Impact of Introducing Performance Management Initiative

Significance of Performance Management Initiatives

It is known that the performance management is having importance for the both, the employers and the employees. In relevance, employers having the implementation of the performance management system results in having the adequate understanding regarding the effectiveness of the employees’ contribution to the achievement of the organizational objectives. Kuvaas, Dysvik, & Buch (2014), stated that the presence of the effective performance management system enables the HR managers to evaluate the levels of the employee contribution, based on which the changes are considered, either through training and learning development, or analyzing the gaps, in the performances, which can be filled with motivational practices. The integration of the performance management initiatives is perceived as the influential practice. It is mainly because the presence of either of the initiatives reflects the presence of the transparency in the working environment for the employees and the organization contribution for their betterment and increasing their value, serves as the motivational attributes Belogolovsky & Bamberger (2014). Therefore, through employee performance management, the organizations not only sustain the employees’ productivity but also structure the directional paths for their future growth.

Performance Management System and the Initiatives

In concerned with the MiningCo, isolated location and circumstances of working, also involving the frequent traveling, will consecutively result in the de-motivation of the employees or might result in growing number of the employee quitting, overall resulting in the decrease of the organizational productivity. Thus, it is perceived that MiningCo is having the critical need for implementing the performance management and initiative program. According to He, Zhu, & Zheng (2014), in order to achieve the superior organizational performance, the major role is played by the employee engagement and devotion, towards the task performance. Therefore, the presence of the performance management system will support in improving the employee productivity, which is reflected in the outcome generated. Also, the improvement of the employee morale, which is built through time to time performance feedback and appraisals, or the rewards employees received based on their contributions. It is also perceived that the consideration of the performance initiatives, also effectively contributes to the retention of the loyal and skillful employees, efficient for the mining operations, resulting in the increased profitability. Further, the performance management in the isolated mining location can also be sustained through the effective communication. Pulakos, et al (2015), explained that the performance management is a significant communication, which occurs between the managers and the employees, arriving together at the objective point, through engaging the participative behavior. It is perceived that in order to sustain the morale of the employees’ participative leadership will be required, which indulges motivational gains, through welcoming the inputs of the employees in the decision-making levels. Further, in accordance with the Maslow’s Hierarchy of Needs theory and pyramid, the presence of the participative communication among the managers, achieves the belongingness and the love stage (Jerome 2013).

However, perceiving the criticality and distinctiveness of the human behaviors, the major issue is that all the employees are not having the similar intrinsic or extrinsic motivational grounds (Ajmal et al. 2015). The level of the physiological needs, such as the water, food, shelter, etc are often covered through the income distribution, but in the case of retention and achieving the strengths for the future growth additional initiatives are significant, while taking into account the employee behavior identification and understanding is mandatory. Hence, it is perceived that apart from the positive feedback, effective communication, and participative leadership, employees working at the isolated mining location, also requires the achievement of the safety and security, the self-esteem development, and the self-actualization levels. Iverson & Zatzick (2011), asserted the frequent feedback from the manager within teamwork, delivers the perception to the employees of being valued, considered as the morale-raising investment. Moreover, either the intangible or the tangible, such as the appreciations through certificates, medals, or the financial rewards, also develops the valuable perspective for the employees, motivating them to invest more of their hidden and polished skills. However, considering the critical work description in the mining field, the employees might prefer the financial incentive, as the major motivational initiative. Belogolovsky & Bamberger (2014), based on the financial incentives, suggested the use of the direct cash bonuses, medical insurances, or the initiation of the retirement plan, or the profit sharing plans, which provides the employees with the future stability. However, it is critiqued that the financial initiatives only work, when combined with the verbal appreciation and the recognition value.

Recommendations

Under the developed perspectives, generated through the theoretical implications and based on the practical environment analysis of the working at the isolated mining location, it is recommended that the location requires the integration of the motivational performance management system. It is because of the frequent traveling and the criticality of working in the mining fields’ results in the stressful conditions, which might decrease the intrinsic motivational circumstances of the employees, resulting in increased efforts to be invested in the employee retentions. Further, in regards to the performance initiatives, it significant to sustain the employee interest, based on which the financial initiatives, such as the quarterly or the annual bonuses, the medical insurance, profit sharing or the retirement plan is highly required. The major rationale behind the integration of these initiatives is to enhance the employee morale, through maintaining their intrinsic and extrinsic motivational factors, which is supportive for the organization productivity. It is mainly beneficial for the organizational performance, while on the other hand, it will not only enhance the employees’ skills and their future career growth but will also support in positive decision making for moving forward.

