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Link between HPW and sustained organization performance, employee well-being and competitive advantage

Discuss About The Vulnerability Trust In Temporary High Teams.

High performance working involves two ideal approaches to the human resource management of the business organizations and it has been seen that those models are high commitment model and performance management model. In this regard, it is worthwhile to mention that in the case of high commitment model a move right from the external control by the management systems are seen and along with that advancements in supervision of workers, self control of the employees of the business organizations and technological advancements can also be seen (Shields et al. 2015). It can be said that the emphasize remains on the intrinsic rewards and on the intrinsic controls. On the other hand, performance management model deals with the way the managements of the business organizations retain the authority in hand and in this model the emphasize remains on maximizing the highest production or performance by making sure that highest achievable level of motivation and competence is present in the workforce. It can be said that higher organizational performance can be achieved by implementing effective HRM practices in the workplace and the workers of the business organizations should be provided with recognition along with monetary reward and the workforce should believe that they are an inseparable part of the business organization as they are the nucleus of the company as they are the ones who generate production for the company (Van Dooren, Bouckaert and Halligan 2015). Therefore this may be a good way to increase the level of performance of the business organization. 

There is a strong association between High Performance Working and Sustained Organizational Performance; and it can definitely be said that the association can be well predicted by being able to implement proper HRM practices in all the levels of the business organization regarding training and development and also to contribute to let know all the employees of the organization to efficiently use the resources of the organization so that the output is maximized (Cardy and Leonard 2014).  On the other hand, from the perspective of dynamic capabilities it can surely be said that sustained organizational performance can only be predicted after updating the programs designed for training and developmental purposes. Not only that, it can also be said that the ability of the management of the business organization to implement necessary HR practices to make the new joiners understand the culture and the context of the business organization can also majorly help to sustain the organizational performance as the newly joined employees will get accustomed to the culture of the company in a swift and fast manner and that will definitely be exhibited on the performance of the organization.

An identification of some of the main barriers to HPW

On the other hand, to draw an association between the well being of the employees of the business organization with the competitive advantage o the business organization it can surely be said that when the employees of the business organization will see that the management is looking for ensuring the well being of them by implementing various practices like improving the work safety aspects of the business organization (Mone and London 2018). Not only that, if the management of the business organization stresses on introducing new HR practices that can majorly benefit the workers of the company. It can surely be said that if the management of the organization cares for the benefits of the general employees, the employees will definitely gain a major boost in their motivation and morale and that will definitely positively affect the productivity of the employees. In today’s world the awareness regarding this issue is getting increased day by day and therefore it has become something that the administrators of the business organizations should ensure.  In this regard, it is worthwhile to mention that in most cases the employees are approaching the programs designed for employees’ welfare from a program point of view rather than looking at it as an integrated strategy. It has also been seen that building health and productivity strategy has gained a huge popularity in the last couple of decades and therefore the managements of numerous business organizations are stressing on implementing these theories in their business organization in order to maximize the productivity as well as profitability. It has been seen that the management of Abu Dhabi National Oil Company has implemented this strategy in their workplace and have experienced a greater productivity. It is a matter of fact that building health and productivity strategy in the workplace can enable the management of the organization to solve many issues regarding productivity and employee morale. Therefore it can be said that implementing this strategy can effectively increase the level of motivation along with loyalty among the workers of the company and that would lead to a massive increase in the overall productivity of the business organization (Kearney 2018). Therefore it can definitely be said that there is a correlation between employee well-being and competitive advantage of the business organization that has effectively implemented this health and productivity strategy.

It is a matter of fact that in today’s world it has become necessary for the managements of the business organizations to implement high performance working system in the workplace in order to lower the risks of getting replaced by the new entrants in the same market of operation and it can definitely be said that the increased rivalry in the domestic and global markets has become a major issue for the business leaders (Pulakos et al. 2015). The chief target of HPWS is the workforce of the organization and it can be said that implementing this strategy or system in the organization is for enhancing the efficiency of the entire workforce.

