Rewards And Employee Creative Performance: Strategies For Improving The Performance Of Steel Company

Advice regarding structuring of individual performance in improvement of performance of firm

Describe about the Rewards And Employee Creative Performance ?

The study is having in depth discussion about the link between individual performance and firms overall firms. Apart from this, as a business advisor the suggestions and advice are provided to the manager of Steel Company. As mentioned in the case study, the steel company is related to manufacturing of different product. It is run by owner of the company, which is owner of the company is manager. On the other hand, steel company is small scale manufacturing company. As mentioned in the case study, the company performance is very poor in comparison of competitors. The manager of company has freeze the salary of employee, which has de-motivated them. The suggestions are made in context to performance of employees as well as steel company. As stated by Robbins et al. (2013), the performance of individual is dependent on different factors, that is, manager’s attitude, workplace environment and others. The study is also having discussion about the structuring of target for individual and the role of manager in structuring the target.

 As stated by De (2013), the performance of firm is dependent on performance of individual. The manager role in structuring the target is played by manager. As mentioned in the case study, the owner is the manager of company and he is autocratic type of manager. That is, he follows the command and control style of leadership. As a business advisor, the performances of employees are affected by the style of leadership followed. The manager should try to follow transactional and transformational style of leadership. With the help of this style, manager can motivate his employees easily. On the other hand, it will also help managers to motivate their employees with the help of different rewards and incentives.

In context to this Armstrong and Taylor (2014) commented, each and every employee should have proper knowledge about their task and responsibility. The team leaders should try to assign task to members as per their skill and ability. For example, if technical expert employee is given production task, the performance will be low. On the other hand, he will be de-motivated regarding his work. As stated by Brown et al. (2014), the overall performance of steel company is dependent on their employee performance and attitude toward organization. The structuring of individual target helps in improving the steel organization performance. In addition to this, manager of firm should also try to maintain daily report of individual performance. It will help managers to analyze the performance and gap between targets of employee. Apart from this, the manager should try to structure the target of employee taking into their pay skill. That is, the level of pay is related to their work. In context to this Pollitt (2013) stated, the manager of steel firm should try to develop employee target taking into consideration previous performance of individual. The difference in individual performance can affect the performance of firm overall.  

Use of performance management system in employee development and improvement in communication

In context to this Goetsch and Davis (2014) stated, the performance management systems help in improving the performance of individual. It also helps in improving the performance of steel firms overall. On the other hand, the performance management system adopted by organization should be proper and appropriate. Along with this, managers should also try to maintain proper record of employee performance. In addition to this Brunnert et al. (2014) commented, the performance management system includes the development of individual as well as managers performance status. The performance of employee can be improved with the help of several methods. That is, on job training, off job training, skills development classes, mentoring and others.

As stated by Kehoe and Wright (2013), the performance of individual is dependent on communication method followed by organization and other factors. Along with this, the communication should always be proper among the employee and their managers. As mentioned in the case study, the divisional manger ahs divided different team for improving the performance. The performance of individual in team can be improved by proper communication approach. As a business adviser the suggestion regarding communication is; the manager of steel organization should try to use top to bottom as well as bottom to top. It will help team leads to maintain proper coordination with their employees. On the other hand, it will also help in improving the performance of individual team members.

The performance management system is dependent on human resource processes and policies of steel organization. That is, with the help of proper implementation of human resource system manager can motivate their employee to perform better. As stated by De (2013), the main focus of human resource of steel organization is to maintain proper environment in workplace and also to maintain the coordination among employees. On the other hand, the human resource manager of steel organization focus on performs of employee. In context to this Armstrong and Taylor (2014) commented, performance of employee can be improved when target are well known by them. On the other hand, the human resource managers also try to motivate employees by implementing proper reward system. That is, the reward should be as per the employee skill, ability to perform, talent and other factors.

 As a business advisor the suggestion regarding human resource and performance management system is; human resource manager should try to maintain proper policies and rules and regulation. It will help them to maintain the workplace environment positive and motivational. On the other hand, the positive and motivational environment will help in improving the performance of individual. As commented by Pollitt (2013), the target structuring is also done with the help of human resource policies and procedures. The main focus of steel organization is sales and manufacturing of steel product. The strategies adopted regarding employee performance is based on leadership style, reward system and other similar factors.

Importance of incorporating management of performance system with human resource processes

Hambrick et al. (2015) commented on the essential fact that the relationship between performance of the employees within the organization and the financial rewards is directly proportional. The better the employees will be provided with the good financial rewards, the better will be their performance and output.  In this organization it is seen that the manager had freeze the payment of the employees for the past three years that is one of the reason of poor performance of the employees According to the outlook and opinion of Malik et al. (2015) the employees due to lack of monetary benefits and payment are leading a poor and low quality of living standard. This therefore is directly impacting on the current performance of the employees. Even after the Directional Director is appointed and some major changes are brought in the organization but still the performance is seen not up to the bench mark. Though the attitudes and perceptions of the employees changed within the organization along with the earning of bonuses for seven months out of twelve months, still major change in performance is not seen. 

As opined by Han et al. (2015) the major changes in the performance will be seen of the employees are provided a good pay-scale and salary as per the employee standards. Moreover the incentives, bonuses and compensation benefits also need to be present within the organization that helps the employees in getting motivated to the maximum extent. Moreover the organizational culture as well as transformational leadership also needs to be implemented within the organization. According to the outlook of Dee and Wyckoff (2015) this leadership provides rewards for excellent performance and punishment for bad performance. So this method motivates the employees extensively and hence they tend to work better for financial benefits and thereby their performance level also improves extensively. A well structured financial reward system that consist of a fair incentive, compensation and monetary beneficial stricture need to be improvised with the organization in order to attract the employees more to work better and more systematically for better output. Other than this from the outlook and opinion of Malik et al. (2015) the communication within the organization also need to be improved extensively so that the employees understand the work and the teams perform better for higher productivity. This therefore helps in increase in performance of the employees that directly affects their monetary reward system and therefore improves the living standard of the employees. This is a motivating factor that helps in improving the performance of the employees.

Conclusion

The assignment discusses about the several performance indicators of the targets that helps in maximizing the performance of the employees. The leadership skills are changed from autocratic style to both transformational and transactional styles. This helps on monetary benefits of the employees those performing good within the organization. Other than this the incentive structure also need to be excellent in nature that helps in attracting the employees to work better. Moreover the communication within the organization needs to be from both ends that will helps in understanding each other’s problem and methods of doing the work.

References:

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Hambrick, D. C., Humphrey, S. E., and Gupta, A. (2015). Structural interdependence within top management teams: A key moderator of upper echelons predictions. Strategic Management Journal, 36(3), 449-461and.

Dee, T. S., and Wyckoff, J. (2015). Incentives, selection, and teacher performance: Evidence from IMPACT. Journal of Policy Analysis and Management, 34(2), 267-297.

Han, J. H., Bartol, K. M., and Kim, S. (2015). Tightening up the performance–pay linkage: Roles of contingent reward leadership and profit-sharing in the cross-level influence of individual pay-for-performance. Journal of Applied Psychology, 100(2), 417.

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