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].