Performance Management And Learning And Development Essay

Introduction In the 19th   century university was meant to be a theoretical theatre, while the factory was the place for formal training and learning. Education is broader in scope than training and it has a less specific application than training, as it is delivered in educational institutions. As a result, there has always been a tension between the needs of industry and the educational requirements of the individual, as society needs people who can contribute in a comprehensive way (Wilson, 2005). A century later, West moved beyond the factory and manufacturing as the basis for economic wealth have been achieved. Compared to earlier centuries now this century is able to demolish the   trading, political and economic   barriers, which hampered the progress in the old days. The arrival of mass media and technology is re-shaping our lives at a breathtaking speed; the concept of learning is now not a stagnant process, but in a flux and evolving every day (Beckett, 2000). The nature of work is changing with the knowledge economy in boom, giving rise to unparalleled demands for learning in work settings through consistent training. Enterprises need integrated approach to possess knowledge workers, which is the right prescription for businesses today. It is hard to create effective employment and training based policies which give high priority to education and training-both at a time. Countries like Korea and Singapore are seriously investing in their human resources, while the poor countries do not have sufficient funds to meet their growing needs. The overall goal of the global economy is provide opportunities to people and obtain productive work with dignity, which requires a framework to address worker and producer needs. To meet such requirements, the new millennium needs a shift from traditional approach and demands new human resources development and training policies. Learning and Training Learning can take place either in formal settings, such as school/university or in less formal organizational settings. Possessing knowledge is different from learning, as learning has limited value and is not a guarantee of being skillful, until   put to practice in real world. Wilson (2005) has defined learning as â€Å"a permanent change of knowledge, attitude or behaviour occurring as a result of formal education or training, or as a result of informal experiences. Learning, education and development are often muddled together, however   they carry specific meanings as explained below: Training = learning related to present job; Education = learning to prepare the individual but not related to a specific present or future job; Development = learning for growth of the individual but not related to a specific present or future job. It has been recognised by the enterprises that passive learning cannot not ensure an accurate developmental process necessary in the business world. The managers find it hard to believe, that, seminars and workshops can teach management. It is argued, that case methodology, lectures, discussions and theories are useful, but they never find its way into the corridors of business world. As a result, managers and educational theorists suggest experiential learning, which trains workers in work place more effectively. According to the Glossary of Training Terms (2005), training is â€Å"a planned process to modify attitude, knowledge or skill behaviour through learning experience to achieve effective performance in an activity or range of activities. Its purpose, in the work situation, is to develop the abilities of the individual and to satisfy the current and future needs of the organisation†. Rothwell (2003) mentioned that, training equips individuals and groups in an organisation to improve their work performance. However, training alone cannot alleviate a poor work, which may be due to the lack of rewards and incentives. Training is put into practice for a variety of reasons, such as orientation training for new workers or sending employees for special assignments and preparing employees to support critical activities (Wilkinson, 2005). The HRD equips people with necessary skills in three ways (McGoldrickand, 2001). .Individual Development   addresses broad areas and addresses, such as skill development, interpersonal skills, career development, etc.   Occupational /Group Development occurs among the groups through a team building programs. It also applies to specific occupational groups, such as implementation of new legislation. Organizational Development covers the whole organization. It can be defined as a â€Å"collection of planned change interventions, built on humanistic-democratic values, that seek to improve organizational effectiveness and employee well-being†(Wilson and John, 2005). The well-known examples are; the introduction of a customer care programs across the organization; and the introduction of total quality management, which requires all individuals and groups to become involved. Mumfords (1995) mentions that, an organization where people continually expand their capacity to create the results- truly invent patterns of thinking for collective learning. This process can be defined as following:   Personal mastery, ensuring individual motivation to learn; mental models, creating an openness to misconceptions;   shared vision, building long-term commitment in people; team learning, developing group skills like cooperation, communication and so forth;   systems thinking, which constitutes   integration with other disciplines the other four. All these disciplines are to be practiced together to create an impact and must be practiced by all the members of organization to work together. Each problem and dilemma is crisis and workers learn from crisis and difficulties together and try to development process, where all workers profit from each other’s experiences. Shift of Training in Knowledge Economy Drucker (1993) has mentioned that, â€Å"Every few hundred years in western history there occurs a sharp transformation. Within a few short decades, society rearranges itself – its world view; its basic values; its social and political structure; its arts; its key institutions.