Read the case study below and then answer ALL four questions.
Human Resource Development at Peak Finance
The senior managers of Peak Finance, a large financial institution, recognise the importance of training and development for their staff. They have a clear policy that not only should staff be trained and developed to meet the CPD (continuing professional development) and legislative requirements that apply to their area of business, but that staff should also be encouraged and enabled to engage in other appropriate development activities. The middle managers, who largely look after staff performance and development, all welcome this policy. They have made it clear to all of their staff that development opportunities are available and can be applied for at any time. Many individual managers have therefore put together a list of courses that they think might be of interest to their staff, and make these available to staff so that individual members of staff can pick-and-mix the courses that they feel they would like to attend. There is no restriction on the number of courses that are allowed for each staff member, and it is up to each middle manager whether to allow attendance. Common practice is that staff just mention to their manager what they would like to do, and then an administrator books the place. The staff member then receives the letter from the training provider inviting him or her to the event, which he or she then attends when the due date arrives.
The performance management system at Peak Finance is good in that the process described in organisational policy and procedure is good practice, but in reality it does not happen, because managers do not have time and have not been properly trained. When a performance appraisal interview does take place, it is usually short, and development needs tend to be addressed at the appraisal interview with the question What do you want to do this year?, and then arrangements are made after listing the responses. Costs have never been a barrier because money is said to be freely available for developmental purposes.
When staff are to attend a course, they are supposed to let their line manager know about their impending absence, but this does not always happen. Neither does the manager hold any pre- or post-attendance discussions, nor does the organisation have any mechanism for evaluating the effectiveness of any course (or, for that matter, any mechanism for checking that the member of staff actually attended). Some courses are held in-house for those areas of specialism where there is plenty of expertise, but these do not seem to be very effective. One employee recently missed half a day of a twoday course and no one even noticed.
Some courses are particularly important to the organisation, especially those CPD (continuing professional development) courses that re-license staff to enable them to operate in their specific financial area. However, staff are responsible for their own updates and CPD the organisation does not keep records of when events are due or attended for any except the most essential staff. Rumour has it that many update courses are boring and inessential, so that it is not actually clear whether staff are or are not attending, and therefore may or may not be fully up to date.
Following a merger with a similar but slightly smaller organisation, WealthBuild, new staff are now to be incorporated into the wider organisation. In the smaller firm, training and development was of a very focused nature and a very high standard, as it had to be to keep the small firm competitive. Peak Finance is now faced with some pressing issues. The recently arrived staff appear to be expecting detailed development discussions prior to training course attendance, and a debrief of what was learned following the course. They are also complaining about the performance management system that appears to be blocking what they call proper discussion about their future, and the development needs that they have in order to position themselves to be ready when promotion opportunities arise. They have noted that training appears only to be courses, and are questioning this approach.
In the meantime, Peak Finances shareholders have begun to ask questions about the size of the training budget when compared to the size of the dividend budget that was recently set. Managers in the wider organisation, feeling suddenly under the spotlight, are now said to be unhappy with what they see as challenges to their way of doing things by both these newcomers and the shareholders.
QUESTION 1 (25 Marks)
Organisations have used human resource development (HRD) to stimulate positive behaviour in employees and impact their knowledge, skills, and attitudes in order to enable the organisations to increase their productivity and performance (Kareem and Hussein, 2019).
Critically discuss human resource development at Peak Finance and make recommendations for its improvement.
QUESTION 2 (25 Marks)
Performance management is critical to ensure that organisational plans are being implemented, that they have the desired developmental impact and that resources are being used efficiently (Singh and Twalo, 2014).
Critically discuss Peak Finances approach to performance management and make recommendations for its improvement.
QUESTION 3 (25 Marks)
HR plays an important role in an organisations change process through designing and implementing organisation development strategies and change interventions (Mishra, Shukla and Sujatha, 2022).
Critically discuss the role which the HR department should have fulfilled in facilitating the change process which was brought about through Peak Finances merger with WealthBuild.
QUESTION 4 (25 Marks)
You have been appointed as the HR Director at Peak Finance. During your first week at Peak Finance, while spending time familiarising yourself with the HR departments existing systems and processes, you realise that the HR department has never used HR metrics.
In your role as HR Director, write an email to the HR team, in which you discuss the value of HR metrics and the types of HR metrics that the HR department must use going forward. Include examples, relevant to the context of Peak Finance, in your email.
Human Resource Development at Peak Finance
Question 1: Human Resource Development at Peak Finance
Human Resource Development (HRD) at Peak Finance is characterized by a well-intentioned policy that promotes training and development. However, the execution of this policy is lacking, which undermines its effectiveness. The organization has established a framework that encourages employees to pursue their professional development, but the lack of structured oversight and follow-up has led to gaps in training effectiveness and employee engagement.
