Performance Management In Human Resource Management Essay


Discuss about the Performance Management in Human Resource Management.



The purpose of the report is to examine and to get an in-depth knowledge of the part played by HR in creating a sustainable organization. In this report functioning of two hospitals is analyzed on the basis of their human resource functions and practices. Both the hospitals possess a diverse set of HR practices and policies which poses a direct impact over the operations of the hospitals in multiple ways (Florea, Cheung and Herndon, 2013). The case study of first hospital shows that there are certain issues prevailing because of the absence of a proper human resource department. On the other hand the second hospital is successful enough because of the fact that it possesses an adequate human resource department. The major part of the report will show that how the HRM of the first hospital can be better and improved.

Course of action suggested to the CEO in the 1st hospital for achieving an improved HRM operations

N the case study it has been analyzed that the first hospital neither has a dedicated HR department nor a dedicated HR manager. All the responsibilities and functions of the HR department has been taken care up by the middle managers only. For achieving better HRM operations in the hospital there is a need of a proper course of action. For achieving an enhanced and better human resource department a set of actions or activities will be suggested to the CEO of the first hospital. This will help the CEO in taking suitable actions.

It is the first step in the course of action suggested to the CEO i.e. the staffing of few HR specialized individuals who can effectively take care of the human resource functions. As all the responsibilities and functions of the HR department has been taken care up by the middle managers only. This has given rise to a number of difficulties and concerns as the middle managers do not have complete awareness of HRM. Hence for achieving better human resource management it is necessary to have proper and expert staff in the human resource department so that they can make the department work appropriately (Marsden, Caffrey and McCaffery, 2013).

Introduction and implementation of HR policies

The second action suggested to the CEO is the introduction and development of few vibrant and valuable HR practices and policies. The hospital needed some well structured and better policies in the HR department. As presently there is no adequate HR policy which can guide the other staff members and this develops circumstances which spoil the effectual running of the various hospital functioning. Hence it can be suggested that the introduction and implementation of the new and better human resource practices and policies will enhance and advance the functioning of all the other departments (Marler and Fisher, 2013).

Untying the knots developed between the HR functions and the middle managers

Once the HR experts have been appointed the middle managers must separate themselves from the HR department and the functions associated with the department. A number of difficulties and concerns take place in the hospital as the middle managers do not have complete awareness of HRM which results into inappropriate management of things. It give rise to other concerns too such as because of handling multiple responsibilities the middle managers do not focus upon their core work or department. Hence it is necessary to assign the responsibilities as per the qualifications and knowledge of the individuals. Thus, it is essential that the managers do not get engaged with the working of human resource department anymore (Buyens and Verbrigghe, 2015).

Once there has been introduction of certain effective HR practices and policies it is very much essential to make an obligatory application and implementation of those policies. If the policies have only been introduced then it will not work on their own so it is necessary to make them implement in an adequate way. To check the implementation of the policies there must be control channels. There must be strict penalties over the employees who does not implement and follow the practices (Armstrong and Taylor, 2015).

Setting up of an open forum for handling the issues of employee

There are various issues and concerns from which the employees go through. It is essential to resolve them on primary basis. These issues affect the organization in various negative ways. In a same way the absence of a proper human resource management there are several problems which are prevailing in the hospital. And it is essential to resolve those concerns. It has been suggested to the CEO that he must place an open forum. This will help the employees in having an open discussion with the entire senior management team and with the colleagues. The employees’ grievances will be resolved on a primary basis as the employees from all the managerial level will involve in the open forum discussion. This will result into les workplace conflicts (Mowbray, Wilkinson and Tse, 2015).

Introducing policies for increasing the retention rate

The employees of the hospital are leaving on a continuous basis and this is a serious concern which is required to be managed. The employees are not willing to be a part of the hospital which results into increased absenteeism. The issues are the result of the increased employee grievances and inadequate HRM. Hence it is suggested to the CEO that there must be introduce various employee welfare and benefit programmes which can boost the morale of the workers and can motivate them to be the part of the hospital for a longer period of time. There can be given monetary benefits, incentives, growth opportunities and perks for their motivations and to have an increased retention rate of the employees (Salome, et al., 2014).

