HR Strategic aspects of the labour market and Managing organisational performance

Custom Student Mr. Teacher ENG 1001-04 23 September 2016

HR Strategic aspects of the labour market and Managing organisational performance

The economic events occurring during the last two decades provide indications and evidences that the area of human resourcing has significantly changed in response to the emerging complexities of the discipline. Perhaps, among the primary components of corporate organization, the dynamics of human resourcing appear to be the most challenging as well as complex. Experts in the area of Human Resource Management (HRM) invariably agree that the surging demand for a new organizational role for the human capital.

Even the usually common terminologies used to describe the HRM processes, such as labor contracting, training and development, performance evaluation, have been recycled to outsourcing, learning and growth or performance management systems. Many even replaced, such as personnel to human resource to human capital, to describe in more sophisticated way, the new character of human resourcing. Still, HRM practitioners are of the opinion that changes will continue to pervade the HR area and may soon take or evolve into new competencies again.

Torrington’s Views: The HRM discipline and the Labour market Torrington presents the burgeoning labour issues confronting many organizations as propounded by theorists and practitioners. Indeed, the complexities of human resourcing are invariably revealed in the documented HR practices compiled by the author, who has been keenly observing that the area of human resource management is beginning to undergo a form of transformative process where the task s, positions and the organization virtually mutates into its more sophisticated form.

Based on data provided by the author and taken from a report, there is a general shortage of workers especially the young sector. In the area of healthcare, the National Health Service (NHS) is spending ? 1bn annually on temporary, agency and locum staff. According to Laing and Buisson, well known heathcare analysts, the demand for agency staff is expected to increase across public and private healthcare sector in response to the long-standing manpower shortages in practically every healthcare occupation.

The author adds that the size of the market for manpower has risen by more than four times during the two decades commencing from 1992. Even the NHS had to triple their budget expenditures during the same period. Torrington estimates this sector is worth ? 2. 4bn in the market. However, the core of the problem has shifted to the quality of care that many temporary staff provide, thus the decision to reduce manpower outsourcing, Here, the need to get better deals from agencies is becoming paramount as new alternatives of human resourcing in this sector is being addressed.

The author concludes by proposing an appropriate response system through flexible staffing solutions. Torrington highlights the strategic aspects of resourcing to respond effectively to the critical messages demanded and manifested by the labor market trends. Here, he analyzes the need to adopt certain flexible resourcing choices that will focus attention either to the ready-made or home grown human capital. The labor market trends bespeak of the dilemma faced by the human resourcing industry in general.

A number of recommendations are provided to address this set of HR issues – the retention strategy. The retention indicators point to a disturbing trend at the charts. The issue of retention and its corresponding techniques and strategies has been brought into the open as a result of the need to assuage the cost of transfers, job and even career shifts. The author brings the issue of turnover rates and trends as indicative of HR instability in many sectors while exacting some forms of costs on the organization as a result of new rounds of resourcing and the need to adopt staff retention strategies.

Torrington insists that organization strategies versus HR strategy issues not only should be HR-driven but primarily must mutually provide a perfect fit. The author discloses the strategic aspects of performance how these are driven by HR policies and processes as practiced. This is implied to mean that a change in perspective be made in the human resourcing function: from taking control of the employment processes to a more significant HR function of managing performance.

True enough, this shift in focus may have been long wanted to smoothen human capital transitions to work excellence. This further suggests that efforts are better spent on ensuring that performance management becomes the primary driver of the HR function. A number of firms have found better insights into this form of HR shift considering that the new HR performance processes adds relevance and more meaningful roles for HR theorists and practitioners rather than just the documentary and aspect legalese of human resourcing.

The author proposes the adoption of a performance management system that translates into organizational performance anchored on the knowledge and learning processes as HR initiatives. Here, the proactive roles expected of the HR practitioners are deemed directed towards gradually converting the company into a learning organization where the human capital competencies are planned, managed and nurtured. Performance management system indeed is a critical need as with the 360 degree feedback system.

