Diploma in Hospitality Management
Unit Number and Title
Unit 7 Developing and Managing Performance Assignment
Performance management refers to process of establishing shared workforce and gain the understanding about the standard of organization and individual to meet the objectives more convincing manners. Performance management and development involve the activities like setting of goals, capabilities of individual and process of manufacturing the products and services to maintain the flow of operational activities. Apart from that, it is and process by which organization can align their resources and system as well as the strategic objectives. The report will analyze the advantage and disadvantages of individual performance related pay for NHS and how the IPRP can improve the performance of organization. Moreover, it will explain the barriers in effective design and implementation of IPRP schemes. In the next part report will evaluate the impact of the appraisal on performance as well characteristics of effective and ineffective appraisal management on the organizational process. At the end it will analyze the integration of management tool and use of technology for performance development within HPWS.
Acceding to given scenario, Susan Bell has recently been appointed as an HR partner at Wellton NHS Trust. Wellton is a medium sized NHS Trust in the north of England. With an annual turnover of £330 million and around 6,000 clinical and support staff it provides medical services to a population of 450,000 people. The Trust Board is responsible for setting the strategic direction of the Trust lead by the Chief Executive Officer. Moreover, in 2013 the Trust introduced new performance related pay criteria in line with changes to the NHS Agenda for Change. Prior to the changes employees received automatic annual increments moving upwards through the pay points each year until they reached the top pay point for their job role. The change made movement through the pay increments dependent on individual performance. To move to higher pay band individuals must now demonstrate the required level of performance and delivery. The top management has sated the benchmarking standard for the different skills and activities of the staff members which will help to maintain the effectiveness and performance up to the satisfactory level. The major criteria of performance involve the knowledge and skill framework of communication, quality, equality and services improvement process of individual and groups.
Task 1 reward management report
Advantage and disadvantage of Individual Performance Related Pay at NHS
Individual Performance Related Pay (IPRP) refers to financial rewards to employees whose work is being considered to have maintained and reached to the required standard or above the average. This kind of approach is used where the performance of staff members cannot be monitored in terms of output or complication of target. According to given case of NHE, this kind of process would be have significant impact on the performance of individual as it will help to encourage the quality of work against the agreed objectives. This is an type of performance appraisal that categories in the different level of working standard. In the recent years the public sector organizations are using this term for managing and identifying the performance of individual and offer the payment accordingly (Marqués-Iturriae.et.al. 2015). Following are the key advantages and disadvantages of IPRP for NHS:
- Advantages: by using the IPRP terms the manager of NHS could define the goals and objectives for individual and departments which will help to improve the productivity of staff and encourage them to increase the level of skills. For example, manager of organization has sated the goals for individual to analyze and record the information about the clients and patients in the proposed manners and communicate with the senior staff to get the incentives. This kind of approach is helping to develop good system at workplace and generate the information in professional manners. Moreover, it is also helping to detect the poor performance and lack of communication with the management. Hence, IPRP world be helpful to develop the performance based culture and achieve the goals more convincing manners.
- Disadvantages: The performance based reward and financial motivation is good for organization and individual of NHS but sometimes it affect the morale of staff as management set the high standard for achievement. Moreover, the workload of manager gets increased as one has to monitor the performance deeply which will consume time. Apart from that the chances of equal pay would be the biggest challenge for NHS management to justify. The performance appraisal process can be affected detrimentally because of the focus on financial reward rather than developmental needs. However organization requires making concern over the implementation of IPRP system but consideration of disadvantages is essential to deal with the unplanned situations. The proposed system will be appropriate for NHS to pay according to performance of the individual as it will suit the environment large public organization as the productive staff will get the performance reward to achieve the organization and personal objectives as well increase the efficiency.
