Introduction
The success of a firm’s productivity depends on the organization of the human resource management. Reflectively, labour as a factor of production, determines the gross output, performance, and goal achievement at optimal resource use.
The Company ‘Cockpit for you’ has been struggling with human resource management problems that range from competition, labour structure, and financial constraints. Budget constraints for ‘Cockpit for you’ are represented by a production possibility frontier curve which is dangerously skewed towards deficits in productivity.
The curve shows the limitation of available factors of production, especially on optimal labour use and employee motivation. Thus, this reflective treatise attempts to explicitly analyse thematic areas that have negative influence on the company’s labour use and display them as part of a mind mapping plan.
Besides, the paper presents a comprehensive theoretical backup for one of the identified thematic area as part of a remedial case study. In addition, the paper develops a personnel evaluation system using a project management plan that targets to restore human resource efficiency.
Mind Mapping of Challenges at ‘Cockpit for you’ Company
Current budget of the ‘Cockpit for you’ firm may not allow it to utilize all factors of production in the economy. Therefore, there is always need to maximize use of obtainable resources. ‘Cockpit for you’ Company faces several limitations in its operations after the sudden restructuring.
First, the uncertain working conditions greatly impacted on employees’ confidence and performance patterns. As employees’ incomes remain unstable, and relatively low, it was natural to witness an underperformance and low morale at work. The trading conditions continued to remain a challenge especially for this company. These adversely influenced the ability of ‘Cockpit for you’ to achieve the forecasted sales and consequently, the overall budget was affected.
Increase in prices of factors of production directly affects budgeted cost of production, and thus low income earned by employees. In addition, inability of the company to leverage its systems and processes hindered the growth of its business as it reduced ability of the company to attract the right labour skills and attitude.
Finally, the company faces operational risks in areas such as supply chain management, communication systems, and human resource management. Given that the company has to operate within a predetermined budget, changes in the individual component of the budget affect the operations of the entire business.
Evaluation of strategic threats and opportunities is important for an organization as feedback from such appraisal is vital for execution of strategic plans and decision making. ‘Cockpit for you’ is exposed to numerous threats. For instance, following the acquisition logistics and restructuring, the company has to remain afloat despite competition. Secondly, the human resource department is fairly responsive to sudden swings and also very sensitive to changes in income.
Since the change of ownership, the company has suffered heavily, as communication system for implementing these changes seemed to have broken down. Due to redundancy, lack of performance evaluation processes, employee testing, and healthy work culture, the company is currently facing uncertainty and is at the brink of total labour force redundancy.
These systems are critical in improving leadership skills, evaluation skills, promoting creativity, and rewarding outstanding achievement. The company is surrounded by several opportunities for growth of business. However, the human resource department is seriously underdeveloped despite the fact that labour determines total output, thus profitability.
‘Cockpit for you’ Company has done little to have a pipeline of talent to work towards achieving long-term objectives. Reflectively, the company has not organized several tailored training and development schemes designed to help its people fulfill their potential. According to Burke & Cooper (2008), training and development programs are both on-the-job and off-the job. These should be built around the core business values and is firmly aligned with the business strategy – developing skills that will support future growth of the business.
The programme is designed for senior managers and is aimed at building leadership skills for follow up of changes within the workforce (Burke & Cooper, 2008, p. 129). Unfortunately, this is not happening at this company. The results of the programme meant for statistical t-testing of relevance of evaluation strategies adopted in reviewing employment terms and performance (Kew & Stedwick, 2005, p. 99).
Despite the fact that this company has a fresh initiative for correcting the previous mistakes, it has not adopted an inclusive career development plan. Instead, it works on assumptions that the labour force is fully developed and well trained. The major restructuring that occurred in the company impacted on the training and development programme negatively since the human resource management system lacked the aspect of innovation, skills, and motivation evaluation.
Case Study: Career Development through Training and Performance Appraisal
Training and development forms part of organizational strategy mostly because companies have been characterized by numerous expansions both without and within the region. Consequently, there is a need to merge organizational skills, knowledge and culture with the new challenges and demands facing ‘Cockpit for you’ Company.
The company needs to use training and development largely because it is operating in a highly competitive sector. Consequently, there is a need to ensure that the company remains ahead of the competition. Management ought to realize that there is no better way to achieve this rather than through the use of training and development. Further, ‘Cockpit for you’ Company should evaluate effectiveness of training and development in realizing the goals and objectives of their set targets.
Finally management of the company should use outcomes of trainings and development in decision making relating promotions and transfers within the organization (Wilson, 2006, p. 101). Besides, the company should undertake several career development programmes, such would be necessary for attracting and retaining human resource base.
The company should consider providing a job compensation structure that supports the organizations as well as individuals’ growth and development perspectives (Robinson, 2006, p. 119). Moreover, company should also evaluate employees and produce succession pipe-lines for vital job positions in the organization.
At the end of every six months, performance reviews should be carried out at ‘Cockpit for you’ for all the employees. During these reviews, employees engage their line mangers in discussing their performances for six months. The employees are then rated based on the proficiencies and competencies they have shown during the period ended (Legge, 2005, p. 136).
Staff members are then given ratings for the skills and competencies they have shown over the past period. A comparison is then done between the ratings and the expected results as agreed upon at the beginning of the year and also with expected skills profiles for these areas. Such appraisals are important as they help employees to establish their performance in relation to the expectations from the business and expected outcomes as agreed during performance planning (Legge, 2005, p. 216).