However there are some barriers that can affect the adaptation of this system in the workplace and those can affect the growth rate of the business organization. It has been observed that to create a high performance team in the workplace requires great bonding among the employees of the organization and without that it may appear impossible to implement this strategy (Rothaermel 2015). It is a matter of fact that currently the management of Abu Dhabi National Oil Company is facing some challenges related to the morale and level of loyalty of the employees of the organization. Therefore, the primary objective of the management of the organization should be implementing proper communication in the workplace and also to identify the root causes that are affecting the employee loyalty and motivation of the business organization.

Lack of clarification of the roles that the employees have to play can also bring in several challenges for the management of the business organization to implement HPWS and that needs to be taken care of by the Human resource department (Mone and London 2018).  In some cases it has been observed that inadequacy of the core values of the business organization can lead to these issues here the management faces severe challenges to implement HPWS in the workplace. Apart from that, the management of the business organization should stress on implementing proper incentive structure and performance metrics so that they can evaluate the potential and the level of performance of the employees so that they can provide proper recognition and reward to the workforce in order to keep them motivated and loyal towards the business organization as that can majorly increase the organizational performance (Agars and Cazares 2017).

Not only has that lack of proper leadership and inappropriate company culture can also restrain the capability of the workers of the business organization. It has also been observed that if the leadership style of the business organization is autocratic and the business leaders are not capable enough that can lead to various problems in the workplace affecting the general productivity of the company. It has been observed that when the management is weak, then the authorities should introduce delegative or laissez-faire leadership style in the workplace to get the best outcome (Kerzner 2017). Therefore, the above mentioned reasons can lead to decrease in the overall productivity of the business organization.

While designing a performance management system in the workplace it is necessary to initiate with an approach related to the performance management cycle and creates the business processes surrounding that PMC (Van Dooren and Van de Walle 2016. ). Before implementing this, the managements of the business organizations should have a clear and distinct idea regarding all the stages of this cycle and should have  a clear knowledge of how this cycle have been evolved from a traditional 12 month cycle to a more flexible and incessant process that is more beneficial to the businesses.

It can be said that there are three fundamental stages of performance management cycle and those are performance management planning, performance management monitoring and performance management evaluating or reviewing.

To describe performance management planning phase, it can be said that this stage involves both the managers of the business organizations and also the employees of the business organizations. It is a matter of fact that in this stage the employees and the managers generally agree to the things what the workforce should accomplish and to what standard the accomplishments will be. In this stage the employees also negotiate regarding the competencies which are vital for effectively achieving the goals set by the authorities of the business organizations (Keerativutisest and Hanson 2017). It is a matter of fact that this first stage of performance management cycle is designed to identify the job description of the employees of the business organization and also to work on planning regarding the targets and the objectives set by the management of the company.

Performance management monitoring is the second major stage of this cycle and this has been designed to continuously monitor the progress of the workforce in order to secure the desired productivity. In this case, it is worthwhile to mention that monitoring does not mean that all the employees should fulfill the assigned tasks, but monitoring helps the employees who are lagging behind to get motivation in order to accelerate their productivity (Chapman 2015). In this stage, the managers and the authorities of the company should stress on the achieved results and the team dynamics which has a direct connection with the work environment and the company culture; which are very important for ensuring the productivity and the profitability of the business organization.

The final traditional and major stage of this performance management cycle is the stage of reviewing and evaluating. It can definitely be said that in this phase the accomplishments of the general workers of the company and the standards of their performance which was already agreed at the initial phase of the cycle by the management gets analyzed (Warrick 2016). The managers in this final stage consider that what could be the knowledge gained by the newly joined employees while working in the organization and how the acquired knowledge can be shared among the employees who are relatively new to the company and facing challenges. It has been observed that in this stage the managers come to terms with how well the workers did their part in recent times and how each of them needs to consider regarding achieving the further work standards and what should be or could be their future targets. In this stage the managers have to scrutinize the performance of the entire workforce and have to take vital decisions regarding the employees’ employment, rewards and necessary compensations.      

