Running head: HUMAN RESOURCE MANAGEMENT

Human resource management

Name of the student

Name of the university

Author’s note
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Table of Contents
Introduction................................................................................................................................2

Discussion..................................................................................................................................2

Human resource management issue regarding appraisal and managing performance..........2

HR practice work areas and related issues.............................................................................4

Theories and literature related to the issue.............................................................................6

Recommendations to remove the issue..................................................................................7

Conclusion..................................................................................................................................8

References..................................................................................................................................9
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Introduction

The process of handling individuals to achieve better results is Human Resource

Management, or HRM. For instance, if you employ people in a company, you are looking for

candidates who match the culture of the company as they will be satisfied, stay longer, and

become more efficient than employees who will not fit into company's culture (Noe et al.,

2018). It provides strategic approach for managing personnel in the company as they are the

resources who will help in gaining competitive advantage. It maximizes the performance of

the employees and help in aligning the employee performance with the strategic objectives of

the company. The report aims at defining the issues regarding the managing performance and

appraisal. The report further comprises analysis of HR practices and the issues that arise and

personal reflection on the issue along with the recommendation on how HR practices can deal

with the issue.

Discussion

Human resource management issue regarding appraisal and managing

performance

Performance management is a strategic system in which the goals of organisations are

set and accomplished by means of the target setting process for individual employees.

Performance management should strive to allow an organisation to provide scope for

employees and organisational growth for a continuous communication and commitment

building process (DeNisi and Murphy 2017).

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The required results are achieved by the strategic application of the performance

strategy and its implementation. But in many organizations, there are many issues related to

the appraisal system and management of the employees.

The issue faced by me in my organization regarding appraisals and performance

management was biasness in rating system.

Biases can lead to employee ratings inflation or deflation, which can have serious

consequences in high-stakes circumstances such as recruiting and performance reviews.

The common biasness that was faced by me in my organization was:

 Recency biasness: Managers prefer to concentrate on the most recent time span

instead of the entire time period when assessing the output of an employee.

 Primacy biasness: Managers rely on information gained early on in the partnership,

such as first impressions, when assessing employee results (Cappell and Tavis 2016).

 Halo effect: managers used to allow one positive or bad attribute to dominate

others, for example letting the friendly sense of humour of an employee overpower

their weak communication ability.

 Central tendency bias: Managers appear to rank most employees at the core of a

rating scale. The managers used to ate the employees on their preferences rather than

the performance.

 Leniency bias: managers in my organization mostly give favourable ratings even if

the employee performs beyond their expectation. This not only affects the appraisals

but also lowers the morale of the employees.

 Confirmation bias: The propensity to look for new knowledge or view it in a way

that reinforces the pre-existing beliefs of an individual. This is a lot like the bias of

primacy, but it can appear to go much deeper (López-Fernández 2019).

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 Gender bias: When providing input, managers tend to concentrate more on the

personality and behaviours of women. In comparison, they concentrate more on male

perceptions and achievements. This exacerbates gender inequality, prospects for

appraisals / promotion, and the disparity in pay.

HR practice work areas and related issues

HR has a major role to play in every process of the organization. The major HR

functions of human resource department are recruitment and selection, compensation

benefits, employee relations, HR compliance, training and development, payroll, human

resource information system, employee well-being and other functions as well.

Since HR provides the best workforce which is the basis for achieving organizational

objectives. But there are certain issues related to every working area of the human resource

department. Some of them are as follows:

Compensation and benefits

Effective companies recognise the value of providing their workers with competitive

wages and benefits. To recruit and maintain top workers, keeping up to date on wage trends is

crucial. In today's job market, if they believe they would be better paid good workers would

search for a place down the street. Employee compensation and benefits in an annual

budgeting process should be planned and managed (Kowalski and Loretto 2017).

Legal issues are main concerns of HR practitioners who administer benefits plans. In

addition to being competitive with the external market, within the company, compensation

must be equal internally. In order to appreciate outstanding results, employers usually tend to

reward high performers with more money and attempt to establish salary gaps between

workers in the same work. Similarly, as HR professionals aim to develop fair pay rates so that
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a company could attract and retain talented talent, to gauge its competitiveness, they equate

their compensation rates to the rates in reported surveys. However, several complexities

create problems.

Recruitment and staffing

Finding the best workers for your company can be difficult. Recruiting and selection

applications can be a tiring job, but it can be very manageable with electronic screening

systems. There are several programmes and websites with applications that can assist with

this.

The major problem of HR in this area is attracting top talent. Recruiters are also

having difficulty recruiting top talent. It's the job market of an applicant, and employers have

to work harder to win the interest of coveted prospective workers. Company will lose out

top applicants if job seekers hear negative things about the business or don't like what they

see.

Employee relations

There can be a direct link between a workforce of committed workers and improved

efficiency and improving the bottom line. This indicates that a significant part of the HR

management role is to provide a strategy to build and maintain good employee relations. To

deal with employee problems that will eventually arise, it is important to have a mechanism

in place (Holland 2019).

