Determination of Performance and Results in Human Resource Management (HRM) Dr. Shehu Salihu Muhammad African Training and Research Centre in Administration for Development (CAFRAD), Tangier, Morocco ssmuhammad2000@yahoo.com
Introduction The object of this presentation is to share views and experiences on the following interrelated issues: Why is the concern today with performance and results, and how are we to conceptualize performance?; How are we determine performance; that is on the basis of which criterion can one say an individual employee or an organization is moving towards its set goals and objectives?; How can indices of customer satisfaction serve to measure or indicate level of performance?;
Introduction cont. What are implications of appraisals to improving performance; What considerations are key to enhancing performance and results; and The conclusion focuses on the framework that should be adopted to ensure optimal performance.
Concern with performance in public organizations Concern has basically arisen due to many reasons, amongst which: To make the most effective use of human resource as the most critical element in the attainment of organizational goals. The concern by governments, as a matter of responsibility, for effective and efficient delivery of public goods and services. To ensure that public institutions, and indeed governments works better, costs less and connect better with the citizens that they are designed to serve.
Concern with performance cont. Pave way for adaptation and use of new approaches and global best practices. The rising expectations of citizens, who are demanding better services in return for their taxes, loyalty, or votes. Create room for continued employee and organizational renewal, creativity, and change. To refocus HRM on results, productivity and end-service, rather than on mere observance of proceedures and regulations.
Performance in HRM: Goals, Outcomes, and Processes Performance, or the accomplishments of an employee within the context of overall organizational goals involves: 1. the setting up of performance goals and indicators at the on set. This is expressed as tangible, measurable objectives attainable within a time frame. Determination of what is to be done and how by an employee need be part of the employment contract. 2. the comparison of what is set to be done with the actual goods and or services produced by an employee at a given period. Quality and quantity are of essence also. This is performance output.
Performance in HRM cont. 3. Process considerations, or the extent of the use of the most effective and efficient methods to producing goods and services, the accuracy and timeliness of delivery, and extent of customer satisfaction. 4. Assessment of results or outcomes, that is how far has the intended purpose of a policy goal being attained? An example: A performance goal stating that a certain national police force will deploy on a 24 hour basis x number of personnel in year 2010 to reduce crime rate in a particular area by a certain percentage.
Performance in HRM cont. The police will be assessed not only by the act of deployment, which represent only aspects of output, but by the objective fact of whether crime rate will have been reduced by at least the predetermined rate at end of 2010, from that previously recorded at the onset. 5.Sight must not be lost of correlating output/outcome with inputs, for example, the total cost of employees, equipment, supplies, etc. The former must outweigh the latter.
Determining Performance and productivity Performance and results, in the framework of HRM, has to be established through the interchangeably used terms of performance appraisal, performance evaluation, and performance measurement. PE is the comparing of employee productivity against pre-established and pre-agreed activities and standards. The appraisal criteria and tools must be set beforehand The objective of evaluation is to measure, or appraise the work accomplished in relation to organizational goals; i.e. to establish whether activities accomplished by an employee have contributed to the progress of the organization. In doing this, focus of appraisal must be on:
Determining Performance cont. 1. Precise work accomplished relative to job description, with focus on results, rather than on abstract or vague measures. 2. competence, or capacity to effectively carry out assigned tasks. Has the employee requisite capability and skills to perform duties, and in light of this, should he/she be reassigned? What is the character of the employee and his/her relation to work colleagues? What is his sense of responsibility and organizational commitment?
Determining Performance cont. 4. What is the nature of the work environment within which the employee works? Of concern here are: examining communication channels, hierarchy, financial and material conditions, incentive and career development, etc. Organizational head has responsibility for setting of goals, though the task of appraisal is to be left to a superior involved in the work of the employee. But, as will be shown, peers, subordinates and customers also have a critical role for a complete assessment.
