Strategic Human Resource Management For Change Management

360 Degree Feedback

Discuss about the Strategic Human Resource Management for Change Management.

The performance of an employee is directly related to the productivity and effectiveness of the organisation. In order to perform a task effectively an individual needs to have prerequisite knowledge and experience. There are various theories in the field of human resource management that may assist in development of organisation (Buller and McEvoy 2012). The paper concerns the case study of Vesna who is highly skilled in her profession but due to lack of experience in performing her duties she is facing challenges at her workplace.  Vesna is lacking a clear understanding of the practical aspects of the concept- “360-degree feedback, strategic redundancy and downsizing”. This is the primary crisis to be resolved in her career.

Through employee assessment the management found that Vesna was incompetent in her work. Therefore, it is necessary to advise Vesna about the practical aspects of theories in relation to 360 degree feedback. I will explain her that “360 degree feedback” is a medium to collect behavioural observations in an organisation which also includes self assessment (Millmore 2007). This systemic collection of one’s performance is a measure of person’s ability to carry out a certain task in a manner that helps in achieving a set of goals. I will explain Vesna that this feedback is not just for developmental purpose but also to be used effectively for decision making and performance appraisal (Birecikli et al. 2016). Without understanding the application of the 360 degree feedback it is difficult for Vesna at her workplace to perform effectively. The rationale for this step is to link her behaviour to the company’s performance using the 360 degree feedback. Further, it will enhance Vesna’s knowledge of how such behaviour is viewed and applied at workplace by her boss, customers and colleagues. I would further explain her that360 degree feedback is a tool that allows the managers to understand the steps needed for developing leadership effectiveness. This tool helps to raise awareness about individual’s strengths and weaknesses. The tool must be aligned to organisational preparedness. The candid data provided by the tool about the participants for channelling staff into interventions and appropriate training programmes (Tee and Ahmed 2014).  

As per Vesna 15 employee were redundant where the total number of employees were 50. Redundancy refers to a state where an employee has no work available (Hollenbeck and Jamieson 2015). The employers thus lay off their employees when the position they hold in the company cease to exist with a justifiable reason. In such case Vesna is advised that a greater emphasis is laid on the position of the worker in the company rather than the worker himself. I would further explain Vesna that in case an employee is fired then it is not considered to be redundancy. Instead it is called a legal issue. In fact workers are not called redundant because it is the post of the employee that is no more existing in the company. I would further aware Vesna that in many government and private sectors the employers talk of “retrenchment” when they lay off employees due to redundancy (Millmore 2007).

Strategic Redundancy

Downsizing on the other hand is the initiative taken by the management of the organisation to improve the overall competiveness and productivity by implementing the set of activities (Millmore 2007). Downsizing in short can be described as the process of decreasing the firm’s size by reducing the number of employees through layoffs, early retirement, redeployment among others. However, downsizing  also adds the risk of losing tactic knowledge from the staff existing in the company. It may increase unnecessary pressure on the organisation. Another method of downsizing is “outsourcing” where a company may reduce its sectors, management units by recruiting employees only when needed for specific tasks. There are number of factors that need to be considered for downsizing such as competitive position of the organisation in the market. In addition, Vesna must also be clear about the appropriate labour force structure (Jung 2015). This concept will help her in augmenting sustainable performance in the organisation. It is paramount for Vesna to acknowledge the “essence of leadership” in the organisational performance which greatly depends on the management. The leadership based performance is highly recommended although there are several other approaches to streamline the firm’s performance (Buller and McEvoy 2012).

Vesna’s weakness was her lack of experience. Consequently, she failed to handle the department. However, her position in the company can be sustained if she aligns her performance with the business strategies. She must implement various management strategies to accomplish the organisational results. I would suggest that 360 degree feedback is an effective tool that she must apply for evaluating performance of the employees and establishing their abilities and weakness. It is advised that instead of evaluating too much on her own she must work in collaboration with human resource department and consult for advice. Redundancy should not be the main option rather Vesna should opt for other management measures for enhancing the competitiveness and the productivity of the business (Jackson et al. 2014).