There are several issues which affect employee relations and on daily basis HR

department has to deal with it. Some common issues are The Company can be adversely

affected by conflicts, sexual assault, annual leave disputes, bullying and other problems with

employee relations.
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Legal compliance and labour laws

There are numerous rules regulating how corporations handle labour and activities. A

significant part of business management is to remain compliant. SHRM is also a great HR

function that enables company owners to stay posted on evolving work laws. In order to build

a robust HR programme that supports workers, safe and effective companies invest time and

money.

HR-related regulation focuses on employee-related issues, including when and how to

pay overtime, the records of workers to be preserved, compensation administration, recruiting

practises and dismissal policies.

Theories and literature related to the issue

The theories which can be applied to the biasness issue related to appraisal and

performance management are Hertzberg two factor and expectancy theory.

According to Baumann and Bonner (2017), Vroom’s theory of expectation suggests

that action arises from deliberate decisions between alternatives aimed at maximising

satisfaction and mitigating pain. Expectancy is the expectation that greater commitment can

lead to better results , i.e. if managers end up working with maximum optimism and set

targets at work that are likely to produce less prejudice among the employees.

The theory of expectation suggests that work motivation depends on the perceived

correlation between success and results, and individuals adjust their actions based on their

estimation of expected results. Thus, if the managers at work are able to correlate their work

with success and know the consequences of their doings they will less involve in practices

which creates distinction among the employees.

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To remove the issues with appraisals and performance, implementing Herzberg two

factor theories is of utmost importance. Because absence of these two factors generates

demotivation among the workforce. To boost the morale and treat the employees fairly, HR

department implements the fundamentals of the theory in the workplace (Alshmemri,

Shahwan-Akl and Maude 2017).

The motivation factors of the theory will help in improving appraisal and performance

because when the employees including the managers are motivated, the workplace will be

free from conflicts and biasness and the employee will feel valued connected with the

company.

Recommendations to remove the issue

In some sense, everybody is biased. The biasness in the organization can be

eliminated by implementing the following steps:

 Both human beings are subject to implicit biases. To allow reflection on their duties

and how they carry them out, HR workers need to be proactive. It's really tempting to

let an implicit bias fall by when HR is responsive to a situation. Before implicit biases

take over, they have to dig deeper into circumstances and find the underlying

problem.

 Using objective standards to continually consider how and why decisions are being

made. To help obtain a new viewpoint, managers need to seek the guidance and

perspectives of those who give a different point of view. Being around different teams

will help to be more mindful of the bias in the workplace (Bratton and Gold 2017).

 For making decisions (staffing, promotion, and so on.), create clear criteria such that

bias is taken out of the decision-making process.

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 Keep decision-makers responsible. Examine the requirements and consider whether it

forcibly screening out such successful applicants for recruitment or promotion.

 Confidentially survey workers to find out what is actually happening in every area of

the job process, from pre-screening resumes to recruiting to promotion to career

opportunities, through rewards and engagement and development, as well as the

process of performance management.

 Reward workers who connect with social groups and, by strengthening diversity,

bring out the best in the community.

 Maintaining transparency in the processes.

Conclusion

From the above discussion it concludes that implementing efficient performance

management strategies is likely to remove the problems in the organization. The

implementation of expectancy and Herzberg theory to motivate the employees will help in

creating a productive working climate which is turn will also improve the issues arising due

to appraisal and performance management in the company.

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References

Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life

Science Journal, 14(5), pp.12-16.

Baumann, M.R. and Bonner, B.L., 2017. An expectancy theory approach to group

coordination: Expertise, task features, and member behavior. Journal of Behavioral Decision

Making, 30(2), pp.407-419.

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.

Cappelli, P. and Tavis, A., 2016. The performance management revolution. Harvard Business

Review, 94(10), pp.58-67.

DeNisi, A.S. and Murphy, K.R., 2017. Performance appraisal and performance management:

100 years of progress?. Journal of Applied Psychology, 102(3), p.421.

Holland, P.J. ed., 2019. Contemporary HRM Issues in the 21st Century. Emerald Publishing

Limited.

Kowalski, T.H. and Loretto, W., 2017. Well-being and HRM in the changing workplace.

López-Fernández, A.M., 2019. Performance management. In Business Leadership and

Market Competitiveness (pp. 49-69). Palgrave Pivot, Cham.

Lussier, R.N. and Hendon, J.R., 2017. Human resource management: Functions,

applications, and skill development. Sage publications.

Mone, E.M., London, M. and Mone, E.M., 2018. Employee engagement through effective

performance management: A practical guide for managers. Routledge.

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Nasir, S.Z., 2017. Emerging challenges of HRM in 21st century: A theoretical

analysis. International Journal of Academic Research in Business and Social Sciences, 7(3),

pp.216-223.

Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2018. Fundamentals of human

resource management. McGraw-Hill.