Performance management & Best practices

 

Human Resource Management

Human resource management refers to practices that influence employees’ abilities, motivation and performance (Noe et al., 2008, p. 4). Human resource management enables organizations to achieve expected organizational performance and competitiveness by achieving desired employee performance (Armstrong, 2007, p. 30). Successful human resource management differentiates successful organizations from unsuccessful organizations (Marchington and Wilkinson, 2005, p. 3).

 

Best Practices in Human Resource Management

Best practices refer to those that are applied by the best organizations operating in similar conditions and pursuing similar goals (Wagner, 2009, p. 69). They are applied to achieve continuous improvement of organizational performance and competitiveness by critical assumption of conceptual and system practices in management of the best organizations in a specific sector or region. Using best practices allows implementation of signifi cant changes on an easier, faster and cheaper basis (Axson, 2007, p. 34). Their application is based on benchmarking, a systematic process of comparing organizational performance and competitiveness with the performance and competitiveness of the best organizations in a specific sector or region. The purpose of benchmarking is to understand why comparable organizations are better, how they have become the best in their sector or region and then take advantage and implement the necessary changes to improve organizational performance and competitiveness according to one’s own conditions (Dvořáková et al., 2004, p. 6).

 

The application of best practices in human resource management is associated with the global research on human resource management. The approach based on application of best practices in human resource management is one of the alternative approaches to research the link between human resource management and organizational performance and competitiveness (Delery and Doty, 1996, p. 802). The approach based on application of best practices in human resource management assumes that there are universally applicable practices in human resource management that positively influence organizational performance and competitive-ness more or less regardless of the conditions of their application. In contrast, the approach based on best fi t in human resource management assumes that no practices in HRM can be applied universally but rather should always be applied with regard to the conditions of a particular organization ((Harris, Brewster and Sparrow, 2003, p. 56–57).

 

Employee Compensation

 

Employee compensation is the process of offering compensation to employees for work done. A modern compensation system includes both monetary compensations (wages and salaries) and non-monetary compensations (benefits like mobile phones, notebooks, cars, flexible hours, home working, housing, insurance, sick leave, medical and dental care, vacation, holidays, leisure activities, training, etc.). for example, I am experiencing working for NGOs in Sri Lanka, use to offer the above-mentioned compensations/ benefits for the staffs who are performing well. And after the Covid 19 period the private sector mostly learned to introduce the working from home systems, they reduced costs from the admin budget they made profit out of it, for example, they have balance money from building rent, vehicle usages, field allowances but they provide the flexible working time and working from home system, it helps to work for staff with higher satisfaction, especially for female workers.

 

In view of optimal management and leadership of employees, the applied compensation system would have been fair and stimulating to find, employ and keep capable employees and motivate them to cooperate and communicate and use and share their knowledge and skills in the organization. The fair and stimulating monetary and non-monetary compensations should motivate employees to permanent and systematic improvement and development of their abilities, motivation, results and behavior.

 

Employee Compensation Employee training is the process of learning knowledge and skills that enable employees to successfully perform in their jobs and to meet changes in conditions and requirements of their jobs. (for example: in the current scenario country like Sri Lanka engorging staff on training, because it’s online. providing training online is also a cost reduction for the organization, and also is best practice keep the employees updated.) The process of employee training must be permanent and systematic. In view of optimal management and leadership of employees, it is important to motivate employees to permanent and systematic training of their knowledge and skills. Employees who have some specific knowledge and skills should be involved in the process of training as trainers and mentors. It increases the motivation of employees and improves the conditions for voluntary and mutual development, sharing and use of abilities, knowledge and skills in the organization.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Armstrong, M. (2007). Řízení lidských zdrojů. Nejnovější trendy a postupy. Prague: Grada Publishing.

Academy. “7 Human Resources Best Practices.” YouTube, 7 Oct. 2021, www.youtube.com/watch?v=fgsJB3URPss. Accessed 22 July 2022.

Axson, D. A. J. (2007). Best Practices in Planning and Performance Management: From Data to Decisions. Hoboken, New Jersey: Wiley

Delery, J. E., Doty, D. H. (1996). Modes of Theorizing in Strategic Human Resource Management: Tests of Universalistic, Contingency, and Confi gurations Performance Predictions. Academy of Management Journal, 39 (4): 802–835.

Dvořáková, Z., et al. (2004). Slovník pojmů k řízení lidských zdrojů. Prague: C. H. Beck.

Harris, H., Brewster, Ch., Sparrow, P. (2003). International Human Resource Management. London: CIPD.

Marchington, M., Wilkinson, A. (2005). Human Resource Management at Work: People Management and Development. London: CIPD.

Noe, R. A. et al. (2008). Human Resource Management: Gaining a Competitive Advantage. New York: McGraw-Hill/Irwin.

Wagner, J. (2009). Měření výkonnosti. Jak měřit, vyhodnocovat a využívat informace o podnikové výkonnosti. Prague: Grada Publishing.