It is agreeable that most business institutions’ goal is to actualize profits in their turnover, which calls for proper management of scarce resources and incorporates human resources. Human resource management is the organizational strategic approach that endeavours to foster the best outcomes from the human capital and has multiple facets. It entails the planning, implementing, and managing of various HR policies, practices, and programs to attract, develop, motivate, and retain employees. HRM encompasses the entire employee cycle from initial recruitment to performance management, development, compensation and appraisals and finally, employee engagements. Organizational performance refers to the ability of an organization to successfully and efficiently accomplish its strategic goals and objectives. It assesses an organisation’s performance across various metrics, including profitability, operational effectiveness, customer satisfaction, innovation, and worker productivity. Recruitment and selection refer to attracting, assessing and selecting the most suited candidates to fill vacant positions in the organization from the wide pool provided by the market and the employee pipeline. Effective recruitment and selection methods are crucial for a business to have a skilled and diverse workforce that can contribute to its success.
On the other hand, training and development entail all measures aimed at improving the skills possessed by employees to impart competency, which is vital in fostering performance and increasing productivity. Performance appraisal and compensation are closely interconnected HR functions. Performance appraisal systematically evaluates employees’ job performance against set standards and objectives. At the same time, compensation refers to the monetary and non-monetary rewards provided to employees in recognition of their performance. Guinness Nigeria Plc is a subsidiary of Diageo Plc, a global brewing multinational company headquartered in the United Kingdom. The company was incorporated in the 1950s as a trading company and dealt in both beverage and non-beverage products as a brewing company. The company does not get subsidies from the government and has to implement policies that ensure higher productivity and human resources performance is integral. Following a corporate restructuring in 2007 that marked a paradigm shift from a company barely making a profit previously to a profit-making organization that pays dividends to stakeholders. In this essay, we will embark on establishing the role played by HRM policies in recruitment, appraisal and development to foster organizational performance using Guinness Nigeria Plc as the case study.
Recruitment and Selection
Recruitment is the initial step in the employee lifecycle and is the sine qua non in determining the crop of hired employees regarding skills and competency. The selected individuals undergo a thorough process to obtain the most competent from the competitive job market aligned with the organizational goals and objectives. Guinness Nigeria has a well-structured recruitment and selection process revamped in the 2007 reorganization that undertakes to select qualified candidates following a review to ascertain the qualifications of preexisting staff members, with those lacking the right qualifications being fired. There is a continuous improvement in the management practice to encompass the changes in the dynamic job market to ensure calibration to such factors as diversity, inclusivity and eradication of bias.
The company operates in a highly competitive market and strives to maintain a strong market share and profitability. The ability to attract top talents ensures that the right employees are chosen to fill the slots, which enhances productivity. The company employs various recruitment methods, such as job postings, referrals, career fairs, and online platforms, to reach a diverse pool of candidates from across the globe now with the easing of labour laws to foster diversity. The channels promise to penetrate the most remote regions to reach all potential individuals as they are broad and popular in most households. Despite efforts to foster diversity and inclusion of those from diverse backgrounds, much still remains to be done by Guinness Nigeria Plc. Diversity and inclusion are vital components of HR playing a role in painting a good image that will, in turn, attract multiple talents hence the need to ensure the whole recruitment process is inclusive and free to attract individuals from diverse backgrounds. According to a review of the research and best practices, businesses that prioritise diversity and inclusion in their hiring procedures typically experience better organizational performance outcomes, such as increased innovation, better decision-making, and higher levels of employee engagement.
Guinness Nigeria could be better placed by actively promoting diversity and inclusivity through targeted recruitment mechanisms to recruit individuals from underrepresented groups using diverse interview panels and conducting bias-free screening and selection processes. According to a review of the research and best practices, businesses that prioritise diversity and inclusion in their hiring procedures typically experience better organizational performance outcomes, such as increased innovation, better decision-making, and higher levels of employee engagement. The selection criteria need to be revamped to curb the overreliance on traditional methods like interviews and tests that have had shortcomings in predicting employee performance. According to research, choosing less qualified applicants based on interviews or exams may result in biases and inaccuracies. Moreover, the absence of uniform selection standards and procedures may lead to inconsistent decision-making and subjectivity.
Moreover, Guinness Nigeria could improve its selection procedures by implementing evidence-based selection techniques that are tested and accurate at forecasting job performance. Assess candidates’ competencies, talents, and behaviours in a work-related setting. This could involve using competency-based exams, work samples, and assessment centres. Standardized selection criteria and procedures should be established to ensure consistency and fairness in decision-making, and hiring managers should get training. Additionally, utilizing technology can assist the selection process in becoming more successful and efficient. Examples of this technology include artificial intelligence (AI) and data analytics. These are novel tools from the novel technological advancements that enable complex data analysis in a shorter time and make accurate inferences.
