Human resource policy development for service-oriented organizations

Policy Development

In order to develop effective policy in human resources for following issues and factors would be of utmost importance:

Service Requirement: Since the company is the service provider, that's why service has to be flawless and in order to have impeccable service, the management has to pay extra concentration to the employees and their satisfaction level, which would ultimately reflect on the customer satisfaction.

Training: The next step in delivering to the customer is to provide training to the employees. Training would make employees feel that they are the part of the whole process and would try to deliver better when they realize that company is making investment on them.

Customer Orientation Philosophy: Management must adopt in its vision and mission a customer orientation policy and same approach should be reflected in the policy made for its employees' appraisals and other compensation policies. Linking customer service to HR would help the company in delivering the goods.

Strategic Impact of Human Resource Issues on Organizational Effectiveness

Human Resource is the backbone of any organization and it is the human resources on the basis of which are organization is run and policies are implemented. Previously employees were considered a separate entity run by a separate personnel department. Now, every department has to assume the role of HR as they all are run by the people. Another important aspect to consider here is that most of the time excellent strategies are formulated but such strategies fail because of failure in implementation. Strategy implementation requires certain capabilities and sills. If such skills do not support the strategies then failure of implementation takes place. Since in a prepaid card environment technology becomes important, HR and all other personnel have to be involved in the big picture otherwise they would be restricted to the menial tasks.

Performance Management Systems

Creating a high performing work environment is the important objective of HR dept. done through proper performance management and performance appraisals. Setting goals, monitoring the employee's achievement of those goals, sharing feedback with the employee, evaluating the employee's performance, rewarding performance or firing the employee are some of the activities that are the part of the performance management system. Different methods like Self appraisal, Peer appraisal, Team appraisal, Assessment centre, 360-degree or full circle appraisal, Management-by-objectives, Combination of methods are used to regularly enhance and manage the performance of organizations.

360-degree or Full Circle Appraisal

360 degree incorporates feedback from multiple sources that is superiors, subordinates, peers, and/or customers into the performance appraisal process. The strength of the system is that it is not dependent on just one source rather it gets feedback from multiple sources. If one manager has the positive feedback of the employee and others in the system also agree with that then it results in the positive re-enforcement of the verdict of the manager. The process should include all employees including top managers otherwise it could backfire. Another weakness of this system is inclusion of customers because customers are better at evaluating products and services than evaluating individuals.