing bonding activities.

Work cited

Becker, Brian, and Barry Gerhart. “The Impact of Human Resource Management on Organizational Performance: Progress And.” Source: The Academy of Management Journal, vol. 39, no. 4, 1996, https://about.jstor.org/terms.

Jiang, Kaifeng, et al. “How Does Human Resource Management Influence Organizational Outcome? A Meta-Analytic Investigation of Mediating Mechanisms.” The Academy of Management of Journal, vol. 55, no. 8, 2012, pp. 1264–94, doi:10.2307/23414255.

UK Essays. HRM Influence on Organisational Performance. Nov. 2018, https://ukdiss.com/litreview/human-resources-management-practices-will-influence-of-organization-business.php.

7. What are some advantages and disadvantages associated with using expatriate managers instead of host-country nationals?

________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8. Discuss how HRM can contribute to the organisation’s wide objective of Corporate Social Responsibility

As an organization all over the world get worried about the sustainability of Corporate social responsibility, HR plays a very significant role in ensuring its sustainability. HR plays an important role in ensuring that an organization adopts Corporate social responsibility programs. The HR has a mandate of formulating environmental and social goals that balance with the financial performance of an organization (Cohen, S.; Taylor, S.; Muller-Camen). For example, HR has the responsibility of promoting and encouraging the use of environmentally friendly chemicals in their process of production or adopt activities that reduce the carbon footprint of the company. They also can assist in identifying recyclable and promote the recycling of products. The HR can also design a system that reflects equity, development, and wellbeing thus promoting sustainability internally and to the external community.

HR has the mandate to ensure the incorporation of CSR into HRM strategy to develop a competitive advantage. This is for the organization to foster a CSR culture. HR plays a significant role in encouraging the employees to be environmentally conscious and thus induce employees’ commitment to such programs. HR needs to take the front seat in managing and implementing CSR. To ensure that the CSR programs implemented are producing fruits, the HR department also has the responsibility of monitoring the plans, document, and report the success of these programs. HR also will be required to act creatively and innovatively to ensure that their work resonates well with the public for the program to work as a marketing strategy too effectively. HR pieces of training of its employees on the link between the organization’s work and the society at large plays I more significant role in infusing employees to ensure a sustained CSR.

Their efficiency in establishing workable strategies that allow the organization to meets the requirement of CSR is dependent on HR’s creativity. CSR is a particular activity, and HR has the responsibility of implementing policies that allow for occasional CSR activities. The HR can implement rewarding programs to the community and creating awareness of their product through the distribution of newsletters and also rewarding individual effort within the company to enhance community relations (Lokhandwala). The HR can use CSR to celebrate successes and share CSR’s importance to its employees and the community at large (Lokhandwala).

Work cited

Cohen, S.; Taylor, S.; Muller-Camen, M. SHRM Foundation’s Effective Practice Guidelines Series HRM’s Role in Corporate Social and Environmental Sustainability Produced in Partnership with the World Federation of People Management Associations (WFPMA) and the North American Human Resource Manage. 2012, www.shrmfoundation.org.

Lokhandwala, Shafiq. The HR Role: Promoting Corporate Social Responsibility. Nov. 2019,    https://www.thebalancecareers.com/the-hr-role-in-promoting-corporate-social-responsibility-1917743.

Marking Guide:

Student and Assessor sign here to acknowledge the assessment result and any further noted actions to be taken.