Conclusion Torrington proposes a two-dimensional performance appraisal system based on individual and team perspectives. He emphasizes management of employee performance guided towards organizational and personal goals and objectives and an objective appraisal system to measure extent of accomplishment based on target setting. A sequential and step-by-step approach is propounded with a component critique system based on an overarching 260 degree feedback system.

A comparison and contrasting view of performance management system (PMS) and its environment of procedures indicate that the PMS has and is being widely used in organizations out to harness the potentials of its people. The degree of effectiveness indicates the variability of conceptualization and implementation, but nonetheless removes the major irritants in people management that ultimately affect the relationship as well as the performance dimensions of each of the component of the human capital sponsored primarily by senior management.

Thus, the proactive nature of the PMS approach entitles it to wider adoption and desirability among organizations aiming to address many of its human resourcing issues. Subject 2 Performance Management System: Linking Organizational Goals Torrington outlines the essential factors in managing organisational performance showing how a Performance Management System (PMS)links to organisational goals.

Concrete and abstract benefits and disincentives are identified and benchmarked with industry practices guided by the universal principles and theories of performance management. As practiced, performance management systems commence from the goal and target setting based on the requirements of the job. Here, employees and workers are clarified in the objectives of their positions, the requisite competence, and the learning and growth perspectives if the job as well as the compensation based on how the organization assesses the relative important of the task.

The use of the PMS has been tested widely and has proven to be more effective than the traditional evaluation system. This is because of the inclusion of a compendium of measures that ensures that organizational goals are aligned with the specific tasks assigned to the employee. From the targets, agreements on the degree and how these targets are achieved under quality processes are laid down and the PMS target setting contract is accomplished.

Thus, the use of the PMS allows the following benefits to accrued to both the worker and the organization: among others, expectations are clear and scope and limitations of the jobs are understood by both sectors; employees can clearly predict and manage their own levels of performance based on targets as well as the needed support to accomplish the tasks; there is an objective system of evaluation and appraisal that removes subjectivity and abstract judgments; when provided with an incentive and reward systems, PMS becomes effective as a tool and basis of rewards and incentives; and, there is a better working relationship between the worker and his superior based on earlier agreements and covenants.

Likewise, PMS considers possible constraints and limitations on both sides, thus alternative measures are agreed for the degree of performance resulting from the occurrences of such constraints and impediments. For the organization, the benefits are clear in terms of stronger motivation on the worker; budgeting can be integrated into the system through measurable and appropriate inventive and rewards system; the subsequent appraisal and evaluation system allows for an ideal atmosphere for the discussion of the evaluation and appraisal results to encourage future performance based on areas that additionally needed reinforcement and support. In addition, PMS encourages both individuals and teams to be evaluated based on targets that are aligned with the organizational goals.

On the other hand, the disadvantages of adopting a Performance Management System (PMS) includes the requirement for a more detailed procedures and measurement system that may prove to be too elaborate and complex for the worker to understand and appreciate. Likewise, the process of documentation in support of the performance is considered difficult and tedious. Further there is no assurance that performance can indeed by achieved as there may be unforeseen circumstances not considered during the target setting completed before the start of the performance period. (Noe, Hollenbeck, Gerhart, & Wright, 2008) Nonetheless, there is a need to study the organizational culture on whether the latter would help the system or otherwise. Conclusion

Taking into account the benefits and disadvantages of Performance Management Systems (PMS), the absence of a more measurable, objective and comprehensive system of measuring and evaluating performance is non-existence despite the presence and utilization of good measuring tools and instruments. This is the complexity of the new HResourcing strategy that allows greater flexibility and uniqueness in the approach to managing performance. On the overall, the rationale for adopting PMS far outweighs the need to ignore the benefits provided by this new system. Often, the major constraint in adopting PMS is whether the organizational culture would allow such a change in the system. Thus, the efforts may indeed be tedious, but nonetheless, there is strong desirability in the system that will be more advantageous to every stakeholder in the PMS environment system.


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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 23 September 2016

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