Questions:
You are asked as an independent consultant to conduct a critical review of the company’s employee performance management strategies for Heinz Company Australia and recommend the way forward. Write a business report that answers all the three questions:
1. How was Heinz’s approach to performance management invalid in relation to Moretti’s job? Explain your answer in relation to significance of strategic performance management, appraisal and employee feedback in organisational context.
2. How was Heinz’s approach towards employee performance management unreliable? Discuss your answer that relates employee performance management and its impact on strategic human resource management and organisational performances.
3. Identify the ways in which Heinz’s employee performance management could be improved. As part of your answer, make sure you explain carefully how the company should implement your recommendations because so much of success in this area depends on the ‘how’ of any strategy is implemented.
This study deals with performance management analysis as in relation with Heinz Vs Moretti case study. Fair Work Australia has found it unfair for Heinz Company Australia for dismissing sales managers in refusing performance management system. Moretti feared that it was designed in triggering his exit from the company (Werner, Schuler, & Jackson, 2012). Performance grounds mainly rely upon management in perfect way. One performance score was used for evaluation in individual performance. Job title of sales managers is no longer present in the company and does not resign in performance managed out for the same. Hienz tried hard in forcing managers in signing performance management plan before discussing on concerned issues of performance in an overall manner. Managers have given time till 15th August for signing the plan in dismissal process. McCarthy agreed he had good reason for becoming suspicious about the intention of company as no other managers subjects in performance plans. Performance Plan viewed unfair by FWA representative as well as ordered company in appointing Moretti for new role in favourable terms and conditions (Armstrong, 2012). This report covers analysis on Heinz case with Moretti focussing on strategic performance management. This reports aims at providing analysis of the case in light of communication especially in an organization. He reports on matters that covers performance appraisal in handling matters prevailing in the organization. It enables analysis of reliability of Heinz performance management system in addressing employee performance management affecting strategic human resource management and organization performance as a whole. At the end of the report, it provides with recommendation on what Heinz Company should follow for becoming successful in the upcoming years (Armstrong & Armstrong, 2011).
Management Support- Performance management approach was not relevant to Moretti job. This is due to fact that he was unaware of reasons why his performance was evaluated in certain way. It defines communication with employees prior to review process in every form (Taylor & Woodhams, 2012).
Lack of job-relatedness standards- Hienz does not have access to correct system in place for evaluating accurate individual performance of employees. This is because of large nature of the company stated in the case study. Hienz individual performance scores were based on companywide ratings for giving all employees in same score. Therefore, individuals experiencing halo error where behaviours of individuals as included in performance analysis. It influences perception in one negative aspect that makes company in perceiving other qualities in negative form (Byars & Rue, 2011).
Strategic Performance Management- It involves processes for continuous identification and measurement of performance of the employees. Heinz performance management is invalid as it does not reflect on the organizational goal viewpoint. It is impossible to gain performance management without communicating with the employees working in an organization (DelCampo, 2011). Good performance management system includes employee’s recognition playing great role in motivation of employees. It relates with socially motivated employees for responding positively in the performance management system. Performance management system aims at motivating employees for improving level of performance. It is not a toll that inflicts fear in employee’s that hinder overall performance in case of Moretti (Byars & Rue, 2011).
Performance Appraisal- In this case study, Heinz approach towards performance management considers as invalid involving performance appraisal for the same. Management plan undertakes for evaluation of performance (Valentine, Mathis, & Jackson, 2012). This makes Moretti suspicious for the intended aim in final performance management plan. Informed managers ensure making informed decisions from performance appraisal.
Employee Feedback- Heinz approach is invalid because it does not render room for feedback. It is mainly importance for essential performance management. It includes provision of multiscore feedback within an organization as well as important for implementation in case of performance management in an overall manner (Truss, Mankin, & Kelliher, 2012). Flow of information is essential in all networks for viewing at the effectiveness of performance management system. Moretti does not understand on the exact requirements for withholding of information. The main aim of managing performance in organization helps in identifying faults for using it in dismissing employees at the same time.
