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August 22, 2020Economics For Business Sample
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1 Executive Summary
This report involves the evaluation of the strategy implemented in SME Software Development Company. The implemented human resource management strategy was employee engagement. The researcher used the goal-based evaluation approach to evaluate the strategy and involved only a section of the employees and departments in the company. Subordinate employees were selected for interviews while the executives were given structured questionnaires based on their roles and departments that are directly concerned with the implementation of the strategy. Data collected was analyzed and the findings recorded to identify the strengths and weaknesses of the current strategy. In addition, the data were examined to determine whether the initial set goals have been met by gauging the company’s performance and employee feedback.
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The findings of the evaluation indicated that the employee engagement strategy had adverse implications for the company, apart from the few short term advantages. The employee issues were still far from being solved and the company recorded losses since the implementation of the strategy. From the findings, the researcher made recommendations of a new strategy, the total reward system that covers both financial and non-financial rewards. The new approach has long term advantages that should be explored to solve the current problems and frustrations experienced by the employees. Therefore, the research focuses on evaluating the implemented strategy and developing solutions based on the outcomes of the findings.
2 Aim/ Purpose
The purpose of this report is to evaluate if the implemented employee engagement strategy in SME Software Development Company was effective. The researcher will also develop solutions to the outcomes of the strategy based on the findings.
3 Introduction
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3.1 Background
The suggested strategy for the SME Software Development Company was an employee engagement strategy (Mone, et. al., 2018). The strategy was suggested so as to retain and attract more talent to the creative and innovative software company specializing in graphics for games and movie special effects. The expected outcomes of implementing this strategy were to enhance employee motivation and participation to meet the organization’s goals by improving its competitive advantage (Butler, et. al., 2016). The pre-study findings of the company identified that the company has well trained and skilled personnel who are highly paid to perform their tasks. However, most employees lacked motivation and poor work-life balance. The weaknesses emerged mainly from the human resources department which was reluctant to addressing employee complaints and frustrations. As suggested by (Cooper-Thomas, et. al., 2018), engaged employees are more likely to improve the quality of their work by investing time and effort into their roles and work hard to meet the set standards and goals.
The other advantages of employee engagement in an organisation are; it leads to effective decision making, improves the diversity of employees, therefore, no extra employees would be needed, employees are able to focus on their roles which increases their sense of responsibility. Therefore, this strategy was meant to solve the weaknesses in the human resources department. However, the limitations of the employee engagement strategy as suggested by Singh, et. al., (2016) are; the top policies of the organisation can be easily revealed to the subordinate staff thereby increasing the risk of leaking important information which leads to insecurity, the strategy is expensive for the company and the strategy increases chaos and uncertainty within the organisation. The current study evaluates the implemented strategy by examining all the suggestions and approaches to determine whether the strategy solved the identified problems or not. The core importance of the evaluation is to design new effective approaches based on the outcomes of the previous strategy.
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3.2 Scope
The evaluation will cover the strengths and weaknesses of employee engagement to determine whether its objectives were met.
The researcher will mainly depend on responses from the human resources department and the senior executive owners of the company.
4 Evaluation Approach
The researcher used a Goal-Based Evaluation to measure if the objectives of the employee engagement strategy were met. Goal-based evaluation is an evaluation approach used to determine the outcome of a strategy when compared to the set goals of at its initial stages (Marley & Swait, 2017). Performing this evaluation is important for a company to enable it to discard unsuccessful approaches and develop on successful ones. When using the goal-based evaluation approach, the following observations are used to gauge the strategy:
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- Establishing the goals
Tracking how the goals were established would enable the researcher to understand the circumstances that led to the goals to be set (Jacob, et. al., 2018). In this case, identifying for example why the employees needed to be motivated and what led to their lack of motivation. The researcher also investigates the trends of the goals from previous records.
- Performance measurement
The timeline allowed for the strategy to be fully implemented will enable the researcher to gauge the company’s performance since the implementation of the strategy by examining the quality records and employee retention or employee exit interview feedbacks (McDavid, et. al., 2018). Performance measurement is what would help in establishing the purpose of the research.
