Cultural factors impact on effectiveness of the organization performance appraisal system.

Figure 01: 360 degree performance appraisal system

Source : (Vaidyanathan,2014)

The combination of knowledge, belief, law, custom moral, Capabilities and habits of a man as a member of society is known as culture (Tyler, 1998).  Cultural factors are influenced for the psychological or emotional norms or threats and nature, timing and tasks (Carter, 1986). Cultural factors are directly affected for entrepreneurship, innovations, knowledge transfer and productivity. The productivity through determining social decision-making process, attitude towards innovation, ability to adjust to economic changes and through attitudes towards social equality are affected by Culture and cultural factors (David Throsby, 2001).

Performance Appraisal is a procedure of evaluating an employee performance of job in terms of its requirements. The system's effectiveness is defined as an external standard. According to literature how well the system is meeting the demands of the various groups and organizations that are concerned with its activities (Pfeffer, J. and Salancik, G., 1978). This approximately is an idea for doing the correct things or having validity of outcome (Hines, 2000). 

The cultural values that are operated should be clearly understood to use performance appraisal system effectively by the organization and national culture is influenced for it. The performance appraisal practice which is based on individual based performance has positive impact on organizational outcomes. The cultural factors are mostly impact on the effectiveness of 360⁰ degree performance appraisal process (Peretz, 2016). It is important to employees to understand own personality from an outsiders’ perspective. Also, it has positive effect on productivity and innovation in lower power distance societies. But 360-degree performance appraisal process is not suitable for the organizations which have cultures with high power distance. The organizations which have cultures with strong future orientation are mostly use performance appraisal process to evaluate employees. Therefore, it is provided basic idea about the way individuals engage in future oriented behaviors.

The value that is given by the society for individual opportunities and rights versus loyalty to the group is referred by individualism and collectivism. Individual outcomes, lower levels of innovation and turnover are the main factors organizations with collectivist societies are focused by adopting performance appraisal system. The cultures those are developed strict rules and norms are implemented performance appraisal systems to have lower levels of turnover and higher levels of innovation (Peretz, 2016).

References

Vaidyanathan, S., 2014. Analysis and adaptive synchronization of eight-term 3-D polynomial chaotic systems with three quadratic nonlinearities. The European Physical Journal Special Topics, 223(8), pp.1519-1529.

Carter, B. &. M. M., 1986. The Changing Family Life-Cycle:, Boston: Ally & Bacon.

David Throsby, 2001. Economics and Culture. Sydney: Cambridge University Press,.

Hines, P. a. T. D., 2000. Going Lean – A Guide for Implementation,, Cardiff: Lean EnterpriseResearch Centre, Cardiff Business School.

Peretz, H., 2016. The Link Between Performance Appraisals and Culture: An Examination Across 21 Countries, Ort Braude: Northern Colorado Human Resources Association.

Pfeffer, J. and Salancik, G., 1978. The External Control of Organizations: A Resource Dependence Perspective. New York: s.n.

Tyler, 1998. British Antroplrgist, s.l.: Auruch.

Comparison of motivational theories on improving employee performance

Motivation is created desire in employees to achieve organizational goals. According to the Robert Dubbin, (2006), motivation is the composite set of forces starting and keeping a person at work in an organization and something that moves the person to action, and continues in the course of action already begun.

Maslow’s hierarchy of need theory

In 1954 Abraham Maslow was introduced a theory called Maslow’s hierarchy of theory. The theory was introduced as a pyramid with five stages as below,

Figure 1: Maslow's Hierarchy of Need theory

Source: (Management Study Guide, 2019)

Basic needs - Companies been given a chance to their employees for low interest rate housing loans to fulfill their one of basic human requirement of shelter, organized training programs to their employees to reduce their psychological pressure and provided a good working environment to fulfill employees’ basic needs.

Safety needs - Safety working environment helps to fulfill the second stage of Maslow’s hierarchy of need to employees. Companies should be provided safety transport services to their employees to fulfill their safety need.

Love and belonging need - Companies are provided medical claim service to their employees to fulfill this need and given a life insurance for their employees. For an example, when one of employee in production department enter the marriage life Ruhunu products pvt ltd is given 25, 000 as a gift.

