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Answer 1

Organizational culture is defined as the set of attitude, systems, rules, beliefs, and value that influence and outline the behavior of an individual within the organization. Culture of learning implies culture in which employees look for and apply knowledge and skills for enhancing organizational and individual performance. It assists firm in having answer to how employees are assisted to learn, improve and grow (Nel and Werner, 2017)). Learning culture illustrate and inspire organizational and individual learning through which they can gain and share knowledge. It illustrates that creation of the culture of learning is essential in the contemporary organization, the importance is illustrated below:

Incline Retention and Engagement

Through creation of the environment in which learning is constantly considered by the organization, employees think that they are being valued and emphasis is made on their personal growth. Learning culture enhances overall performance of employees and organization on the whole. It fosters well-being, for instance the employees who will spend more time on learning can do their tasks or projects quickly and effectively with the new knowledge they have attained and will be more confident about them about their tasks (Darwin, 2017). It assists firm in retaining them.

Improve Performance

The improvement mindset is developed when employees work in the learning culture and they pursue opportunities for learning and sharing knowledge with others. It creates positive impact on the future and health of the contemporary organization. For example, the employees can learn about data analytics software or tools and the skills can be shared will others. It will make it easy for the firm to analyze the data and have insight into the patterns through which they can formulate the decisions. It is associated with the affirmative network that have high-performing employees. The extensive learning culture assists organization to attain their organizational goals. Firms that foster effective learning culture are more flexible, innovative, and adaptable.

Boost Innovation and Creativity

It embraces learning through the mistake and knowledge that is beyond the employees’ scope through which innovation can be attained. Trying new things is emphasized on rather than just opting for the traditional approach to attain the outcome (Basten and Haamann, 2018). When employees are provided with the environment of learning then they are provided with the scope to do beyond their job duties and it aids to bring in innovation in their job responsibilities. For example, the skills and knowledge attained through the learning can be utilized for attainment of the goals in innovative (Srirama, Iyer and Reddy, 2020). The employee using manual testing will require efficient time and when automation testing will be done then there will be a restricted or negligible scope for the mistakes and better outcome can be acquired. It implies that the preciseness and accuracy of the information will be inclined through culture of learning.

The contemporary organization will be prepared for the change and disruption through learning culture as it enables them to learn to deal with the prevailing scenario. It further enhances the customer satisfaction, for example the online forums or various online platforms are provided in which they can post their reviews (Schulz, 2017). Through the openness to new platforms and learning, organization can boost their performance and consumers can have easy access to their offerings. The growth mindset prevails within the learning culture that enables to have the can-do mentality in which employees will be proactive and resilient towards generation of the solutions for complaints and issues of consumers.

  • Firms take leverage from diverse training methods based on their requirements as it assist them to impact knowledge to their human resources and ensure that the organizational requirements are addressed. The different methods are: on-job training, e-learning, mentorship, and seminars. It is recommended that the contemporary organization must make use of the e-learning training that involves delivery of training and learning via digital resources. It is kind of the online education, knowledge sharing, and training that is conducted over the internet (Giannakos, Mikalef and Pappas, 2021). The reason for considering the e-learning is that within the contemporary organization, the firms are adapting due to the changing environment and this can be abrupt. There is a probability that at any given time they might not have effective resources available or those who have knowledge on the given topic. Through the usage of e-learning the employees can be imparted with the knowledge and skills. Another reason for using the e-learning is cost is less as compared to other methods of learning. Here, the employer can share the learning course with the employees who can access it through their digital devices.

Another potential advantage that can be attained through the contemporary organization with the usage of the e-learning is that the working or functioning of the employees will not be impacted. The access will be given to the employees and based on their suitability they can go through these. Here, to have to practical hands-on they can execute the learning while delivering their functions or job responsibilities and these can also be verified with the usage of the simulation tools to analyze the impact of the learning (Johnson and Brown, 2017). For example, the car manufacturer is making use of blockchain within their new model then through simulation of manufacturing process they can analyze the potential impact that wil l be created on their operations. It provides employees with the flexibility in scheduling and delivery that aids them to learn in their own schedule and pace. The limitation of this method is that there will be no social interaction as it is presented through the other methods but considering other assets of the method, it can be handled by execution of the learning while delivering their responsibilities (Drozdova and Guseva, 2017) . The progress can also be tracked through this online system in the form of reports and graphs that provides individual with insight into what they have acquired throughout the learning process. In the contemporary organization, this learning method will enable employees to cope up with the organizational requirements and ensure that the end goal is attained.

Answer 2

As seen in the provided example, performance management can serve conflicting goals depending on how it is applied inside an organisation. On the one hand, it may be utilised as a strategic tool to improve employee performance, engagement, and corporate success overall (Nel and Werner, 2017). However, if it is abused, it may develop a bad view of the process and a culture of fear and mistrust among employees.