Further, the appraisals reveal gaps that may be inherent when executing duties. At the end of appraisal procedure the line manager and the staff member formulate a plan for further development for the next period. In the personal development plan, the employees set objectives based on the feedback from their performance appraisal and it is mandatory for all staff members to have such a plan. The whole interactive appraisal process is beneficial as it aids employees in developing a focused vocation trail.
Further, the process is realistic. The gaps noted during the review process are bridged by training and development (Mullins, 2006, p. 132). These trainings also help in preparing the staff members for future managerial duties. The performance review process helps management of the Group to have a well-organized, effectual and motivated human resource base (Mullins, 2006, p. 137).
The appraisal procedure is all encompassing and it reflects the actual performance by the staff members for the reason that it involves both the line managers and the staff members (Hughes, 2006, p. 98). Also there is comparison of the actual and expected performance and any variances are noted and actions inform of trainings, development and disciplinary measures are taken to improve on future performance.
The performance management at ‘Cockpit for you’ Company is unsatisfactory because overall strategic goals are not cascaded down to departments and further to the individual staff members. Therefore, work done by each employee may not contribute to the overall strategic goal. Further, performance of the staff members is not cascaded upwards and the actual performance of the company cannot be compared with the forecasts (Houldsworth, & Jirasinghe, 2006, P. 106).
Personnel Evaluation System
Training and development forms part of organizational strategy mostly because human resource department is characterized by constant dynamics in management since labor market is constantly affected by market swings. Consequently, there is a need to merge organizational skills, knowledge and culture with the new challenges and demands.
Therefore, there is constant need to use training and development largely because the department operates in a highly stratified environment (Blyton & Turnbull, 2006, p. 118). The outcomes of performance appraisal are not only influenced by job performance of the employee, there are other several other factors that may influence performance appraisal rating of the employees.
The diagram above illustrates the process of employee evaluation. The motivational activities are predetermined by the management.
Summary of Personnel Evaluation System
In empowering employees to participate more in the decision making process, the organization should source for expertise training on consultative decision making process. This expert will impart skills directly to the management and entire workforce. In the process of implementing this recommendation, training manager should be assigned the duty of organizing the workforce into groups and following up the success or failure of the training (Beardwell & Claydon, 2007, p. 306).
During the training process, simple activities such as solving puzzles and brainstorming in different topics are encouraged. In addition, every member of the workforce is expected to participate actively by assigning roles which are balloted. The implementation should be done in three phases with the first phase actively involving an outsourced expert in the field of decision making (Cole, 2006, p. 107). After a fortnight, the management should then design in-house programs as a continuation of the first stage.
In the last stage, the entire workforce is encouraged to internalize the concept initially introduced and deactivate fear and inferiority complex when addressing issues of interest to the organization and at personal level (Armstrong, 2006, p. 93). Though this process should be continuous, the active part should not run for more than four months from commencement at a budget less than four percent of the company’s net revenue (Gmur & Thommen, 2011, p. 380).
Reflectively, a “planned change approach is required with the initiation and implementation of change being driven by management with the aid of a practioner” (Greene & Kirton, 2005, p. 102). Magnitude of change is quantum as large changes involving culture, structure and strategy of the company is required. In reality, “transformational change is a relatively new count to organizational change” (Greene & Kirton, 2005, p. 109).
This form of change is necessary and very relevant in the case of ‘Cockpit for you’ Company as the company attempts to restructure its human resource component. Besides, when adopted, leadership responsibility, performance efficiency, and continuous motivational policies will facilitate responsive management.
Expected outcome of the Action Plan
Action Plan Tabular representation
Results
Conclusively, these recommendations would directly impact on the feedback channel as employees will have motivational power to proactively participate in decision making process. As a result, the learning oriented process will facilitate optimal performance which is specific to the goals and desires of the company as the workforce would have the feeling of being appreciated and recognized for outstanding performance.
Reference List
Armstrong, M 2006, Strategic HRM: a guide to action, 23rd edn, Kogan Page, London.
Beardwell, L & Claydon, T 2007, HRM: a contemporary perspective, 5th edn, FT/Prentice Hall, London.
Blyton, P & Turnbull, P, 2006, The Dynamics of Employee Relations, 5th edn, Palgrave, California.
Burke, L & Cooper, T 2008, Building more effective organisations: HR management and performance in practice, Palgrave, California.
Cole, G 2006, Personnel & HRM, 5th edn,Continuum, London.
Gmur, M & Thommen, J 2011, Human Resource Management, Strategien und Instrumente für Führungskräfte und das Personal management, Versus, Vancouver.
Greene, M & Kirton, G, 2005, The Dynamics of Managing Diversity, 2nd edn, Elsevier, Alabama
Houldsworth, E & Jirasinghe, D, 2006, Managing & Measuring Employee Performance, Kogan Page, London
Hughes, M 2006, Change Management, CIPD, London
Kew, J & Stedwick, J 2005, Business Environment: Managing in a Strategic Context, CIPD, London
Legge, K 2005, HRM: Rhetorics & Realities, Palgrave, London.
Mullins, J 2006, Management & Organisational Behaviour, Financial Times/Prentice Hall, London
Robinson, I 2006, HRM in Organisations, CIPD, London
Wilson, J P 2006, Human resource Development, 2nd edn, Kogan Page, London.