Globalization Case

CHAPTER 1: INTRODUCTION

Globalization has increased competition worldwide. Companies today have to compete with global competitors and local rivals. It is important that organizations are able to maintain their resources to be able to compete. The most important and valuable resource is the human resource. The workforce of the company is the like the backbone of the organization. It is very important that employees work efficiently towards the goal of the organization. The performance management helps the organization to assess and manage the employees in the best possible way.

Performance management is an ongoing communication process, undertaken in partnership between an employee and his or her immediate supervisor that involves establishing clear, share expectations and understanding about the different aspects of the job. These aspects are:

* The essential job functions the employee is expected to do

* How the employee's job contributes to the goals of the organization

* What doing the job well means in according to the company

* Existing employee performance.

* How job performance will be measured.

* Identifying barriers to performance and removing them.

Performance management is done with the employee because it benefits the employee, the manager, and the organization, and is the best done in a collective, cooperative manner. Performance management helps in preventing poor performance and working together to improve performance. In other words, performance management means ongoing, two-way communication between the performance manager and employee.

Many times people confuse the terms performance appraisal and performance management. Instead performance appraisal is part of the performance management. The key point here is that performance management is the process of ongoing communication between the management and employee to increase the quality and standard of the performance within the organization.

CHAPTER 2: LITERATURE REVIEW

GOAL SETTING

Setting goals creates stronger model for organizational behaviors for supportive roles within management. This will lead to apply humanistic values even at the costs of experimental learning. It also ensures there is a level playing field to ensure strategic planning on a corporate culture. Not only will this have an increase on job performance, but will have a job enrichment change with different levels of interventions from top management all the way down to the team leaders. It is important to close the gap between employees and management with a strong emphasis on communication. Without strong communication skills, a team will be lost and production goals will not be met. With strong communication, employees are less resistance to change, perform higher personal and corporate goals, and have a high work-life balance. Communication is number one from on organizational stance because it gains the employees trust and makes them apart of a team.

Motivating the workforce and expanding organizational performance helps in identifying the important factors that are more vital and of significant importance in motivating the workforce and gaining organizational effectiveness. The most important factor is intrinsic rewards versus extrinsic rewards.

PERFORMANCE RELATED EVALUATION

Increasingly, successful companies are tying compensation directly to employee performance to drive incredible business results. It was originally used only for sales professionals but today pay-for-performance has proven to be effective at all levels and in all functions of an organization.

A pay-for-performance culture is considered as a top tool by senior executives for achieving better financial result. A strong pay-for-performance culture has the ability to increase employee performance potential, keep the hard working employees happy, and ultimately drive motivated bottom line employees. The key business benefits of pay-for performance include:

* Increased Motivation -- A pay-for performance system is a key element in getting employees to excel at maximum levels. It combines clear direction, quality feedback and tangible rewards, and recognition key components to job satisfaction and employee dedication.

* Improved Retention -- the system helps in retaining the best and brightest is recognizing and compensating top performers.

* Cost Savings -- Companies waste literally thousands in cash a year in overcompensation when rewarding individuals whose performance doesn't help achieve the business objectives.

METHODS OF EMPLOYEE EVALUATION

A well-designed performance evaluation system includes processes to document extraordinary experiences at the time that they happen (and ideally to address them with involved employees at the time they occur). The most traditional structure features an annual review, usually on the anniversary of the employee's hire date, with supplemental quarterly meetings. Some companies review salary and performance at the same time, while others separate them.

Some of the most common types of methods of evaluation are:

1. Numeric form - rating is done of the employee according to numeric assigned

2. Essay form - detailed essay on the employee performance

3. Combination - at times there is a combination of both.

FACTORS AFFECTING PERFORMANCE

1. INNOVATION IN THE ORGANIZATION

Innovation has become a vital tool for organizations in today's global industry. Innovation is required to be able to achieve competitive advantage. Continuously updated policies and rewards systems are vital to all organizations to stay competitive and in order to retain knowledgeable and valuable employees. It is within a corporate culture's best interests to develop and support innovative reward systems to motive and ensure productive employees.

In general terms there are two types of innovation: product innovation, or changes in the product a company makes or the service it provides; and process innovation, a change in the way a product is made or the service provided. The term innovation is often mistaken only for technical innovations, but technical innovations are just a type of innovation. Every innovation