Positive Purpose: Enhancing Performance and Development

One of the most important beneficial outcomes of performance management is improved employee performance and development. Setting clear and attainable performance objectives, offering frequent feedback and coaching, and identifying areas where employees may develop their skills and knowledge are all part of this (Antoni et al. 2020). To enable professional growth and continual learning, performance management should be employed as a collaborative process between managers and employees. Employees feel appreciated, engaged, and inspired to thrive in their positions when performance management is applied successfully (Khan et al. 2021). Managers are critical in leading and enabling employees to achieve their maximum potential (Nel and Werner, 2017). For example, Salesforce, a prominent customer relationship management firm, employs its Employee Success Platform to help workers create clear performance goals, receive frequent feedback, and recognise and reward outstanding performers (Sunkari, 2022). This method promotes a culture of continuous improvement by encouraging people to seek feedback, learn from failures, and engage in their own development.

Negative Purpose: Using Performance Management to Force Layoffs

The case exemplifies a bad usage of performance management, in which it is used to drive people out of the organisation. This strategy, which is frequently motivated by cost-cutting tactics or short-term financial goals, can result in a poisonous work atmosphere (Mujtaba, 2022). Employees become concerned about their job security when performance management is employed in this manner, and their focus turns from growth and development to survival. Employees who are labelled as low achievers without appropriate help or opportunity to improve may experience sentiments of unfairness and anger. Fear of being labelled as a poor performance may also prevent employees from taking appropriate risks or introducing creative ideas, stifling the organisation's overall growth and advancement. For example, According to Tayan (2019), Wells Fargo was embroiled in a controversy in 2016 when it was found that staffs were under pressure to fulfil unrealistic sales objectives, resulting in the creation of unauthorised client accounts.

Positive Purpose: Aligning Individual and Organisational Goals

Aligning individual performance goals with the general objectives of the organisation is a critical part of performance management. Employees appreciate the relevance of their jobs in contributing to the greater aims when performance requirements are clearly linked to the company's vision and strategy (Leitão et al. 2019). Positive performance management connects individual accomplishments to the success of the firm, promoting a feeling of purpose and meaning in workers' work (Grainger-Brown and Malekpour, 2019). Employees are more likely to be motivated and devoted to attaining the organisation's objective as a consequence.

Negative Purpose: Biased Evaluations and Favouritism

Another disadvantage of performance management is when the process is impacted by biases or favouritism. When assessments are subjective and lacking in objectivity, confidence and credibility in the performance management system are eroded. Employees may regard the process as unfair, resulting in a disillusioned and demotivated workforce (Calanchini et al. 2022). Biased performance assessments can also lead to outstanding people being passed over for opportunity and promotion, while less worthy individuals receiving undue credit or incentives (Shaw et al. 2019). This might result in talent loss and have a detrimental influence on overall organisational success.

In conclusion, performance management inside an organisation may serve both beneficial and bad reasons. Organisations must take a constructive and supportive approach that prioritises employee development, goal alignment, and fair assessments. When utilised to inspire and nurture workers, performance management becomes a driving force for corporate success. On the contrary, improper or ineffective performance management can result in negative results such as a drop in staff morale, productivity, and overall organisational performance.

Answer 3

There is no doubt that compensation is deemed a vital component of employee engagement, worker satisfaction, and retention. It is said that empowering workforces and management with the correct know-how, visibility, and techniques to comprehend, and have expressive communications about compensation is essential.

The theory which supports fair and equitable compensation choices that align with a business’s values and objectives is the “Equity Theory” in HRM. The equity theory asserts that when a worker feels like he is being treated in a beneficial manner, the worker is more probable to be inspired to work harder (Samara et al. 2021). This theory calls for a justified balance to be struck between a worker’s inputs such as hard work; acceptance and more; and their outputs such as recognition, salary, and more. As per this theory, exploring the fair balance can assist to attain a robust and fruitful relationship with the worker, with the entire result being positive, inspired workers. Moreover, there must be uniformity in the structure of pay of a worker’s remuneration. It can be said that when the worker feels he is not paid in a fair manner for the volume of work he performs in a day might lead to lower efficiency, improved turnover, and higher absenteeism. It states that the entire compensation system must adhere to three sorts of equity discussed below:

  • Internal equity: The worker views the fairness in diverse pay for varied job roles based on the work nature which means the worker should perceive that pay differentials amongst the job roles are fair.
  • External equity: The worker must feel the fairness in what he is being paid synchronized with what other participants in the identical sector are paying to their workforces for a similar type of job.
  • Individual equity: The worker supposes the pay differentials amongst the people who perform a similar type of job and in an identical company. Typically, a person with more experience attains higher remuneration in relation to the freshers regardless of the job nature (Reddy 2020).