Barriers to effective design and implementation of IPRP
For design and implementation of effective IPRP system in NHS, HR and top management requires considering different factors that could create challenges to organization in future to manage the human resources. According to analysis following are the key barriers that identified in the design and implementation of IPRP in public health care organization:
- Lack of managerial training: For the proper design and implementation of IPRP approach, training to manager and superiors would be major barriers as one has to set the performance objectives by analyzing the effectiveness and capabilities of individual at workplace. With an annual turnover of £330 million and around 6,000 clinical and support staff it provides medical services to a population of 450,000 people. For large numbers of staff members it would be difficult for NHS to set the objectives and monitor effectively. For that organization has to provide the training to manager to identify the key performance indicators and offer the rewards accordingly. Hence, it would major barriers to organization.
- Budget restrictions: Offering the financial rewards to the staff is good for encouraging but manage the fund allocation would be difficult for organization to deal with (Khan. 2014). However NHS is not having the issues with budget but to design and implement the system for reward planning will put extra burden on the organization to maintain the salary and provide the incentive also. Now, to offer the pay rewards for performance will increase the requirements of funds that will be big deal for NHS.
- Differences in rewards: The plan for offering the rewards according to performance of staff members will requires the equality but in case of position and performance it will be differ. The difference in the incentive and offering the other monetary rewards will create the barriers for the organization to design and implement a proper plan for IPRP. The major consideration of organization would be on cultural changes and achievement of objectives for the performance measurement. In order to manage the equality and offering of satisfactory incentive will be the key barrier for NHS HR manager. For example, organization cannot offer the same rewards as camper to manager of organization which will clearly create the difference in the offering and determination of rewards (Akhter.et.al. 2016). Active involvement and accountability must reside with business leadership if a pay-for-performance process is to be sustainable.
Alternative rewards approaches to replace IPRP
The NHS HR can use following alternative rewards approaches to maintain the effectiveness as well influence the performance of the individual and departments. There different types of reward system and approaches have been followed by the organizations across the words some of them are as follows which can be used by NHS in future.
- Compensation: This would be better option for organization for offering the rewards to the staff members and care workers. According to this approach of rewards the HR can provide the compensation for achieving the targets like cash bonus or leave settlement. This kind of approach will help the staff members to plan their leaves and meet the targeted in the given deadlines of organization. For example, NHS could offer the leaves instead of offering the cash which will be good compensation for care workers.
- Gifting: For organizational rewards, it is not necessary to provide the expensive gifts to the staff members but the gifts must be satisfactory according to the effectives of person and position within the organization. NHS could use this kind of alternative approach for the IPRP as the HR will offer the experimental, prestige and virtual rewards to the care workers to keep them motivated and meet the organizational outcome more efficient manners.
- Resignation: In order to choose the alternative option for reward system the organization could use this function of offering the rewards to the staff members. According to this method of reward, the HR of NHS will identify the key performing staff members who are contributing in the development of operational activities of organization (Child, 2015). By providing the reorganization for quality work the organization can motivate the care staff which will overcome the financial requirements and manage the performance with positive approach.
Task 2 appraisal management
Effectiveness of performance appraisal
Performance appraisal refers to review and identification of the individual and groups contribution in the development of organization. It is a process in which job performance of an employee is documented and evaluated carefully. NHS is having large numbers of employees that are performing different tasks and activities according to capabilities and skills. For that reason review of performance would be done on the different basis and methods. In addition to this, the process and system of performance appraisal would be important for organization in following manners.
- Making decision: Performance appraisal information is being used for analyzing the effectiveness of the individual and department performance that would give the idea about the key issues and areas of lacking. By considering the information the top and HR management of NHS could make the decision to craft improvement within overall performance of care workers. Deficiencies in the performance may be due to lacking of knowledge and skills (Alonso-Alonso.et.al. 2015). In order to identify and make adequate decision for improvement the performance appraisal is important weather the staff member need additional training or equipments.
- Promotion: Performance appraisal is used for analyzing the effectiveness of care workers in NHE in terms of meeting the objectives, utilization of sources, planning and implementation of policies. By considering the feedback about the performance of individual, HR manager offer the promotion. The role of performance appraisal is to identify the key people that are having significant contribution in the operational activities of organization and helps to select the persons for promotion.
