Performance Management About Performance Management An important component of developing employees is a comprehensive and well executed performance management system incorporating elements such as regular one-to-one meetings, through to performance appraisals and processes to manage underperformance. Performance management is a well-established, all-encompassing term used to describe the practice that drives decisions about performance, remuneration, promotions, disciplinary procedures, terminations, transfers and development needs within an organisation. Performance management is a much broader concept than performance appraisal or a disciplinary process. It aims to improve organisational, functional, team and individual performances.
The responsibilities of a human resource manager fall into three major areas: Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world.
Gubman observed in the Journal of Business Strategy, "the basic mission of human resources will always be to acquire, develop, and retain talent; align the workforce with the business; and be an excellent contributor to the business.
Those three challenges will never change. But in recent years recognition of the importance of human resources management to a company's overall health has grown dramatically.
This recognition of the importance of HRM extends to small businesses, for while they do not generally have the same volume of human resources requirements as do larger organizations, they too face personnel management issues that can have a decisive impact on business health.
Personnel problems do not discriminate between small and big business. You find them in all businesses, regardless of size. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful without effectively managing this resource.
Another important principle, articulated by Michael Armstrong in his book A Handbook of Human Resource Management, is that business success "is most likely to be achieved if the personnel policies and procedures of the enterprise are closely linked with, and make a major contribution to, the achievement of corporate objectives and strategic plans.
Other HRM factors that shape corporate culture-;whether by encouraging integration and cooperation across the company, instituting quantitative performance measurements, or taking some other action-;are also commonly cited as key components in business success.
HRM, summarized Armstrong, "is a strategic approach to the acquisition, motivation, development and management of the organization's human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success.
Individual management entails helping employees identify their strengths and weaknesses; correct their shortcomings; and make their best contribution to the enterprise. These duties are carried out through a variety of activities such as performance reviews, training, and testing.
The search for causal links between strategic HRM and business performance has dominated both academic and practitioner debate for over two decades. The search for causal links between strategic HRM and business performance has dominated both academic and practitioner debate for over two decades. This article poses fundamental questions such as what is meant by performance, how an HR system is to be configured, how the causal chain between HR practices and performance outcomes is to be modeled, and what this means for research in the area. Huselid drawing on Barney’s () resource-based theory of the firm, contended that human resources can provide a source of sustained competitive ad-.
Organizational development, meanwhile, focuses on fostering a successful system that maximizes human and other resources as part of larger business strategies. This important duty also includes the creation and maintenance of a change program, which allows the organization to respond to evolving outside and internal influences.
Finally, there is the responsibility of managing career development. This entails matching individuals with the most suitable jobs and career paths within the organization.
Human resource management functions are ideally positioned near the theoretic center of the organization, with access to all areas of the business. Since the HRM department or manager is charged with managing the productivity and development of workers at all levels, human resource personnel should have access to-;and the support of-;key decision makers.
In addition, the HRM department should be situated in such a way that it is able to communicate effectively with all areas of the company. HRM structures vary widely from business to business, shaped by the type, size, and governing philosophies of the organization that they serve.
But most organizations organize HRM functions around the clusters of people to be helped-;they conduct recruiting, administrative, and other duties in a central location.
Different employee development groups for each department are necessary to train and develop employees in specialized areas, such as sales, engineering, marketing, or executive education.
In contrast, some HRM departments are completely independent and are organized purely by function. The same training department, for example, serves all divisions of the organization.
In recent years, however, observers have cited a decided trend toward fundamental reassessments of human resources structures and positions. Today, senior management expects HR to move beyond its traditional, compartmentalized 'bunker' approach to a more integrated, decentralized support function.
This increases the likelihood that HR is viewed and included as an integral part of the business process, similar to its marketing, finance, and operations counterparts. However, HR will retain a centralized functional relationship in areas where specialized expertise is truly required," such as compensation and recruitment responsibilities.
HRM, then, is engaged not only in securing and developing the talents of individual workers, but also in implementing programs that enhance communication and cooperation between those individual workers in order to nurture organizational development.
The primary responsibilities associated with human resource management include:Notes Not all specialisation courses are available on-campus. For further information, contact the Faculty of Business, Education, Law and Arts.
There are limited courses available in semester 3. Back to top. hSenid Business Solutions specialises in total Human Resource Applications, Payroll solutions,HR software, Time & Attendance solutions, Human Resource Outsourcing (HRO) and HRM Software.
Human resource management (HRM), or human resource development, entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization.
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Critically explore the link between HRM and business performance. This essay will seek to explore the link between Human resource management and business performance.