The practice of human resource management is concerned with all aspects of how people are used and managed in organizations. The main principle of human resource management is to make certain that the organization can attain success through people. HRM aims to increase organizational efficiency and ability and the capability of a business to achieve its goals by causing the best use of the resources available to it. Human resource management mainly deals with organizational behavior, organization design and development, people resourcing, performance management, learning and development, rewarding people and employee relations.
In the organizational context, performance is usually defined as the extent to which an organizational member contributes to reaching the goals of the organization. Performance management is a regular process to boost organizational performance by bettering the performance of individual folks and teams. The performance management strategy is sensible to be the procedure of providing the study about the performance of the employee which is consider being the top tool in the decisions taken by the human resource department. Performance management is thought as "Performance management is a strategic and integrated approach to delivering sustained success to organizations by bettering the performance of individuals who work in them and by developing the features of teams and individual contributors" (Armstrong and Baron, 2004).
Performance management is the method of formulating, implementing and evaluating the task performance of employees, so that the organization will achieve their goals and objectives. Successful performance management was created to develop performance, recognize performance requirements, and offer feedback related to the people requirements and help with career development.
'The overall goal of performance management is to determine a higher performance culture in which individuals and teams take responsibility for the continuous improvement of business processes and for their own skills and contributions in a framework provided by effective leadership' (Armstrong, 2006).
The objectives of performance management are
To sustain employees to find knowledge and skills to do their job well,
To encourage in the power of improved standards of work performance of an employee.
For employees to work at definite goals.
For employees to get regular feedback on performance and
For employees to achieve personal growth through acquiring significant knowledge and skills and attitudes.
This process helps people to enter action so they can achieve planned and agreed results. This technique briefly targets the elements like what has to be done and exactly how it should be done and what's to be performed. And this process is equally concentrated on developing people; helping these to learn and providing them with the support they need to do well. The managers and the individuals carry out performance and development plan jointly. These planning should lead to a agreement on what must be achieved by two parties.
This process is concentrating on
Measuring performance and assessment
Development planning and
This section defines the role in conditions of the key result areas; define the particular role possessor must know and be able to do and exactly how they will probably behave in terms of behavioral competencies and maintenance the organization's core values.
This process will focus on rising the role profiles, defining the core result areas, defining the technical competencies, defining the behavioral competencies, and core values.
This process describes the organizational goals or objectives to accomplish over a period of time by the departments and the individuals. This will give ongoing role or the task objectives, targets, tasks, behavioral expectations, values, performance improvement, learning, and integrating objectives to manager and the individuals.
As per (Armstrong, 2006) the majority of the organizations follow SMART mnemonic to conclude the characteristics of good objectives.
S (Specific) - Clear, understandable and challenging.
M (Measurable) - quality, quantity, time and money.
A (Achievable) - challenging but within the reach of a reliable and committed person.
R (Relevant) - relevant to the objectives of the business so the goal of the individual is aligned to corporate goals.
T (Time framed) - to be completed within an agreed timescale.
This process is a significant model in performance management. It is the key finding for providing and generating feedback, it identify where things are going well and where things aren't going well, so that necessary action to be studied.
The requirements for measuring the performance should be (Armstrong, 2006)
linked to the strategic goals
Focusing on inputs, outputs and outcomes, and behaviors.
Point out the info or evidence that will be available as the foundation for measurement.
Be as specific as is possible relative to the goal of the measurement and the accessibility of data.
Give a sound basis for advice and action.
Be comprehensive, covering all the key areas of performance.
The CIPD surveys of performance management in 2004 discovered that, to be able of significance, the following performance measures were used by the respondents (Armstrong, 2006).
Attainment of objectives
Contribution to team
Aligning personal objectives with organizational goals
The performance planning is part of the performance management chain, which involves contract between the manager and the person on what presently must do to attain objectives, progress standards, improve performance and develop the required competencies. It also establishes priorities the key aspects of the job to which attention have to be given. The aim is to ensure that the meaning of the reason, performance standards and competencies as they connect with everyday work is understood. Agreement is also reached as of this phase how performance will be measured and the proof which will be used to commence degrees of competence. It is important that these procedures and evidence requirements should be known and fully approved now because they'll be used by folks and managers to check on and demonstrate achievements (Armstrong, 2009).
Personal development plans provide a learning action arrange for which employees are responsible with the support of their managers and the organization. It could contain official training but, moreover, it will include a wider group of learning and development actions such as self managed learning, training, mentoring, project work, job improvement and job enrichment. Chances are to focus on development in the existing job, and to increase the capability to make it well also to enable individuals to take on bigger responsibilities, extending their ability to accept a broader role. This course of action therefore contributes to the success of an insurance plan of continuous development that is predicated on the fact that everyone is able of learning more and doing better in their jobs. The program will also share with improving the likely of individuals to carry out higher-level jobs (Armstrong, 2009).
