|Type of paper:
|Management Knowledge Human resources Profession
Performance management provides key aspects with a critical, useful and necessary approach for the effective and efficient management of any organization. The practice facilitates control and effective feedback by comparing the current performance level with the desired performance (Neeley, 2015). The performance management systems enable the implementation of the strategy and collaborate with the improvement of performance in the organization (Cappelli & Keller, 2014). The key success factors should be identified and controlled with financial and non-financial performance measures.
In today's knowledge economy, skilled human talent is the most important capital of any organization (Spain & Groysberg, 2016). People and work teams are the basis of the production chain, and the fulfillment of the companies' goals depends on their performance (Neeley, 2015). For many years, the human resources department was seen as a simple appendage of the company in which administrative and routine tasks such as management and payment of payroll, payroll, personnel recruitment and application of internal behavior standards were carried out (Cappelli et al., 2014). However, the world has changed, and so have business dynamics. Organizations have increasingly understood the true importance of employees and their well-being, motivation, and satisfaction to succeed and grow (Paauwe & Farndale, 2012).
In the inherent relationships between management control systems and organizational performance, the starting point and common point of any relationship are the strategies and the administrative prescriptions embodied in objectives, plans, and programs (Becker et al., 2009). The control that makes strategy and business management is done through management control systems that use performance measurement systems, with measures that ensure and control key success factors.
Proposed new performance management approach for Gamma MNC
In the face of increased competitiveness and globalization and technological development, human talent retention and engagement have become enormous challenges for organizations (De Cieri & Dowling, 2012; Neeley, 2015; Stahl et al., 2012). Staff retention is essential to achieve stability and continuity in companies, two key elements that allow them to maintain their competitiveness in a global, changing and hyper-connected market that exists today.
When employees feel that their company does not care about their well-being and their career development, they lose commitment to their work, their goals, and not having the motivation to contribute to success and growth global company. This situation implies a significant loss of human talent that affects work teams and their planning, productivity, effectiveness and competitiveness. Faced with this situation, organizations must find new ways to win their workforce's commitment and achieve the retention of their best talents.
Human talent is the main asset of an organization and is the determining factor in achieving the company's objectives. Whether recruiting internally or externally, it is important to carefully take care of the processes involved in promoting an adequate organizational climate and offering development and growth opportunities to the employees. For Gamma, the candidates must have the necessary skills for the new position, not just the knowledge. If they do not have the ability, for example, to handle personnel, their performance will not be adequate. This can lead to a resignation or even dismissal, which would be an unfavorable result for both the company and the employee.
A successful company is characterized by the quality and competitiveness of its human talent. To have a high-level workforce, it is essential to measure job performance periodically to know if they are working effectively (Cappelli et al., 2014). Performance appraisals make it possible to quantify the quality of the work performed and the fulfillment of each employee's individual goals while making their strengths and weaknesses visible. The information allows the design and implementation of Individual Development Plans aimed at closing the gaps found. Performance appraisals must be carefully planned, involve all collaborators, monitor participation, provide support during their application, disseminate the results, and provide feedback to human talent.
Gamma MNC should implement a 360º skills assessment for performance evaluations. The labor skills are the basis of all organizations' productivity, are the skills and knowledge that should have all its employees to perform the functions and in time and as expected. The skills can be of three types: Leadership (Those that a leader needs to manage teams optimally), Behavioral (Associated with the personality and necessary to comply with the rules of the company and live harmoniously with colleagues), and Techniques (Corresponding to the knowledge and adequate practices to fulfill the assigned work) (Charan et al., 2010).
The best way to evaluate these competencies is with a 360 ° performance evaluation, also known as 360 ° competency evaluation or 360 feedback. It involves all the people related to the evaluated person and their work: their collaborators, their colleagues, their bosses, in addition to including their self-assessment. Although it can be done manually, it is more advisable to use human talent software to achieve a greater degree of objectivity and a much broader panorama that better identifies the strengths and opportunities for improving the evaluated person.
