Performance Management at Accenture
This research work will focus on analyzing the new review system of Accenture. Traditionally, it is observed that the organizations provide a formal review to their employees on an annually or bi annually. However, Accenture has decided against this system and is moving towards a new review system that will provide a regular informal feedback to the employees. Although a lot many experts have criticized this informal feedback system but the management seems to be positive on it. During the course of this research work, it has been found that the traditional feedback system is not working effectively for numerous organizations across the globe. The same is the case with Accenture. Hence, it is wise to experiment with new techniques that may prove to be better in reference to employee management. Informal feedback system may work well for Accenture if it is implemented in a strategic manner.
This research work will discuss the different aspects of new informal review system and provide recommendation to the organization in reference to the strategic implementation and execution of the system. These recommendations mainly include motivating the employees by associating an incentive system with the new review process, implementing this new change with the help of the Kotters theory to engage the employees as well, make accountability of the department head towards the review of their employees and using a transformational style of leadership. These recommendations can assist the organization in implementing the new review system in an effective manner and will also ensure that the review process is undertaken in a professional manner.
Strategic human resource management or SHRM is defined as the systematic process of aligning the corporate vision and mission with the human resource strategy of an organization (Mello, 2006). According to Armstrong & Baron (2002), the task of strategic human resource management goes beyond the traditional functions of recruitment, selection, training and development. It is more concerned with managing the performance of the employees, keep them motivated inside the organization and hence retain them for a longer period. In the recent past, it has been observed that the attrition rate in the organizations across the globe is growing in leaps and bounds. This is mainly because not many organizations are able to engaged their employees and enhance their job satisfaction.
The case study presents the situation of Accenture, a well-known organizations operating in the global markets. Accenture has always focused on managing its employees in the most effective manner. However, the organization is now attempting to implement an innovative performance management system that aims at eliminating the systematic performance review system and focus on providing regular feedbacks to the employees. A lot many experts in the recent past have appreciated the traditional performance review system and hence have criticized such an approach that is neither formal nor systematic in its execution. This research work will focus on exploring the efficiency of this system in a comprehensive manner.
- Literature Review
- Is it good to abandon the formal review system for Accenture?
According to Sharma (2015), performance review system is highly crucial for managing the performance of the employees. However, not many organizations in the recent past are able to execute these systems in an effective manner (Sharma, 2015). The case study also states the traditional review system has not proved to be effective for the organization. Hence, searching for innovative performance review system is the need of hour. If the performance review system of an organization is ineffective then it may not be in a position to provide relevant feedback to the employees. This in turn will affect the productivity of the organization. Therefore, the need of an effective and innovative review system is highly felt in the field of human resource management. The same attempt has been made by Accenture. Although it is difficult to understand whether this system would prove to be effective for the organization or not but an organization should always find innovative means of completing a process. Hence, it seems that implementing this new system is a good idea for the organization as it may prove to be beneficial for the organization in the long future.
It is hereby recommended that the organization should make the department heads responsible for providing regular reviews and feedback to their span of control. This implies that the department heads will regularly assess the performance of the employees and provide feedback to them on a monthly basis. Since the department heads are in direct contact with their span of control, it is convenient for them assess their performance. In addition, the top management should ensure that the department heads are accountable for the review of their employees and provide a informal draft of the same to the management as well. This will ensure that there is no biasness or discrimination in the regular review system as the department heads are accountable and answerable to the management for the entire process.
- Removing all formal reviews may reduce cost but create problems in the future
This new review system may prove to be cost saving for the organization in the near future. This is mainly because the cost involved in assessing the performance of employees and providing a formal review can be high. Hence, this will prove to be beneficial for the organization. An assumption to this cost saving approach is related to its nonperformance. This implies that if the new system does not work effectively then it may lead to additional costs for the company. Also, if the employees don not take the new review system seriously then it may prove to be ineffective for the organization. It is usually seen that any change inside the organization may find a lot of resistance from the parties that may get affected from it. In this case, the employees may get affected because of the new feedback system and hence they may oppose it. However, it is recommended that the organizational leader should ensure the effective implementation of the change process to ensure that the overall efficiency is enhanced and the costs are reduced (Bennis, 2001). The leader should focus on implementing the Kotters theory of change management at the time of implementing this new system –
This theory may assist the organization in implementing the system in an effective manner and ensuring that the employees are also positive towards this change (Smollan, 2011). The first stage of the theory requires the leader to create a climate for change inside the organization. This implies that the leader should focus on listing down the significance of this change for the employees and the organization. The second stage of the theory focuses on engaging the employees in the change process. This implies that the leader should focus on maintaining a constant communication with the employees regarding the change process. This will assist in understanding the employee’s perception about the new system and clarifying their doubts (Weiner, 2009). Lastly, implementing and sustaining the change process is the final stage of the theory. This states that the leader has to make sure that the change process is used for a decent period of time so that it gets an opportunity to prove itself. Therefore, if the new review system is implemented in a positive manner then it may assist in saving cost and should not have any adverse impact in the future (Smollan, 2011).