- Human resources planning: The process of performance appraisal is important for planning of the human resources and allocating the tasks and responsibilities to individual according to their capabilities and skills. For appraisal of staff members HR manager and supervisors collect information and data about the individual at care services organization which helps to promote, demote, transfer and terminate the staff members. In health care organization, it is essential for management to have proper planning of the human resource and data about the individual effectiveness within the organization. Hence, performance appraisal is helpful for managing human resources and allocation of role and responsibilities.
- Training and development decision: The information that has been collected regarding the appraisal of performance of individual is useful for planning of the issues that hampering the skills and effectiveness of individual. NHS management could use the information for developing manager plan to provide the training and support to the care staff (Bernardin and Wiatrowski, 2013). By having the improvement in the training quality as well skills of the care worker NHS will able to craft the significant development in the performance. It will help to perform well in the critical situation as well meet the satisfaction level of the patients. Now, it is been considered that performance appraisal process id beneficial for NHS in many ways.
Characteristics of effective and ineffective appraisal design
Following are the main characteristics of an effective appraisal system for organization:
- Objective should be clear: The effective appraisal system is having clear and objective that could be understand by every employee and needs to be specific. Moreover, an effective appraisal system has the specific attributes that need to be match with the job description of the individual position. For example, an NHS HR department has sated the appraisal performance objectives for each position as care worker need to collect the data about the each patient to make decision in future. These kinds of objectives are helping manager to analyze the effectiveness of care workers on the basis of the standard.
- Valid and reliable data: the effective appraisal system provides helps to generate the reliable and valid data that would help in future planning about care worker to offer the new role and responsibilities. Moreover, the data consistency improves the decision making of the staff which will maintain the process of serving the appraisal.
- Need to be well defining: An effective appraisal system has structured process of managing and developing the performance of individual and groups within organization (Dusterhoff.et.al. 2014). The criteria of appraisal need to be well defined as it gives the clear understanding of the objectives and tasks for offering the appraisal without any discrimination.
- Should initiate follow-up: According to analysis, it is been carried that an effective appraisal system of organization initiate the follow-up of the organization to meet the objectives more convincing manners. It also helps to learn about the problems and provide training to overcome the impact of issues.
Ineffective appraisal system:
Characteristics of ineffective performance appraisal system:
- Heavy workload:In the current scenario, heavy workload is major issue for the organization to deal with and for NHS it is more difficult for analyzing capacity of managing the workload as emergency situation can occur any time. If the appraisal system has more applications for staff members and high standard for target will lead to the failure of the system.
- Lack of clarity: This should be considering as major characteristics of ineffective appraisal system for organization that does not have clarity in the objectives and utilization of resources (Armstrong.et.al. 2014). This lack of clarity in workers objectives and expectations creates tension between the employees and results in conflicts.
- Lack of transparency:The ineffective appraisal system can be identifying by evaluating the transparency. The lack of transparency in standard of evaluating the performance of care worker will influence the whole process and trust of the staff members. This will hurt image of organization which will have long term impact on the effectiveness of services.
Components of high performance system
For implementation of high performance work system organization requires to focus on the below listed components:
- Link with culture: This would be the major element for performance work system as it involves the culture and values to the identification of key performer within organization. The performance of individual has significant impact on the process and structure of the organization as it influences the perception. Culture of organization has direct impact on development and implementation of strategy to encourage the performance (Pichler, 2012). The major consideration of organization would be on cultural changes and achievement of objectives for the performance measurement. In order to manage the equality and offering of satisfactory incentive will be the key barrier for NHS HR manager.
- Job infrastructure: The infrastructure and facilities that has been offered by the organization at work should also consider as the key components that can influence the performance of care workers. NHS is leading organization in health care industry and having significant contribution of the staff members in tranning and development of services. If organization is looking for improvement in the services and performance of individual it is important for organization to provide the good infrastructure to the staff members.