This theory is deemed a model to measure how gratified a worker is in his job role. The equity theory asserts that employees who are underpaid in financial manners might be capable to redevelop the entire level of equity by persuading them that they are well-compensated in relation to other outcomes. It can be said that pay gratification impacts whole job gratification and possesses a large impact on behaviors like absenteeism, turnover, and more Nevertheless, overpayment doesn’t generate such outcomes typically underpayment does that continuously. It is said that when the workers do not comprehend how their compensation is figured out, they might feel unfairly compensated. While when management doesn’t comprehend how to manage compensation effectively, they might struggle to retain the topmost talent which contributes to greater turnover rates and declined efficiency (Shaw and Zhou 2021).

References

Antoni, D., Jie, F., & Abareshi, A. (2020). Critical factors in information technology capability for enhancing a firm's environmental performance: case of Indonesian ICT sector. International Journal of Agile Systems and Management, 13(2), 159-181.

Basten, D., & Haamann, T. (2018). Approaches for organizational learning: A literature review. Sage Open, 8(3), 2158244018794224.

Calanchini, J., Schmidt, K., Sherman, J. W., & Klein, S. A. (2022). The contributions of positive outgroup and negative ingroup evaluation to implicit bias favouring outgroups. Proceedings of the National Academy of Sciences, 119(40), e2116924119.

Darwin, C. (2017). Building a learning organization. Knowledge solutions, 57(54), 78-99.

Drozdova, A. A., & Guseva, A. I. (2017). Modern Technologies of E-learning and its Evaluation of Efficiency. Procedia-Social and Behavioral Sciences, 237, 1032-1038.

Giannakos, M. N., Mikalef, P., & Pappas, I. O. (2021). Systematic literature review of e-learning capabilities to enhance organizational learning. Information Systems Frontiers, 1-17.

Grainger-Brown, J., & Malekpour, S. (2019). Implementing the sustainable development goals: A review of strategic tools and frameworks available to organisations. Sustainability, 11(5), 1381.

Johnson, R. D., & Brown, K. G. (2017). E‐learning. The Wiley Blackwell handbook of the psychology of the Internet at work, 369-400.

Khan, P. A., Johl, S. K., & Johl, S. K. (2021). Does adoption of ISO 56002‐2019 and green innovation reporting enhance the firm sustainable development goal performance? An emerging paradigm. Business Strategy and the Environment, 30(7), 2922-2936.

Leitão, J., Pereira, D., & Gonçalves, Â. (2019). Quality of work life and organisational performance: Workers’ feelings of contributing, or not, to the organisation’s productivity. International journal of environmental research and public health, 16(20), 3803.

Mujtaba, B. G. (2022). Workplace Management Lessons on Employee Recruitment Challenges, Furloughs, and Layoffs during the Covid-19 Pandemic. Journal of Human Resource and Sustainability Studies, 10(1), 13-29.

Nel, P. & Werner, A. (2017). Human Resource Management. 10th ed. South Africa: Oxford University Press.

Nel, P. and Werner, A. (2017). Human Resource Management. 10th ed. South Africa: Oxford University Press.

Reddy, V.S., (2020). Impact of compensation on employee performance. IOSR Journal of Humanities And Social Science, 25(9), pp.17-22.

Samara, G., Jamali, D. & Parada, M.J., (2021). Antecedents and outcomes of bifurcated compensation in family firms: A multilevel view. Human Resource Management Review, 31(1), p.100728.

Schulz, M. (2017). Organizational learning. The Blackwell companion to organizations, 415-441.

Shaw, A., Barakzai, A., & Keysar, B. (2019). When and why people evaluate negative reciprocity as more fair than positive reciprocity. Cognitive Science, 43(8), e12773.

Shaw, J.D. & Zhou, X., (2021). Explained pay disperson: A 20-year review of human resource management research and beyond. Research in Personnel and Human Resources Management, pp.47-69.

Srirama, M. V., Iyer, P. P., & Reddy, H. (2020). Dimensions of social capital and learning culture: a case of an IT organization. The Learning Organization, 27(4), 337-349.

Sunkari, S. (2022). A Brief Review on CRM, Salesforce and Reasons Stating Salesforce as One of the Top CRM’s. Salesforce and Reasons Stating Salesforce as One of the Top CRM’s (June 18, 2022).

Tayan, B. (2019). The Wells Fargo cross-selling scandal. Rock Center for Corporate Governance at Stanford University Closer Look Series: Topics, Issues and Controversies in Corporate Governance No. CGRP-62 Version, 2, 17-1.    

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