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Managing People in Context

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Submitted By tommyboy12
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Report for MPC Finances Board of Directors, outlining the HR related problems and a proposed HR strategy to overcome these issues.

Tom O’Brien
19/03/2010

Introduction

MPC Finance needs to address a number of HR related issues, which are affecting its performance. Issues are concerned with reward management, performance, training and development, employee motivation, recruitment and selection, and industrial relations. A HR strategy will be proposed to rectify these issues.

Findings

The graded salary structure used is creating problems as salary progression is slow, thus effecting employee motivation. It is discussed by Green and Heywood (2008: p710 - 728) that ‘performance-related pay is associated with increased overall satisfaction, satisfaction with pay, satisfaction with job security and satisfaction with hours.’ Introducing PRP would be appropriate as job roles are concerned with targets and regional staff are working long hours, which seem to go unrecognised.

The performance management system requires change, it allows little information exchange between managers and subordinates. The views of Fox (2009: p52 - 56) ‘Increased oversight from upper managers and HR professionals improves review processes’; showing that further communication enhances reviews and appraisals. ‘Performance appraisal is a systematic process that assesses the performance of an employee and measures his contribution to the organizational objectives’ Redd and Manasa KVL (2009: p72 - 80). The journal of Management Development relates to a study regarding the receptiveness of appraisals to sales people, ‘results indicated that salespeople have positive perceptions regarding the appraisal processes’ (Pettijohn et al 2001: p754). As MPCF is made up of similar professionals, performance appraisals are appropriate.

Limited opportunity for progression effectively

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