- Resources
The researcher determined whether the resources needed for the strategy to be implemented were effective like funding, tools and the required personnel. With the lack of enough resources, the implementation process would stall and a lot of time would be wasted trying to figure out how to complete the implementation process.
- Priorities
Priorities were set to enhance the implementation of the strategy, therefore the researcher used the goal-based evaluation to indicate if the priorities set were initially were correct. There are a lot of tasks to be accomplished in the company, following a set of priorities would enhance the effective implementation of the strategy.
5 Evaluation Methodology
5.1 Participants
The participants were the human resources manager, the line managers, Research and Design manager and the chief executive officer of the company. The human resources manager was selected because he was the leader in the implementation of the strategy and the issues raised affects the department directly. The line managers are in charge of the operations and daily tasks of the employees, the R&D managers are in charge of overseeing the creative and innovative tasks and the C.E.O oversees the entire processes in the organisation. Therefore, their feedback is important for this evaluation to be able to determine whether the goals they set have been met.
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5.2 Method
The researcher used questionnaires and one-on-one interviews to collect the data needed for the evaluation.
Questionnaires:
Questionnaires were designed depending on the respondents to gather specific information from the different departments. The respondents were asked questions that evaluated the performance of the implemented strategy, the problems experienced during the implementation process and whether goals set were met using the strategy. The questionnaires were administered because they were the cheapest, quick and efficient for obtaining information from all the identified participants, they include standardized questions for all the respondents and the information gathered can be converted into quantitative data (Bartram, 2019). However, questionnaires are limited because the respondents may lie based on their social desirability and questionnaires lack detail. The researcher gave the respondents enough time to fill the questionnaires after asking for permission from the relevant departments. Asking for permission to administer the questionnaires enabled the researcher to respect and follow ethical laws and guidelines required.
Interviews:
Interviews were mainly designed for employees from all other departments. They were used to gather information on what changes the strategy brought in the organisation and how the strategy contributed to addressing the initial problems identified in the organisation. In addition, the information was used to gauge the performance of the organization’s priorities when implementing the strategy. Interviews were effective so as to be able to study the respondents’ attitude, body language and perceptions concerning the implemented strategy. The advantages of using this method is that; more in-depth information was gathered and the interviewer was more flexible in asking questions depending on the interviewee and the situation (King, 2018). The limitations of using interviews were that there were cases of deliberate lying, the respondents were not able to remember some details and arranging for the interviews was costly and time-consuming (Adhabi & Anozie, 2017).
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5.3 Evaluation and Findings
The data from the interviews and questionnaires were analyzed and the following findings were recorded:
- The human resources manager was not confident with the strategy as many employees still lacked motivation and there were cases of employee absenteeism. As much as the employees are well paid, they are not satisfied with their roles and the work environment
- The R&D manager indicated that innovation and creativity reduced. This has affected the general quality of their products.
- The C.E.O indicated that the general performance of the company was poor and dropping every month.
- The organisation did not take time to train and teach all employees on the importance of the strategy as many employees were unaware of the strategy being implemented. The C.E.O attributed this to the high cost of implementing the strategy.
- The strategy focused more on involving the employees to work hard and be accountable for their roles than on employee motivation and retention.
- The positive impact of the strategy is that the organisation became more transparent to the employees and all departments can now be recognized as important and dependent on each other.
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5.4 Gantt Chart
TIMELINE | ||||
Evaluation Process | 1 | 2 | 3 | 4 |
Questionnaires |
Administer questionnaires to the participants | |||
Interviews |
Interview employees to gather their feedback | |||
Analysis of data from questionnaires and interviews |
Identify the possible causes that lead to the failure of the strategy | |||
Creating new goals and Recommendations | Develop a new approach to solve the identified problems |
6 Recommendations
It is recommended that a new strategy be developed as the current strategy has not met the intended goals. The researcher recommends a strategy that directly influences the Human resources department as most of the employees are not satisfied with the current practices in HR. It was also identified that the company lacks a conclusive and well-structured reward system. To solve employee problems, the researcher recommends a new total reward system. The reward system should include both financial and non-financial rewards.
