Performance Management
Performance management has always been a highly debated issue (Storey, 1992). One reason is because of the lack of agreement about its definition. What exactly constitutes performance management? Storey (1992) proposed that performance management ‘refers to any designed activity related to the performance of employees’, claiming that it was similar to performance-related pay (PRP). Bevan and Thompson (1992) claim that a performance management system includes the following characteristics: clear communication of goals to the employee, conducting formal reviews of progress; using the reviews to establish training requirements.
More recent literature defined performance management as merely a process of assessing an employee’s progress towards achieving a company’s goals and is perceived as a useful tool in determining rewards and penalties (Loosemore et al., 2003). Performance management had received many criticisms since its proposal. Despite its usefulness, McGregor (1960) criticized its value claiming that it is demotivating and creates a judgmental setting. Even Deming (1982) the quality expert, raised his concern calling appraisal a ‘deadly disease’ as it opens up a doorway to blame employees for systematic problems that arise in an organization. Hence, performance appraisal has always been deemed to be the least popular of all the other activities in HRM. Yet, its significance cannot be refuted or diminished for indeed the failure to show any evidence of management control
would indicate ineffectiveness (Bratton and Gold, 2003). Lately, the focus of organizations in integrating human resource management together with its business strategies has resulted in companies perceiving performance management as a form of a systematic approach towards performance management (Loosemore et al., 2003).
Among the many advantages of performance management which have been identified by Bratton and Gold (2003) are:
Boost morale and levels of motivation
Help identify suitable candidates for promotion
Aid in the setting of organizational goals
Identify areas that require training and development.
01. How effectively link the competencies with recruitment and performance management
According to the information gathered from the HR department of my company, it ensured that there is a link between competencies and recruitment and performance management. Even though it demonstrates a link there is an issue with the competencies and the recruited process and performance management. It means some employees are not contented with their job role. It has directly affected the performance management of the company. Therefore the company has to match the competencies with the selected employees.
Previous researchers also prove that competencies very closely linked to both recruiting and performance management systems. It ensures that there are four measures related to this area. The first step includes the analysis of the dictionary of competencies. The dictionary of competencies consists of definitions of competencies and the different skill levels. The second step includes work design, where the manager or HR specialist selects competence or competency levels depending on the job requirements. Instead, the selected skill levels are used as a basis to direct the recruitment process where appropriate applicants are sourced. The third step includes an evaluation of an incumbent's results. An incumbent (or holder of a particular job) output is evaluated based on how well they have attained the appropriate level of competency. In the fourth step, differences in competences are established through the performance management process. The disparity between the real levels of proficiency is called distance.
How can manage Human Resource in Construction Sector
Human Resource Management (HRM) is the method of managing people. In the Construction industry, HRM is primarily concerned with ensuring that a project has enough human resources, with the right skills and experience to complete the project successfully. HR managers in the construction firm have to identify the project roles and responsibilities and develop a plan that outlines the end-to-end processes that will be needed on a project (or set of projects) to assess its human resource needs.
Also, the Company has to achieve its goals and objectives through the physical and human resources which they have. Therefore the company has to manage human resources effectively and efficiently. As a construction firm, human resources is the most important input. Because most of the works have based on the skill and the knowledge of human resources. As a part of that the human resource the management team has to consider about the competencies of employees who have to complete their job roles. Also, it is important to gather round more suitable employees for suitable job roll to continue the efficiency and effectiveness of the work done. Further company has to manage their human resource correctly by using a different kind of strategies to obtain competitive advantages,
Human Resource Management process in the Construction industry
As an organization, there is a process to manage the human resource of the company. It has involved selecting the best person for the company and making that person better to do their job in an effective way to achieve the ultimate goal of the company. As a construction firm mainly have to focus on the skill and knowledge based on the job when they plan. Also, construction firms are different from other industries. Therefore the company has to adapt the employees with current skills and knowledge. Also, it is important to create the workplace in a familiar way to get the better performance of the employee. At last Human resource managers have to focus on those criteria when they develop their human resource planning.
Importance of strategic human resource Management for Construction Industry
· The human resource management is involved achieve the budgeted target. HRM help to make performance-oriented culture in the company to get better performance. Also, it helps to make sustainable competitive advantage for the company from the employees· The human resource process help to identify the human resource gap and get necessary actions to fulfill the gap.
