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Posted on March 14th, 2013, by

Development of complex evaluation-based motivation system

Motivation of the staff is a set of tangible and intangible incentives, responsible for ensuring the quality and productivity of employees, as well as a way to attract the best talents to the company and retain them (Sharma & Bhatnagar, 2009). The analyzed organization faces the problems in retention of productive employees, employees’ involvement and disclosure of their potential, and in the involvement of the appropriate new employees in the company.
On this basis, we suggest implementing the following methods of improving employee motivation:
”’ Creation of a reliable system for evaluating the effectiveness of the staff and determining the potential for its development;
”’ Development of the adequate salary system (grading of positions);
”’ Financial modeling and assignment of wages by grades;
”’ Development of the system of bonuses tied to the results based on key performance indicators (KPI);
”’ Formation of piecework-bonus part of wages;
”’ Creation of transparent and clear routes for career growth;
”’ Creation of a “golden” personnel reserve, including plans for training the members of the reserve;
”’ Conduct of training for managers on motivation issues.

Development of the system of professional knowledge and competence improvement

We consider training and coaching for leaders and employees as a special form of counseling, based on the modern approach to human development and personal growth, and the shutting of this direction inside of the analyzed organization was probably one of the most influential factors for losing corporate memory and intellectual potential. Techniques applied by coaching can unleash the potential of an employee and develop one’s skills: intellectual and creative abilities are mobilizing; the employee becomes able to find the fastest and most effective approach to solving the problem taking into account available resources; the level of motivation and personal responsibility for result are increasing (Nankervis, 2008).

By means of introduction of training and coaching sessions, it is planned to solve the following tasks:
”’ enhance personal effectiveness of employees;
”’ revitalize inner motivational resources of the executives, provide the growth of their involvement and confidence (including the development of individual working style of leaders);
”’ develop the potential of top-managers (preparation for important negotiations, meetings, etc.); develop communicative skills in conflict situations and in situations of communicative discomfort;
”’ prepare personnel reserve;
”’ contribute to the more effective positioning of the CEOs inside the company.
Mutual reinforcement (synergy) of the coach and leaders/employees creates a powerful impetus to the realization of goals and effective action. In the result, the goals that are relevant and necessary for the executives are set, which, in turn, naturally attract the client to the results of the company, in contrast to the situation, when the client has to be “pushed” to the goals. Generally, training contributes to developing new skills that lead to greater success.

Development of adequate corporate culture

Corporate culture is a set of values and beliefs shared by employees of the organization which predetermine their behavior and organization’s lifestyle. It is a way and means of creating a self-sustaining, self-developing organization.

The match of human values with the values of the company is the factor that provides commitment and loyalty of employees for a long time. However, the settings and values can be not only kept to, but also influenced and adjusted. The formation of corporate culture is a soft but at the same time effective way of influence (Noe, 2009).
To develop adequate corporate culture in the organization, the following tasks should be solved:
”’ Increasing employee’s loyalty to the organization (including approaches described above);
”’ Reduction of resistance to implementation of changes occurring because of the features of the existing corporate culture (internal PR of the changes, distribution of the information about new standards and principles);
”’ Facilitating the integration process in companies and teams (training, skills improvement).
The results of the effective implementation are the increased loyalty and dedication of staff maintained over a long period, improved efficiency of implementing changes (reduction of implementation time and reduction of cost associated with the process of change), increased cohesion and coherence of staff in the daily activities of the organization, reduced number of conflicts as well as the strengthened company’s image in the market (Henrick, 2009).

Having analysed the case, we have formulated the following six issues and tasks the HR/ER consultant should deal with:
1. Facilitation of the refinement of strategic objectives and programming of organization’s development process;
2. Development of adequate corporate culture;
3. HR audit aimed at minimizing the risks of personnel management (with the emphasis on situation in the wage system, mass reduction of workers, and training);
4. Development of the corporate competency diversified model, which will form the basis for the formation of uniform standards for planning, recruitment, assessment, training and development of the staff;
5. Development of the complex motivation system based on objective evaluation of each employee’s performance;
6. Development of the system of professional knowledge and competence improvement.

The specificity of the proposed approach to solving the existing problems in the organizational structure lies in applying targeted, individual techniques based on the core concepts of the organization. Trying to understand the organization as a single organism, we do not propose typical instruments, but base our solutions on the individualistic approach, taking into account the concrete situation and peculiarities of the organization. As practice shows, the fashion for the various concepts and management tools comes and goes, and successful solutions are always focused on solving specific business tasks.

It is also crucial to build the work on changes in the active interaction with the personnel, as the success of any management system depends not only on how effectively it works, but on how effectively it is realized. While it is in human nature to be eager to implement one’s own ideas, not alien ones, it is optimal to implement changes so that the developed system of company management becomes the product of key employees, i.e. people who would later put it into practice. In this way, the specialists are trained in a way that they can continue to solve unfolding problems without the involvement of external HR consultants.
Clardy, A. (2008). Human Resource Development and the Resource-Based Model of Core Competencies: Methods for Diagnosis and Assessment. Human Resource Development Review, 7 (4), pp. 387-407.
Daley, D. M., & Vasu, M. L. (2005). Supervisory Perceptions of the Impact of Public Sector Personnel Practices on the Achievement of Multiple Goals: Putting the Strategic into Human Resource Management. The American Review of Public Administration, 35 (2), pp. 157-167.
Freyens, B. P. (2010). Managing skill shortages in the Australian public sector: Issues and perspectives. Asia Pacific Journal of Human Resources, 48 (3), pp. 262-286.
Hetrick, S. (2009). Handbook of International Human Resource Management: Integrating People, Process, and Context. Wiley-Blackwell.
Nankervis, A. R., Compton, R. L., & Baird, M. (2008). Human resource management: Strategies & Processes (7th ed.). South Melbourne: Thomson Learning Australia.
Noe, R., Hollenbeck, J., & Wright, Patrick. (2009). Human Resource Management (7th ed.). McGraw-Hill/Irwin.
Sharma, R., & Bhatnagar, J. (2009). Talent management – competency development: key to global leadership. Industrial and Commercial Training, 41 (3), pp. 118-132.

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