NAME: JULIA JEAN ANTHONETTE QUIRONG ARMODIA

BSAIS – 2ND YEAR

MIDTERM – HRM -REPORT SCRIPT

HUMAN RESOURCE MANAGEMENT

Performance Management
Performance management is indeed a real revolution. Most of the organisations in
the past were not interested in providing consistent and formal feedback to
employees about their performance. The introduction of performance management
has a significant impact on the productivity of employees. The ambitious employees
get a chance to demonstrate their capabilities and highlight their career plans, thus
enabling the organisation to understand and appreciate the mutual needs and
expectations of both the organisation and its employees. For example, with the
information gathered during the performance appraisal, the HR manager is able to
respond to demand the new skills required to sustain the competitiveness of the
organisation.
The effectiveness of a performance management system depends on the design and
coherence of the system itself, and the skills and commitment of the HR manger in
implementing it. The system involves:
• Establishing SMART objectives, i.e., specific, measurable, achievable,
relevant and time-bound.
• Monitoring and measuring progress that reviews individual performance.
PART 1 Introduction to Human Resource Management
• Recognition of achievement through rewards.
• A development plan that enables individuals to meet the performance
requirements
The HR manager therefore needs to be skillful and practice consultative
engagements in order to deliver high-performance results.
Performance Management
Performance management is a system designed to improve employee productivity
by providing continuous feedback and setting clear goals. It allows employees to
showcase their abilities and career aspirations, helping organizations align their
needs with employee expectations. A well-implemented performance management
system includes:
• Setting SMART objectives (Specific, Measurable, Achievable, Relevant,
Time-bound).
• Monitoring and evaluating employee performance.
• Rewarding achievements appropriately.
• Creating development plans to enhance employee skills.
The HR manager plays a crucial role in ensuring the system’s effectiveness by
facilitating communication and feedback.
Explanation: A structured process where employee performance is regularly
assessed and improved through goal-setting, monitoring, and feedback. A strong
performance management system helps align employee efforts with company
objectives.
Example: A sales company implements quarterly performance reviews where
employees receive feedback on their sales numbers. Employees who exceed targets
receive incentives, while those struggling are offered training programs to improve
their skills.

Rewards and Compensation

For organisations to attract and retain talent, it must have a challenging and
interesting reward system. Armstrong (1992) has suggested a set of criteria for an
effective rewards and compensation system. The reward must support the
achievement of the business strategy. It must be fully integrated with other aspects
of managing people, to drive the correct behaviour that meets the culture of the
organisation.
The organisation will usually research external market conditions and conduct
internal job evaluation to determine a fair and equitable pay level and compensation.
Some of the approaches to reward staff are performance-related pay, profit related
pay and team bonuses.
Rewards and Compensation
Organizations need effective reward systems to attract and retain talent. An ideal
system supports business strategy and aligns employee behavior with organizational
culture. Organizations determine fair compensation by analyzing market conditions
and conducting job evaluations.
Common reward strategies include:
• Performance-related pay (e.g., bonuses for exceeding targets).
• Profit-sharing (e.g., employees receiving a share of company profits).
• Team-based rewards (e.g., group incentives for achieving collective goals).
• Explanation: A fair and motivating reward system ensures employees are
recognized for their contributions. Compensation can be monetary (salary,
bonuses) or non-monetary (recognition, career growth opportunities).
• Example: A tech firm offers performance-based bonuses and stock options to
high-performing employees, motivating them to contribute more effectively.
A retail company gives "Employee of the Month" awards to recognize
outstanding service.

Training and Development

An organisation that operates in an uncertain environment needs to be flexible,
innovative and creative in order to meet new challenges and changes arising thereof.
Under such circumstances, people working in the organisation must be upgraded and
multi-skilled to complement the changing organisational needs. Hence,
organisations and people alike must be flexible and adaptable, able to develop new
strategies and competencies respectively to meet the new demands and opportunities
created by the uncertain environments.
Since the organisation's aim developing people is to ensure that they have the skills,
knowledge and capabilities needed to attain its goals, the training and development
programmes planned depend on its organisational culture and commitment to
human capital and overall organisational development.
Training and Development
To remain competitive in changing environments, organizations must invest in
developing employees’ skills and competencies. Training and development ensure
employees are well-equipped to meet new business challenges. Programs vary based
on company culture and commitment to workforce development.
Key aspects include:
• Upskilling employees to meet evolving job demands.
• Encouraging flexibility and adaptability in learning new competencies.
• Aligning training with organizational strategy to support growth.
• Explanation: Organizations invest in training programs to enhance employee
skills and adapt to industry changes. This process is essential for career growth
and business success.
• Example: A hospital provides annual training for nurses on the latest medical
technologies. An IT company offers coding boot camps to keep software
developers updated with new programming languages.

Human Relations: Maintaining Effective Working Relationships

The human resource function may be an important source of expertise in managing
people. It can help to formulate systems and initiatives to help the organisation align
its people with its business strategies. But the key to successfully managing the
organisation in order to achieve the target results is the ability to foster a harmonious
relationship between the organisation and its people. Rigid and inflexible HRM
approaches have been increasingly discarded in favour of employee-involvement
approaches. Since the mid-20th century, most organisations have shifted from
control and command of employees to fostering teamwork, learning and
empowerment.

