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Trends and Challenges

Essay by   •  March 30, 2012  •  Research Paper  •  2,247 Words (9 Pages)  •  1,106 Views

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Trends and Challenges

Human Resource Departments face many existing trends and future challenges. Introduction and advancement in new technology, changes in labor laws, organizational strategy, growth, and the way humans have evolved over time has forced many trend changes in human resource management. The human resource management department face many challenges when it comes to working with employees such as turnover, diversity issues, benefits, and health and safety. These challenges change over time as employees become more skillful and satisfied with the company. In this paper the following will be discussed; how a complete performance management system differs from the use of annual performance appraisals, the effectiveness of these various performance appraisal methods and possible problems affecting them, the advantages of managing turnover in organizations, an examination of the contemporary safety and health management issues in the workplace, and a discussion of future trends and challenges in Human resource management.

Complete performance management system differs from the use of annual performance appraisals.

A complete performance management system differs from the use of annual performance appraisals because it is a practice that actively uses performance data to improve the organization. This practice uses performance standards and measure to establish performance goals and targets, to inform managers of needed changes or adjustments in a policy or program direction to meet the organizations goals, to prioritize and allocate resources, to improve the quality of management and organizational practice, and to frame reports on the success in the organization meeting it's performance goals (Heathfield, 2011). Performance appraisal is an annual process where the employees are assessed by their managers on their performance through out the year. It is what most would call a "performance review" and is just one part of the performance management system (Heathfield, 2011). This appraisal method compares the employees performance to those of established standards. The complete performance management system takes into account the appraisal data and comes up with solutions that will help the organization.

Performance appraisal methods take many different forms such as comparative standards or multi-person comparisons, in group rankings, and or individual rankings.. Comparative standards or multi-person comparison means that the employees performance is compared one or more other employees (Heathfield, 2011). In group ranking means that the employee is ranked in performance of all other employees performing that job. For example an employee may rank in the top five of the company or the bottom five. Individual ranking is when an employer ranks the employees from highest to lowest. The difference between the top two employees is assumed to be the equivalent of those bottom two employees.

Performance Management system is an ongoing process between the managers and employees of an organization. This system links expectations, ongoing feedback, coaching, performance evaluation, development planning, and follow up (Heathfield, 2011). All of these things need to be conducted to improve the health of the organization. First management needs to set expectations. These expectations need to be set for every position within the organization. Secondly management needs to gather performance evaluation data. This data gives management information about how well the employees are performing in different areas. Management then evaluates these performances to see what is working and what is not working. Management then develops feedback for the employees. This feedback is a process by which effective performance is reinforced and the less than desirable performance is corrected. Lastly, management comes up with a development plan that creates experiences for the employees that promote skills and knowledge related to the position. The purpose of this system is to enhance the health of the organization.

Effectiveness of various performance appraisal methods and possible problems affecting performance appraisals.

"Performance appraisal is a multistage process involving several activities, which can be administered using a variety of approaches" (Fao Corporate Document Repostory, n.d. , p 1) Many types of performance appraisal methods are used and each one has its benefits. Some of these methods are intuitive approach, self-appraisal, group approach, trait approach, and achieved results method. The intuitive approach is when an appraiser judges the employees based on the perceptions they have for him or her. This method can often be tainted and is not as effective as other methods.

The next method is the self-appraisal method and involves the evaluation of one's own performance. This method is great for self knowledge but is less effective because of no outside influences. The next method is the group approach is when an employee is evaluated by a panel or a group of managers. This is an effective method because the employee's performance has less of a chance for being tainted by bias. The trait method is of performance appraisal is when an appraiser bases the employee's performance on observed traits. This is not an effective method either as it is often affected by biased views. The last, and most effective method, is the achieved results method of appraisal. Using this method a manager bases the performance rating on the achievements of the employee compared with the goals set for the employee. This is effective because it allows for a clear picture of the whether an employee is performing at a low or high level.

Many errors can be made in performance appraisal so "fairness in rating performance and interpreting performance appraisals requires that managers understand the kinds of distortions that commonly occur" (Noe, Hollenbeck, Gerhart, & Wright, 2007, p 269). Some of these errors can be factors like a similar to me mentality, contrast, error in distribution, halo and errors. The first method is the similar to me mentality and this consists of the appraiser giving higher ratings to employees similar to themselves. Employees whom are in the same social class, similar physically, or have a similar work ethic may be more appealing to the appraiser and receive a hirer rating. The next method is the contrast method of error and this consists of the appraiser comparing the employee's performance to other employee's performance. This is an error because the person evaluating performance should be basing the rating on the standards set for that position.

The next method of error in performance is known as errors in distribution,

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