Managing performance is that it is a continuing process that reflects normal good management practices of setting direction, monitoring and measuring performance and taking action accordingly. Performance management should not be imposed on managers as something special they need to do. It will instead be treated as an all natural function that all good managers carry out. This process contracts with that used in conventional performance appraisal systems, which were usually built around an annual event, the formal review, which tended to do well on the past. This was carried out at the behest of the personnel department. Managers proceeded to control without any further references to the results of the review and the appraisal form was buried in the personnel record system (Armstrong, 2009).
Performance management is a long lasting process it is compulsory to have an official review a few times a year. This gives a concept on the main element performance and development issues. You will discover mainly five performance management elements for review meetings; they are simply agreement, measurement, feedback, positive reinforcement and dialogue. These elements will leads to the end of the performance management cycle by informing performance and development agreements (Armstrong, 2009). The conditions for the performance review are
Achievements with respect to objectives
The degree of skills and knowledge possessed and applied (Technical competencies)
Performance is getting effected in job by the behavior (Competencies)
Employee development is the key method followed by almost all of the organizations to develop organization performance, which requires a perceptive of the processes and techniques of organization, team and individual learning. Performance reviews can be thought to be learning events, in which employees can be encouraged to think about how and where ways they want to develop. Development programs are reflecting the needs of sequence plans and looking for to market leadership skills (CIPD, 2010).
In a successful organization, employee developmental needs are addressed. Developing in this case means increasing the capability to make through giving training, develop new skills or giving more responsibilities. Introducing the processes of performance management has an outstanding opportunity to identify developmental needs. During the planning and monitoring of work, zero performance become clear and can be addressed. Areas for bettering good performance also arrive and action can be studied to help successful employees progress better still. http://www. opm. gov/perform/overview. asp
360 - Degree feedback recognizes the issue of management and the worthiness of input from a variety of sources. The feedback is frequently unspecified and could be presented to the employee to the manager or even to both employee and manager. Some organizations do not arrange for feedback to be mysterious. Whether or not feedback is anonymous depends on the organization's culture (Armstrong, 2009).
The main benefits of having feedback are
Individuals get a broader viewpoint of how they appear by others.
It gives people a broad view of these performance
Increased awareness by senior management.
The main disadvantages of experiencing feedback are
Employees or managers do not necessarily give honest feedback
People may feel stress in obtaining or providing feedback
Too much official procedure (bureaucracy)
In organizations they don't have a practice of open feedback; chances are that 360 - Degree feedback will be seen with greater levels of distrust.
Reward management is concerned with the formulation and implementation of strategies and policies to be able to reward people fairly, equally and consistently in agreement with their value to the business (Armstrong, 2009).
The aims of reward management are
Reward people as per the business want to cover.
Reward people for the worthiness they creating.
Build up a performance culture
Motivate people and obtain their commitment.
Help to attract and keep carefully the high quality people the organization desires.
Rating scales can be defined alphabetically, or numerically. Initials are sometimes used in an effort to disguise the hierarchical nature of the scale. The alphabetical or numerical points scale points may be described adjectivally, for example, a= excellent, b= good, c= satisfactory and d= dissatisfactory.
There are several great things about having an efficient performance management system.
Employees know where in fact the organization is going and they creating a clear knowledge on organizational aims and objectives.
Employees are certain to get an idea what organization is expecting form them.
It helps organization to meet their legal obligations in employment in terms of health and safety, fairness and multiplicity. Employees and the business itself will be clear by roundabout and clear contractual terms, such as codes of conduct, the work of common trust and self-assurance and the duty to check out sensible instructions, as well as health and safety equalities legislation. Legalities will also arise in cases where the organization seeks performance improvement or decides to terminate employment on the grounds of the employee's incapability to do their job.
Equality and diversity are important areas of performance management. Not only does the organization's managing diversity approach impact upon its efficiency rating through the best value performance indicators. In addition, it impacts upon how performance is managed within the business. A performance management approach that recognizes and promotes diversity, while supporting fairness and equity will ensure that people are selected and developed based on their capability to do the job.
Line managers are crucial to the success of performance management. But there may be problems with their commitment and skills and it is essential to involve them in developing the procedure, provide training and guidance, gain top management support, keep the process simple, emphasize that performance reviews provide for quality time with their staff and need not be stressful if conducted properly.
Armstrong, M. and Baron, A. (2004). Managing performance: performance management in action. London: Chartered Institute of Personal and Development.
Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines. 3rd Ed. London: Chartered Institute of Personal and Development.