Human Relations: Maintaining Effective Working Relationships

Effective human resource management (HRM) fosters a positive work environment
through employee involvement and teamwork. Over time, organizations have shifted
from rigid, top-down control to collaborative and empowering HR practices. This
transformation enhances job satisfaction and drives productivity.
Strategies for effective human relations include:
• Encouraging teamwork and open communication.
• Creating policies that support employee engagement.
• Replacing strict supervision with empowerment and learning opportunities.
• Explanation: Encouraging a positive workplace culture enhances
collaboration and job satisfaction. Companies that prioritize employee well-
being experience higher retention and productivity.
• Example: A multinational company introduces flexible work policies and
team-building activities, strengthening workplace relationships and reducing
turnover.

So here’s a real life example:

Real-Life Example: TechCorp’s Approach to Employee Development and

Engagement
Background:
TechCorp, a mid-sized software company, was struggling with low employee
engagement and high turnover. To address this, the HR team implemented a
structured performance management system, revamped its rewards strategy,
invested in training programs, and focused on improving workplace relationships.

Performance Management at TechCorp

TechCorp introduced quarterly performance reviews where managers and
employees set SMART goals (Specific, Measurable, Achievable, Relevant, Time-
bound). Employees received ongoing feedback rather than just annual evaluations.
Example: A software developer, Alex, set a goal to reduce system bugs by
20% in the next three months. His manager provided weekly check-ins to track
progress and offer support.
Rewards and Compensation at TechCorp
To retain top talent, TechCorp linked compensation to performance. Employees
who met or exceeded their goals received performance-based bonuses and
additional stock options. The company also introduced peer recognition awards
for teamwork and innovation.
Example: Alex successfully reduced system bugs by 25%. As a reward, he
received a $2,000 performance bonus and an "Innovator of the Month"
certificate, motivating him and inspiring his colleagues.

Training and Development at TechCorp

Understanding that employees needed to stay updated with the latest technology,
TechCorp launched a continuous learning initiative. The company provided
employees with access to online courses, mentorship programs, and tech
workshops.
Example: Alex attended a machine learning workshop sponsored by
TechCorp. After completing the course, he developed an AI-based tool that
improved software testing efficiency, showcasing his new skills and contributing to
company growth.

Human Relations: Creating a Positive Work Environment

TechCorp recognized the importance of employee engagement and team
collaboration. The company encouraged open-door policies, conducted monthly
team-building events, and promoted flexible work arrangements to enhance
work-life balance.
Example: Alex had the option to work three days from home to balance
personal and professional responsibilities. This improved his job satisfaction,
making him more productive and committed to the company.
Final Outcome:
With these changes, TechCorp saw a 30% reduction in employee turnover,
higher productivity, and improved morale. Employees like Alex felt valued,
supported, and motivated to contribute to the company’s success.

So, Here’s another real-life example of how a manufacturing company applies

performance management, rewards and compensation, training and
development, and human relations to improve its factory workers' productivity
and satisfaction.

Real-Life Example: Prime Manufacturing Co. – Enhancing Workforce

Performance
Background:
Prime Manufacturing Co. is a mid-sized factory that produces automotive parts.
The company faced low productivity, high error rates, and frequent
absenteeism among factory workers. To tackle these issues, the HR department
introduced a structured performance management system, improved rewards,
invested in training, and focused on employee relations.

Performance Management at Prime Manufacturing Co.

The company implemented a monthly performance tracking system where each
worker’s efficiency, error rates, and safety compliance were monitored. Workers
received individual and team-based feedback to help them improve.
Example:
David, a machine operator, was assigned a SMART goal to increase his production
output by 15% in three months while maintaining zero safety violations. His
supervisor provided biweekly coaching to help him stay on track.
Rewards and Compensation at Prime Manufacturing Co.
To motivate workers, the company introduced performance-based incentives.
Workers who consistently met or exceeded their targets received bonuses,
additional paid time off, and employee recognition awards.
Example:
David exceeded his target, increasing production output by 18% while
maintaining a 100% safety record. As a result, he received a $500 performance
bonus and a "Star Operator of the Month" award, which came with a preferred
shift selection.

Training and Development at Prime Manufacturing Co.

To reduce errors and enhance worker skills, the company launched a skills
development program. Workers attended monthly training sessions on machine
operation, safety protocols, and quality control.
Example:
David attended a new automation training program that helped him understand
how to use advanced machinery. With his new skills, he was promoted to senior
machine operator, increasing his salary and career growth potential.

Human Relations: Creating a Positive Work Environment

The factory introduced better communication channels between workers and
management. HR organized monthly town hall meetings, where employees could
voice concerns and suggest improvements. The company also launched team-
building activities to improve workplace morale.
Example:
David and his coworkers participated in a "Kaizen improvement challenge",
where workers suggested ways to improve efficiency. His team’s suggestion to
reorganize the production floor layout reduced machine downtime by 12%,
earning them company-wide recognition and a team lunch with management.
Final Outcome:
With these initiatives, Prime Manufacturing Co. experienced:
20% increase in productivity
30% reduction in safety incidents
Lower employee turnover as workers felt valued and engaged
David, once an average worker, became a top performer and mentor to new
employees, showing how a strong HR strategy can transform workplace
performance.

THANK YOU THAT’S ALL PO THANK YOU FOR LISTENING.