Instructions
As part of an ongoing programme of organisational change, your HR director wants to introduce a new performance management process, which will sit alongside other people management and HR practices that have been designed to support High Performance Working within your organisation. She has asked you to provide an initial report based on your research covering the concept of ‘High Performance Working’ (HPW) and the extent to which it supports sustainable organisational performance. She asked that you base your report on secondary source material.
1. Analyse the concept of HPW. (AC 1.1)
High performance working (HPW) focuses on building a culture of trust, transparency, and open communication. It also centres on having an appropriate organisational structure where employees are engaged, satisfied, and motivated (Grant and Maxwell, 2018). Individuals therefore share and understand the values and purpose of the firm. High performance working practices are categorised into three core areas. These include: high employee involvement, human resources (HR) practices, and compensation and reward. HPW practices prove to be beneficial when used collectively. Firms should therefore select the methods which best suit their needs, strategies, and objectives. The implementation of high performance working practices in an organisation positively influences the rate of growth and results in increased innovation and creativity, higher employee satisfaction, reduced turnover, and increased profitability.
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2. Explain the key components of HPW. E.g leadership and strategy, employee involvement (AC 1.1)
HPW is characterised by several components
Leadership: Leadership is the core factor that determines the success of a firm. The leadership style practised in a company dictates whether individual rights are emphasised or neglected. Diverse forms of leadership styles exist and they impact the effectiveness of HPW in an organisation in various ways. They may include transformational, participative, authoritarian, and democratic leadership styles. Transformational style of leadership is the most practised since it entails leading by guiding rather than ruling or micro management (Siangchokyoo et al., 2020). It gives room for the opinion of other employees and encourages talent growth. Principle tenets of transformational leadership include influencing and motivation of the employees. It also induces sense of ownership through acknowledging employees’ contribution to the success of the company.
Organisational culture: Organisational culture is the underlying beliefs, values, and ways of interaction that lead to a unique social and psychological environment of an organisation. Culture involve the norms and behaviours in the organisation. HPW addresses the needs of the employees wellbeing, which are influenced by current organisational culture. The nature of the company’s culture determines the ability of the firm to address employees needs and the possibility to adhere to set rules of industrial relations.
Technology: An organisation that embraces the use of the right and up-to-date technology realises a significant growth in the way work is conducted. When applied in the right manner, the use of technology acts as a motivation element since individuals execute more duties with little effort. Technology further facilitates communication between the stakeholders, including the internal and external. A firm should however ensure that the mode of technology used can provide employees with the right resources, especially information. This leads to success of the job at hand. Effective information and communication technology (ICT) enhances sharing of information within the entire organisation, thus facilitating individual and organisational growth (Cakula and Pratt, 2021).
Communication: HPW calls for communication channels that minimises the time taken by employees to reach the senior management when issues arise. Employees have a right to address their bosses hence an effective communication channel need to be established. This reflects on providing the employees with voice (CIPD) Communicating the financial, strategic, and performance information is crucial as it portrays trust and valuing of the employees. Employees utilise this information to assist the organisation achieve its goals as they are viewed as trusted partners. Communicating and training on how to use the shared information to achieve success create an opportunity for organisational growth.
Learning and development: Learning and development is a systematic process of preparing employees and leaders for future responsibilities. It is a permanent and vital resource for building employee skills, enhancing their motivation, and positive contribution to productivity and engagement (Kraiger and Ford, 2021). It is crucial as learning activities are linked to the employees development goals established in the performance management process. This leads to innovative thinking. Learning and development also accommodates changing demographics and talent diversity, which are crucial in achieving a HPW. Some of the training and development offered to employees may include: management and sales training, new employee training, mentoring programs, and apprenticeships.
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3. Identify barriers to implementing HPW in organisations (AC 1.3)
There are several hindrances to implementing HPW approaches in an organisation. These include;
Absence of a proper feedback framework: Providing feedback facilitates performance improvement and assists individuals in overcoming their limitations and exceed at the workplace. Feedback act as the guiding framework for better performance, leaning from previous mistakes and ways of avoiding such issues in the future. Lack of an effective feedback framework leads to failure where employees do not deliver optimal results and act upon performance related inadequacy. It also sets standards to measure performance, both at individual and organizational levels. A proper feedback framework grants individuals with a clear roadmap for success, which is essential in HPW.
