The report presented below displays a framework regarding understanding the importance of developing and managing every individual personnel who is a part of the organization. Wellton National Health Services Trust located in north of England provides clinical and medical services to the public with the main aim of providing social services to the society of which it is a part. Policies, principles, practices and decision making are important in improving the working style of each individual which directly impacts the overall development of organization. For an organization to be successful, it is significant to assess the contribution of each individual through various approaches that can be implied for the same. Individual work related pay is a management tool used to measure the level of extent of contribution of personnel’s working in different departments such as clinical, medical or surgical directorate. Changes implying application of modified strategy on account of changes requiring a change in internal environment have been included within (Need, 2006).
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1. Advantages and disadvantages
Individual work related pay is a concept of management which is followed to evaluate the effectiveness of working of an individual, impacting upon the organization. For ensuring long term success of the organization, it is important to determine how the activities performed by each individual impact the organization. This section includes different individual skill related pay scheme to motivate the team members to provide better contribution for achieving the objectives determined.
- Evaluating each individual enables the organization to keep a track regarding the effectiveness of strategic policies for guiding the team members to provide best skills and knowledge (Aguinis, 2009).
- Aligning each of individual with that of structure of organization ensures the successful achievement of objectives.
- Discipline is maintained within the organization to evaluate each individual by rating or ranking their contribution towards completion of task.
- It provides opportunities to each individual to explore their expertise (Moynihan, 2008).
- Individual might feel that the evaluation is undertaken on the biased basis. The criteria designed might not be acceptable by other members of organization who are to be assessed.
- Personnel might feel de-motivated on account of lack of consideration towards their contribution for attaining organizational goals.
- This technique includes rewarding individual which does not affect the improvement of overall teamwork.
- The method adopted by the organization to evaluate individual might not be efficient enough thereby indirectly impact positively upon motivating team work.
- It requires lot of efforts and time to be contributed by the line managers for particularly assessing individual.
2. Barriers to effective design and implementation
Designing an appropriate scheme and effectively implementing the same is a complex task which requires great deal of participation of various senior executives. Number of elements needs to be covered for the same that the impact of each individual as well as working of organization too (Varma, Budhwar and DeNisi, 2008). However, various barriers can interrupt the procedure of designing and implementing the scheme as mentioned below:
Barriers to effective design
Incomplete or irrelevant data and information acquired with respect to understanding individual requirements of each personnel can become a barrier in effectively designing pay scheme that considers drawing list of criteria aligning with personnel as well as organization structure. If the criteria do not mention the basic required features for enabling the scheme to perform effectively then it can hinder the designing process to a greater extent. If the organization does not attain the required participation from top executives to design a suitable scheme structure, then this might become a serious issue to be considered. Senior level management department must have a clear picture of which objectives are to be achieved by influencing each individual. Incomplete information on list of objectives can prove to be a barrier in effectively designing pay scheme (Ferreira and Otley, 2009). Negligence on account of considering various approaches adopted by competitors can affect the designing procedure to a greater extent. Importance of motivation of each personnel if not considered in designing pay scheme would adversely affect the overall effectiveness of team groups as it might so happen that the executives might not have considered the effectiveness of the same. The procedure of designing these schemes might consider the time required to complete the task so as to determine time limit criteria for concluding whether the team members are able to complete the task assigned within a specific time frame. List of strategic goals to be achieved if not determined in brief might affect the organization in long run as the line managers would not be able to lead and manage their team for utilizing maximum possible skill and knowledge of each individual.