† The shift   from industrial-based economies to enterprises   started 20 years ago, moving to market share and hierarchical management focusing on a knowledge   based economy. If the industrial economy was driven by cheap energy; today’s knowledge economy is driven by inexpensive microchips and knowledge management enabling businesses to take benefit of the new knowledge (Trask, 1996). The modern corporation is over and the postmodern corporation is different. Today companies may look the same from outside—but behind the faà §ade, everything is different. They are no longer connected to the boiler or routine machines, but now in the business of knowledge creation. The activity of knowledge-based organization is not producing machine or power toys, but producing and managing knowledge. The knowledge economy differs from the old one, as the new economy is ever-increasing in information intensity and packed with more knowledge, data, and ideas. Now knowledge resides in the magnetic strip, not the plastic. The knowledge-based economy has new rules and standards, which require new ways of living and working, business, which do not acquire knowledge workers, are destined to die.   Wolfensohn (1999) has mentioned that, the knowledge-based economy relies on ideas and applications of technology rather than physical strength, which was done on the exploitation of cheap labor. In this new economy knowledge is created, acquired, transmitted, and sold by individuals, enterprises, organizations, and communities for the promotion of economic development. In the industrial world, knowledge-based industries are growing fast, while labour market demands are also changing. The new technologies insist on highly skilled workers, diminishing demand for the low skilled workers.   One of the key factors that distinguish intelligent business enterprise of the 21st century is emphasis on knowledge and information. Knowledge management is an important means by which organizations can better manage information and knowledge. Knowledge management encompasses a range of concepts, ranging from management tasks to technological practices, all come under the umbrella of the management of knowledge (Gupta, 2003). The successful organizations are aggressive, fast paced and have the ability to create  Ã‚   knowledge to maximize organizational strategic success. In today’s world, knowledge is a resource, which is critical to an organization’s survival and success in the global economy.   As the nature of work is changing, knowledge is regarded as a primary resource-giving rise to the unprecedented demand for learning in the working environment. Enterprises need to offer this new learning at work and create knowledge workers, which have become inevitable part of the corporate world. The workplace has become a site of learning associated with development of the enterprise through contributing to production and innovation. Thus the development of the individuals by providing training to create new knowledge is the most wanted asset of the enterprises today. The knowledge economy has four basic features as described below (Trask, 1996). Knowledge developed and applied in new ways, especially through information revolution, which has provided not only new opportunities to access information, but it is also creating new opportunities for swift transfer of the knowledge speeding up the process of worldwide change. Today product cycles have become shorter due to growing demand for innovation. In 1990s, it would take six years from concept to production in the automobile industry; now it takes only two years. Worldwide trade is increasing with increased competitive demands on producers. The countries, which are able to assimilate into the world economy, will achieve higher economic growth. Small and medium-size enterprises in the service sector have become significant players, in terms of both economic growth and employment. In the industrialized countries the employment has risen, but the patterns of employment are changing. The employers have re-organized workers into fixed and variable categories, while the fixed workers are career-oriented, the variable have little career progression and low access to education and training. These trends show that labour markets are becoming ruthless in their treatment of un-skilled workers and these low skilled workers stand at an edge. As a result working poor have grown in number and those working are underpaid and forced to work in miserable working conditions. The speed of change in the knowledge economy depreciates much more quickly compared to the past. In order to compete effectively in this changing environment, organisation need to   upgrade their workers skills continuously. This rapid change in the knowledge economy is so swift that firms can no longer rely longer rely on fresh graduates. In order to meet such need, lifelong learning and training is crucial to enable workers to compete in the global economy. Formal education and training includes programs which are recognized by the    Universities and institutes and lead to approved certificates and degrees.   Non-formal education and training includes programs, which are not formally recognized by the national system, such as apprenticeship training programs and structured on-the-job training.   Informal education and training includes unstructured learning, which can take place almost anywhere, home, community   or workplace.   