Rater Bias- Due to existence of programs in place, company evaluates individual performance that states major three ratings (Taylor & Woodhams, 2012). It is based upon companywide ratings in giving employees the same score. Managers are being assessed based upon figures for each employee working in an organization. This particular company does not have valued case whereby employees are not aware of the situation. It questions on employees defending actions as well as leading refusal in signing the performance management plan in an overall manner.
Lack of Evidence- On analysis, it is noticed that company lacks essential evidence in accusing Moretti of lacking the ability for performing in certain way. It showcases inability in differentiating performance of all employees at the same time (Truss, Mankin, & Kelliher, 2012).
Performance Management considers as a continuous process involving provision for feedback and coaching employees for performance improvement process. It gets linked with mission of the organizational goals for the same (Stone, 2011). On critical analysis, it is noticed that performance management in Heinz Company is not reliable at the first place. It refers as performance appraisal that takes place for first time. It is important to understand the fact that performance appraisal reveals well-designed of systems for bringing performance improvement like training programs. It gets along with strong management system in the most appropriate way. Performance management has the ability in influencing in employees contribution prevailing in business organization (Prescott & Rothwell, 2012).
Heinz approach fails in implementing continuous thing and something else comes up in the business practices. Good performance management system considers as continuous things for designing human resource management (Mondy, Noe & Premeaux, 2012). Human resource managers aim at performance enhancement as well as meeting the organizational goals in an effective way. Moretti had not managed properly before and poses no basis on improvement in the near future. This serves as the main reason for Heinz managers that fail in providing feedback as demanded in areas of modification. Human Resource Managers should follow up with performance of every employee as well as communicate in an effective way. It is necessary to communicate performance expectation to employees and providing feedback after performance appraisal at the same time (Mello, 2011).
Strategic Human Resource Management- Performance Management considers as fully integrated system in form of strategic human resource management for reflection of goals of business organization. Role of human resource management ensures performance of each employee in directing achieving organizational goals (Truss, Mankin, & Kelliher, 2012).
In accordance with the size of the company, it includes appropriate medium in dividing company into separate units. It makes it easier as well as fair ways for individual assessment in an overall manner (Lindholm et al, 2012).
Continuous Performance Review- It is advisable to Heinz in evaluate regular performance reviews in identification of key areas in improvement ways (Torrington, 2011). Coaching as well as training of employees should be regular based on the final outcome of performance system. It should be used by the company in improving performance management and act as a tool for developing employees and organization as a whole. It is necessary for Heinz in coming up with reward system in motivating employees as well keeping good behaviour in facilitating performance largely (Hayton, 2011).
First Idea
Most of the ways evaluates performance includes providing employees with opportunities in assessing themselves. It gathers information from various potential sources (Harzing & Pinnington, 2011). It helps employees in understanding performance ties in alignment with vision of the company. It helps in providing continuing opportunities for employee’s development as well advancement in the most appropriate way. Employee evaluations depend upon strategic means in rewarding employee performance in certain ways (Grieves, 2012).
Second Idea
The ability in realising that each job title enables in having own criteria. It involves different levels of skills as well as responsibilities in creation of individual performance review from the given criteria (Dessler, 2012).
Relevance- It includes extent to which standards relates with standards of the job.
Freedom from contamination- It includes comparison between performances among other production workers at the same time (Torrington, 2011).
Reliability- It includes stability or consistency of standard that extends ways for future analysis purpose. It involves individuals for maintaining certain level of performance for specified time (Dessler, 2013).
Third Idea
It is necessary in involving for constant communication between HR managers and employees. It acknowledges success as well as improvements in discussion with mutual agreement. It keeps in mind on matters relating vision of the business organization (Torrington, 2011).
Performance management is an important and valid part of an organization and helps in implementation in various strategic initiatives for the same. Performance management in an organization helps in managing with workforce and workforce development enhancement in an overall manner (DelCampo, 2011). It is necessary in selecting as well as implementation of right performance measurement system in realizing improvements in and within organization in an effective way. Management needs to understand the social context before implementation of rules in an organization. Change management brings innovative ideas in the organization that benefit employees and organization as a whole.
