Product Innovation Human Resource Management

Question: Discuss about the Product Innovation Human Resource Management. Answer: Introduction: The current report explains the importance of performance management process in managing the employee relations, considering the case study of AGTECH Limited. The report describes the current appraisal process, followed by the firm. The present report has depicted the process, the organisational objectives can be linked to the assessment process of the AGTECH Limited. The study ends with providing strategic recommendations to improve the current appraisal process of AGTECH Limited.) An explanation of modern performance management procedures: Importance of performance management: A potential performance management system benefits three entities named as the organisation, leaders managers and the employees. It is a proven fact that an effective performance appraisal process helps an organisation to improve the efficiency and motivation of the workforce, which in turn, improves the overall productivity. Supporting to this fact, Sachau (2007) stated that effective performance appraisal system reduces team conflict and helps the manager to contribute productivity and innovations within the organisation. Also, a potential performance evaluation system provides the self-assessment opportunity to the employees, and it increases the accountability and commitment towards the job. Therefore, the overall job performance index increases. Failing to provide potential appraisal process might lead to employee dissatisfaction. Eventually, the core competency can get reduced. The similar fact has been observed in the firm AGTECH Limited, where, despite of having adequate employee strength, the company fails to meet the deadline of the delivery. The continuing delays are also reducing client satisfaction, and the company is meeting a potential loss as well. An in-depth analysis indicates that the section 13 of the Employment Agreement of AGTECH Limited fails to improvise an attractive performance appraisal system. Thus, it is high time for AGTECH Limited to modify the current performance evaluation system. A range of two models and approaches to staff appraisal systems, its advantage and disadvantages: Linking the performance with the set goals: Since the employment relation of AGTECH Limited has created a major issue, and the Employment Contract Act executes a major dispute, the firm has provided the flexibility to its employees opt for a self-appraisal process. The aim was to create a responsibility among the workers to link own performance with the set targets. However, Korzynski (2013) stated that the ruling of the Tribunal had imposed pressure on the employer to accommodate every staff a fair and equal appraisal process. Eventually, the process created a major hindrance with the operational attributes linking with the set KPIs. Finally, the firm has received a major issue with the employee appraisal process. 360-degree appraisal: The 360-degree appraisal has successfully satisfied the managers of the firm. After conducting the 360-degree appraisal process, the salary and other benefits of the managers have been increased. Also, the subsidised superannuation and other health benefits of the AGTECH Limited have also been found at par with the workforce demand. The right evaluation of the employee performance and its contribution to meet organisational objectives has enabled the firm appraising the employee in a moderate way. However, the issues generated from the self-appraisal process created a significant discrepancy in the motivational aspect of the workforce, which reflected upon the overall performance. Wei et al. (2012) also stated that the employees received a better appraisal was asked to receive one-off performance evaluation in the coming year. Again, it had created significant issues within the workforce and conflicts raised among respective departments. Element Linking the performance with the set goals 360 degree appraisal Advantage Accountability among the workforce was increased The missed review has helped the AGTECH Limited in providing an accurate assessment of the workforce Disadvantage Employees have become biased regarding the monetary increment process It was a complex process and created greater tension among the staffs. Table 1: Advantage and disadvantage of the current appraisal process (Source: Created by author) The manner in which appraisal systems may be linked to corporate objectives: After analysing the employee relationship issue of AGTECH Limited, the CEO needs to connect the appraisal system with an individual goal of the employees. The key performance indicator (KPI) also needs to be aligned with the overall purpose of the firm (Misiak, 2010). The linking of the current appraisal system with financial reward is unsatisfactory, which is creating a major demotivation among the workforce. Thus, after identification of the performance measures, the financial rewards needs to be set by the CEO so that each employee can be motivated. However, Korzynski (2013) stated that the lack of disciplinary measures and performance evaluation process might fail to establish a potential performance appraisal process. Thus, adequate training and development activity needs to be incorporated into the set goals of the workforce. The frequent performance evaluation and offering incentive scheme could help the firm aligning employee performance with the set individual targets. A recommendation as to what system you would consider suitable for AGTECH Limited: Employment of ranking methods: When it comes to appraising employees and the managers, the ranking process can be found most useful for the contemporary business organisations. According to Demirbas Yukhanaev (2011), the firm AGTECH Limited needs to recognise the comparison which involves a subjective evaluation to which the host of additional facts along with the impressions can be added. A pooled judgement can remove the biases of the managers and employees for the peers that occurs from the 360-degree appraisal. The complete blend of alternative ranking and paired comparison ranking could help AGTECH Limited, in offering a sound performance evaluation measures to its employees. Introducing graphical rating scale: The graphic rating scale could help AGTECH Limited assessing an employee on the quantity and quality of the delivered job. Eventually, the management could decide the degree of commitment and rank it as outstanding, average, above average or unsatisfactory. Artz (2008) also stated that the graphical rating scale helps the employer to identify the trait of the employee, reliability and overall cooperativeness as well. Thus, the approach could bring a good performance appraisal evaluation for the firm AGTECH Limited. Conclusion: The current report shows that the employee relation issues such as lack of potential appraisal, leave management issues, etc. is creating a significant performance threats for the management of AGTECH Limited. Thus, a potential KPI evaluation scheme is required to implement by the current CEO. Finally, the employment of ranking methods and graphical rating scale could improve the effectiveness of the appraisal process. Therefore, the employees can be motivated to potentially contribute to meet a long-term business goals. References: Artz, B. (2008) The role of firm size and performance pay in determining employee job satisfaction brief: Firm size, performance pay, and job satisfaction, Labour, 22(2), 315343 Demirbas, D., Yukhanaev, A. (2011) Independence of board of directors, employee relation and harmonisation of corporate governance, Employee Relations, 33(4), 444471 Korzynski, P. (2013) Employee motivation in new working environment, International Journal of Academic Research, 5(5), pp. 184188 Misiak, S. (2010) Ethical system for employee performance appraisal in practice, Economics Sociology, 3(2), 101113 Sachau, D.A. (2007) Resurrecting the motivation-hygiene theory: Herzberg and the positive psychology movement, Human Resource Development Review, 6(4), 377393 Wei, Y.S., Frankwick, G.L. Nguyen, B.H. (2012) Should firms consider employee input in reward system design? The effect of participation on market orientation and new product performance, Journal of Product Innovation Management, 29(4), 546558