HRM Issues in Fastening Technologies Limited
According to the given case study , there are several HRM issues at Fastening Technologies Limited. This section of the report will provide an analysis and evaluation of Performance Appraisal and Rewards system and Policy of FTL.
Analysis and Evaluation
The approach of the company towards reward policy was not very good. The total payment structure of the employee doe not comprises non-monetary benefits for the employees to motivate them to Assignment Provider team)
work with dedication (Robins, 2002). Catharine also found that the rewarding system discriminates among employees on the basis of gender. When Angela Downley was appointed as the quality manager, she found that she is getting the low salary in comparison to Phil. She has also not got a car from the company, whether most of the higher employees have a car. Steve commented on this issue that “it was just a co-incidence that the first two managers he appointed after making this decision happened to be female”. (Case Study, p. 14) ( we are most experience and most trusted
The company does not give any extra benefits to the employees and the percentages of bonus are very low. Some of the senior staff members are getting less salary in comparison to their team members.
The performance appraisal system is also based on grading given by the supervisor, without any evaluation of performance. Although the other members have proposed competency based performance appraisal system but management is continuously working on the old appraisal system, which has developed dissatisfaction among the employee. The weak management style of Steve was damaging the professional standard and status of business personnel. Thus, there is a need for the appropriate reward policy and performance appraisal system in the company.
Strengths: According to Deeprose (20007) reward system gives motivation and encouragement to the employees to work for the organization. They are far more than just bonus plans and stock options. Reward systems mostly include various awards, recognition, promotions, reassignment, non-monetary bonuses linked to the performance of the employees. It includes a variety of monetary as well as non-monetary rewards (Deeprose, 2007). The use of reward system assumes that people’s actions are related to their skills and ability to achieve important long-run goals. Even though many organizations, by choice or tradition or contract, allocate performance on non-performance criteria, rewards should be regarded as a “pay off” for performance (Mathis & Jackson, 2006).
Performance Management is the integration of performance appraisal systems, with broader human resource systems as a means of aligning employees’ work behaviors with the organization’s goals (Tyson & York, 2000). Reward system helps in performance management as it increases the motivation of the employees to work and encourages them to work hard. It evaluates the performance of the employees and helps in identifying the strengths and weaknesses of the employees (Roberts, 1994).
Rewards create a positive working environment in the organization and develop a spirit of mutual cooperation and team work. They help in improving the skills and performance of the employees by offering them some monetary or non-monetary benefits (Nelson & Quick, 2007).
Limitations: Reward Policy scheme and performance management system may cause the following ill effects:
In the absence of a ceiling on reward earnings and to record highest performance, some workers may overwork and thereby spoil their health (Roberts, 1994).
In order to maximize the output, employee may sacrifice with the quality of the products, unless stick check or inspection is maintained (Allen & Kilman, 2001).
Once an incentive plan is introduced, management may face resistance while revising standard and rates due to the changes in technology method, machinery and materials (Robins, 2002).
Strict vigilance becomes necessary to ensure that workers do not disregard safety regulations (Nelson & Quick, 2007).
Conclusion
From the above discussion, it can be concluded that reward and performance management system is an important part of the company to manage human resources and increase the productivity of the company. The system should be competent enough to motivate the desired behaviors. In such system the rewards should be related to performance.
Recommendations
It has been identified that the case study has various problems, thus the management should execute some recommendations to solve the problems:
Implementation of On-Job and Off-job training program to increase the knowledge of the employees. Development of coaching networks and appoints mentors to increase experiential learning (Mathis & Jackson, 2006).
The company should execute new reward system (Appendix 1) as per the designation. Some other monetary benefits should also be given to the employees (Appendix 2). This would also include non monetary incentives such as an employee of the month, vacations trip, casual leave, paid leaves, certificates, thanks notes, greeting to the employees, sharing his name with all other employees, chocolates and gifts, value card, etc. (Appendix 3). The reward system should be based on the equal employment opportunity act (Allen & Kilman, 2001).
In order to develop strong relationships among employees and increase their performance the firm should follow the path of conflict (Appendix 4). This path of conflict will resolve all the issues and conflicts among the employee and increase mutual understanding (Nelson & Quick, 2007).
The firm should follow a definite process of recruitment and selection, which comprise following steps: preliminary interview, application blank, selection test, employment interview, medical examination, reference checks, and final approval (Robins, 2002).