Appraisal discussions and performance management
The management of NHS can use arrangement of peoples and resource, culture mapping, data collection as effective tools to integrate the appraisals for performance in workplace. Human resources of organization can be arranged according to their skills to achieve high performance and adequate appraisal can be offer for their quality in services. The appraisal system helps employees to work under the pressure or crisis situations to deliver the performance. Management of organization can define the practices those may lead the workplace towards the creativity and quality. For instance, appraisal system can be defined based on position and work responsibility in organization which will motivate the employees to perform better for better appraisal achievements (Sarkar and Sarkar, 2016). A productive culture can be managed at workplace to achieve performance objectives. Organization also can use data collection as technique to collect the data about the employees for their performance so that training and development programs can be prepared to meet the performance goals in workplace.
Addition to it, organization needs to consider the requirement of employees for skills and equipments to accomplish the work. Better tools and technique can be provided to employees to reduce the time and effort per objective of organization. In this manner, NHS can enhance the productivity. Events and activities should be part of workplace as it can disclose the hidden skills and talents of employees which may be used in crisis times to overcome the situations. Proper appraisals can be given to high performance employees as it will inspire other employees to do their best in work (Peretz and Fried, 2012). Appraisals may be intramural or extramural to keep the employee positive and interested in workplace and duties. In the form of appraisals, NHS can provide new tools to work, insurance against workplace hazards and higher post in workplace to enhance the performance with self motivated employees.
From the above study, it is been considered that reward and incentives helps to motivate and encourage the staff member to meet the standard. Report has provided the information about the IPRP for improving the performance of staff and maintains the competitive working environment. Additionally, it has discussed about the issues that are influencing the design and implementation of IPRP. In the next part report has provided brief information about performance appraisal and critical evaluation of components of high performance work system.
Books and journals
Akhter, N., Raza, H., Ashraf, A., Ahmad, A. and Aslam, N., 2016. Impact of Training and Deveolpment, Performance Appraisal and Reward System on Job Satisfaction. International Review of Management and Business Research, 5(2), p.561.
Alonso-Alonso, M., Woods, S.C., Pelchat, M., Grigson, P.S., Stice, E., Farooqi, S., San Khoo, C., Mattes, R.D. and Beauchamp, G.K., 2015. Food reward system: current perspectives and future research needs. Nutrition reviews, p.nuv002.
Armstrong, C.S., Ittner, C.D. and Larcker, D.F., 2014. An Exploratory Investigation of the Determinants and Ratings Implications of Performance Appraisal Plan Characteristics.
Bernardin, H.J. and Wiatrowski, M., 2013. Performance appraisal.Psychology and Policing, 257.
Child, J., 2015. Organization: contemporary principles and practice. John Wiley & Sons.
Dusterhoff, C., Cunningham, J.B. and MacGregor, J.N., 2014. The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of Business Ethics, 119(2), pp.265-273.
Khan, H.G.A., 2014. IMPACT OF REWARD SYSTEM ON JOB SATISFACTION THROUGH ORGANIZATIONAL COMMITMENT: A STUDY OF PRIVATE BANKS BASED IN ISLAMABAD PAKISTAN. Economic and Social Development: Book of Proceedings, p.499.
Manning, J., Reynolds, G., Saygin, Z.M., Hofmann, S.G., Pollack, M., Gabrieli, J.D. and Whitfield-Gabrieli, S., 2015. Altered resting-state functional connectivity of the frontal-striatal reward system in social anxiety disorder.PloS one, 10(4), p.e0125286.
Marqués-Iturria, I., Scholtens, L.H., Garolera, M., Pueyo, R., Garcia-Garcia, I., González-Tartiere, P., Segura, B., Junque, C., Sender-Palacios, M.J., Vernet-Vernet, M. and Sanchez-Garre, C., 2015. Affected connectivity organization of the reward system structure in obesity. NeuroImage, 111, pp.100-106.
Peretz, H. and Fried, Y., 2012. National cultures, performance appraisal practices, and organizational absenteeism and turnover: a study across 21 countries. Journal of Applied Psychology, 97(2), p.448.
Pichler, S., 2012. The social context of performance appraisal and appraisal reactions: A meta?analysis. Human Resource Management, 51(5), pp.709-732.
Sarkar, A. and Sarkar, A., 2016. Is it time to do away with Annual Performance Appraisal System? Benefits and challenges ahead. Human Resource Management International Digest, 24(3), pp.7-10.