Performance Management Effective Human Resource Management

Question: Discuss about thePerformance Managementfor Effective Human Resource Management. Answer: Introduction The purpose of the study is to focus towards all the important attributes, which will analyze towards establishing an overall performance management system in the organization. There are certain important factors, which will focus in the expansion process of an appropriate performance management system in the company. However, the assignment will focus towards concentrating on some of the major factors in the development procedure of an appropriate management system in the association. Evolution of Performance Management System in the Company With the view of evaluating a correct performance management system in the association there are certain parameters, which contributes one of the most significant aspects in the process of increasing a proper performance matrix in the company. The plans and polices of the organizational procedures need to be developed in such a manner, which will focus on the performance of the organization in a systematic manner (Daft 2012). With the view of evaluating a proper performance matrix, the overall management practices must be concerned with the policies of the company, best fit the nature of the work as well as the mission of the organization. The concept of the performance management contributes as one of the most effective parts in the overall human resource management of the organization. The managers of the organization need to perform a continuous activity in the overall procedure of the performance management (Hellriegel 2012). Within the context of modern business environment, the role of the performance management has become one of the most significant aspects in the managerial process. For example, majority of the multinational organizations, based on the objectives of the business implemented modern approach of business management by substituting the notion of traditional approach of business. However, the following part of the study will focus on three types of performance management system, which is available in the contemporary, business world (Hitt, Black and Porter 2012). It is important for the management to develop a proper performance management cycle in the organization. There are four important managerial steps, which includes performance planning, staff, the organization, performance, development reviewing, and action (Lawler and Boudreau 2012). There are several definitions of good performance, which mainly includes hard work, getting involved with the work are some of the examples to develop a good performance in the organizational activities. However, strong commitment in the organizational activities may not lead to organizational and on the other hand, accomplishing the organizational goals and activities may not be an example of high performance in the operations. It is important for all the employees to outline a proper strategic framework, which will focus on all the efforts of the employees must be aligned with overall goals and strategies of the management (Mondy and Mondy 2014). Nevertheless, the objective of the study is to focus on the three fundamental performance management system which majority of the human resource managers performs in order to develop a proper competitive advantage in the organization. Numerical Rating Scale, Objective Based Analysis and 360 Degree Appraisal are the three important measures of the performance system, which is practiced in the Modern Human Resource management. Numerical Rating Scale The idea of rating scale is one of the most common measures, which is mainly used in different practices of human resource management. The application of this particular method is renowned due to its simplicity and easy to use. The concept of the numerical rating scale is widely used, as it is very much effective to measure employees performance based on certain strategic framework. The reasons behind the use of numeric scale is to develop a customize performance system in the organization, which would measure the performance of the employees on a plethora of areas which includes teamwork, communication skills and reliability (Noe 2014). 360 Degree Appraisal Systems With the help of the 360 Degree Appraisal systems in the association, the human resource managers will be able to focus in the process of increasing a proper competitive advantage in the company. It is one of the most common as well as the best initiative measures in the organization, which allows to measure an in depth performance analysis of the employees. It allows the human resource managers to get multiple feedbacks from different parties, which includes managers, coworkers, customers and even vendors. Objective Based Analysis The objective of this particular performance management system is to focus on a systemic evolution, which mainly focuses to track the progression of the work. With the help of objective based analysis, an employer and employee will agree upon the specific goals of the organization, which will mainly focus on its achievement (Prescott and Rothwell 2012). Performance Management System and Job Analysis One of the major challenges for the Human Resource Managers is to focus on selecting the right employees for the right job. It will automatically translate all the performance of the employees in a common direction with the view of achieving the managerial goals and objectives. The idea of the job analysis contributes as one of the most significant role in the recruitment progression, as it allows the managers to conclude about the job evolution, job