Training and Development
Human resources are the most dynamic of all resources in the workplace. Coupled with the constant business environment, a dire need arises to teach to ensure lifelong acquaintance with the prevailing trends. Additionally, technological innovations underscore the need for continuous programs that will enable the workforce team to grow on the job and sustain competence over time. Training is the process of offering learning and development opportunities to employees so that they can improve their skills, knowledge, and abilities to perform their jobs efficiently. It entails methodical and organized actions intended to raise the effectiveness, output, and skills of a workforce inside an organization. Workforce development can be done in various ways, such as formal classroom instruction, on-the-job training, workshops, seminars, webinars, e-learning programs, coaching, and mentorship.
Guinness Nigeria has committed to training its staff from the point of entry after recruitment to a continuous undertaking. This has made staff available to work in any of Diageo’s global operations by merit. The company has strengthened its policies through guidance from the HRM department, which has been integral in developing competent and highly skilled personnel who have satisfied their customer needs by offering quality services and products. Development eliminates the need for further training in the form of study leaves that may leave gaps as their roles have to be performed in their absence, reducing learning time and easing the process of transfers and promotions. Usually, staff members gain a wide array of experience from exercising tested responsibilities which fosters confidence. The move to invest in its employees has seen the company meet the challenges posed by global competition and social change that has made the recruitment process tedious. The development of current staff has enabled them to fill top positions and remain competent over time amidst the changing workplace circumstances. The impact of efforts made in training and development does not show directly in their balance sheet, but this does not rule out the impact of these measures. Since their implementation, productivity has increased despite the challenges that have come up in this business line.
Training and development assume multiple forms, such as training programs, on-the-job training, coaching and mentoring, professional development programs and career development initiatives. To advance an employee’s abilities and knowledge in particular fields, such as technical skills, leadership skills, communication skills, and other pertinent domains, formal training programs, such as workshops, seminars, e-learning courses, and other structured training sessions, are frequently used. In addition, Employees can gain new skills and advance their professional development while carrying out their usual job responsibilities thanks to on-the-job learning opportunities like stretch assignments, special projects, and job rotations. Some benefits of employee training and development include enhanced employee performance, employee engagement and retention, organizational agility, improved innovation and creativity and succession planning. Employees who have received workforce training are better able to execute their tasks, are more productive, and produce higher-quality work.
Moreover, giving employees a chance to advance professionally displays the dedication of Guinness Nigeria Plc to their growth and development, which raises employee engagement and job satisfaction. Additionally, it aids in luring and keeping top people who appreciate growth and learning opportunities. The move has enhanced agility as regular workshops allow room to determine the appropriate measures to respond to new challenges and opportunities. Undoubtedly, the employees have been able to develop problem-solving skills by generating new ideas that have fostered competitiveness. During these training programs, the company has been able to groom high-potential employees for leadership roles that have enhanced succession planning.
However, Guinness Nigeria appears to be dragging behind because the training programs do not match the organization’s strategic objectives. Organizations that tailor their training to their strategic objectives have recorded better performance as the skills imparted are put to work immediately. Guinness Nigeria must therefore ensure that the training and development programs are closely related to the company’s strategic objectives and specifically target the skill gaps and development requirements of its staff. There appears to be a gap in the tools used to evaluate and measure the effectiveness of training and development programs. The impact of these activities must be measured to evaluate the success and return on investment of training and development initiatives. It can be difficult to tell whether training programs have the desired effects and improve organisational performance without rigorous evaluation. Guinness Nigeria could enhance its workforce training and development program by aligning with its long-term goals. This calls for an initial thorough needs assessment to identify skill needs and gaps and create training programs that specifically address these needs and gaps, which will translate to improved organizational performance.
Guinness Nigeria should also establish a reliable system for assessing the success of its training and development initiatives. This could entail utilizing numerous evaluation techniques, including pre-and post-training evaluations, performance metrics, and employee and manager feedback. To continuously increase the efficacy of the programs, the data gathered from the evaluation should be examined to determine the influence of the training programs on employee performance. Guinness Nigeria may also think about using technology for training and development programs. Using e-learning platforms, mobile apps, and other technical tools may be necessary to offer employees flexible and convenient learning options. Technology can also be used to monitor and evaluate the success of training initiatives and ensure that they align with the organisation’s strategic goals. These mechanisms will ensure that the right training is done on the appropriate workforce groups, translating to better organisational performance as competent employees perform their suited roles.
Compensation, Rewards and Appraisals
This scope of HRM aims to ensure that the organization meets the needs of both the organizational needs and those of the stakeholders simultaneously. It is based on the continuous judgement of the behaviour and performance of staff and is not limited to simply financial rewards but incorporates non-financial benefits as well. Guinness Nigeria provides its employees with competitive benefits packages that cover basic pay, bonuses, allowances, and other financial perks. The business conducts routine market research to ensure that its pay policies align with industry norms and continue to appeal to candidates in the cutthroat Nigerian labour market. Guinness Nigeria bases employee pay on job duties, skills, experience, and performance, and it regularly reviews pay to ensure it’s still fair, open, and equitable. The corporation also offers perks to improve the total compensation package, including health insurance, retirement plans, and other employee welfare programs. The initiatives have fostered employee satisfaction and have gone a long way in reducing workforce turnover.