Self-esteem need -  It is represented the highest level of psychological development. Training and development improve the self-esteem of employees. Companies are organized reward ceremony to evaluate the achievements of their employees and made a pleasant working place. Dialog Axiata has been changed their engineering office architecture according to modern techniques to feel as unique place for them and relax their mind as well.

Self-actualization need - For higher studies HNB provides interest free loans to the staff members and also if employees have been paid by their own cash, they can reimburse it from the bank.

 Herzberg’s two factor theory

One of important motivational theory, two factor theory was developed by the Fredrick Herzberg.

Figure 2: Herzberg's two factor theory

Source: (Toolshero, 2019)

The two-factor theory (Hygiene factors and Motivators) have been applied by companies to increase employee performance as below,

Hygiene factors

Mainly the company should be certified job security of the employees. It is impact to trust them self and work hard to achieve organizational goals. Organizational culture should be more attractive for the employees. It should be contained fulfill basic needs of the employees, relationships, safety and team spirit. Because in most of the companies’ organizational culture has been become main demotivation factor and has been directly impact to decreasing employee performance. Companies are paid salaries, bonuses and overtime payments on time to their employees. With the bureaucratic leadership style CEAT Kelani has been made organizational policies to friendly to the employees.

Motivators

Company should be appreciated every step of the employee to achieve company targets. It is getting as an inspiration and become motivate trough it by employees. It is directly impact for enhancing employee performance because they are started to work more for their reward or promotion. Companies are given promotion opportunities, opportunities for personal growth, recognitions, responsibilities and achievements to build employees job satisfaction. But the companies should be treated for the employees as same.  It is easy to increase performance of the employees through motivation.

The managements of companies are being expected to enhance the employees’ motivation.

The theory of equality suggests that people will change the amount of effort have to achieve in relation to their own perceptions of others. If company is done the same thing, but much less effort is being made, these theories are suggested that the scale of the work has been brought to a high level. Herzberg theory do not allow the same degree of individual individuality between the people. Individual perceptions and thus personal stories are taken into account. The companies should be investigating the employees effectively otherwise employees can be demotivated and deceased employee performances. Herzberg’s two factor theory is an effective theory to apply for companies but its motivated employees only watching their outside. The management of the company is less concerned about the basic needs of employees. Maslow’s hierarchy of needs theory is the most appropriate theory which can be applied for a company to motivate their employees for increase employee performance.

References

Management Study Guide, 2019. Maslow’s Hierarchy of Needs Theory. [Online]
Available at: https://www.managementstudyguide.com/maslows-hierarchy-needs-theory.htm
[Accessed 29 November 2019].

Toolshero, 2019. Two Factor Theory by Frederick Herzberg. [Online]
Available at: https://www.toolshero.com/psychology/theories-of-motivation/two-factor-theory-herzberg/
[Accessed 29 November 2019].

Smith, A.M., Hudson-Edwards, K.A., Dubbin, W.E. and Wright, K., 2006. Dissolution of jarosite [KFe3 (SO4) 2 (OH) 6] at pH 2 and 8: Insights from batch experiments and computational modelling. Geochimica et Cosmochimica Acta, 70(3), pp.608-621.

The key steps of negotiating and generating business deals

The five steps in negotiation process have been built in 1993 from various client experiences at organizations around the world. The process is used to negotiate or agreement is reached while avoiding argument and disagreements. Concession is granted in response on is a thing that response to demands (Dreu, 1999).

Figure 1: Negotiation Process

Source: (Watershedassociates, 2019)

The above process can be used to present valid solutions for dealing with issues that can arise as below,

Preparation

In this stage should consider what the other party might have to offer. Consideration has to be given to value of the concession, what worth are to company and what would be worth to the other side (Thomas, 2011). It shapes the other parties’ perception. For an example construction company can be made list of concession willing to off such as discounts.

Developing and choosing strategies

Company should be uncovered and evaluated wants and needs such as designs and quality etc. of other party. It is important to hold the line and show resolve with respect to value idea and opening position.

Opening and moves

Most suitable is get the other party to move first. It is helped to carry strong signals as to the flexibility of other party, can be adjusted the distance between the party’s position and setting high opening targets.

Bargaining and problem solving

High value is represented to the other party at lowest cost by low cost negotiable. Concessions of high perceived value can be found at comparatively low cost by it.