From the above discussion, it can be very well stated that the new review system might prove to be effective for Accenture but it needs to ensure that a strategic approach if followed in the implementation of the same. Following are some of the recommendations that may assist in enhancing the efficiency of this system –
Firstly, the organization should keep its employees motivated and engaged. Motivation can be defined as the inner drive of an individual that accomplishing the tasks (Maslow, 1954). A lot many theories have been given by experts in the area of employee motivation. However, Maslow’s theory of motivation is one of the most renowned theoretical frameworks in this area. The Maslow’s theory of motivation was put forward by Abraham Maslow in the year 1954. According to the Maslow’s theory of motivation, the organizations should fulfill five needs of the employees i.e. the basic needs, social needs, safety needs, esteem needs and self-actualization needs (Maslow, 1954). The basic needs are the needs that fulfills the necessity of life such food, water and shelter. The social needs are the need for love and belongingness from the family members and the society (Pfeffer, 1995). The safety needs are the needs to be secured in life and calls for elements such as job security and security in personal life. The esteem needs are the needs for high respect and recognition in the society (Azad, 2011). Finally, the self-actualization needs are the needs to do something more than what has been already accomplished (Cheˆnevert and Tremblay, 2009)
During the course of this research work, it was observed that a regular review system may prove to be motivating for the employees. This is mainly because if the employees are provided with regular reviews then they will be in a position to understand their strengths and weaknesses. This will enable them to further leverage their strengths and overcome the weaknesses. This in turn will assist in getting a better career growth and appraisals in the future. The traditional review system may provide formal and written feedback only once to the employees. This may not give them an opportunity to improve their skills thereby leading to less career growth. Hence, this review system may prove to be highly beneficial for Accenture and for the employees as well.
It is hereby recommended to the organization that this new review system should be associated with several incentives. This implies that an employee gets positive reviews for three months continuously then they should be entitled for monetary or non-monetary rewards. This will ensure that the employees are also positive about the new review system and hence it is undertaken in positive spirits. As already mentioned, motivation is concerned with encouraging and engaging the employees at the work place (Bowe and Martin, 2007). With the help of this recommendation, this new review system will be motivating for the employees.
Secondly, the organizational leader should adopt a transformational style of leadership that may assist in the effective utilization of this process. A transformational style of leadership always focuses on encouraging changes inside the organization. This implies that the leader always screen the present operational activities and find new and improved ways of completing the tasks. In addition, a transformational leader also works as a part of the team. The leaders at Accenture should also become a part of the employees and explain them the essence of this new system. In any change process, the biggest hurdle is communication. However, a transformational leader can very conveniently maintain effective communication with the employees by being one of them. This will assist in creating positivity for the new review system and testing an innovative process that may enhance the organization’s productivity.
Lastly, the management should also focus on the proper vigilance of the entire review system. Although this is an informal approach of giving feedback to the employees but the top management should ensure that they keep an eye on all the different aspects. This will ensure that there is no biasness or discrimination done by the department head while giving informal or verbal feedbacks to the employees. As mentioned earlier, accountability and responsibility is highly crucial for the success of this system. Hence, by keeping strict vigilance on the entire system, the management can ensure a fair and just informal feedback to the employees on regular intervals.
Performance management is a crucial area in the field of strategic human resource management. Over the years, many experts have constantly stated that giving formal feedback to the employees may assist them in enhancing their performance. However, Accenture is now shifting towards a contemporary style of giving feedbacks by eliminating its traditional formal feedback system. The new system will focus on providing informal feedbacks to the employees on a regular basis. During the course of this research work, it was found that this new system may prove to be beneficial for the organization. This is largely because it may keep the employees updated about their individual performances and hence assist them in improving the same. However, a lot many recommendations have been provided to the organization that may assist in enhancing the efficiency of the new review system. These recommendations mainly include motivating the employees by associating an incentive system with the new review process, implementing this new change with the help of the Kotters theory to engage the employees as well, make accountability of the department head towards the review of their employees and using a transformational style of leadership. These recommendations can assist the organization in implementing the new review system in an effective manner and will also ensure that the review process is undertaken in a professional manner.
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