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Introduction
Employee performance is directly correlated with organizational performance, as the former affects every aspect of the latter. In certain circumstances, an increase or decrease in revenue of the company can be attributed to personnel performance. When a loss of revenue is substantial, a reduction in operational costs, including staff salaries, hourly wages, and bonuses, needs to be examined. This report considers HR performance data of an air transportation supplier experiencing a significant decline in earnings as well as potential strategies for financial recovery.
HR Performance Data Interpretation
The provided HR performance data helps understand the company’s approach to employee compensation. It can be reasoned that the organization set a standard rate of pay for employees, with performance not taken into consideration for remuneration or bonus assignment. In addition, seniority does not appear to be a factor in salary allocation, with junior employees earning more than their seniors in the same department (Smyth, 2022). Furthermore, the HR data implies that some company departments are oversized and employ an excessive number of employees. For example, account planning, account service, and finance and accounts departments employ 23 persons, while the manufacturing department, arguably the most critical for the venture, has 20 workers. Thus, the data under consideration does not help understand how individual employees are renumerated despite the presence of a developed salary, bonus, and overtime structure. Nevertheless, the given dates of hire indicate a loyal employee base and suggest their deep knowledge of company operations and nuances of the field.
HR Performance Data Analysis
The analysis of the HR data suggests several problems with allocating company resources and employee performance in different departments. In particular, the IT department appears to be understaffed, employing four people, all of whom accumulated a significant amount of overtime based on overtime payments. In comparison, other departments with overtime, primarily sales and manufacturing, have fewer workers who worked overtime in the last year. The data shows that the IT department is struggling to perform its duties within the allocated work time, potentially leading to a loss of productivity and a decrease in performance (Mahmood et al., 2019). Moreover, managers’ salaries seem disproportionate at $237,385-370,834 compared to the average salaries of other personnel. Considering that the highest-paid manager has a low-performance score of two, while other managers maintain higher scores, it can be argued that the company resources are poorly distributed. Overall, the provided performance scores and insufficient management notes fail to explain the salary range, and additional data is required. In addition, the overtime data suggests that the IT department is critically short-staffed.
Notably, there is a considerable lack of qualitative data in the HR performance data. For 77 employees across different departments, manager commentary was given only to 13. Considering the given performance scores on a scale from 1 to 4 and the scares commentary, the criteria for assigning performance bonuses is unclear. It should be noted that employees in all departments, excluding management, received a bonus of $2000. As the company goals in revenue were not achieved and the performance of individual employees differed substantially, the criteria for bonus allocation remains unclear. According to Corgnet (2021), bonus schemes are successful if they are tied to performance, with the latter clearly defined as relating to organizational goals and objectives. Thus, there is a lack of qualitative data that can be utilized to make decisions for future strategies concerning operational costs.
The HR performance data is lacking, and additional information is required. Specifically, such sources as performance reviews and peer and supervisor reviews can shed more light on the work of employees and the current resource allocation practices at the organization. Moreover, the knowledge of the venture’s performance standards, specific goals, and objectives is required to better understand operating costs apportionment (Diamantidis & Chatzoglou, 2019). Overall, the quantitative HR data raises questions about management salary, overtime, and bonus allocation, while qualitative data is insufficient.
Conclusion and Related Outcomes
The available HR performance data helps inform the organization’s financial recovery strategy. Due to the lack of qualitative data on performance, an across-the-board decrease in remuneration is unlikely to lead to desired outcomes such as increased revenue. Nonetheless, a 10% reduction in the budget can be achieved through manager salaries being addressed as well as the bonus scheme being updated. The presented information on pay ranges, bonuses, and overtime payments suggests that a change in the approach to compensation is needed. In particular, the bonus scheme should become performance-based, with different incentives offered to company employees. Equivalent bonuses are unlikely to motivate staff to improve performance and can demotivate high performers. Low-performing employees should be given a performance improvement plan to set achievable performance goals upon which their employment with the organization depends (Mroz, 2022). Furthermore, management salaries should be renegotiated to fairly reflect their contribution to the company, with a new bonus scheme offered to positively influence performance.
Conclusion
In summary, the decision process regarding the current situation of the air transportation supplier venture is based on the provided quantitative data on employee reimbursement and bonuses as well as performance scores. The discrepancies between employee performance scores and remuneration suggest that a restructuring of the system is required to reflect the contribution of individual employees to the companies and ensure they are compensated proportionately.
References
Corgnet, B. (2021). Can bonus schemes have a negative effect on your company? Association of MBAs. Web.
Diamantidis, A. D., & Chatzoglou, P. (2019). Factors affecting employee performance: An empirical approach. International Journal of Productivity and Performance Management, 68(1), 171–193. Web.
Mahmood, Y. N., Raewf, M. B., & AL- Hamadany, Z. S. (2019). A study on the perceptual relationship between overtime and output at private universities. Cihan University-Erbil Journal of Humanities and Social Sciences, 3(1), 27–31. Web.
Mroz, K. (2022). What Is a Performance Improvement Plan (PIP)? Web.
Smyth, D. (2022). Pay scale based on seniority. Work – Chron.com. Web.
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