Human resource management is complete with effective performance management and evaluations. Goal-setting, objective-setting, progress monitoring, feedback provision, and recognition are all components of performance management. Employee performance is measured through appraisals, which are then used to determine raises and other forms of compensation. Human resource management (HRM) ensures that the performance management process is consistent, well-communicated, and aligned with the organization’s strategic strategy. Human resource management should also guarantee an impartial and informative review process that gives employees constructive criticism. The paper’s first section fosters the examination of HRM’s part in performance management and explains how to check that it aligns with the business’s long-term goals. In addition, this section will explain the differences between trait, behavioral, and results-based performance evaluations, give an example of when each type of evaluation would be appropriate, and conclude with a recommendation for the type of evaluation most suited to the Maersk Customer Service – CARE Business Partner. Finally, it will detail some performance evaluation methods that can be implemented in businesses. The paper’s second section will examine Maersk’s compensation philosophy and how external factors affect it. It will also analyze wage surveys to establish their worth to businesses and outline the benefits of discretionary perks for Maersk.
First Section
HRM’s function in performance management
Human resource management (HRM) is integral to evaluating employee performance. Human resource management’s main job is creating a performance management system that fits the company’s goals. Human resource management ensures a well-structured performance management system in which goals and objectives are aligned with the organization’s strategic goals. Human resource management also guarantees an open and honest mechanism for monitoring and assessing employees’ performance (Payne, 2020). Human Resources (HR) also offers management and staff performance management training and support.
Human resources should determine the organization’s aims and targets to ensure that performance management aligns with the strategic plan. In today’s rapidly changing workplace, some firms may consider eliminating performance evaluations, yet doing so would undoubtedly harm employee performance (Wiles, 2018). Human resources should collaborate closely with top management to learn the company’s long-term goals and the skillsets needed to get there. With this knowledge, HR should craft a performance management structure that fits neatly into the larger context of the company’s overall goals. Human resources management must ensure that the organization’s performance management framework can adapt to new circumstances.
Performance Appraisal System
There are a few different performance appraisal systems, but the most prevalent ones are trait-based, behavioral, and results-based. A Trait-Based Performance Appraisal System emphasizes the individual’s skills, qualities, and characteristics. The theory holds that people with particular traits are likelier to excel at their jobs. This system would work well in organizations that prioritize soft skills. A good salesperson, for instance, may exhibit characteristics like assertiveness and self-assurance. As they contemplate their return to work and future employment opportunities, employees will likely evaluate the worth of the perks they receive from small and large companies. (Grensing-Pophal, 2020).
Results Based on Behaviour: The Appraisal System evaluates workers based on their actions in the workplace. Employees’ actions and behaviors are emphasized over their traits. This sort of evaluation works well in positions where the employee’s actions directly affect the outcome of the job. An employee’s performance in a customer service function could be measured, for instance, by how quickly and courteously they handle client questions.
Effectiveness Judged by Outcomes: The outcomes of the employee’s job are the primary emphasis of the appraisal system. The theory is that results are more critical than inputs when evaluating an employee’s performance. Positions where the employee’s productivity is crucial to the firm’s success lend themselves to this evaluation form (Payne, 2020). For instance, an employee in a production role might be graded on their daily output. For example, according to benefits advisors, in response to the disruptions of the year 2020, there has been an increase in employees’ well-being and mental illness benefits by the employers and ushered in an increase in telemedicine’s use and availability, both third-party visits for physical and mental health and video appointments with primary care providers (Miller, 2021).
The most appropriate rating for Maersk’s care business partner in customer service: A behavior-based performance appraisal system works best for the Maersk Customer Service – CARE Business Partner position. Certain traits, such as empathy and communication abilities, are essential in the customer service industry. The best way to evaluate the employee’s performance would be to use these observable actions.
Performance Rating Scale
Organizations can use various performance rating scales to gauge employees’ contributions to the company. Visual, word, Likert, and numeric scales are only a few examples. Performance is represented graphically on Graphical Scales. They may be adapted to the specific demands of a business and are simple to use and understand. Employee performance can be rated using a Likert scale. The Likert scale typically consists of five possibilities on the performance evaluation paper. Likert scales must be symmetrical, with equal positive and negative alternatives. Standard methods of measuring performance include (but are not limited to) (A), (B), (C), and (D) (Indeed, 2023). The number of options one selects significantly affects the outcomes, as an odd number permits a neutral response. Some experts argue that a tepid reply allows for too much equivocation. Also, employee performance can be rated on a numeric scale. They are the most widely employed system of evaluation in modern businesses. Employees can be placed on various numeric scales, from the most basic 1-to-5-point scale to more elaborate scales that include a variety of ranges and categories.
Second Section
Pay is a significant part of any employer and employee arrangement. Workers earn to get paid for their efforts and efforts for the company. The term “compensation” refers to both monetary and in-kind benefits. Financial rewards consist of a salary, bonuses, and other monetary perks, whereas nonmonetary tips include public acclaim, career advancement chances, and a flexible schedule. Maersk is a multinational corporation that provides logistics and transportation services in over 130 countries worldwide. Since its founding in the late 19th century, the corporation has become a global powerhouse (Groysberg et al., 2012). Maersk places a premium on its human resource management because of its importance in doing the right thing by society. This is why the business has implemented numerous efforts to improve its performance management system and pay policy.