Barriers to effective implementation
The scheme designed by adopting specific approach must be implied effectively for ensuring evaluation and assessment of each individual. Implementing pay schemes involve contribution of various top most executives and team leaders. However, there are list of barriers affecting successful implementation of the same. Lack of active involvement of top most executives in guiding each of the team members to align with the criteria mentioned can be a great hindrance. It might be possible that the analysers and evaluators might not hold complete understanding of the concept, thereby not being able to implement the same for accomplishing the task of aligning with the objectives of the organization. The criteria determined by the top most executives for measuring the personnel might not be acceptable by various team members (Smith, Smith and Verner, 2006). Moreover, it might so happen that these team members might not consider the elements included within criteria to be appropriate for drawing inferences upon rating and raking. Implementation of this scheme might not achieve required success on account of lack of participation from maximum number of social workers working for a social cause. Implementation can fail on account of inappropriate training programs required to rectify mistakes of each worker belonging to any of the department. Thus, the implementation procedure must not fail to deliver required guidance and direction to the employees otherwise they would not be able to improve their individual behaviour (Moynihan and Lavertu, 2012).
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3. Alternate reward approaches
This section includes list of various approaches that can be adopted by the organization as mentioned below in detail:
Comparative Approach: Most commonly traditional approach used in various organizations is comparative approach of individual management. It includes forced distribution system technique through application of which, the line manager undertakes ranking system. Personnel performing excellently are ranked as best performer and are mentioned on the top of the list. Whereas personnel who is performing poorly is mentioned in the last. Starting with top performers, the list is prepared in decreasing order of level through which the Human Resource department rewards the top performers on the other hand poor performers are provided with required training.
Attribute Approach: This individual measurement approach includes graphic rating scale. This technique is followed to evaluate that how each of individual has performed in a manner such that he demonstrates effective contribution against pre determined set of criteria. An individual is rated with respect to teamwork, creativity, judgement and problem solving. Another technique is mixed standard rating in which each of the personnel is determined as high, medium or low level standard along with including a statement determining qualities or characteristics required to be adopted by these individuals to achieve a position in high level section (Aguinis, Joo and Gottfredson, 2011).
Quality Approach: This approach considers equal participation of system as well as personnel for achieving the SMART objectives determined by the top executives. By following this approach, the organization is assumed to continuously bring in improvements in the service provided for increasing the level of satisfaction of customers. Hence, team members are not held completely responsible for any issue detected (Christensen, Lægreid and Stigen, 2006). Organizational system as well as team members works in alignment by following quality improvement strategy.
It can be concluded here that the organization considered here in the report has been applying list of management approaches for evaluating how each individual has performed for bringing in continuous improvements and modification to improve the overall efficiency of the organization. Depending upon the situation, various approaches are used by Wellton NHS to evaluate the behavioural and other characteristics so as to enable the organization to provide required training to its personnel for developing long term relationship with the society. This appraisal technique of motivating each individual worker for performing in a better way helps in increasing their enthusiasm and zeal.
Books and Journals
- Aguinis, H., 2009. Performance management. Upper Saddle River, NJ: Pearson Prentice Hall.
- Aguinis, H., Joo, H. and Gottfredson, R.K., 2011. Why we hate performance management—And why we should love it. Business Horizons. 54(6). pp.503-507.
- Cheng, M.I., Dainty, A. and Moore, D., 2006. Implementing a new performance management system within a project-based organization: A case study. International Journal of Productivity and Performance Management. 56(1). pp.60-75.
- Christensen, T., Lægreid, P. and Stigen, I.M., 2006. Performance management and public sector reform: The Norwegian hospital reform. International Public Management Journal. 9(2). pp.113-139.
- Ferreira, A. and Otley, D., 2009. The design and use of performance management systems: An extended framework for analysis. Management accounting research, 20(4), pp.263-282.
- Ghamkhari, M. and Mohsenian-Rad, H., 2013. Energy and performance management of green data centers: A profit maximization approach. IEEE Transactions on Smart Grid. 4(2). pp.1017-1025.
- Heikkila, T. and Isett, K.R., 2007. Citizen involvement and performance management in specialâ€purpose governments. Public Administration Review. 67(2). pp.238-248.
- Kusic, D., Kephart, J.O., Hanson, J.E., Kandasamy, N. and Jiang, G., 2009. Power and performance management of virtualized computing environments via lookahead control. Cluster computing. 12(1). pp.1-15.
- Latham, G.P., Borgogni, L. and Petitta, L., 2008. Goal setting and performance management in the public sector. International Public Management Journal. 11(4). pp.385-403.