Performance management is a system that measures employees’ performance, ensures that they are on the right track and creates the link between performance and rewards. Level of trust is related to impartial performance management system, which relates to job satisfaction, long-term commitment to produce long-term productivity. Performance reviews includes the evaluation of past performances, the potential for promotion, identifying talents and their needs.
The reviews frequency, review guidelines such as behavior-focused, outcome-focused and source of reviews are factors to take into account before developing and implementing a performance review system. In order to allow acceptance of performance reviews, organizations should disclose the guidelines, process of evaluation and allow employees participation in evaluating colleagues whom they work closely with. Employee-participation gives employees’ opportunities to express their views, indirectly building trusts in workplace (Vanhala & Ahteela 2011).
Trainings can also be provided to mangers on skills to writing constructive and unbiased performance reviews. After the evaluation from all sources, face-to-face interview could give manager the opportunity to analyze, discuss employees’ possible improvements and growth and the opportunity to listen to their work issues and needs. In the process, manager and employees can analyze the possible solutions to create outstanding performance. This open system motivates individuals to be aware of their progression towards individual and organization’s goals.
The final step for the review is score grading, which groups employees into different performance levels. Grading analysis allows organization to fit possible solutions and rewards for individuals and for progression tracking purposes. Reward Management Baby-boomers emphasize on promotion and higher salary, Gen-Xers prefers materialistic rewards (Kapoor & Solomon 2011) and Gen-Yers focus on work-life balances, recognition rather than salary (Goh 2012). Organizations must aim to develop a strategic reward system to accommodate the generation differences that covers their compensation and benefits.
With the current war for talent (Barth & Amin 2012), each organization has to put in effort in improving job satisfaction to long-term commitment and motivation. Policies, procedures and entitlement of rewards have to be impartial and appealing. Total rewards include financial and non-financial rewards like base pay, incentives, healthcare benefits, career progression and other indirect benefits. Firstly, competitive based-pay shows organization is crucial in attracting and retaining employees.
Regular monitoring of market rates through market surveys and job evaluations could help organization adjust the rewards accordingly for fairness. In my opinion, for long-term productivity, job-based and skills-based approach should not be a long-term approach as it only motivates employees to achieve higher positives or skills for better pay. Competency-based approach on the side, allows employees to progressively apply their competencies in work. The purpose of performance-related rewards is used to recognize and rewards contributors, it should not only be rewarded to top performers.
The types of incentives should vary according to generation differences in order to appeal to individuals and create motivational drive. Rewards will not be effective when it is not useful to employees. Therefore, organization could analyze feedbacks and issues reviewed from performance management process to tailor solutions for specific needs such as childcare benefits or other beneficial rewards. Family day is an example of how organizations address the demand of work-life balance, and allows bonding between employees and their family.
Starbucks part-timers get to enjoy the total rewards when their working hours hit the requirements (Rama Rao 2010). Flexible benefit practices create competitive advantage, at the same time increase work-life balance and employees’ productivity. To create better innovation work environment, organization has to identify unspoken needs and provide unexpected rewards. Workplace Safety Safety needs is the second important need in Maslow’s Hierarchy. Creating a safe workplace for employees is important in building trust. It is important to develop safety policies, procedures and programs.
Organizations often prepare its employees in evacuations through holding frequent fire drills. Effective safety practices help employees to know how to react in times of danger. CONCLUSION Organizations often over-focused on its business plan and neglect employees’ needs, causing high turnover rate. This builds negative trust in the organization and direct and in-direct costs are then lost in the process of replacement. Organizations should align their business objective with HRM practices to shape positive working attitudes in employees and creates a workplace with high trust and productivity.
With the process taken in each practice, it gradually leads to high-involvement practice where employees are actively involved in organization’s strategic decisions. The key words emphasized throughout the essay are flexibility, fairness and employees participation. To fully utilized employees’ competencies, organizations have to do their part in promoting flexibility. While most organizations view part time work as impractical (Jayandran 2012), other organizations could view the demand of part-timer work as a form of providing flexible working hours which helps increase job satisfaction.
A newspaper article reported that flexible working practices increased employees’ motivation and energetic level thus generating higher revenue and productivity (Lim 2012). Also, employees’ participation encourages them to think innovatively and be involved thus building higher trust level. While there are many other ways to address long-term productivity and mutual respect workplace, but the most basic step is employees have to be treated as organization’s assets.