Case Two: Staff Rotation & Retention Issues

Criticality in Single Entity Operations

Leisenring et al (2012), defined single entity business operations, as the separate out departments, subsidiaries, or any of the business unit, for which the financial information is reported to the parent company and to the operational legal agencies. However, in the current era, in which the businesses are widely expanded, the single entity exposed to the major issues of external threats, and requires, adequate environmental management. The similar are the circumstances, reflected by the provided case. Iossa & Martimort (2012), explained the rationale behind corporate perceiving the use of single entity operations, stating that through the single entity business structure, the risk allocations are effective, the operation costs remain low, and also include certain legal benefits. Nevertheless, in relevance to the Economic Theory, it is also reflected that the engaging of the single entity, in the present initiates the controlling and decision-making issues, for the managers; while on the other hand, it makes the responsibilities of the managers, difficult for protecting the business assets (Foss, Foss, & Nell 2012); (Ellis 2016). Therefore, it is perceived that although having certain benefits, the single entity business operations are comparatively having the critical issues, such as the protection of the operations and the business assets, the control management, the less staff rotation, and the criticality of decision making.

Under similar consequences, the single entity operations at the isolated locations are also having the external threats, which are pressurizing the internal management of the skilled workers. The major issue at the MiningCo. single entity regions is the presence of the limited number of employees, which is mostly managed through the number of fly-in and fly-out, however, overall increasing the complexity in the staff rotations. Further, another complication is the growing exposure to the terrorist threats, such as the presence of the ISIS in the Middle East regions. In addition, the economic crisis of Greece, are further acting as the major de-motivational consequences, which are potentially provoking the senior executives to quit from the company. Altogether, for the MiningCo, it will create the drastic impact, as the continuous threatening will result in the inefficient decision making, loss of the control, and the emergence of the retention complexities. Nevertheless, under such critical circumstances, the corporate is not having the significant control on the external threat reductions, however, the motivational rationales and the employee retentions can be considered at the prior level.

The Motivational Attributes & Retention Policies

Van De Voorde, Paauwe & Van Veldhoven (2012), stated that the considering the significant concept of motivation is associated with the number of factors, which the companies considers and integrates, in order to either obtain the satisfactory levels of the organizational performances or in order to manage the critical issue occurred. It is evaluated that for integration of the motivational options, the development of the motivational strategies and its planning is critical, as the human behavior and understanding of the motivational aspects are distinctive. Further, if the company is previously having financial incentives, as the major motivational factor, the major issue will be satisfying the employees on the new motivational grounds (Kehoe & Wright 2013). In the light of the Maslow’s Hierarchy of needs, the major issue at the MiningCo is related to the ineffective management at the isolated location, that is reflecting the absence of the physiological and the safety motivational factors, which are having the potential impact of the external threats and the absence of fundamental employee retention policies. Under such circumstances, the corporate can consider the initiation and distribution of the potential security plans, not only provide the monetary safety for the employees, such as the profitability share or the retirement plan but the environmental security, which can develop the perspective of working in the secure environment. In accordance to the Hawthorne Effect, the change in the physical working environment, such as through lightening effects, the safety and security systems, or the comfortable working and break hours, results in increased employee productivity (Miller & Cockrell 2015).

In addition, Twemlow (2012), revealed that generally in the economic crisis the leaders or the managers, get engaged with the one-sided focus, taking organizational pressures. However, it is more effective to actively engage with the employees, involving the support and feedback mechanism, which results in the positive impact on the employees, signifying the attribute of value, and hence, resulting in increased productivity. Similarly, perceiving the financial motivation critical during economic crisis, employees’ motivation and their retention can be practiced by rewarding the individual contributions, increasing the attribute of recognition in the working environment.

Recommendations

For the MiningCo, the two of the major issues, faced by the entity, mainly include the isolated workplace environment and the outside security threats. In order to overcome this, the recommended option is given in the light of the Maslow’s hierarchy of needs, whereby, the entity needs to focus on the physiological needs of employees. It is the second most important need of employees, that they want security at their workplace, and in their job, from the inside, as well as, the outside threats. Otherwise, such the security threats disrupt employees, in fulfilling their duties, and put unnecessary pressure on them, leads decline in the level of productivity.

The second recommendation is provided to MiningCo, in the light of the Hawthorne Effect, that suggests that employees want the attractive working environment, group involvement, appreciation and attention of the management. Such the factors have importance, more than the financial incentives, provided to the workers, mainly in the times of economic crisis. However, while making isolated sites of the company, it causes separate the workers, through the other sites, as well as, the head office. Hence, it needs to develop the innovative working environment, through installing hi-tech lightening and the safety and security systems. Further, the communication and coordination, and the feedback, among the different sites, are required, which will not only result in the requirement of the staff rotation but will develop the integration of the activities of the members of different sites, generating efficient productivity.

Last, in regards of considering the economic crisis in Greece, it is recommended that the MiningCo, isolated fields, should implement the individual reward perspective, along with the above-articulated recommendations. In case, the workers can be provided with the monetary rewards, such as discount vouchers, a gift or the complementary box, etc. However, the major criticality, which is to be considered, is the behavioral perceptions of the senior executives, analyzing the factors of their motivation, and hence, designs the motivational and the retention packages.