It includes unstructured on-the-job training, the most common form of workplace learning. This improvement in people’s ability will allow them to be not only useful for their organisation, but it will also enable them to function as a useful members of their communities.   In a modern economy, the production of goods and services still relies on workers despite machine revolution. The need is to develop learning and training strategies, which allow these workers to learn new skills for new working conditions. It is crucial for the organisation to prepare workers for this new environment, which requires a new mode of education and training ­. This lifelong learning framework encompasses learning throughout the life cycle, from early childhood to retirement. It includes formal, non-formal, and informal education and training. In traditional industries most jobs require employees to learn how to perform routine functions, which, for the most part, remain constant over time and most learning used to take place when a worker started a new job. In the knowledge economy, change is so rapid that workers constantly need to acquire new skills. Firms need workers who are willing and able to update their skills throughout their lifetimes. Enterprises and organisation need to respond to these needs by creating education and training systems that equip people with the appropriate skills. The new millennium main challenge is to be employable and contribute to the economic growth in the global economy. This novel approach has set new rules for education, training and strategies in the organisations. The reason is that training not only advances interests of the individuals and enterprises, but it also augments the economic development of the nations. These new skills formation leads to equity in employment and society at large and allow the enterprise to reap the fruit of this human resources development. Performance Management According to Bacal (2004) â€Å"performance management is about creating relationships and ensuring effective communication and focusing on what organizations, managers, and employees need to succeed.† It is a   strategic approach to manage the business and improve organisational effectiveness with existing capabilities. Performance management provides development specialists with an opportunity to be   innovative in influencing corporate strategy and contribute to the results. The goal of performance management is to ensure that the organization departments, teams, and employees are working in an optimum fashion to achieve the organization objective. At the end of twentieth century new performance management systems were born and cannibalizing the old systems, due to the presence of the technological expansions. Management in the twenty-first century faces the challenge of creating and re-creating effective performance systems and requires a unique understanding of this process. Performance management process is about professionalism and continuous learning and development. The overall goal of performance management is to ensure that the organization and all its subsystems departments, teams, employees are working together in an optimum fashion to achieve the results desired by the organization. According to Bacal (2004), performance management is based on the following beliefs. Optimism: Performance management is based on the belief that improvement is possible, and that the human and organizational conditions can be improved. Performance management is the view of the possibility that performance improvement is always there and change is possible as long as people are willing. A Pragmatic View: Performance management is keeping the optimistic view, but it does have realistic view of improvement, understanding the possibilities for improvement and recognizing the  Ã‚   barriers to success. Performance management addresses various threats in the system and try to solve it, rather than kill it A Balanced Approach: It is natural to resist change in any organisation as change means changing habits. Performance management design strategies, which are part of organizational decision-making processes to build greater support for the change. It capitalizes on the opportunity for further improvement and success. Leadership. Performance management is built on the ethical knowledge. The true leaders determine promote best practices in their organisation to further the success. Such practices require courage to bring change, yet adhering to professional ethics ensuring that the change is consistent with legal requirements. Performance management is meant to establish a shared understanding about what is to be achieved and how it is to be achieved for an organization. To improve performance, individuals need to have a common understanding about what performance (and success) in their jobs looks like. It can be a list of tasks, objectives, or results or it can also be a set of behaviors or both. These goals need to be defined clearly with the jobholder so that people know what they are working toward? And what is expected from them to increase the probability of success (Lance, 1999).   