Closure and implementation

Use concession pattern designed to influence fundamental interests. It communicates resolve flexibility and then increasing returns moving toward closure.

Conclusion 

According to the above evaluation the negotiator will not give up too much too soon and that an appropriate and it is critical to ultimate success of the negotiation to deal with the concession process early. There are strengths of negotiation process such as able to compete with the major parties strengthening engagement, strengthening group loyalty, improving the clarity of the problem can lead to new innovative approaches, conflicts can be resolved, underlying problems can be resolved, focusing on fundamental issues and leading to improved energy levels and the possibility of influencing the management of the negotiations can be imagined. Fear of disability, feelings of insufficiency, low productivity through high conflict can be ruined relationships, can be ruined work patterns, huge amounts of productivity and productivity losses are some main weaknesses of negotiation process.

References

Dreu, B. a., 1999. Negotiation processes and outcomes in prosocially and egoistically motivated groups. International Journal of Conflict Management, 10(4), pp. 385-402.

Thomas, S. a. H., 2011. Managing organizational change: Negotiating meaning and power-resistance relations. Organization Science, 22(1), pp. 22-41.

Watershedassociates, 2019. Negotiation Stages Introduction. [Online]
Available at: https://www.watershedassociates.com/learning-center-item/negotiation-stages-introduction.html
[Accessed 07 November 2019].

The importance of employee relations in respect to influencing HRM decision-making

Employee relation provides consultation and resolution strategies for work place issues. It’s important for build strong relationship between employees and supervisors (Utahstate university, 2019). Employees are represented by union. Employee relations are important for HRM decision making as below:

Figure 01 : Employee relations and HRM

Source : (Locus, 2019)

There can be some issues on which an individual cannot take decisions alone

Sometimes management can be missed key points and they need advice others as well. Fellow workers may come out with brilliant ideas which can solve these issues and achieve targets easily. If the management give chance to express employees’ opinion freely, then the management come to know where they are going wrong. If the company does not continue good relation with employees, there is no one to help them .This is done by some banks of Sri Lanka like Sampath Bank PLC and Commercial Bank PLC. (Management Study Guide, 2019).

Decision making become easy

If there is healthy relation within company, work and the responsibilities shared among all. Then the management can be coached their employees and can be made decisions at the right time. David Pieris Group of Companies has been succeeded because of their healthy employee relation and easy decision-making procedure (David Pieris Group Of Companies, 2019).

Can easily find out the methods to motivate employees

Generally, company has a responsibility to motivate employees. If there is a good employee relation, they can be identified what the employees want to increase their motivation and make decisions according to the point they identified. Then good working environment can be made by the company. Hamas Holdings PLC is motivated employees using employee relation by organizing training and development programs, Individual Development Center (IDC) and giving rewards (Hemas Holdings PLC, 2019).

Make decisions to organize effective training programs

Management can be easily identified the employees who need training and development programs by communicating with employees. It is important to identify what kind of training they need. Then the company can be organized most effective training and development programs. Google is recruited people and develop them by giving training programs. But they are coming to know about the employees who need training by using their employee relation (Zach, 2019).

 Get decisions about company rules

If there are good employees’ relations, management do not need to make strike rules and the management can be followed democratic method when they get decisions about company rules. Apple has been used employee relation to get decisions about company rules to solve their employee issues. But sometimes it has been struggling (Sam, 2019).

Give the right job for right person

Employee relation has ability to identify the talent and skills of employees.so the company can be selected the most suitable person for the job. Then company can be given the right job for the right person. Coca-Cola has been made a team to continue employee relation strongly because they had long distance employee relation. That team is handling employee conduct, attendance, interpersonal relationship and other employee issues face-to-face. They provide the jobs by identifying employees’ talent and skills through opinion (Hastings, 2012).

References

David Pieris Group Of Companies, 2019. Our Evolution. [Online]
Available at: http://www.dpg.lk/about-us
[Accessed 07 November 2019].

Hastings, 2012. Long-Distance Employee Relations at Coca-Cola, s.l.: Socity of Human Resource Mangement.

Hemas Holdings PLC, 2019. Employee Relations. [Online]
Available at: http://www.hemas.com/images/hemas_financial_reports/2006_2007/38_P35_36.pdf
[Accessed 06 November 2019].