Vesna can successfully implement the 360 feedback collaborating with the human resource department. Vesna should be clear about the organisation’s scope and goals. Prior to implementing the 360 feedback, Vesna should consider the important role of communication. She can gain commitment for 360 by communicating the benefits such as team effectiveness, employee development, and organisational improvement (Tee et al. 2014). It will help in aligning the system to the competency model to gain the preferred outcome. To implement downsizing Vesna must focus on the remaining employees on the core business. Since the remaining employees may suffer the survivor syndrome Vesna must implement a “nominated strategy of support” (Bergström and Arman 2016). A company implementing this method cuts back even years later. Strategic redundancy is the other option that could be applied. Vesna should use a proactive approach for repositioning the company with the staff levels and the reengineering process. It should include release of resources necessary for reconfiguration of organisation to the desired stage (Davey et al. 2013).  The tables given below outlines how Vesna can apply the implementation of strategic redundancies and 360 degree feedback.

Downsizing

Table 1: Implementing 360 degree feedback

Initiatives	Surveys	Confidentiality	Skilled facilitators	Training and support	Evaluation
Staff preparedness is required prior to 360 feedback	Conduct quality surveys with rationale such as education, changing perceptions, building trust and communication	For physiological support state confidentiality in all matters	Validation of process	Use candid data to identify and improve performance Align the training to the competency model Drive innovation using human resources by clear communication of timelines, expectations, roles and how results will be delivered	Track attendance at events, open rate of emails, website statistics, video hits, download of materials

 Table 2: Strategic Redundancy with Basic Elements

Redundancy	Remaining staff	Initiative
Consultation with staff	Re-assign and re-train staff
Reducing resources	Development of skills	Re-engineer processes
Compensations	Performance measurement	Innovative pay package and increments
Budgeting issues	Align with objectives	Attain objectives

Before embarking on the redundancies Vesna should consider some of the issues in the organisations. It includes the “loss of tactical knowledge” which may be of potential risk to the organisation. Appropriate consideration should be given to the “loss of core assets” as it is through the people that all the innovations comes through. According to Davey et al. (2013) customers want the companies to respond to their needs by “Trends driving innovation”. It means the companies should have embedded intelligence and individualisation. Bergström and Arman (2016) argued that the communication managers should give considerable weight to the “consideration of developing staff” to their full capabilities and potential.

For successful evaluation Vesna should make allowances for possibility of making mistakes, time and irrelevance (Sharma 2009).  In addition to considering the bottom line results Vesna should take a balanced view of the organisational performance. She should emphasise more on the “performance of the drives of the results”. It will allow Vesna to develop an overall view of the organisation and understand the operating environment of the organisation. Before, releasing the resources and staff Vesna must consider if the resources are operating sustainably and if adding value to the communities. Buller and McEvoy (2012) stated that the impact of downsizing on the company is unsustainable. Repeated downsizing may lead to suspicion regarding the management among the workforce. Therefore, it negatively affects the organisational culture, performance and staff morale. The elements of culture include shared beliefs, values, and expected behaviour. Vesna should ensure to nurture and support these elements throughout the organisation by collaborating with the HR (Andrew et al. 2009).

Vesna must also consider the effect of retrenchment in the community that the company is operating. Before embarking on reducing the human resources Vesna should consider the aspect of Compensation. According to Buller and McEvoy (2012) the process of employee separation may be assisted with emotional and financial support. A company can stand in the community based on how it is perceived. Poor perceptions can lead to poor outcomes. Therefore, Vesna should consult employees over the workplace issues with an honest and open approach (Millmore 2007).

In summary, Vesna must be clear in concepts that define organisational development. There are various benefits of planning human resource management. For Vesna the mechanism for forecasting the labour demand includes gap analysis and creating solutions. It is beneficial to analyse the organisational skills, intellectual and social skills. Vesna can implement strategic human resource management (SHRM) linking to strategy while focusing HR attention. It may help in generating the detailed audit of human capital. Vesna must combine “structure and culture” within  SHRM because it establishes how people think and behave.

