An organization makes its goals and objectives in line with the available and anticipated resources through a system of Performance Management. This system also ensures that the performances by employees are measured. It needs a system of explicit performance targets, where performance can be measured, and results rewarded. The essential concept in which this process of performance management is well explained is that of procedural justice versus the distributive theory. This process plays a big part in the role of a human resource business partner, as he or she is directly engaged in the senior authority of the organization and helps in achieving the goals of the organization.
The HR business partner thus uses procedural justice to give rewards where due, and in return, the employees have it easy to perceive their actual rewards in the right way. In this way, distributive justice is achieved. This would be, for instance, if the senior leadership, the HR business partner included, reward all the employees in regards to their performance, the reward system would be more acceptable. When management uses an unfair criterion to rank performance, it becomes contradictory to the expectations and values of the workers (Rees & Smith, 2017). Their concept of appreciation and their motivating factors could differ from the employees’ idea of value, and hence it causes failure between the two types of justices.
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Moreover, an HR business partner could use the performance system to share the vision of an organization, its purpose, and its values too. This happens in the first stage of the process whereby there is an agreement between the senior leadership and the employees on what objectives they have to accomplish (Rees & Smith, 2017). This agreement on performance plan would later be used for evaluation of performance; hence it enhances the hard work and efficiency of employees.
Another way is designing training and feedback tools. Receiving feedback from the employees would help the HR business partner to understand them more and assess their performances effectively. Also, when managers speak to employees in the early stages of the system, they align the metrics and incentives that the system with the opinions of the employees. By doing so, organizational goals are easy to accomplish since there is effectiveness. Review job descriptions ensure that the responsibilities given to the employees are in line with their current business needs and are accurate (Rees & Smith, 2017).
RETCO in the case study uses a high band salary structure and is disadvantageous to the organization due to some reasons. Firstly, it is a structure that is too hierarchical; hence the flexibility of promotions and rewards of employees is a problem. Also, there is a problem with distributing the workers of the organization within the pay structure. A good example of discrimination that may arise from these unequal distributions is that of gender. This happens when one gender is more rewarded than the other. In this case, then, excellent performance by employees is not well paid, leading to equity problems.
Despite the cons associated with the high band structure, there are some advantages that RETCO derives from using this kind of salary band. This is due to the generosity of the structure, which attracts more employees due to a defined benefit pension plan (Rees & Smith, 2017). Furthermore, its salaries are seen to agree with the standards of the market whose band roles are low.
Overly, the performance management system essentially helps to achieve organizational goals. An HR business partner needs a good design of the system to support the senior team leaders of the organization. Some of the layouts include procedural justice versus distributive justice, training and feedback tools, annual appraisals, and reviews of job descriptions.
Reference
Rees, G., & Smith, P. (Eds.). (2017). Strategic human resource management: An international perspective . Sage.