designing, decision compensation and organizational productivity (Robbins and Coulter 2012). Therefore, the role of the job analysis is one of the major platforms for the human resource managers, as it allow fitting the right employee for the right job in the right time. On the other hand, the role of the performance management system allows developing a proper framework and outline, over the Job Analysis in the organization. Figure 1: Performance Management Process (Source: Werner, Schuler and Jackson 2012) Remuneration Package There are certain important attributes, which are incorporated in the development process of a proper remuneration process. The management needs analyze all the crucial factors in the organization, which focuses on all the key attributes in the process of developing a proper rumination process. With the view of a proper remuneration process, the organization will be able to focus on a proper remuneration process with the view of retaining as well as encouraging the right employees for the right job (Rothwell et al. 2012). Every Human Resource Managers irrespective of the nature of the business tries to develop a proper employee retention process, which contributes as one of the most essential aspects in the organizational procedure. The overall remuneration process is classified into two categories, which includes financial aspects as well as non-financial aspects. Based on the purpose as well as objectives of the business the remuneration structure of the company is determined. There are two main important components, which comprise the financial aspects, which include salary structure and incentive structure. On the other hand, in case of non-financial reward system in the organization some of the important parameters include paid leave system in the organization, travel allowances and many more (Truss, Mankin and Kelliher 2012). Majority of the organization tries to develop a proper remuneration system with the combination of both financial as well as non-financial attributes in the organization. Key Performance Indicators The role of the key performance indicator (KPI) is a set of quantifiable measures, which a corporation uses to compare the overall performance with respect to meeting the goals of the organization. The role of KPI varies between from one company to another depending on its priorities and performance criteria. There are three major factors, which develops a proper combination of KPI in the organization. Business objectives, key success factors and key performance indicators are the three important attributes, which develops the overall concept of a proper KPI in the organization (Werner, Schuler and Jackson 2012). The application of a key performance indicator includes the measurement process of the original performance of the organization with the planned performance. It allows making a quicker as well as earlier decision making process in the organization. On the other hand, with the help of a proper KPI system in the overall HR managerial process, understand how well the employees of the organization are performing in relation to its strategic goals and objectives. Figure 2: Key Performance Indicator (Source: Truss, Mankin and Kelliher 2012) Behaviorally Anchored Rating Scale (BARS) Behaviorally Anchored Rating Scales (BARS), is a type of HR practices, which focuses on both qualitative as well as quantitative data, with the view of measuring the performance of the employees (Werner, Schuler and Jackson 2012). The objective of BARS is to compare an individual performance next to specific examples of behavior that are anchored to mathematical ratings. For example, the level of rating of a sales manager is measured based on the unit sold. The idea of BARS was developed to measure the judge performance of the employees in the organization. Conclusion The readers of the study will be able to focus on what are the different kinds of responsibilities which the HR managers needs to perform in the process of developing a strong as well as proper organizational operations. The ultimate objectives of the study are to focus on some of the key attributes based on developing a key performance management in the organization. With the view of establishing a key performance management system in the organization, the entire key attributes of the HR plans, policies and practices are analyzed with an effective manner. Reference List Daft, R. (2012).Management. Australia: South-Western. Hellriegel, D. (2012).Management. Cape Town: Oxford University Press. Hitt, M., Black, S. and Porter, L. (2012).Management. Upper Saddle River, N.J.: Pearson Prentice Hall. Lawler, E. and Boudreau, J. (2012).Effective human resource management. Stanford, Calif.: Stanford Business Books, an imprint of Stanford University Press. Mondy, R. and Mondy, J. (2014).Human resource management. Boston: Pearson. Noe, R. (2014).Fundamentals of human resource management. New York, NY: McGraw-Hill/Irwin. Prescott, R. and Rothwell, W. (2012).The encyclopedia of human resource management. Hoboken: John Wiley Sons. Robbins, S. and Coulter, M. (2012).Management. Boston: Prentice Hall. Rothwell, W., Prescott, R., Lindholm, J., Yarrish, K., Zaballero, A. and Benscoter, G. (2012).The encyclopedia of human resource management. San Francisco: Pfeiffer. Truss, C., Mankin, D. and Kelliher, C. (2012).Strategic human resource management. Oxford: Oxford University Press. Werner, S., Schuler, R. and Jackson, S. (2012).Human resource management. Australia: South-Western Cengage Learning. Werner, S., Schuler, R. and Jackson, S. (2012).Human resource management. Australia: South-Western Cengage Learning.