Leadership challenges: Performance of employees is likely to deteriorate in the absence of able leadership, such as transformational and democratic. Leaders play the role of leading by example and are trendsetters for individual employees, which are essential components in HPW. They provide the core direction and set a vision for employees towards which the collaborative efforts are adhered to by individuals (Moura et al., 2018). Leaders enforce a compliance framework and establish a high-performance organisational culture for employees. This leads to motivation and satisfaction of individuals to achieve the firm’s goals and objectives.
Issues in problem resolution: The inability of employees to provide a quick explanation for various issues and conflicting matters leads to a drop in productivity and poor performance. Individuals waste time in finding solutions to differing cases without bearing fruits. They lose focus from conducting productive tasks concerning the growth of the organisation and individual. Fellow employees may struggle with personal disputes, role conflicts, and differing opinions on various organisational policy matters. Conflicting issues and problems should be addressed promptly, with practical solutions to enhance high performance.
Poorly defined core values and role ambiguity: Core values are the pre-defined standards of conduct for employees in an organisation. They are the guiding framework that influences individuals' behaviour and their daily activities. A firm's leadership enforces the core values through the performance management system. In the absence of job precision and clear job definition, conflicts may arise, which will slow the overall performance progress, thus hindering the achievement of a HPW.
Lack of trust and relationship issues: The success of high-performance individuals and organisations depends on the level of trust and confidence for purposes of collaborative functioning. Lack of trust can be a significant obstacle in success for employees and firms as they fail to work towards the same goal and prioritising individual concerns. In the exclusion of trust, team efficiency, productivity, and quality are significantly. Poor interpersonal relations among high-performance individuals and firms challenge success and growth due to a lack of teamwork.
Poor communication: HPW is achieved through collaboration between various stakeholders. Communication is also central in averting conflicts and ensuring a clear definition of roles (Wang et al., 2021). Lack of communication in HPW hinders trust and transparency, which affects the delivery of quality services.
4. Evaluate the link between HPW and employee wellbeing (AC 1.2)
High performance working is core in the development of desired behaviors in employees. It contributes directly to employee performance though incentives and rewards. It also prompts long-term investment in employee which is crucial in the individual’s motivation and satisfaction. These aspects are fundamental in the employee wellbeing. Employee wellbeing is also associated with availability of resources, including internal and external. Internal are within the domain of an employee and may include skills and optimism. External resources are possessed by the individual, such as social support, employment, and social position. When employees acquire and maintain the required resources to attain success, they conveniently adapt and cope with the work environment, which is essential in promoting the employee’s wellbeing (Krekel et al., 2019).
Provision of work-related resources such as high levels of psychological and emotional attachment to individuals are essential to employee wellbeing. High-performance working helps individuals perceive a higher degree of happiness, job satisfaction, and improved performance. The positive relationship between individual work, wellbeing, and creativity is influenced by the leaders’ behaviours at the workplace. The employees’ perception of the work environment, and the traits of transformational leadership influence individual wellbeing. A workforce in a team with transformational leadership get support and encouragement thus are more likely to show creativity and high levels wellbeing. Also, HPW involves engaging employees in the decision-making process of the organisation and valuing them for their unique performance, which is important in promoting wellbeing.
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5. Evaluate the link between HPW and competitive advantage (AC 1.2)
6. Evaluate the link between HPW and sustainable organisational performance (AC 1.2)
References
Grant, K. and Maxwell, G.A., 2018. Developing high performance working through case study evidence. Development and Learning in Organizations: An International Journal.
Siangchokyoo, N., Klinger, R.L. and Campion, E.D., 2020. Follower transformation as the linchpin of transformational leadership theory: A systematic review and future research agenda. The Leadership Quarterly, 31(1), p.101341.
Cakula, S. and Pratt, M., 2021. Communication Technologies in a Remote Workplace. Baltic Journal of Modern Computing, 9(2), pp.210-219.
Kraiger, K. and Ford, J.K., 2021. The science of workplace instruction: Learning and development applied to work. Annual Review of Organizational Psychology and Organizational Behavior, 8, pp.45-72.
Moura, I., Dominguez, C. and Varajão, J., 2018. Information systems project teams: factors for high performance. Team Performance Management: An International Journal.
Wang, B., Liu, Y., Qian, J. and Parker, S.K., 2021. Achieving effective remote working during the COVID‐19 pandemic: A work design perspective. Applied psychology, 70(1), pp.16-59.
Krekel, C., Ward, G. and De Neve, J.E., 2019. Employee wellbeing, productivity, and firm performance. Saïd Business School WP, 4.
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