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Critically assess what is involved in the whole issue of Performance Management and motivating the workforce and how successful motivational strategies are influenced by different motivational theories.

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Task F Critically assess what is involved in the whole issue of Performance Management and motivating the workforce and how successful motivational strategies are influenced by different motivational theories. (This will necessarily involve explaining the links between training and development and increased motivation by workers.) A business needs to ensure that its employees are performing effectively. It will wish to: > Identify areas which are unsatisfactory > It may wish to find areas where employees need to be trained and developed > It may wish to encourage and reward good performance- perhaps with performance-related pay in the form of bonuses or pay increases. The term 'performance management' came into use in the 1980s. It refers to the practice of setting targets, measuring performance against these and suggesting courses of action. It is forward looking and reflects a world in which businesses are constantly trying to improve. Since the process has implications for employees' futures and sometimes for their pay, the process needs to be fair and, to use the modern jargon, 'transparent', that is, the reasons for decisions need to be made clear to all concerned Organisations such as Asda have always relied on the performance of the human resource. As the economy is built on intelligence and complex information and communications technology system, the result of these developments is that most modern employees at Asda have to face the interface directly with customers and decisions need to be taken by employees at every level within the organisation, rather than being told what to do. Then Asda will thus be one that has all its employees firing on all cylinders, working towards helping the organisation to meet its objectives. Asda therefore has to develop systems and methods for managing effectively the performance of its employees. A number of methods may be used to check performance; the choice will depend upon the business in question. ...read more.


For example: > Job rotation: changing jobs at regular intervals. This makes the job less boring and provides staff with new experience in different areas of the business. For example, employees in the finance department are usually rotated between different departments such as saving or current accounts > Job enrichment: gives greater responsibilities to the person who is doing the job to provide him or her with a sense of achievement > Job enlargement: makes the job as big as possible by adding more tasks and responsibilities, but without sense of achievement. At Asda, performance management and development applies to everyone. The aim is to make sure that all employees: > Are aware of what the company is trying to achieve in its strategic plan > Make plans to focus on their own part in making the company successful > Have an on-going review of their progress There is an emphasis on continual improvement and staff are encouraged to develop themselves to do their jobs better. The steering wheel is a central idea in Asda's planning. It is simple the company's way of illustrating the four main areas of concern that the business has: customers, operations, finance and people (its employees). Steering Wheel: Company objectives are communicated through the organisation from the top downwards: 1. Directors set out the strategic plan for the company- called the 'Corporate Wheel.' This shows what the company aims to achieve for the next year in each of the four main areas. The plan is then cascaded down to: 2. Heads of departments who plan to meet their departmental targets 3. To section managers who set out plans for their teams 4. And finally to the teams on the shop floor, in the warehouse and in the offices. The performance management process requires each employee to: > Set out their individual objectives for the coming period- 'short simple descriptions of what needs to be achieved and how you will know when you have achieved it' > To write a ...read more.


If they are committed to objectives, they will be motivated to work towards achieving them > The most significant reward that will motivate people to work is the satisfaction of an individual's self-actualisation needs. This can be the result of working towards an organisation's objectives > The average human being learns, when given the opportunity, to accept and- more importantly- to seek responsibility > Many people can contribute to a business's objectives when given the chance > The average person's potentialities are currently not being fully used This is what individuals (Theory X and Theory Y Managers) at Asda say about the theory: > 'Only money motivates people' > 'I try to find out about people's aspirations' > 'I appeal to the human side of the individual' > 'Every employee has different drives' > 'Threatening to take away privileges really works' > 'Bonuses get people to put the effort in' The potential of McGregor's theory makes Asda far more effective by unleashing the people who works for it. Asda needs to see itself as interacting groups of people enjoying 'supportive relationships' with each other. Ideally, Asda's members will see its objectives as being personally significant to them. The work of these people in the field of motivation suggests it is important to link rewards closely with performance. Successful management involves providing meaningful and valued rewards to employees at Asda. Employees need to have the opportunity to engage in 'good performance', and expectations must be clearly communicated to employees. Rewards must be clearly and visibly linked to performance. Employees high-involvement in Asda leads to the belief that: > People can be trusted to make important decisions about their work activities > People can develop their own knowledge to make important decisions about managing their work activities > When people make decisions about the management of their work, the result is greater organisational effectiveness This approach is associated with the term 'empowerment'. ...read more.

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