Conclusion and summary of recommendations
Training- It is advisable to Heinz managers in undergoing performance management training for enhancing the level of competencies in an effective way. It should design successful system for future analysis purpose. Addition to that, training these individuals enables understanding various ways for undertaking ratings in the most accurate ways. With the help of training, it improves in the level of justice perception especially by supervisors. It improves ways for managing communicating messages in relation with performance to employees for the same. Through training, it helps managers in learning effective way for carrying out reviews as well as setting performance objectives in alignment with organizational goals in certain way.
Communication- It is advisable to Heinz managers in enhancing communication between employees as well as management. It develops effective performance management system in desired form. It establishes reliable communication networks in and within organization. It revolves around availability of feedback from the management in accordance with subordinates in making the necessary improvement as and when required. Feed-forward helps management in identification for need of training and obtaining new ideas for the same. It ensures development of coaching systems as well as reward system in the most appropriate way. There should be improved communication between subordinates as well as management in development of performance expectations. It based upon performance appraisal as well as overall performance management system in an effective way.
Redeveloping Performance Management System- It is advisable to Heinz in developing the performance management system in alignment with organization culture. It is applicable for all managers as well as job responsibilities for the same. System should ensure putting into consideration on performance review for specified period. System needs to be developed in measuring the performance in consistent terms. Management needs to ensure rating periods in reasonable ways in gaining relevant information at the same time.
Conclusion
From the above study, it is easy to gather facts on the Performance management system. It is necessary to develop performance management system in an organization. It will help in facilitating organization development and employee development at the same time. Effective performance management system enables continuous flow of information. Flow will take place from employees to managers and vice versa. It is understood that Heinz performance management is not valid and unreliable. It mainly lacks essential characteristics and requires effective performance management system in an overall manner. It is advisable to Heinz Company in ensuring managers and employees for going through training in relation with performance management. It helps in development as well as implementation in effective performance management system in an accurate way. It requires continuous review in accompanying with adequate coaching as well as rewarding. It is necessary for the organization in redevelopment of improving employee performance as well as leading organizational development in the near future.
Reference List
Armstrong, M. (2012). Armstrong’s handbook of human resource management practice. London: Kogan Page.
Armstrong, M. & Armstrong, M. (2011). Armstrong’s handbook of strategic human resource management. London: Kogan Page.
Byars, L. & Rue, L. (2011). Human resource management. New York: McGraw-Hill/Irwin.
DelCampo, R. (2011). Human resource management demystified. New York, NY: McGraw-Hill.
Dessler, G. (2013). Human resource management. Boston: Prentice Hall.
Dessler, G. (2012) Human resource management.
Grieves, J. (2012). Strategic human resource development. London: Sage Publications.
Harzing, A. & Pinnington, A. (2011). International human resource management. London: SAGE.
Hayton, J. (2011). Global human resource management casebook. New York, NY: Routledge.
Lindholm, J., Rothwell, W., Yarrish, K., & Zaballero, A. (2012). The encyclopedia of human resource management. Hoboken: John Wiley & Sons.
Mello, J. (2011). Strategic human resource management. Mason, Ohio: Thomson/South-Western.
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Mondy, R., Noe, R., & Premeaux, S. (2012). Human resource management. Upper Saddle River, NJ: Prentice Hall.
Prescott, R. & Rothwell, W. (2012). The encyclopedia of human resource management. Hoboken: John Wiley & Sons.
Stone, R. (2011). Human resource management. Milton, Qld.: John Wiley.
Taylor, S. & Woodhams, C. (2012) Studying human resource management.
Torrington, D. (2011). Human resource management. Harlow, England: Financial Times/Prentice Hall.
Truss, C., Mankin, D., & Kelliher, C. (2012). Strategic human resource management. Oxford: Oxford University Press.
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