Sustaining Vesna’s Position in the Company

Enhancing the work performance of staff is a challenge. The Part and parcel of this challenge is to “develop their potential and capabilities” (Millmore 2007). SHRM is all about turning resources into capabilities that is essential for driving the business performance. Vesna  can use HRM factors such as mentoring the employees having the performance gaps, team building, training and participation through consultation. This will ensure the “right balance between the development of staff competencies and strategic goals” (Cooke 2007). Further, the key requirement for Vesna is the task of evaluation. She needs to measure the right combination of skills and competencies. Performance matrices are usually developed to established goals and compare the results with it. These metrics help in  developing business projects  with stronger vision. This assist in accurate decision-making. After, measuring the performance, Vesna may develop synergy by reorganisation the work team. A high performance must look for every small opportunity to add value (Godard 2004).

360 degree feedback is the tool for Vesna  by which she can identify the possible gaps in training, and support the staff development. It will help her in measuring the performance and restructuring the work teams to create synergy.  In strategic human resource management, retrenchment is the least favoured option. A sound management aims to create value within an organisation. Thus, Vesna is recommended to use resources “aligned with strategic direction”. It will make the organisation difficult to imitate, more sustainable, and innovative (Cooke 2007).

Vesna can use various performance management strategies. Performance management involves managing, planning, reviewing, giving rewards, performance appraisal and developing individual and group performance (Davey et al. 2013). Rewards refer to vertical loading of job (critical job designing- enlarging, rotating, autonomy, feedbacks, and recognitions). Vesna should offer both financial and nonfinancial rewards. It includes a combination of accomplishment, recognition scheme, and staff’s personal growth together with bonuses, share schemes, performance loadings, and loadings. It can also be linked to culture (Bernardin and Wiatrowski 2013). The total reward may include “a combination of basic pay incentives and benefits”. The best action for Vesna would be the package as total reward can be designed to meet the needs of the individual (Kampkötter 2016). Internal equity will no longer will be the consideration in the long run. It will be preceded by the market value of jobs, skills of staff and the impact on company’s strategy (Mone and London 2014).

References

Andrew, P.J., Haanaes, K., Michael, D.C., Sirkin, H.L. and Taylor, A., 2009. Innovation 2009, making hard decisions in the downturn. a BCG senior management survey.

Bergström, O. and Arman, R., 2016. Increasing commitment after downsizing: the role of involvement and voluntary redundancies. Journal of Change Management, pp.1-24.

Bernardin, H.J. and Wiatrowski, M., 2013. Performance appraisal. Psychology and Policing, 257.

Birecikli, B., Alpkan, L., Ertürk, A. and Aksoy, S., 2016. Employees’ need for independence, organizational commitment, and turnover intentions: The moderating role of justice perceptions about performance appraisals. International Journal of Organizational Leadership, 5(3).

Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance: Sharpening line of sight. Human resource management review, 22(1), pp.43-56.

Cooke, W.N., 2007. Multinational companies and global human resource strategy. Oxford Handbook of Human Resource Management, The, p.489.

Davey, R., Fearon, C. and McLaughlin, H., 2013. Organizational grief: an emotional perspective on understanding employee reactions to job redundancy. Development and Learning in Organizations: An International Journal, 27(2), pp.5-8.

Godard, J., 2004. A critical assessment of the high?performance paradigm. British journal of industrial relations, 42(2), pp.349-378.

Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network analysis: Implications for strategic human resource management. The Academy of Management Perspectives, 29(3), pp.370-385.

Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), pp.1-56.

Jung, J., 2015. Shareholder value and workforce downsizing, 1981–2006. Social Forces, 93(4), pp.1335-1368.

Kampkötter, P., 2016. Performance appraisals and job satisfaction. The International Journal of Human Resource Management, pp.1-25.

Millmore, M., 2007. Strategic human resource management: contemporary issues. Pearson Education.

Mone, E.M. and London, M., 2014. Employee engagement through effective performance management: A practical guide for managers. Routledge.

Sharma, S.K., 2009. Handbook of HRM practices: Management policies and practices. Global India Publications.

Tee, D.D. and Ahmed, P.K., 2014. 360 degree feedback: an integrative framework for learning and assessment. Teaching in Higher Education, 19(6), pp.579-591.