HRD, Performance and Reward Management Essay Example

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HRD, Performance and Reward Management

Executive Summary

Performance management and measurement is a fundamental component in both private and public organization. However, its success depends on the effective performance of the human resource management department through its system of human resource development. With appropriate strategies and setting of clear objectives, performance management will continue to influence the success of the organization by developing the particular shareholders. Contributing to the discussion is the case of a new employee who underperforms. The importance of the case to the discussion is its abilities to clear identify the importance of developing the employee to empower the firm and improve its performance.

Table of Contents

2Executive Summary


4Best Practices in Performance Management

6Human Resource Development

8Issues in Underperformance Management

9Reward Management Strategy

9Firm’s Corporate Strategies




Performance in the public sector entails a deliberate action following particular intentional behaviors. Van Dooren, Bouckaert and Halligan (2015) consider two categories of performance including quality of actions or the achievements. With quality, the standard of performance includes the competence of the individual in question. Comparatively, performance in terms of quality of achievement examines the degree of conceptualization. The imperative is the ability of the institution to obtain sustainable results which are a contribution of the human resource development function. Measurement of performance may include financial and non- financial aspects where Kloot and Martin (2000) identify the financial dimensions as a traditional approach. The traditional approach faces much criticism, especially since performance is multidimensional and dynamic in nature. Therefore, the effective performance management requires the input by the human resource development program. The essay examines the case of an underperforming employee and suggests how the application of performance management may help improve the performance of the employee.

Best Practices in Performance Management

The idea mechanism of achieving active performance management involves the integration of performance to both the corporate strategies and functional objectives (Kloot & Martin 2000). Objectives in the government sector follow non-financial goals, therefore, the use of non-financial measurement strategies is most appropriate. The Australian Post is a government agencies function as a communication industry. It mains function is to provide the society with a reliable channel of communication. Therefore, its objective aligns with what Kloot and Martin (2000) describes as being non-financial.

According to Kloot and Martin (2000), strategic planning as a performance management practice involves the clear identification and classification of objectives into either primary or secondary classes. The imperative is to relate the primary role to the specific shareholder while the secondary responsibilities highlight on the process of achieving the primary objectives (Kloot & Martin 2000). Therefore, the secondary roles act as complementary to the primary one formulating a specific strategy for the institution and the stakeholders who include the employees. Moreover, the process stakeholders (employees) perform the function of planning, designing, implementation and operation in line with the primary objectives of the firm. In this case, Kloot and Martin (2000) hold that the management should direct its focus on the achievement of both the primary and secondary responsibilities which enable the different stakeholder to learn of their roles.

Brignall and Modell (2000) introduce three models of performance management and measurement including the balanced scorecard, pyramid of performance, and results and determinant framework. The models address different stakeholder needs that all-together aim at ensuring the efficiency, economy, and effectiveness of the organization to the public. The model of results and determinants follows the description by Kloot and Martin (2000) of differentiating the primary from secondary objectives. Comparatively, Kloot and Martin (2000) identify the balanced scorecard as involves four features of communication and linking, business planning, translation of vision, and feedback. According to Brignall and Modell (2000), the scorecard model provides a new management process that surpasses the traditional financial measurement system. Therefore, the main feature in performance involves either a financial or non-financial approach, the specificity of objectives based on the shareholders, and their pursuit through a collaborative strategy. However, Richard, Devinney, Yip and Johnson (2009) suggest on the inclusion of a triangulation mechanism in integrating the different Richard, Devinney, Yip and Johnson (2009).

Human Resource Development

Human resource (HR) is a significant component of the organization where it directs the behavior of the employee. Based on Sung and Choi (2014), HR provides leverage where the employees can enhance their knowledge, abilities, and skills towards the achievement of productive output in the organization. It is for these functions within the human resource department that the training of employees becomes an imperative strategy realizing human resource management (Sung & Choi, 2014). Moreover, human resources development (HRD) is a component in performance management since it provides direct training to the employees in an effort to improve their abilities and performance in the firm. Sung and Choi (2014) defines it as the process of individual development through unleashing the expertise through the assistance of organization development program and training.

According to Sung and Choi (2014), HRD takes two approaches of either being focuses on a qualitative and quantitative scheme, or managerial and employee perspective. The two forms develop a four-dimensional system of HRD constituting of resource input, exposure of a worker to HRD, management support, and the perceived benefits. The particular groups allow an in-depth understanding of the quality or quantitative input of the organization towards the improvement of its workforce (Sung & Choi, 2014). Moreover, it identifies the particular focus in each of the dimension providing knowledge to the stakeholder as well as a strategy with which they can use in direct the operation of the firm in improving performance. Despite the independence of each category, (Sung & Choi, 2014) discusses their collective contribution to the attainment of desirable employees in the company.