The final action suggested to the CEO is to have regular checks and strict evaluation over the functions and operations of the hospital. It is essential to check whether the employees and the various staff members are working appropriately or not. There are various methods which can be taken use of such as benchmarking, interview or hidden survey etc. these evaluation techniques will support the hospital in analyzing the performance of the workers. It will also assist in identifying the concerns and issues at the primary stage only (Katiyar and Khalid, 2014).

Chief features of structuring a sustainable Human Resource capability

To have a long term success the one of the necessary element is the sustainable human resource capability. The organizations which possess effective HRM generally have increased retention rate of the employees. There are several advantages of sustainable and competent human resource management such as effective implementation of the HR policies, discipline in the organization, improved staffing and recruitment, increased employee welfare etc. There are several factors which support the attainment of a sustainable and competent HR capability such as development of leadership, various learning and development, health and safety and governance and ethics.

The capable and the potential employees of the organization must get opportunities of leadership for achieving a sustainable human resource capability. There is enhanced involvement of the employees with such leadership opportunities and the employees get motivated to work hard for grabbing such growth based opportunities.

The safety and health of the workers are also regarded as the aspect of the human resource department in number of organizations. To provide adequate health and safety based facilities is one of the functions of the HR department. Hence it is also one of the chief features in creating a sustainable HR capability. The increased and improved workplace environment and health benefits will enhance the association of the employees with the organization. This will increase the retaining rate which shows the better and improved HRM (Driessen, et al., 2015).

There is a robust association between the employee engagement and the sustainable HR capability. The one major challenge in attaining the sustainability aim is that in what manner the employees can be associated with the organization for a longer period of time. If the organization is not able to maintain a long term association with its employees then it will not be able to attain future sustainability. The attrition rate reveals the efficacy of the HR department. Then increased attrition rate shows the inefficiency of the HR department and the decreased attrition rate displays that there is efficient HR practices and policies in the organization (Subramaniam, Selvanayagam and Yogarajah, 2016).

Ethics and governance

The strong governance and ethics is one most important feature for creating sustainable HR capability. Increased ethicality results into greater development. If there is increase level of ethics in the operations of HR department then the other employees get motivated and work with more dedication. It helps in creating an environment of greater moral sustainability. For making the employees understand the significance of working ethics there can be provided several training programs to the employees on the obligatory application of ethics in the working operations (Van Buren III and Greenwood, 2013).

The HR department is responsible for making the employees educate in concerning sustainable development. The improved and valuable training and development sessions results into enhanced performance management. It is one of the chief features in creating HR capability. These trainings will support building of strong association between the employees which will result into increased productivity and retention rate.


The report provides a clear result of analysis that in creating a sustainable organization HR plays a very important role. It has been concluded that where there are effective HR department there are less issues and grievances as well as those organizations are more successful in nature. Whereas it has been evaluated that there are increased number of workplace issues such as high rate of attrition, absenteeism and conflicts as well as lesser chances for growth in the organizations where there is absence of an appropriate HR department and an effective HR manager. Thus it can be clearly state that for attaining higher organizational sustainability it is required to have a much effective and dedicated HR department in the organization.


There are little recommendations for the CEO of the first hospital for achieving an improved and effective organizational sustainability as well as human resource management:

  • For having a different and strategic opinion and approach there must be employment of a HR expert from outside the hospital so that the issues can be resolved with an innovative and new approach.
  • In the new and improved HR policies there must some additional benefits offered to the employees so that those policies can have a positive impact over the working of the employees and it can act as a motivation for them.
  • There must be taken use of an approach of one-to-one discussion. This will help the employees in discussing their problems with the senior authorities. It will result into fast resolution of concern and increased employee engagement and dedication towards work (Alfes, ET AL., 2013).


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