Performance Management System And Human Resource Practices Commerce

Essay add: 28-10-2015, 15:49   /   Views: 251

Performance management system and human resource practices have been considered as two practices which are interlinked and dependent on each other. Both the systems are different from each other but they are related in some way or the other. The management of performance in organizations has become importance recently mainly due to the expansion of organization and large scale functioning. Even the small scale organizations concentrate on their performance. They may not be able to adopt human resource practices on large scale but they still focus on their employees and orient the functioning of the organization in a manner that the comfort, needs and requirements of the organization are met in a proper manner. The article is concerned with understanding the relationship between the performance management and the different human resource practices. The relationship is variable and therefore the study has analyzed different relationships individually. In order to understand the study has taken into consideration Etisalat, ADNOC and Abu Dhabi Bank. The three organizations which have been taken are from different sectors and therefore they incorporate different human resource practices which have helped them in gaining the position in the market. The study then analyze a survey which has been done in order to get a proper understanding from the respondents and their exact response concerning the performance management and their different relationships with the human resource practices. In the UAE strategy human resource management has become the trend in alignment to which performance management systems are developed.


When an organization is developed its functioning is oriented around a certain goal or target which has to be achieved by the organization in order to achieve a position in the market. As far as the organizations in the UAE are concerned they started functioning at the regional level initially and now the organizations function in the international market and have their operating centres in different countries around the world. The position of the organization in the global market is defined by its performance in comparison to the other companies which are in the market. The tools or a system which has been adopted by the organization in order to achieve its targets and in order to function in an efficient manner is better known as performance management. In an organization there are different resources which are available for the purpose of execution of different operations. Among the different resources the employees of the organization have an important role in the execution of the operations. For the purpose of management of the human resources in an organization there are different practices which can be adopted by the organization. The organization in the UAE has adopted human resource practices which would support the management of performance in their organization. The human resource practices contribute in the management of the human resources in an organization as well as the management of the tasks which they perform. The following section provides an overview of the study which has been done concerning certain practices of human resources in the UAE and their relationship with performance management. In the different studies which has been done it has been noticed that the performance of the organization has a direct relationship with the human resource practices which they have adopted.

Literature Review

UAE has been a developing region and with advancements in technology the organizations in UAE have been striving to develop the best and in the best possible manner. The development of different products and services incorporates practicing different HR related techniques. The human resource practices contribute in the development of the organization. When competing in the international market besides the delivery of quality product and services the HR practices in an organization play an important role in defining the success or failure of an organization(Armstrong and Baron 2005). In an organization different HR practices are interrelated. For instance the measurement of performance is dependent on the recruitment or the staffing practices. The degree of relationship may vary between two human resource practices but there does exist relationship. In the article we are primarily concerned with the relationship of performance management and other HR practices. As UAE is developing with time and in coordination with the developments in the rest of the world the human resource management and the practices related to have been an extensive topic for the purpose of study. This is because it has been found that the HR practices have a great influence on the management of performance and operations in an organization. Among the different resources in an organization the human resource has been considered to be the most important. However, difficulty has been seen in fully harnessing these resources in the organization. The different human resource practices which have been studied in order to develop a relationship are as follows:

Environment of work

Open Management

Incentives on the basis of performance

Feedback on the basis of performance

Evaluation of employees

Knowledge sharing

Employee motivation

The practices which have been mentioned above are concerned with the internal and external environment of the organization and the human resources working in an organization. The performance of an organization can be defined as the output which is produced by the organization after the execution of a process. In the UAE there are different organizations which have been taken into consideration for the purpose of understanding the relationship between performance management and other human resource practices. Etisalat which is a leading organization in telecommunication sector has been considered for understanding the relationship between performance of the organization and the environment of work which has been developed in the organization. Besides Etisalat also performs the evaluation of employees in the organization. Etisalat is an international organization and in different operating centres the work culture is uniform. The employees work in team and the leaders work along with them(Smither and London 2009). The leadership style which has been adopted by Etisalat encourages the participation of the leaders along with the employees. Such type of work environment has given equal participation to the employees in the working of the organization. The motivation of the employees which is an important concern of every organization is then balanced with the help of this type of work environment. The performance of Etisalat on a global scale is high. In 2011 the profit of Etisalat has been announced to be AED 3.41 billion which is a huge amount of market share. In the international competition the company operates as 15th largest operator of telecommunication services. The performance management in Etisalat is dependent on the performance of the employees which is supported by the environment of work in the organization. On a periodic basis the company evaluates the performance of the employees in the organization. The analysis is done based on different parameters such as team performance, flexibility, role in a particular operation, physical and mental skills of the employee. The relationship between performance management, work environment and evaluation of the performance of employees is that they all contribute to the management of the goals of an organization (or in this case Etisalat) in an efficient manner. Another organization from a completely different domain of working is ADNOC which is an oil company in Abu Dhabi. The organization is efficient in managing its performance based on the work compensation which it offers to the employees of the organization. The work compensation which is offered by ADNOC to its employees is under two different scenarios. Firstly, work compensation is offered to the employees during difficult times. ADNOC has reported some of the cases in which the employees got hurt and were injured. The company supported the employees by providing them with work compensation. Secondly, work compensation is offered by ADNOC when an employee displays extraordinary performance and shows result in a certain operation. This gives motivation to the employees to perform in a similar manner in future operations as well. The work compensation then becomes a driving force for other employees as well. The revenue of $75billion in 2011 clearly reflects the high performance of the organization in the market. The work compensation ability of the organization has given a competitive advantage to the company in the international market and has helped in keeping up the performance of the organization as well. It has been an important factor contributing to the performance of the organization. Abu Dhabi bank which is the largest lender bank in the UAE has adopted the practice of incentives and feedback on the basis of performance of the employees. As the banking sector is a market dependent sector and its performance fluctuates based on the market scenario the employees are given the share of the organization based on their performance. This has created fairness and equality in the organization and has levelled up all the employees to a same level at which they can communicate with each other. Besides the market scenario the decision making of the employees and the efforts which the employees put in a certain operation also play an important role in the performance of the organization in the market. The management of the performance of the bank is done by different strategies which also include the strategy including which the organization offers incentives to the employees.

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