The four dimensions develop an understanding of their integrative aspects to those previously identified in performance management function. In particular, HRD identifies a particular candidate in each of its dimension and provides the action or activity suitable for each. Similarly, performance management includes a clarity in objectives which includes the specification of activity and identification of the role to its suitable shareholder. Moreover, the result and determinant models speak of classifications of objectives and identification of the doer and the projected or expected result (Kloot & Martin 2000; Brignall &Modell 2000). The similarities suggest a possibility of integration following the abilities of both models in being precise and objective oriented.

Han, Kuchinke, and Boulay (2009) recognize HRD as a strategy in realizing the expertise in individuals through activities of training. In this case, Han et al. (2009) consider HRD as playing a functionalist role. Moreover, Han et al. (2009) provide a comprehensive definition whereby HRD includes any process or activities, performed initially or over a period that has the potential to build, knowledge, skills, productivity, or satisfaction to the individual or a group. According to Han et al. (2009), the definition accounts for more stakeholders as well as includes a diversity of goals. The diversity of HRD aligns with multidimensional nature of performance. Therefore, an integration of the two involves the identification of a specific HRD area and matching that to a particular desired performance. Moreover, such a system will allow the development of an efficient strategy for achieving employee improvement since the inclusion of HRD practices continues the realization of positive work.

Issues in Underperformance Management

In regards to Rashid, Grills, Kuan and Klein (2015) underperforming could occur as a result of multiple issues including personality issues, training, and the work environment. Much as personal reason is a leading factor in the case of a new employee or trainees, Kaplan & Norton (2008) discusses that underperformance in an organization is a result of a breakdown in a company’s management systems. Comparatively, Patanakul, Kwak, Zwikael and Liu (2016) present the case of government agencies and systems where despite effective project management models, these organizations experience failure as a result of poor management. Therefore, considering the case study in light of the argument of Patanakul et al. (2016), typical issues surrounding the underperforming manager include numerous shareholders, budgets constraints, great uncertainties, and schedule delays. To address these issues, Chatterjee (2016) suggest on organization learning and knowledge management in improving performance. Moreover, Rashid et al. (2015) provide a hierarchy of learning tools that assist the management of underperformers, especially when the issues are personal. Both the issues and solution identified in the case relate to the HRD and performance management since they both point to the need to learn and coordinate activities in response to the different shareholders. Kaplan & Norton (2008) provides more input in tackling a case of underperformance by suggesting a plan comprising of developing a strategy, translate the plan (defining the objectives), plan activities, monitoring and learning, and analyzing the strategy. The particular steps are specific interpreting to an easy integration with the HRD and performance management models.

Reward Management Strategy

Based on HCA (2016), employee rewards and recognition programs work to motivate the employees towards better performance. Australian Post is one of these organizations believing in reward systems to achieving positive output and continued retention of its employees. According to HCA (2016), Australian post includes both a traditional value- based rewards management system and a new seeker employee lead referral program. The new program includes the features of point-based rewards system, well-defined behavior objectives, senior management support, and a communication mix channel. In regards to HCA (2016), the important features of the rewards program include the active employee engagement level through providing a channel to learn new skills, gain awareness, and education. Therefore, the reward system includes compatible features that are easy to incorporate into the solution of encouraging individual learning of the manager. Moreover, the behavior recognition program aligns with the suggestion of Rashid et al. (2015) on ways to improve personal attributes that foster quality performance. The imperative about the reward system is its abilities in promoting personal development including that of the senior management. The shift from a monetary type of rewards is an effective strategy that compares with the motives in the HRD and performance management. Moreover, HCA (2016) supports its advantages in encouraging employee retention, satisfaction, and output to the firm.

Firm’s Corporate Strategies

Devinney, Schwalbach, and Williams (2013) develop an understanding of the value of integrating corporate governance (CG) of corporate social responsibility (CSR) as a means to include more stakeholders in the firm. Corporate governance for the Australian post includes the consumer and the management through a system of board and committee charters. The imperative is the corporate strategies including a set of governing principles, operational policies that advocate for the freedom of information, accountability, and transparency. Therefore, the human resource management practices can support the firms CG through ensuring the accountability of its employees through consistent training to improve performance. Moreover, by developing effective performance strategies, the employees will manage to achieve the desired results of the company.


In summary, the realization of effective employee performance in the Australian post is a function of the human resource management systems. The achievement of active performance follows specific practices of clearly identifying and stating the objectives, identification of the particular stakeholders, and developing a strategy to the execution of the goals. Contributing to the success of projected performance is the inclusion of HRD through its actions of stimulating learning and expertise development. In reference to the case study, it is important for the organization to include both the HRD and performance management practices in realizing its corporate strategies.


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