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Key Differences Between Human Resource Management and Performance Management

Human Resource Management

Nothing we do is more essential than hiring people. At the end of the day, you depend on people, not strategies. This thought is the quintessential idea behind the significant functionality of Human Resource Management in today’s corporate sector. Recruiting the right people is a monumental task that requires vast interpersonal skills and intellectual dexterity. HR online courses equip HR professionals with peer interaction, people management and make their position in the company replete with job security. XLRI Online certified HR management course aims at providing knowledge to HR managers to maintain optimal employee relations and measuring the efficacy of talent management.

 Boost your career in HR with our online HR Certification

Performance Management

In Performance management, before you win in the market place, you should first win in the workplace. Performance management is a perennial process of communication between a supervisor and a subordinate. XLRI Online certified HR management courses seek to continuously measure, identify, and develop the performance of the workforce by devising new methodologies to elevate employee performance. Clarifying expectations and identifying goals are taught in HR online courses from reputed e-learning platforms.

Also Read: How to Find Human Resources Job Opportunities? 

 

Key Differences Between Human Resource Management and Performance Management

 

The seminal differences between Performance Management and HR Management lie in their orientation, scope, and treatment of manpower concerning organizational procedures and directives.

  • The scope of performance management is limited where workers are regarded as tools. The behaviour of workers can be manipulated according to the organisation’s core needs and they’re replaced when their job is done. On the contrary, HR Management considers employees as valuable assets to the organization. Promotion of mutuality in terms of goals, reward, responsibility is the top-level hallmark attribute of HR management.
  • Manpower is treated as machines or tools in Performance management. HR Management considers man/women power as valuable assets to the organization.
  • Performance management has routine functions like planning and monitoring. HR management deals with the strategic aspects of the organization’s working such as recruiting, screening, conducting interviews, and also assimilates itself into the overall organizational strategy to attain ascendancy in organizational objectives.
  • The basis of remuneration in performance management is job evaluation. In the case of HR management, performance evaluation of employees with its subtle layers of efficiency and productivity in different business sectors are considered for remuneration.
  • Labour management in performance management consists of collective bargaining. HR Management deals with individual contracts for employees, the rationale being that each employee is considered as a special asset with differentiated levels of talent and assigned responsibilities.

human resources course

 

Human Resource Management has come up with certain improvements over Performance management thus resulting in the eradication of certain shortcomings in Performance management. In this age of intense competition, the organization must prioritize manpower and place their needs at the apex of the company’s core objectives. Human Resource Management has played a pivotal role in eliminating the practice of treating employees as machines. HR Management has taken massive strides in the art of business management to bring synergy between the organization and its employees for working towards a common purpose.

Organizations are getting increasingly focused on employee well-being. They are willing to alter the old practices of employee performance management and want to try new things. HR professionals are also waking up to the changes in the performance management domain and interested in taking up a performance management course that can augment their learning and helps them stay ahead of others in the HR domain.

Also Read: 6 Qualities of highly effective HR professionals

 

Performance management as a vertical is seeing a host of changes. A recent study from Mercer concludes that 50 percent of employers are planning to change their approach to performance management in the next one and a half years. Out of these, 48 percent of employers are planning to make drastic changes to their performance management systems. 67 percent of those say that the changes need to be revolutionary in nature in order to make a real impact. This is happening because companies are realising that their processes of evaluation of employees are not just traditional, they are obsolete to an extent.

Organizations believe that there are fundamental changes required in the performance management practices of companies if they want to build a culture of high performance. This is also critical if they want to stay relevant in the minds of current and future employees.

Human Resource online courses

 

In the quest for making relevant changes to the performance management domain, companies need to adapt to the key trends in this domain. Some of the main trends are listed below –

 

Continuous Evaluation Instead of Annual Appraisal

One of the biggest changes will be in the frequency of performance appraisal. The current structure of annual appraisal misses out on the big picture. Instead of this, there should be continuous dialogue between the organization and the employees. This will drive the employees to improve themselves on a regular basis. It will also provide them with immediate feedback on a job well done and motivate them. Continuity in the evaluation will also foster an environment of constructive feedback which will create a productive atmosphere in the organization.

 

Do Not Label Employees

The appraisal system of today tries to label employees by their rankings. The rankings stick to the employees for the rest of the year and affect not only their morale but also the perception of people who work with them. The ranking process can be done away with and instead of that a holistic assessment process can be brought in.

Also Read: Why is it Important to Study Human Resource Management?

 

Evolution of Performance Appraisal as a Motivator

In an effort to closely link the values of the organization, a company must enable the employee to give their best performance instead of trying to force-fit them. This should become a mantra for the company and applicable in a continuous manner.

 

Create an Environment of Learning

One of the key features of a productive environment is the ability of the employees to learn and unlearn. As new technology replaces the old, the old ways of working should also be replaced along with old ways of thinking. Organizations need to continuously encourage the employee to keep learning and adapting. To make learning a continuous process, managers must also become teachers. As mentors to their team, they can motivate them and become their soundboard when required. This will foster an environment of trust as well as decrease attrition since employees will be able to share with each other in a more positive manner.

Also Read: Entering and Flourishing in the HR Domain: Career Prospects

 

One Size Does Not Fit All

To get effective results out of a performance management system, the company must strive to assess employees as per their job requirements. Not all employees should be rated on the same scale. Instead, different subsets of employees should be assessed differently.

According to a report from Deloitte, revamp of performance management is a primary focus of 79% of top HR executives. They want to make performance dialogue more meaningful than it is currently, for their organizations.

Companies need to provide a framework to the managers in the organization to get effective 360-degree feedback from the employees. A 360-degree evaluation will allow for feedback not only for the employee but also for the organization from the eyes of the employee. They should also minimise unnecessary processes and hierarchy to ensure that the feedback reaches the right ears. All these steps will make the overall employee experience better.

It is vital that an organization works towards making the experience of its employees holistic and performance-driven. The performance should be rewarded on time and improved ahead of time. Companies need to take cognizance of the fact that this is an employee-driven market. The best talent will come only when the organization makes an honest effort in becoming an employer that appreciates a good performance.

 

More Information:

Become a Human Resource Manager

Jobs, Roles & Responsibilities in the HR

Characteristics of Leadership and Management

How to Find Human Resources Job Opportunities?

How to grow your career in Human Resource Management in 2022?

 

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