Financial rewards:
The financial rewards would include a base pay that is equivalent to the employees’ job descriptions, a performance pay that depends on the performance of the employees, promotions for good performances, overtime pay, and incentives based on new innovations and creativity (Bussin, et. al., 2017). As much as the employees are currently being paid well, including these rewards would improve their motivation and satisfaction. Other benefits like health benefits, retirement benefits and welfare benefit will also encourage employee retention and there would be competition for creativity and innovation, thereby improving the quality of the products.
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The non-financial rewards would be, frequent training programs, mentoring and events that bring the staff together like seminars and projects (Pregnolato, et. al., 2017). All these non-financial rewards enable the employees to be well equipped and skilled to handle their roles even in an event of the emergence of new approaches and techniques in their roles. They can therefore switch departments and roles comfortably improving the productivity of the entire workforce. Moreover, they will be able to trust the management and perform their roles well without being supervised. This strategy will improve the company’s competitive advantage in the industry thereby improving its profits. Implementing the strategy takes place in stages, therefore, the company can manage its implementation without having to abundantly spend on implementation but on the targeted rewards. The management should communicate this new approach to all employees for them to be involved and appreciate the outcomes of the approach.
7 Conclusion
Evaluation of implemented strategies is important for any organisation to determine if the set goals or expected outcomes are achieved after a period of time. Moreover, evaluation helps in identifying weak areas that need improvements and best areas that should be maintained or improved further. The employee engagement strategy did not make any positive impact on the company as it continuously received criticisms from all the employees and the senior management. In addition, the company continuously recorded financial losses from the costly implementation and losses from unproductive staff.
The total reward system will enable the entire organisation to work as one towards a targeted goal for the benefits of all the stakeholders. The base pay should be reviewed from the currently available base to allow the company to fund other non-financial rewards. The management should therefore include all the rewards in its annual budgets so as not to encounter financial constraints in future. The training programs should also be evaluated to identify how effective they are to the entire staff.
8 References
Adhabi, E., & Anozie, C. B. (2017). Literature review for the type of interview in qualitative research. International Journal of Education, 9(3), 86-97.
Bartram, B. (2019). Using questionnaires. Practical Research Methods in Education: An Early Researcher’s Critical Guide. Abingdon (Oxford): Routledge, 1-11.
Bussin, M., Christos, D., Pregnolato, M., & Schlechter, A. (2017). Gain and retain key talent through these rewards. HR Future, 2017(Apr 2017), 32-34.
Butler, T. D., Armstrong, C., Ellinger, A., & Franke, G. (2016). Employer trustworthiness, worker pride, and camaraderie as a source of competitive advantage. Journal of Strategy and Management.
Cooper-Thomas, H. D., Xu, J., & Saks, A. M. (2018). The differential value of resources in predicting employee engagement. Journal of Managerial Psychology.
Jacob, J., Edbrooke-Childs, J., Lloyd, C., Hayes, D., Whelan, I., Wolpert, M., & Law, D. (2018). Measuring outcomes using goals. Working with goals in counselling and psychotherapy, 111-137.
King, N., Horrocks, C., & Brooks, J. (2018). Interviews in qualitative research. SAGE Publications Limited.
Marley, A. A., & Swait, J. (2017). Goal-based models for discrete choice analysis. Transportation Research Part B: Methodological, 101, 72-88.
McDavid, J. C., Huse, I., & Hawthorn, L. R. (2018). Program evaluation and performance measurement: An introduction to practice. Sage Publications.
Mone, E. M., London, M., & Mone, E. M. (2018). Employee engagement through effective performance management: A practical guide for managers. Routledge.
Pregnolato, M., Bussin, M. H., & Schlechter, A. F. (2017). Total rewards that retain: A study of demographic preferences. SA Journal of Human Resource Management, 15(1), 1-10.
Singh, S. K., Burgess, T. F., Heap, J., & Al Mehrzi, N. (2016). Competing through employee engagement: a proposed framework. International Journal of Productivity and Performance Management.
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