Case Three: Crisis Management Team

According to Vaiman & Collings (2013), the Crisis Management Team is structured, in order to provide the support to the organizational management through reducing the level of the issues, which may reflect during the crisis time frames. Hence, below is the description for the need of structuring the CMT at the MiningCo, covering the increasing risk of talent management, knowledge transfer, and the employee retention.

The Substantial Talent Gap

Under my evaluation, the MiningCo, individual site, has impacted by the major talent gap, prevailing in the industry. It is identified that the employee retention is becoming difficult, while on the other hand, the workers’ talent pool, is shrinking in number and the productive skills, as the older generation, is either retiring or leaving the organization, taking the profound pool of knowledge and experience. Hence, it is perceived that within no time, the transfer of the adequate knowledge and the learning of skills will become non-existent. In addition, forming the collaboration, with the external learning and training schools of the mining industry, will require the additional investment and the long time durations, hence, making the worker shifts adjustments difficult. Therefore, in concerned with the substantially growing talent gap, I consider the development of the Crisis Management Team is the appropriate option, as for certain time, it will control the employee retention and the sustains the motivational grounds, based on which the talent gap generated will be recovered.

Team Structure and Function

The team structure of the Crisis Management Team (CMT), will be similar to the organizational structure of the MiningCo, under such circumstances, the employees will be having the adequate understating of the knowledge inflow and transfer and communication, exhibiting effective familiarity. Moreover, the structured team will act as, or resembles the structure and the functionality of the Regional Emergency Management Team. The selected members of the team will act as the knowledge and the support provider at the emergency sites, sharing their experience and the skills with the less experienced or the newly employed workers. The team will also be responsible for managing the specific region issues and the overall impacts, through effective communication with the workers, analyzing and discussing their concerns. It will also function, as the training personnel for the specific site region, developing the training agenda, the scheduling of the groups, and analyzing the aftereffects of the training sessions, while also providing the active and spontaneous participative feedbacks. In addition, the leader of the team will be elected through the mutual consent of the potential stakeholders, generated through voting practice, and the leader, referred as the Regional Crisis Manager, is entitled to integrate the transformational and the participative behavior.

Selection Criteria

Referring to the selection criteria for the CMT, the most appropriate and the skilled members will be considered, comparatively having the valid and the significant experience. The skilled criteria will be developed, including the qualification bar, the presence of all the skills required, and the years of experience, additionally taking into account the past evaluations of the members of the crisis management. Further, the current employees, having the critical thinking ability, for analyzing the coming challenge and the ability of spontaneous decision making will be selected. However, it is considered that most of the senior executives will be positioned in the CMT, as it will act as the value for them, proving them with the substantial responsibility, while also covering the effectiveness of retention. Further, the member will be appointed through different regions, in order to perform the effective mechanism of the staff rotation, providing the opportunity to the members for revitalizing their skills and the motivational level.

Team Format

The positions within the CMT includes, the CMT (Regional Crisis) Manager, the Human Resource Advisor, and the two of the immediate HR training, retention, and strategic reporting officers, the Environmental Evaluator and the Advisor, responsible for analyzing the chances for the emerging crisis, through evaluating the internal and external environment. The position will also contribute to planning and decision making, coordinating the planned implementations, training needs, and scheduling, and updating the incident plans, in order to mitigate the threat of the uncertain or certain challenges. The Crisis Management Advisor will support the functions, through approving the decisions and the changes required, by taking into consideration, the legal, financial, and employee productivity and concerns. The CM Advisor will also be responsible for assigning the tasks or the changes in the regional operations. In addition, the Subject Matter Experts will be selected, for assisting the CMT Manager, the CM Advisor, and the HR training personnel, as needed.

Reward Strategies

The crisis management is the crucial responsibility for the employees, as it requires highly attentive behavior and the adequate and spontaneous decision making, which also results in the increase of the workload and the stress. However, under such circumstances, I perceived that major role will be played by the CMT leadership, that is the CMT Manager, high responsible for initiating and encouraging the effective communication. Hence, the employees will understand the value of their presence, resulting in holding of the motivational impact.  Further, the feedback generation on the certain intervals will also exhibit the sense of recognition and responsibilities. In addition, as discussed earlier, small monetary rewards shall be provided to all the team members, such as participating bonuses, additional paid leaves, or either the certification for CMT skills, etc. In regards of overcoming the crisis of the continuous decline in the presence and the transfer of the adequate knowledge and the learning of skills, the HR managers can be provided with the technological systems, for managing their responsibilities, resulting in decreased workload, through presence of hi-tech systems, under the influences of the innovative technology strategies. Further, the senior executives, considering leaving the organization should be hired in the CMT, exhibiting the staff rotation, and assigning them the role of the training leader, will provide them with the additional recognitions, as their service and experience will be transferred and recognized.