A continuous management process delivers clarity, support, feedback, and recognition to all staff. Performance Management Process Performance management process is a communication process between an employee and his or her immediate supervisor with established expectation and understanding. This process is not meant to threaten or intimidate employees into neither being more productive nor does it mean to attack the personality of the employees, but it is a broad set of tools used to optimize the success of each employee for the larger interest of the organisation. The smooth functioning of performance management depends on the developmental activity and management control. A developmental push is essential to motivate workers and let them concentrate on work and commitment towards their respective organisation. Performance Management process is meant to measure the employee performance. It involves the following steps (Handbook for the Core Performance Management, 2005). Performance planning The workers performance is recognized through employee performance plans. They are clearly told, what are the expectations? And what are the set standards. Thus it is essential to develop such standards, which are realistic and attainable. Individual at the level of induction stage clearly need understand their role in the organisation. Employee/Team Performance In many organizations, employees work together to achieve the organizational objectives. The difference between group performance and an individual’s contribution is that, the group performance is measured aggregately, while an employee’s performance is measured individually. Monitoring performance After the assignment of job the progress of the workers are monitored by the manager/supervisor, to check how much they are really working. Employee development Mentoring is essential process of employee development, the example can be set either by showing a high performer or by leader/manager, which helps the employee to overcome the difficulties. A frank discussion is essential to focus on employee areas of excellence, identifying the barriers to performance. Multiple Source of Feed back It is a process, which provides employees with performance information to enhance managerial feedback. It includes comments from various sources, such as collogues, supervisor report and direct reports as well. Figure: 1.1 Performance Management Process Source: Handbook for the core performance management, 2005 Evaluating Evaluation is a two-way discussion in the form of written documentation to concentrate on employee areas of excellence, and identify the areas for improvement and further development needs. Stupak and Leitner (2001) warns that performance management measurement should not be punitive, but should be positive and should help the organisation, what the work do and what they should not and continue for organisation improvement. It should not be as a tool to punish the guilty, but emphasis should be on finding the right direction for the organisation. Linkage of Learning and Development and Performance Management The learning and development and performance management have been discussed separately earlier. Recent studies have shown, these processes are interrelated and are linked (Harrison, 2005). For example, in small firms, resources are stretched and workers have to switch roles, it becomes crucial to train and develop these workers, as they often have switch tasks. Following are the essential points in case of training in the small firm scenario: A well-focused induction program. Basic training in firm unique systems. A probation period to evaluate the performance. Post confirmation development for further development. Badger (2001) has mentioned that in a situation where products and processes can be easily imitated, the only source of competitive advantage is to stimulate employee to learn.   Organizations always seek to reduce cost increase efficiency and productivity. Today’s enterprises have started to evaluate learning and training programs to achieve higher performance from their workers, as they understand that learning and performance management are interrelated and inevitable to achieve competitive advantage. This competitive advantage can be achieved through the development of human resources by deploying a strategy to support its workers and enhance the organizational performance. The performance management process can positively develop the workforce self-esteem and keep them motivated, thereby giving them job satisfaction, to let them focus on the job. However its not mere training which can bring result, employee participation in decision making is essential as noticed by Peon and Ordas (2005), that organizations need to provide individuals with enough incentives and allow them to participate in the decision-making process to achieve higher performance. The ability of nations and organizations to enhance the standard of living of the growing population depends on sustained increase in the productivity of the systems. In the inter-dependent global economy, productivity is essential to maintain economic advantage for individuals and societies. People and institutions are inter-connected, and today countries have mutual interests in the game of higher productivity of other nations. A nation may gain short-term advantage from a lesser productive contributor, but in the long term lower productivity is a bad omen for all the nations. Conclusion According to Business Intelligence Board (2005), enterprises need to formally link learning and performance management process to measure the employee performance, as this can explain, weather learning has really resulted in higher performance. This link between learning and performance management is clear and the ultimate objective of learning management is to have an educated workforce, which can sustain the competitive advantage in the cutthroat corporate world. Learning and development are essentially related to performance management process, same as performance management process is not complete unless it embrace learning and development  Ã‚   to fill the skill gaps identified in the workers. Various amounts of efforts have been done to linkage learning with performance, Thomson and Mabey  (2001) mentions, many organisations failed to have higher performance from their workers, despite enormous amount of training. It has not yet yielded enough clear evidence of a direct link between learning and performance management. However, learning and development activity does consistently emerge as a crucial intervening factor. L&D alone is not enough-it has to be an integral part of a cluster of appropriate HR strategies. 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