When the work of efficient collaborators is recognized and adequately compensated, positive changes are generated within the workforce, and the message is transmitted of what behaviors and actions the company wishes to instill in its entire team. A human talent satisfied and grateful for the remuneration that the organization offers for their efforts makes productivity levels increase, commitment to work increases and the work environment in which they work is strengthened. The gratitude and dedication of the employees are achieved through a comprehensive compensation policy, which includes monetary compensation and other types of benefits, which manages to understand each person's needs and their contribution to the company.
Establishing a compensation policy that goes beyond money is essential in enhancing employee retention. It is also necessary to explain how they can access the benefits and demonstrate how these mechanisms will directly impact their quality of life and that of their family and personal environment. Various actions can be implemented to motivate human talent, achieve the commitment required to perform their work successfully, and make them feel grateful to the organization they work for.
Gamma can apply the following practices:
- Organizational culture: It is very important to establish a culture of recognition within the organization, that all members know that effort is valued and those achievements are celebrated. A collaborative culture, where everyone knows that they can count on their superiors and colleagues when they need it, is vital for motivation (Stahl et al., 2012). One way to cultivate that culture of appreciation is to select positive, humble, respectful, and constructive collaborators to lead work teams. An adequate corporate culture begins from the management, meaning that all actions aimed at strengthening it will contribute to making the employees feel grateful and committed to their work (Becker et al., 2009).
- Total compensation: People only see a number representing their compensation every month: the amount of their salary. However, they may have benefits set by the organization, such as days off, medical aid, flexible pay, etc. Gamma must make sure to take into account all the elements that are part of the monthly compensation of the staff and report it in detail. This will help the team see the big picture when it comes to retribution and feel grateful for the efforts made to keep them satisfied.
- Communicating changes: Organizational change is one of the most sensitive issues that multi-national companies experience, especially due to cultural diversity (Becker et al., 2009). In this regard, it is essential to understand the strengths and needs of the employees before integrating them into the organizational culture (Stahl et al., 2012). While taking the time to find out the employees' needs and establishing plans to help them, the management must remember to inform them about these changes and emphasize that they are being done to achieve greater well-being and work balance (Axelrod et al., 2002).
Expatriation and Knowledge Management
Expatriation is a current process in international business conduct, assisting in the interface and alignment of People Management policies and practices with the business strategy, thus having importance in the global expansion. Due to the breadth and wealth of knowledge involved, expatriation plays an important role in conducting business and directing international strategies.
Depending on the internationalization strategy and maturity, the organization will have more autonomy and greater diversity of employees (Rock et al., 2016). Thus, these workers can be configured as expatriates, returnees, citizens of the world, global or transnational employees, and expatriates. Therefore, it is assumed that expatriate configurations vary according to the objective and level of internationalization, which influences people management's orientation.
To strengthen their international positioning, multi-national companies do not hesitate to establish subsidiaries abroad (Cappelli et al., 2014). The process of geographic expansion of these companies inexorably leads to high professional mobility (De Cieri et al., 2012). Expatriation, which aims to homogenize strategy, discourse and communication between firms and their subsidiaries/partners abroad, becomes inevitable.
The contribution of expatriates for the company includes:
- Harmonizing the discourse between subsidiaries and headquarters- Significant differences in communication, speech and strategy may exist between the parent company and its subsidiaries established abroad. To reduce these differences between the two entities, expatriation is a particularly effective tool. As part of an expatriation policy, the employee plays an essential role as an intermediary by unifying working methods, corporate culture, management, objectives and values.
- Developing expatriate skills- By offering an expatriation package to some of its employees, the parent company derives real benefit in terms of skills that they can develop during their stay abroad.
These skills include:
- The personal skills of confidence and openness
- Managerial skills related to the organization of work
- Political skills and networks
- Intercultural skills relating to the ability of expatriate executives to understand people from different cultures
- Management skills related to the management of a project
Pooling contacts between subsidiaries- The multicultural teams that work on creating an animation of an inter-subsidiary network are made up of expatriate executives. This configuration promotes the pooling of contacts for an increase in the parent company's reputation at a global level (Neeley, 2015).
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