Achieving the organizational goals effectively depends upon the efficiency of the organization’s human resource. Thus, recruiting suitable human resources is important. The responsibility of this function lies with the human resource management team. Getting the right people into the organization is crucial because the progress of the company depends largely upon the performance of its employees; especially, their ability to work under demanding conditions to deliver quality output.
Regular monitoring and evaluation of employee performance are critical for the profitability and success of the organization. This responsibility again lies with the HR and senior managers. It is vital to carry out these assessments as they not only measure performance but also assess the employee’s level of job satisfaction and his interest in the task. If the employees are not content, their overall productivity may be affected.
Performance management is a process of managing manpower whereby HR and senior managers work with employees to set and review their targets in alignment with the organizational goals. Though the process does involve annual performance reviews, in essence, it is an ongoing process throughout the year, whereby managers keep track of the employee performance and provide guidance and feedback to improve their performance. Strategic performance management tools are also utilized to aid the process.
Performance management is applicable to all the employees irrespective of their position in the organization. In a survey of around 3000 organisations, it was found that tools like KPI (key performance indicators) and performance appraisal charts are considered to be close to 80% successful in evaluation. More than measuring the performance, these tools aim at building better workforce relationships and improving decision-making capabilities with the help of performance-driven conversations. However, a survey states that around 53% of employers don’t track improved performance records. This can lower employee motivation. This is despite an 8.9% greater profitability which has been observed after tracking and appraising the employee performance.
Various online HR certification courses and human resource management courses aim at providing an insight into performance management for aiding correct human resource evaluation and talent assessment. Business managers acquire tremendous benefit from HRM training and certificate programs. Performance management requires a consistent approach because employees feel encouraged and a source reveals that 69% employees feel more dedicated towards the organization and close to 92% of employees perceive the feedback positively if given in an appropriate manner.
Before implementing any performance management process it is mandatory to understand the HR practices of the organization in order to align the performance review process with it. Other important requirements are detailed job descriptions at the time of hiring, employee supervision while working, good training practices and a conducive work environment for comprehensive performance management process results.
In essence, performance management would turn out to be more effective by competent role-based policies are laid out and a structural and comprehensive tool is devised to include at least six to seven employee performance parameters. This will certainly help in reducing attrition rates and keeping the right people in the company.
Learn to craft effective strategies to resolve performance challenges with the Strategic Performance Management course from XLRI. Fill in your details for a call back with more information on the course.