Despite the intention to create a fair and permanent working environment, some organizational changes emerge, and managers should apply various human resources management (HRM) practices to avoid conflicts and judgments. Braintrust Toys is a company that has to identify new goals and innovation strategies because of the necessity to work in the era of digitalization when customer orientation and technical knowledge are critical. Compensation and performance evaluation are the expected HRM steps to understand if the remaining workers can fulfill new goals. This paper focuses on the connection between compensation and evaluation to prove that comparative and measuring approaches are the most appropriate performance evaluation methods in the Braintrust case.
Compensation, the Company’s New Objectives, and Innovation Strategy
Modern organizations have to deal with changes related to innovation and customer expectations. In the Braintrust case, managers should choose the best HRM practices to support the company’s growth and provide employees with guarantees. According to Noe et al. (2021), pay is one of the most powerful tools to meet organizational goals and determine employee behaviors and attitudes. It is not enough to introduce a high level of pay that covers people’s personal needs and living standards but to promote fair evaluations based on professional achievements and contributions. Therefore, additional HRM practices help examine current jobs, organizational goals, and policies. Aburumman et al. (2020) define compensation as an internal aspect and performance evaluation as an external aspect to enhance career satisfaction. Compensation is closely related to organizational goals and performance evaluation, addressing employee relationships, satisfaction levels, and empowerment (Noe et al., 2021). If there is a need to implement innovative ideas, employees should no longer rely on longevity as a compensation background. Managers will introduce new evaluation methods and approaches to fair and appropriate compensation under shifts due to digitalization and robotics involved in toy-making.
Performance Evaluation Methods
Today, organizations have access to a variety of methods to evaluate performance. Sometimes, managers find it effective to use one measuring method, while others decide to apply several approaches to compare employee performance and evaluate progress. The most common approaches for evaluation include making comparisons through simple rating, forced-distribution, and paired-comparison, measuring results in terms of sales, costs, and productivity, and total quality management with subjective and objective feedback (Noe et al., 2021). Braintrust managers have to evaluate 200 employees, and they might use simple or forced-distribution comparing methods, rating approaches, focusing on attributes, and performance measurement based on results and quality.
A simple rating method allows managers to examine several individuals within their groups and learn their best qualities in relation to new goals and expectations. A forced-distribution approach shows a percentage of employees to the necessary category and is more effective if individuals vary in their performance (Noe et al., 2021). Rating attributes is the most common way to measure performance, paying attention to individual qualities and abilities. Measuring results might be effective in understanding each worker’s productivity level and using the management by objectives (MBO) system to avoid subjectivity and personal biases. Finally, total quality management (TQM) might be defined as the most complex performance evaluation system, but it reveals employee-customer relationships, determines the worth of standards, and maintains statistical quality control (Noe et al., 2021). Each performance evaluation method might be effective for Braintrust managers to realize whose worries are real and whose performance needs an overhaul.
The Reasoning for Using Evaluation Methods
The reasons for using the chosen methods for performance evaluation are determined by the number of employees for examination, the conditions under which compensation is considered, and innovative strategies that cannot be ignored. First, some evaluation methods might not be appropriate for assessing 200 employees. Thus, simple or forced-distribution rating systems would help to work with many individuals in a short period. Second, compensation causes include productivity increase, innovation directions, and customer service orientation. The MBO method has a positive effect on organizational performance (Noe et al., 2021). It removes the subjectivity of human behaviors and remains one of the highly acceptable approaches for the company. Finally, in this case, Braintrust should clarify who is inappropriate in line with the new objectives and innovative strategies. Noe et al. (2021) defines the TQM approach as the most valid and reliable way to identify the opinions of all stakeholders about the results and contributions. Therefore, this assessment is not only a chance to learn what employees can and cannot do with the offered sources and deadlines but to see if the company does well or needs some improvements.
Human resources should be properly managed and evaluated because of the inability to stop changes and predict all organizational complications. Braintrust Toys has already set new goals and promoted an innovative strategy requiring employee assessment. Compensation is linked to strategy and evaluation due to the necessity to understand human behaviors, recognize their skills, and describe their appropriateness for the company. Managers might use TQM, MBO, and attribute comparisons based on simple or forced-distribution rankings. These choices are explained by their simplicity, validity, and reliability in defining the best candidates for compensation and further collaboration.
Aburumman, O., Salleh, A., Omar, K., & Abadi, M. (2020). The impact of human resource management practices and career satisfaction on employee’s turnover intention. Management Science Letters, 10(3), 641-652. Web.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. (2021). Fundamentals of human resource management (9th ed.). McGraw-Hill.