Locus, 2019. HRM on Employee Relations Assignment. [Online]
Available at: https://www.locusassignments.com/solution/hrm-employee-relations-assignment
[Accessed 07 November 2019].

Management Study Guide, 2019. Importance of Employee Relations - Why Employee Relations at Workplace?. [Online]
Available at: http://managementstudyguide.com/importance-of-employee-relations.htm
[Accessed 06 November 2019].

Sam, B. , 2019. Why Apple’s Employee Relations Could Be Its Biggest Problem. [Online]
Available at: https://www.cheatsheet.com/business/why-apples-employee-relations-could-be-its-biggest-problem.html/?a=viewall
[Accessed 06 November 2019].

Utahstate university, 2019. Employee Relations. [Online]
Available at: https://hr.usu.edu/employment/current-employees/employee_relations
[Accessed 06 November 2019].

Zach, B. , 2019. Inside Google’s Culture of Success and Employee Happiness. [Online]
Available at: https://blog.kissmetrics.com/googles-culture-of-success/
[Accessed 06 November 2019].

Evaluation on the effectiveness of the recruitment and selection techniques in Hayleys PLC and MAS Holdings

The process of recruitment and selection of two companies can be mentioned as below,

Figure 1: Recruitment and Selection process of two companies

(Author Developed)

HRM practices	Hayleys PLC	MAS Holdings
Recruitment	Mostly they are doing the external recruitment. Competency recruitment from stuff investigates (Xpert HR, 2017).	Recruit under two categories as shop floor operations and staff (assistant), executive (managers) and above (DGM, GM) (Ehalamalpe, 2019).
Selection Technics	Their new selection process has been based on 11 talents. The main part of the selection process is interview. Script of questions has been designed to linking those 11 talents. A candidate who eligible for next level is selected from 15 applications (Xpert HR, 2017).	First priority to internal references and through the CSR activities, operational areas are concerned internal recruitment under 1st category. Paper advertisements are used for external recruitment (Ehalamalpe, 2019).          Social media and head hunting are used to recruit under 2nd category (Ehalamalpe, 2019).

Table 1: Recruitment and Selection Process of Hayleys and MAS

(Author Developed)

According to above table advance recruitment and selection techniques are followed by MAS Holdings rather than Hayleys PLC. There is no equal technique or point among two companies. Recruitment and selection technics of Hayleys PLC is based on 11 talents. But there can be candidates who couldn’t perform under those talents in interviews but have another talent that help to the company to achieve targets. Hayleys PLC is expecting competency recruitment but it unfair for both the candidates and company. 

Focusing on same talent can be missed effective and educated people and Hayleys PLC has minimum chance to change their recruitment and selection techniques with social changes. Doing external recruitment mostly is minimized the chance to develop to internal employees of Hayleys PLC. According to authors’ opinion recruitment and selection techniques of Hayleys PLC should be developed as MAS Holdings.

Both Internal recruitment and external recruitment are done by MAS Holdings. In case it is provided opportunity to internal and external candidates equally. Head hunting is a good method to recruit knowledgeable and experienced people to top level and middle level management of MAS Holdings. Recruitment and selection are done under two categories is help to continue healthy employee relations and decrease the issues within MAS Holdings. According to the authors’ opinion have suggested MAS Holdings should introduce selection technique under second category for internal candidates. However both companies should be developed their selection techniques with the development of technologies.

 References

Ehalamalpe, C., 2019. HRM Practices In MAS Holdings. [Online] 

Available at: https://www.slideshare.net/chandikeehelamalpe/hrm-practices-in-mas-holdings

[Accessed 28 October 2019].

Xpert HR, 2017. Case study: Hayley's new talent-based selection process. [Online] 

Available at: http://www.xperthr.co.uk/editors-choice/case-study-hayleys-new-talent-based-selection-process/63815/

[Accessed 29 October 2019].

The way functions of HRM, applicable to workforce planning and resourcing and provide talent and skills appropriate to fulfill business objectives an organization

Human Resource Management is a concept used to describe fixed structure plan for dealing with people within an organization. All the employees and managers are controlled by the HRM. It’s directly affected for each and every department of an organization.