  • The Line managers should provide leadership from the topmost level
  • The authority of the company should communicate with the line managers regarding the importance of performance management to gain success and how the evaluation may become their responsibility
  • The line managers should maintain simplicity in the whole process
  • The management should involve line managers while designing the performance management process by representing them in pilot studies

Conclusion

How the performance management cycle works and what are the benefits of implementing this cycle in the business process have already been discussed in the above sections of this report. It is a matter of fact that if the authorities of the business organizations and in this particular case, if the management of Abu Dhabi national Oil Company can effectively implement this performance management cycle in the business process, the management will be able to evaluate the performance of the employees and will also be able to understand the needs and the demands of the employees. This is vital, as the workers are the nucleus of the business organizations as they are the ones who generate the production for the management and therefore, in order to keep the workforce motivated and loyal towards the organization while keeping the budgetary balance of the business organization intact, the authorities should evaluate all the necessary aspects like the employees’ level of performance and their ability and potential to work further and what could be their remuneration and the rewards should be (Oyemomi et al. 2016). In this case, it is worthwhile to mention that for some of the workers it may appear that only monetary rewards are the motivating factor and for some recognizing their efforts may become a major driving force, and in some cases the individuals might require both monetary and the recognition from the management in order to remain motivated and loyal towards the organization. Therefore, it can definitely be said that implementing effective performance management cycle in the workplace may help the managerial board of Abu Dhabi National Oil Company to predict the challenges that may appear from the workers’ end and this strategy can give a major boost to the productivity along with the profitability of the business organization.   

There is always a debate regarding the influence of human resource practices and the high performance culture on the overall performance of any organization. This is mostly due to the growing pressure on the organizations for improving their efficiency and performance even during the unfavorable financial situations. The past researches indicate that the implementation of high performance culture has been quite successful and major positive changes in the productivity can be observed due to this major shift in the overall organizational culture. However, in this light it can also be indicated that there is a major intricacy in demonstrating the relationship way clearly which is the primary accountable factor to trigger the unrestricted behavior of the staff members and their increased productivity. (Aldag and Kuzuhara 2015) has indicated that the high performance culture can only be attributed to the possible impacts on advancing the morale, self confidence of employees, motivating them and building a sense of commitment and trust which will ultimately enhance their individual performance. The potential recommendations for this purpose are:


The managers and team leaders should understand that the high performance team members have to be pulled more than to be pushed to enhance their individual performance. Therefore, it is necessary to create enthusiasm and energy in the organizations. The managers need to inspire the employees in a way that they are on a particular mission of completing a project and they should also feed adequately valued for their individual contribution for the team.

  • It is quite possible that conflicts will arise several times in any organization. Abu Dhabi National Oil Company is no difference in this case. Therefore, the managers and supervisors here need to ensure that conflict should not tear these teams apart, therefore they should immediately work for resolving the differences amongst employees and promote the culture of cooperation in the organization. Quite frequently it can be observed that the managers of the Abu Dhabi National Oil Company consider that the matured employees will contribute solving the conflicts and most of the times they will solve their individual conflicts on their own. However it is not likely to be the scenario every time. In a high performance culture, the differences and conflicts should be addressed immediately and following direct means. This also indicates that a certain level of maturely is required for this purpose. Therefore the managers need to focus on team bonding and cooperation amongst the employees so that their individual performance can get improved along with that they share a bond with each other.
  • The leaders and managers also need to create the internal drive among the employees for accomplishing the impossible deeds. Therefore they should also enhance the objectives and goals for this purpose. It is not possible that individuals would be interested in accomplishing something that other teams or other employees have already achieved, especially in the high performance culture; rather they would want to accomplish something amazing. The managers need to motivate the employees by stretching their goals so that they can identify their potentiality and competency for doing something extraordinary. Therefore, in this way the employees can realize their capability and how they can accomplish the exceptional which will eventually increase their satisfaction with the organization.
  • It is necessary to communicate adequately with the employees in order to build trust and commitment in the organization. The managers need to communicate constantly so that they can keep their employees focused on their shared mission and vision. It is always quite easy for anyone to get distracted, therefore the management of Abu Dhabi National Oil Company needs to keep their employees well-informed and on tract for giving a better performance.
  • It should also be noted that the leaders of the Abu Dhabi National Oil Company should be trusted by all the employees, therefore they will have to utilise their skills and knowledge for solving the issues and helping others. Eventually they can be trusted by employees. Also they have to consistent enough with their words and promises for building trust