All these recommendations would help the firm to decrease the high rate of absenteeism and improve employee morale. It would improve the performance of the employees, which ultimately increase the productivity of the employees and profitability of the company. ( Get assignment help from world no 1 assignment help company)
According to the given case study , there are several HRM issues at Fastening Technologies Limited. This section of the report will provide an analysis and evaluation of Performance Appraisal and Rewards system and Policy of FTL.
Analysis and Evaluation
The approach of the company towards reward policy was not very good. The total payment structure of the employee doe not comprises non-monetary benefits for the employees to motivate them to Assignment Provider team)
The company does not give any extra benefits to the employees and the percentages of bonus are very low. Some of the senior staff members are getting less salary in comparison to their team members.
The performance appraisal system is also based on grading given by the supervisor, without any evaluation of performance. Although the other members have proposed competency based performance appraisal system but management is continuously working on the old appraisal system, which has developed dissatisfaction among the employee. The weak management style of Steve was damaging the professional standard and status of business personnel. Thus, there is a need for the appropriate reward policy and performance appraisal system in the company.
Strengths: According to Deeprose (20007) reward system gives motivation and encouragement to the employees to work for the organization. They are far more than just bonus plans and stock options. Reward systems mostly include various awards, recognition, promotions, reassignment, non-monetary bonuses linked to the performance of the employees. It includes a variety of monetary as well as non-monetary rewards (Deeprose, 2007). The use of reward system assumes that people’s actions are related to their skills and ability to achieve important long-run goals. Even though many organizations, by choice or tradition or contract, allocate performance on non-performance criteria, rewards should be regarded as a “pay off” for performance (Mathis & Jackson, 2006).
Performance Management is the integration of performance appraisal systems, with broader human resource systems as a means of aligning employees’ work behaviors with the organization’s goals (Tyson & York, 2000). Reward system helps in performance management as it increases the motivation of the employees to work and encourages them to work hard. It evaluates the performance of the employees and helps in identifying the strengths and weaknesses of the employees (Roberts, 1994).
Rewards create a positive working environment in the organization and develop a spirit of mutual cooperation and team work. They help in improving the skills and performance of the employees by offering them some monetary or non-monetary benefits (Nelson & Quick, 2007).
Limitations: Reward Policy scheme and performance management system may cause the following ill effects:
In the absence of a ceiling on reward earnings and to record highest performance, some workers may overwork and thereby spoil their health (Roberts, 1994).
In order to maximize the output, employee may sacrifice with the quality of the products, unless stick check or inspection is maintained (Allen & Kilman, 2001).
Once an incentive plan is introduced, management may face resistance while revising standard and rates due to the changes in technology method, machinery and materials (Robins, 2002).
Strict vigilance becomes necessary to ensure that workers do not disregard safety regulations (Nelson & Quick, 2007).
Conclusion
From the above discussion, it can be concluded that reward and performance management system is an important part of the company to manage human resources and increase the productivity of the company. The system should be competent enough to motivate the desired behaviors. In such system the rewards should be related to performance.
Recommendations
It has been identified that the case study has various problems, thus the management should execute some recommendations to solve the problems:
Implementation of On-Job and Off-job training program to increase the knowledge of the employees. Development of coaching networks and appoints mentors to increase experiential learning (Mathis & Jackson, 2006).
The company should execute new reward system (Appendix 1) as per the designation. Some other monetary benefits should also be given to the employees (Appendix 2). This would also include non monetary incentives such as an employee of the month, vacations trip, casual leave, paid leaves, certificates, thanks notes, greeting to the employees, sharing his name with all other employees, chocolates and gifts, value card, etc. (Appendix 3). The reward system should be based on the equal employment opportunity act (Allen & Kilman, 2001).
In order to develop strong relationships among employees and increase their performance the firm should follow the path of conflict (Appendix 4). This path of conflict will resolve all the issues and conflicts among the employee and increase mutual understanding (Nelson & Quick, 2007).
The firm should follow a definite process of recruitment and selection, which comprise following steps: preliminary interview, application blank, selection test, employment interview, medical examination, reference checks, and final approval (Robins, 2002).
All these recommendations would help the firm to decrease the high rate of absenteeism and improve employee morale. It would improve the performance of the employees, which ultimately increase the productivity of the employees and profitability of the company. ( Get assignment help from world no 1 assignment help company)
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