Figure 1: Human Resource Management Functions

  Source : (S.Surbhi, 2018)

Deciding the number and type of the human resources required for each job or unit and particular date to carry out organizational activities can be called as Human Resource Planning. The basic economic concept of demand and supply is focused by it. The main purpose of HR planning is company can meet future demand of Human Resource with supply of suitable people in suitable numbers at the suitable time and place (Management Study Guide, 2017).

Recruiting is the process of generating a pool of qualified applicants for organizational jobs. It is done as internal and external. Find the best talents for the vacancies manage the recruitment sources, manage the vacancies in the organization and building the strong marketing platform are the goals of recruitment. Company can be recruited most eligible candidates for its vacancies by achieving those goals.

The process of selecting a qualified person who can be successfully delivered valuable contribution to the organization is called as selection. Application evaluation, employment test, interview, background investigation and medical test are the stages of selection process. Company can be concerned candidates’ profile and can be selected qualified candidates for the vacancy. It is directly impacted for the all the functions of HR process (citeman, 2017).

Performance evaluation is the systematic evaluation of the performance of employees and understands the abilities of a person for further growth and development (J.C.McDavid, 2018). The purpose of performance evaluation are place right men on right job by identify the strengths and weaknesses, provide a feedback to employees regarding their performance, review training programs and assess the potential present in a person for further growth and development. Strong relationship is built between employer and employee by achieving those purposes and it important for success of the organizations’ mission.

Compensation is everything that a company offers its employees in return for their talent and time and affected for the business outcomes. There are many purposes of compensation management. If a company have competitive compensation plan, it leads to top industry talent. Compensation management is affected to drive motivation across teams and enhance employees’ motivation. An effective compensation plan is helped to be safe legally from labor standards acts.

Training and development are a function concerned with organizational activity aimed at enhances the job performance of individual and groups in an organization. it is helped companies to improve the quality of work done by their employees. Employees who takes development program have chance develop professionally and to becomes better at his job. Through training and development, the employee is up to date with new technology and it important for the effectiveness of achieving targets. Employees get knowledge about different risk involved in their jobs. Then it is helped to reduce issues within organization.

‘Talent’ is inborn ability of a person to do something. ‘Skill’ is a learnt ability. Skills are more important than talents for a job. Organizations are survived the talent and skills of employees of the organization and determined what are the skills and talents they have to develop and plane methods to enhance them.

HRM functions are done the enhance knowledge related to employees’ talent and skills. Generally, employees should have skills such as analyzing, judgment, coaching and communication etc. Business objectives are fulfilled through affecting for the effectiveness and the motivation of employees’ by HRM functions. The main business objectives are staffing objectives, performance objectives, change management objectives and administration objectives. HRM functions can be provided talent and skills appropriate to fulfill these business objectives as below.

These objectives are directly affected for the organizational structure. Right people are important for achieve company other goal and objectives profitability. Human Resource managers should be concerned on staffing otherwise recruit people. Human Resource planning and staffing are the functions that helped for fulfill this objective.

Change is certain in an organization by requiring reorganization of activities and hiring new people to fill in particular roles. Human Resource managers recruit or develop people with leadership skills to guide the change process. It is carried on the skills and can be easily filled in particular roles. For an example, if the organization plan to improve the effectiveness, HR managers can be introduced new interact and train employees.

Human Resource managers have responsibility to maintain accuracy of performance reports, terms and conditions of employment and training and attendance records. This process is done by the decline management and it is related to the labor relation because these data are essential for follow with legal regulations such as equal pay act.

HR managers should be ensured that employees are well motivated. By using those functions in HR process such as training and development, performance evaluation and pay management organization can be inspired their employees to perform well. HR managers can be measured employees’ performance using performance evaluation. Compensation management and training and development are increased employees’ performance through increasing motivation.

References

citeman, 2017. purpose of selection. [Online] 

Available at: https://www.citeman.com/12836-purposes-of-selection.html

[Accessed 22 October 2019].

J.C.McDavid, I. H. a. L., 2018. Program evaluation and performance measurement: An introduction to practice, s.l.: Sage Publications.

Management Study Guide, 2017. What is Human Resource Planning ?. [Online] 

Available at: https://managementstudyguide.com/human-resource-planning.htm

[Accessed 22 September 2019].

S.Surbhi, 2018. Difference Between Personnel Management and Human Resource Management. Key Differences, 20 July.