strategies for improving employee performance

7.4 HRM Strategy – Approaches to HRM 🚀

Objective: Strategies for Improving Employee Performance 📈

In this section, we explore how different HRM approaches can boost employee performance and help your business succeed.

1️⃣ Traditional Approach – The “Command & Control” Model 🏰

Think of this as a classic sports team where the coach gives strict instructions and the players follow them.

  • Clear hierarchy and defined roles.
  • Focus on compliance and routine tasks.
  • Performance measured by adherence to rules.

Exam Tip: Remember that the traditional approach is often criticised for stifling creativity. Use examples like “factory assembly lines” to illustrate.

2️⃣ Modern Approach – The “People‑Centred” Model 🌱

Imagine a startup where employees are encouraged to share ideas and collaborate.

  • Emphasis on motivation, training and empowerment.
  • Flexible roles and teamwork.
  • Performance linked to innovation and teamwork.

Exam Tip: Highlight how modern HRM can increase job satisfaction and reduce turnover.

3️⃣ Strategic Approach – Aligning HRM with Business Strategy 🎯

Think of HRM as a chessboard where each move supports the overall game plan.

  1. Recruitment matches the skill needs of future projects.
  2. Training plans are linked to business objectives.
  3. Performance management feeds back into strategy.

Exam Tip: Use the “HRM as a strategic partner” phrase and give a real‑world example (e.g., a tech firm scaling up for a new product).

4️⃣ Performance Management – Measuring and Motivating 📊

Performance can be seen as a simple formula: \$Performance = \frac{Output}{Input}\$.

  • Set SMART goals (Specific, Measurable, Achievable, Relevant, Time‑bound).
  • Use KPIs and performance appraisals.
  • Link rewards to outcomes (bonuses, promotions).

Exam Tip: Discuss the importance of feedback loops and continuous improvement.

Approaches to HRM – Quick Comparison
ApproachKey FocusPerformance Impact
TraditionalControl & ComplianceConsistent output, low innovation
ModernEmployee EmpowermentHigher motivation, creativity
StrategicAlignment with Business GoalsTargeted growth, better ROI

Exam Tip: How to Answer Questions on HRM Approaches

  1. Identify the type of approach being described.
  2. Explain its main characteristics.
  3. Give at least one real‑world example.
  4. Discuss the impact on employee performance.

Use the SWOT framework if the question asks for strengths and weaknesses.

Key Takeaway 💡

Choosing the right HRM approach depends on your business context. A blend of traditional structure, modern flexibility, and strategic alignment often yields the best performance.