Customer satisfaction as a performance measure Customer satisfaction (CS) is also an important measure of performance. It is a function of the ratio of actual to expected performance, and is indicated by the customer s level of patronage, trust, and support for public organizations. CS could be gauged through a variety of methods CS surveys, research, interview, informal discussions, public opinion, etc and is indicated by such variables as customer expectations, customer s perception of actual organizational performance, response to customer complaints, etc. Customer expectation is simply about what a customer wants, when he wants it and how. It is his anticipation of the quality of goods and services produced. Customer s perception of the actual performance of an organization is a function of the sum total of the experience of the customer in terms of:
4. The friendliness, creativity, courtesy, helpfulness and the efficiency with which a service is delivered. Customer satisfaction as a measure of performance cont. 1. Customer s evaluation of the quality of products and services in terms of the extent of their meeting his individual needs, their durability, reliability, usefulness, and even the esthetic beauty of the products and services of an organization; 2. The value of a good or service, that is whether the price of a product or service at a given point in time is worth its value relative to the quality of the product or service; 3. The nature and extent of customers complaints against public organizations. Frequency of complaints means that the quality and value of goods or services do not match customers expectations. Of importance also is whether an organization has a fair, timely, effective and accessible system for handling of grievances from customers; and
Customer satisfaction as a measure of performance cont. CS could bring about reform; organizations are challenged by the very idea of being assessed by the customer, just as the outcome of a CS survey prompt an organization to try to seek answers to questions such as what is the best way to get the work done and how do we redesign services around customer requirements? It can help organizations identify their strengths and weaknesses, where they stand relative to comparable high performing organizations. It can facilitate more participatory and consultative decisionmaking processes and open as well a new channel of communication between organizations and their customers.
Implications of Performance Appraisal Because everybody is assessed, performance appraisal gives a sense of unity, purpose and direction to both the individuals and the organization. It reinforces the performance management approach to creating a shared vision of the purpose and aims of the organization, helping each individual employee to understand and recognise their part in contributions to a clearly processor set of policies, and in so doing, manage and enhance the performance of both individuals and the organization (Jones, 1998, cited in Bande, 2000:8). In helping to develop systems of reward (for those that optimally perform) and punishment or imposing sanctions (such as on non performers); In establishing the viability of evaluation criteria and tools to ensure performance;
Implications cont. In developing capacity training mechanisms; as well assist to prepare the future of both employees and the organization as a whole. Performance help improve citizens trust for individuals and organizations, just as it increases likelihood of individuals to conform to laws of the state (Jacob and Daigneault, 2007:37-38). Dissatisfaction can lead to disenchantment, loss of confidence, and erosion of legitimacy.
Performance conditions Managing human resources as will ensure performance and results require: Presence of motivated and capable staff that are able to perform their tasks professionally and efficiently, displaying such traits as personal discipline, dignity, integrity, equity, impartiality, fairness, publicspiritedness and courtesy, and avoiding conflict of interest. Merit need be the norm in the system of recruitment and promotion; That reward system can attract and retain the best personnel; Optimal performance must not be expected: Where wages of an employee can hardly guarantee the satisfaction of his/her basic needs; and in an environment devoid of basic infrastructures and working tools, or there is dearth of funding or undue interference. Develop and implement effective monitoring and evaluation systems;
Conditions cont. Deploy the arsenal of ICT in all work processes; and The presence of effective and committed political leadership. Human capacity must be present. It is about the holistic process of equipping individuals with the understanding, skills and access to information, knowledge and training that enables them to perform effectively. Put differently, the "process of developing and strengthening the skills, abilities, processes and resources that organizations need to survive, adapt, and thrive in the fast-changing world" (Ann Philbin, 996) must remain a key focus; Staff must be continuously trained and retrained to enhance professionalism, skills, and acquire new innovative ideas for more efficient and effective service delivery.
Conditions cont. For training to be meaningful, it must be timely; cost effective (A $1million program worth the cost if it results in saving millions in previously mismanaged funds (Nelson, 2006:1); capable of producing results; and appropriate (based on capacity Gap survey, employer driven). Key issue is obtaining the desired impact. Training as a favour to chosen ones or for its sake serve no purpose. Other issues relate to: Organizational development are the management structures, processes and procedures clear, and exist in such a way as to meet challenges and expectation of the public?
Is there effective management of relationships within and between the different departments at all levels and with the various sectors they deal with? The ability of the citizen to obtain information in the hand of the state that will objectively enable him assess performance (Martin and Feldman, 1998:1 cited in IIAS, 2007:208).
Concluding remarks HRM is critical to success of organizations. To achieve results in HRM, actual employee or organizational performance must be clearly and objectively appraised against pre-established performance goals. Thus emphasis must be on results, productivity and end-service, instead of a simple preoccupation with observance of procedures and regulations, while obstacles of subjectivity, impartiality, favouritism and are eliminated. Make concerted efforts to sensitize staff on new performance methods, organize training and promote and reward creativity.
Concluding remarks cont. Customer satisfaction (CS), which is expressed by the extent to which an organization meets the expectations of their customers should also serve to measure performance. Performance appraisal, devoid of subjectivity, is a continued necessity, and tools for such evaluation must be agreed upon, simple, clear, but sufficient and comprehensive enough to make for objective assessment. Government need to provide not only guidance, direction and leadership but also the critical needs of employees to perform competitive salaries for employees, funding, equipment, and so on.