Employees, review, objectives, Taylor Woodrow, managers, pay, competence, corporate objectives, human resource, support, business, firm, cycle, culture, standards.
Effective Human Resource Development (HRD) involves matching an organisation's needs with the needs of its employees.
Its construction business is focused on activities such as Private Finance Initiative, Facilities Management and specialist engineering consultancy.
Together, Taylor Woodrow's combination of skills in housebuilding, property and construction give the company a powerful competitive edge in the area of urban regeneration and brownfield development.
A major strength of Taylor Woodrow is its expertise in developing complex brownfield sites (on reclaimed land that once might have been an industrial area) using integrated teams of specialists brought together for particular projects.
Supporters of this HRD approach argue that this two-way process can be effective only where there is a clear psychological contract between employers and employees based on mutual trust and commitment.
In preparing for such a review, individuals write down their career aspirations and training and development needs, as well as their successes in meeting previous targets and objectives. Managers will read this prior to the Performance and Development Review and also plan ways of communicating to the employee the various objectives of the local management team (and how they support Taylor Woodrow's wider objectives) that are particularly relevant to that individual.
Salaries and bonus payments then reflect the success of each individual's performance based on a rating system.
Taylor Woodrow believes that the effective management of individual performance rests on managing the performance cycle, which is an ongoing process of performance planning, support and review.
The PRP (Performance Related Pay) approacch is based on a philosophy of agreeing:
- the key results areas of the job
- clear standards of performance and target levels of competence
- regular, objective reviews of performance and competence.
As a result of carefully reading this case study, students should be able to:
- provide a simple definition of Human Resource Development
- explain what is meant by an organisation's vision and culture
- describe two objectives that Taylor Woodrow needs to communicate to its employees
- list some of the professionals working for Taylor Woodrow
- show how individual performance objectives can be tied into corporate objectives
- explain what is meant by a Performance and Development Review
- outline the stages in the Performance Cycle
- show how Performance Review can be linked to pay
- describe the key steps in the Performance and Pay
- Review Cycle
- explain the link between Performance Related Pay, Development Reviews and motivation.