In addition, Guinness Nigeria honours and promotes exceptional worker performance through several incentive schemes. For instance, the business has a performance-based bonus program that pays employees according to how well they perform both individually and as a team in comparison to set goals and targets. The organization also has recognition efforts in place, such as Employee of the Month awards, Long Service Awards, and others, to recognize the contributions and accomplishments of employees. These incentive programs inspire employees, improve morale, and promote a productive workplace where excellence is valued and recognized.
Guinness Nigeria regularly evaluates employee performance and gives comments on their areas of strength, room for growth, and development requirements. The business has a systematic performance management process that entails defining goals, tracking results, and performing reviews of past performance. Guinness Nigeria’s performance reviews help staff match their efforts with the company’s strategic goals, spot areas for improvement, and deliver constructive criticism. Salary raises, promotions, and other professional development possibilities are decided based on performance reviews. The organization utilizes the compensation management philosophy as part of its guiding framework to ensure a return on investment for the employees, stakeholders and the organization. Even though the details of Guinness Nigeria’s compensation management are not available to the general public, making deductions based on market trends and general organizational structure is plausible.
The philosophy appears to encompass fairness, transparency, flexibility, and cost-effectiveness and is performance-based. Guinness Nigeria may strongly emphasise fairness in its compensation methods, ensuring workers are compensated fairly based on transparent, measurable standards such as job duties, abilities, and performance. Guinness Nigeria may make sure that its compensation policies are handled economically by taking into account the company’s budget, available funds, and overall budget for compensation. This can entail monitoring the value and alignment of compensation methods with the business’s financial objectives through routine cost-benefit evaluations. Proper compensation practices have been observed to elicit positive behaviour in employees, encouraging them to strive towards actualising organizational objectives. The strategies and policies developed should coincide with the external environment in terms of levels of pay in the labour market. A reward or compensation system should also include operational procedures to maintain the system to ensure that it runs effectively, flexibly, and affordably.
Biases, including the halo effect, leniency, and central tendency, can affect how well employees are rated for their performance, resulting in biased assessments. A performance evaluation may also be time- and resource-intensive, which could result in discrepancies and a lack of objectivity in the process. There appears to be a lack of clarity on the performance standards and objectives that places the fairness and transparency of the appraisal process in doubt. Employees may not know what is expected of them if performance standards and objectives are not clearly stated and communicated, which may impact their motivation and performance. The clarity in communication and transparency motivates employees by creating a unity of direction, which translates to better organizational performance.
There are several recommendations that Guinness Nigeria can assess to determine the most suited to recoup her compensation and appraisal strategy. Making sure that performance standards and objectives are precisely stated, communicated, and in line with the organization’s overarching goals and objectives is one best practice. This entails establishing SMART performance standards—Specific, Measurable, Achievable, Relevant, and Time-Bound—clearly conveyed to staff members and regularly updating them on their progress. Training managers and evaluators on how to conduct performance evaluations fairly and with the least amount of prejudice is another great practice. This may entail offering instruction on the fundamentals of fair and accurate performance evaluation and resources and guidelines to assist assessors in making an impartial judgment on performance.
Guinness Nigeria may also consider employing a multi-source or 360-degree approach to performance evaluation, in which input is gathered from various sources, such as employees, supervisors, colleagues, and customers. This can give a more thorough and balanced evaluation of an employee’s performance, minimizing the influence of biases and boosting the validity and reliability of the appraisal procedure. Studies suggest that appraisal and compensation strategies have far-reaching consequences on employees’ motivation and job satisfaction. Motivated staff members tend to be more productive as they are passionate about their craft and assigned roles and clearly understand what is expected of them. Guinness Nigeria’s implementation of a transparent compensation and appraisal policy has contributed considerably to the organisation’s success today. Moving ahead and making sure that pay procedures are fair, equitable, and transparent is one best practice. Regular market benchmarking must be conducted to ensure that compensation is fair and consistent with industry standards. Also, Guinness Nigeria should develop standards for deciding obvious and consistent remuneration, such as performance-based pay and job evaluation.
In conclusion, effective human resource management (HRM) practices, including recruitment and selection, training and development, performance appraisal, compensation, rewards, and appraisals, are critical in driving organizational performance at Guinness Nigeria PLC. The company’s HRM practices are aligned with its business objectives, values, and market dynamics, aiming to attract, retain, motivate, and develop a skilled and engaged workforce. From the discussion above, it is evident that HRM methods play an indirect role in fostering organizational performance by altering the attitudes, actions and employee motivation which may not be observable directly. However, potential critiques such as lack of transparency, perceived inequity in compensation practices, and limitations in performance appraisal systems should be addressed to further enhance HRM practices and organizational performance. Continuous evaluation and improvement of HRM practices are crucial for maintaining a motivated and high-performing workforce at Guinness Nigeria Plc.
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