References

Adnoc.ae. (2018). ADNOC - Abu Dhabi National Oil Company. [online] Available at: https://www.adnoc.ae/ [Accessed 4 Jul. 2018].

Agars, M.D. and Cazares, E.J., 2017. A Cycle or a Ceiling? The Cumulative Effects of Subtle Discrimination Through the Lens of Performance Management. Industrial and Organizational Psychology, 10(1), pp.97-100.

Aldag, R. and Kuzuhara, L., 2015. Creating high performance teams: Applied strategies and tools for managers and team members. Routledge.

Birasnav, M., 2014. Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership. Journal of Business Research, 67(8), pp.1622-1629.

Cardy, R. and Leonard, B., 2014. Performance Management: Concepts, Skills and Exercises: Concepts, Skills and Exercises. Routledge.

Chapman, M., 2015. Lessons from the Hanoi Hilton: Six Characteristics of High-Performance Teams. Air & Space Power Journal, 29(1), pp.146-148.

DuBois, M., Koch, J., Hanlon, J., Nyatuga, B. and Kerr, N., 2015. Leadership Styles of Effective Project Managers: Techniques and Traits to Lead High Performance Teams. Journal of Economic Development, Management, IT, Finance & Marketing, 7(1).

Hyland, P.K., Lee, R.A. and Mills, M.J., 2015. Mindfulness at work: A new approach to improving individual and organizational performance. Industrial and Organizational Psychology, 8(4), pp.576-602.

Katzenbach, J.R. and Smith, D.K., 2015. The wisdom of teams: Creating the high-performance organization. Harvard Business Review Press.

Kearney, R., 2018. Public sector performance: management, motivation, and measurement. Routledge.

Keerativutisest, V. and Hanson, B.J., 2017. Developing High Performance Teams (HPT) through Employee Motivation, Interpersonal Communication Skills, and Entrepreneurial Mindset Using Organization Development Interventions (ODI): A Study of Selected Engineering Service Companies in Thailand. ABAC ODI JOURNAL VISION. ACTION. OUTCOME., 4(1).

Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons.

Moldjord, C. and Iversen, A., 2015. Developing vulnerability trust in temporary high performance teams. Team Performance Management, 21(5/6), pp.231-246.

Mone, E.M. and London, M., 2018. Employee engagement through effective performance management: A practical guide for managers. Routledge.

Oyemomi, O., Liu, S., Neaga, I. and Alkhuraiji, A., 2016. How knowledge sharing and business process contribute to organizational performance: Using the fsQCA approach. Journal of Business Research, 69(11), pp.5222-5227.

Pulakos, E.D., Hanson, R.M., Arad, S. and Moye, N., 2015. Performance management can be fixed: An on-the-job experiential learning approach for complex behavior change. Industrial and Organizational Psychology, 8(1), pp.51-76.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.

Van Dooren, W. and Van de Walle, S. eds., 2016. Performance information in the public sector: How it is used. Springer.

Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.

Warrick, D.D., 2016. What leaders can learn about teamwork and developing high performance teams from organization development practitioners. Performance Improvement, 55(3), pp.13-21.

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