Trends And Challenges In HR Management

Trends and Challenges in HR Management

To remain competitive, businesses need to see HRM as an evolutionary process. Staying abreast of the competitive market environment and applying a strategic role to attracting and retaining talented employees is a major function of HRM. Attracting valuable employees starts with a complete performance management system and continues with ongoing performance appraisals. Managing turnovers in organizations help provide stability, whereas examining and updating health and safety issues on a recurring basis helps maintain the talent. These objectives as well as discussing future trends and challenges are the topics of this paper.

Complete Performance Management (CPM)

Performance management starts when an organization first outlines a position. Providing a clear description of the position helps in the selection of the right person with the right skills. If the employees have a comprehensive understanding of their responsibilities with ongoing coaching and feedback, those employees can build on his or her strengths and contribute to the success of the organization. Effective training and orientation helps a person to do the best job he or she can do and complete performance management leads to better understanding and contributes to employee growth. "It also ensures that employees receive both positive and negative feedback when warranted. They also provide rewards for good performance and tips to improve bad performance" (Keen, 11/15/2010, p.1). A CPM system does not end until the employee leaves the company. Conducting exit interviews helps an organization understand why a talented and valued employee is leaving and can improve the work environment for the people.

Annual Performance Appraisals

A performance appraisal is "the process by which a manager or consultant (1) examines and evaluates an employee's work behavior by comparing it with preset standards, (2) documents the results of the comparison, and (3) uses the results to provide feedback to the employee to show where improvements are needed and why" ("Performance Appraisals," n.d., p. 1). The performance appraisal is a method of evaluating an employee on an already performed activity rather than guiding, coaching, and training as a performance management system is formulated to do. Performance appraisal identifies training needs whereas a CPM system provides training. The most common method of obtaining an evaluation is to use a graphics rating method that managers use to score employees numerically on a number of objectives and adding the total together to arrive at an average rating for the job. This appraisal method offers exactness and precision to eliminate the guesswork in establishing raises and bonuses.

The management by objectives (MBOs) performance appraisal method involves the employee and manager working in tandem to identify the goals for the employee. Time and resources are understood and open discussions ensures the employee is on task and following company expectations. Because of frequent interactions, reviews are uncomplicated and are easier to readjust an employee's objectives accordingly. Management has the challenge of making promises he or she cannot keep and needs to know what is available to the employee before discussing performances.

A 360-degree feedback involves everyone in the workplace who interacts with the employee regardless of position in the company. Everyone evaluates everyone else. Employees evaluate managers and directors or others with whom they have a regular interaction within the workplace. If HRM provides training on effective assessments, meaningful feedback is constructive, but if there is no training, a 360-degree feedback may become a popularity contest. A CPM system previously conducted will have parameters outlined and discussed thoroughly to avoid any misconstrued information. Performance appraisals are performed after employment and training have already started and CPM starts with the concept of a position.

Managing Turnover

Employee turnover falls into one of two categories. Involuntary turnover occurs when an organization initiates separation with an employee. This results when the employee wishes to stay, but the employer thinks differently. Voluntary turnover occurs when an employee leaves for his or her own reason, despite the organizations attempts to retain him.

A solid organization that is aware of current turnover trends will attempt to manage the trends regularly. Turnover is costly as "replacing workers is expensive and new employees need time to learn their jobs" (Noe, Hollenbeck, Gerhart, & Wright, 2007, p. 324). Managing turnover may consist of implementing a performance feedback program to keep employees abreast of his or her weaknesses in a position. An employee with knowledge of his weak areas has the opportunity to work on those areas and may see the importance of his position in the company. An employee with little to no performance feedback may leave a company early because of boredom or lack of feeling acceptance. This feeling may lead to role ambiguity, which occurs when employees are unclear about aspects of his or her position and how the organization will evaluate job performance. This is another reason for an organization to manage through the situation to keep the employee informed