Management of Maersk’s Performance
Maersk’s approach to human resource management relies heavily on performance management. The corporation has launched several grams to help workers achieve their performance objectives, which are in ted with the businesses. Maersk has instituted a peer-review mechanism, which has helped foster continuous improvement and uphold rigorous standards (Groysberg et al., 2012). Employees are encouraged to give and receive constructive criticism using this system. Maersk also uses performance ratings and rating scales to assess workers’ contributions. The evaluations are intended to pinpoint problem areas and commend those who go above and beyond in their work.
Philosophy of Compensation and Market Factors
Maersk’s compensation policy is founded on the values of meritocracy and equity. The company is committed to ensuring that all employees, regardless of rank or status, are fairly compensated for their efforts. This ensures that all workers receive compensation proportional to their actions and value to the company. Maersk believes offering a competitive salary and benefits package is essential to attracting and retaining top employees (Groysberg et al., 2012). The corporation often performs salary surveys to keep its compensation packages at market levels. Maersk can adjust compensation packages based on the survey data, which provides vital information on the salaries offered by other companies in the same industry.
Market conditions heavily influence the pay philosophy of the organization. Maersk employs wage surveys to guarantee its pay and benefits remain competitive in the market and recruit and retain top talent (Groysberg et al., 2012). Maersk considers both the local and national cost of living when determining salaries. This guarantees that workers in various regions receive compensation packages commensurate with the economic climates in which they are based.
Pay Scale Research Importance
Companies can benefit significantly from conducting salary surveys. Access to this information is crucial for businesses looking to keep their pay rates in line with the market. Companies can tailor their compensation packages to the market by analyzing the results of salary surveys conducted among similar businesses. They also provide information on the cost of living in various regions, which helps ensure that workers are paid relatively regardless of location.
Profits from Optional Perks
Discretionary benefits are those granted to employees by an organization that is not mandated by law or contract but are provided to recruit and retain top personnel. Maersk provides its employees various optional benefits, including medical, life, and retirement coverage. Employees at Maersk benefit from these perks because they provide security and allow them to focus on their work without worry (Groysberg et al., 2012). Maersk’s significant discretionary extras attest to the company’s commitment to providing a positive work environment and making its employees feel valued.
Overall, Maersk implements performance management and compensation strategies as part of its human resource management strategy based on meritocracy and justice to ensure that its employees may accomplish their performance goals and are rewarded for their contributions to the company. Maersk’s compensation policy takes market conditions into account. Therefore the company often performs salary surveys to keep its pay levels in line with those of similar businesses. The company also provides its employees with several optional perks to lure and retain top talent and foster a pleasant workplace culture.
In conclusion, HRM’s performance management function guarantees that company goals and employee performance targets are in sync. Human resource management’s function in performance management is establishing a transparent and fair system supporting the company’s long-term objectives. Employees can be assessed in several ways, and performance assessment systems can range from trait-based to behavioral to results-based. The Maersk Customer Service – a behavior-based evaluation scheme best serves the CARE Business Partner role. Companies can also employ other evaluation systems for employees’ performance, including graphical, letter, and numeric scales. In addition, monetary and nonmonetary remuneration forms are essential in any arrangement between an employer and an employee. Maersk has implemented many steps to enhance its performance management system and compensation policy as part of its dedication to effective human resource management. Performance management is central to Maersk’s approach to HRM, with peer evaluation procedures in place to encourage innovation and adherence to high standards. Employee contributions are evaluated, and development opportunities are pinpointed with the help of rating scales and performance evaluations. Finally, it is encouraging to see that Maersk places such importance on human resources and performance management.
References
Grensing-Pophal, L. (2020, June 9). Smaller Employers Add a Personal Touch to Well-Being Benefits. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/smaller-employers-add-personal-touch-to-well-being-benefits.aspx
Groysberg, B. O. R. I. S., & Abbott, S. (2012). AP Møller-Maersk Group: evaluating strategic talent management initiatives. Harvard Bus Sch Case, 2012, pp. 412–147.
Indeed. (2023). Rating Employees: Which Scale Delivers the Best Results? [Website]. https://www.indeed.com/hire/c/info/rating-employees
Miller, S. (2021, January 6). Upheavals Alter the 2021 Benefits Landscape. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/upheavals-alter-the-2021-benefits-landscape.aspx
Payne, E. (2020, December 9). Employee benefits trends in 2021: Flexible benefits for a flexible workforce. BenefitsPro. https://www.benefitspro.com/2020/12/09/employee-benefit-trends-in-2021-flexible-benefits-for-a-flexible-workforce/
Wiles, J. (2018, May 11). Peer Feedback Boosts Employee Performance. https://www.gartner.com/smarterwithgartner/peer-feedback-boosts-employee-performance/
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