Current State of HRD
1. Lack of Structure and Accountability: While managers are encouraged to allow staff to attend courses, there is no formal mechanism for monitoring attendance or evaluating the effectiveness of the training. This leads to the risk that employees may not attend or benefit from the courses they choose.
2. Absence of Evaluation Mechanisms: There are no systems in place to assess whether the training aligns with organizational needs or whether it has resulted in improved performance. As a result, essential CPD courses may be overlooked, and staff may not remain compliant with industry standards.
3. Inconsistent Communication: Staff members do not consistently inform managers about their absences for training, leading to disruptions in workflow and a lack of integration between training and performance management.
Recommendations for Improvement
1. Implement a Structured Training Program: Create a centralized training framework that includes mandatory courses for compliance and optional courses based on employee interests. This structure should involve a clear application process and criteria for course approval.
2. Establish Evaluation Metrics: Introduce mechanisms to evaluate the effectiveness of training programs. This could include post-training assessments, feedback surveys, and performance metrics that measure skill application in the workplace.
3. Enhance Communication Protocols: Develop a formal communication plan that requires employees to report their training intentions and subsequent learnings to their managers. This could involve pre- and post-training discussions to enhance accountability and ensure alignment with organizational goals.
Question 2: Performance Management at Peak Finance
The performance management system at Peak Finance appears to be well-designed on paper but falters in practice due to time constraints on managers and a lack of proper training. While the intention is to support employee development through performance appraisals, the reality is that these discussions are often rushed and lack depth.
Current State of Performance Management
1. Limited Engagement: Performance appraisals are often brief and do not facilitate meaningful discussions about career aspirations or developmental needs. Managers do not have adequate time or training to conduct thorough evaluations.
2. Lack of Follow-Up: The absence of pre- and post-training discussions means there is no continuity in addressing development needs identified during performance appraisals.
Recommendations for Improvement
1. Training for Managers: Provide training for managers on effective performance management techniques, including how to conduct meaningful appraisal discussions and set actionable development goals with staff.
2. Structured Performance Review Process: Create a structured performance review process that includes regular check-ins throughout the year, rather than relying on annual appraisals alone. This will facilitate ongoing dialogue about development needs and career progression.
3. Integration with HRD Initiatives: Align performance management with HRD initiatives by ensuring that appraisal discussions lead directly to tailored development plans that are tracked throughout the year.
Question 3: Role of HR in Change Management Post-Merger
The merger between Peak Finance and WealthBuild presents an opportunity for HR to lead in facilitating change management. Unfortunately, it seems that the HR department has not effectively guided this transition, resulting in dissatisfaction among new employees regarding development discussions.
Current State of HR's Role
1. Insufficient Integration Strategies: The HR department has not effectively integrated the training and development practices from WealthBuild, which were reportedly more focused and higher quality than those at Peak Finance.
2. Failure to Address Employee Concerns: There is a disconnect between employee expectations for detailed development discussions and the current practices at Peak Finance, leading to frustration among new staff.
Recommendations for Improvement
1. Conduct Change Management Workshops: Organize workshops aimed at integrating employees from both organizations, allowing them to share best practices and align on expectations regarding training and development.
2. Develop a Comprehensive Onboarding Program: Create an onboarding program that addresses the concerns of new employees while also introducing them to Peak Finance's policies and procedures, ensuring they feel supported during their transition.
3. Foster Open Communication Channels: Establish regular forums or feedback mechanisms where employees can voice their concerns about HR processes and suggest improvements, fostering a culture of continuous improvement.
Question 4: Email to HR Team
Subject: The Value of HR Metrics in Enhancing Our Practices
Dear Team,
As we strive to improve our HR processes at Peak Finance, I want to emphasize the importance of utilizing HR metrics to enhance our decision-making capabilities and ensure we are aligned with our organizational goals.
The Value of HR Metrics
HR metrics allow us to track our effectiveness in areas such as recruitment, retention, employee performance, and training effectiveness. By leveraging data, we can make informed decisions that contribute to our strategic objectives and improve employee satisfaction.
Types of HR Metrics We Must Use
1. Training Attendance Rates: We need to track how many employees attend training sessions versus how many are offered, which will help us identify gaps in engagement.
2. Training Effectiveness Evaluations: After each course, we should implement feedback surveys to assess what employees learned and how they intend to apply this knowledge in their roles.
3. Employee Turnover Rates: Monitoring turnover will help us understand retention issues and address any underlying problems related to employee satisfaction or engagement.
4. Performance Improvement Metrics: By tracking changes in performance pre- and post-training, we can evaluate whether our training initiatives effectively enhance skills relevant to job performance.
5. CPD Compliance Rates: Since continuing professional development is crucial for our staff's licensing, we should keep records of when CPD courses are completed or upcoming deadlines for re-licensure.
By implementing these metrics, we can ensure that our HR practices are not only efficient but also impactful in fostering a culture of continuous professional growth. I encourage everyone to think about how we can begin collecting this data effectively.
Best regards,
[Your Name]
HR Director
Peak Finance