Individual attitudes and behaviors of employees affect the performance of organizations (Kim, 2005). The human capital comprises the most expensive investment for any organization, and poses the greatest challenge in management (Schiemann, 2006). Good employees exhibit such characteristics as high job satisfaction, dedication to the organization, motivation and dedication to serve the public and the organization. Individuals with these qualities contribute positively to the performance of the organization. Individual-level factors are therefore important in predicting the performance of an organization. It is thus important to note that people are the most important cause of the good performance of an organization. Organizations perform better when they value their employees and perceive them as assets rather than liabilities. Essentially, people-centered management and people-oriented practices increase employee satisfaction and thus, improve organizational performance.
An organization must cultivate high people equity to guarantee maximum performance of its human capital. To achieve this, an organization must ensure strong leadership at senior levels, a well defined business strategy, effective supervision and organizational values that are compelling.
Human Resource Development (HRD) Professionals are responsible for encouraging employees to participate in performance management and customer satisfaction. This is accomplished by creating and implementing a system that identifies competencies, established goals, and projects the expected outcome. Establishing a problem solving procedure and setting standards for employee performance are two crucial strategies for the improvement of organizational performance.
Some employees need a great deal of support or encouragement when using new skills or applying new knowledge. Others must relearn skills in a safe environment. HRD professionals and managers can work together to facilitate individual development thereby building strengths and managing weaknesses. Their efforts improve performance and assure that the cost of learning new skills gives the organization a return on investment (ROI).
Human resource development professionals should therefore focus on implementing a reward system, and performance management strategies to motivate and increase the performance of the human capital.
By Shirley J. Caruso, M.A., Human Resource Development
Kim, S. (2005). Individual-Level Factors and Organizational Performance in Government Organizations Journal of Public Administration Research and Theory, 15(2), 245+
Schiemann, W. A. (2006). People Equity: A New Paradigm for Measuring and Managing Human Capital. Human Resource Planning, 29(1), 34+.