Role of HR in Performance Management System

There have been many queries on the role of HR in Performance Management System; some members bestow correct answers to such questions being raised, this is my take on the topic: WHAT IS THE ROLE OF HR IN PERFORMANCE MANAGEMENT SYSTEM.

In most organisations, senior managers and directors detest conducting performance assessments, usually because they are uncomfortable and inexperienced in conducting them. They will be typically heard saying that appraisals don’t work and are a waste of time. A similar approach then cascades down the line and fails the whole system of performance appraisal.

Before we talk about the agenda here today, why not take a look at the traditional approach of HR in appraisals and then shift the discussion towards the new strategic role of HR in managing employee’s performance.

Basically, traditional HR performance appraisal system weighs how well a subordinate satisfies his boss or superior during the appraisal period. This degree of satisfaction may or may not be related to how well the employee contributed to corporate goals. Most of the time, it does not. For this reason, conventional performance appraisal has become a highly politicized, controversial, biased exercise that creates more dissonance than teamwork in the organization.

New methods and HR’s involvement in Strategic management have now changed the effects where HR appraises people on more relevant output performances like quality, productivity, internal and external customer satisfaction. If negative criteria is used, these become defects or rework, wastes, and internal and external customer complaints or returns.

Strategic HR aims to change employee behavior and attitude by directly connecting his appraisal to what actually matters to corporate performance and customer satisfaction. It puts less weight on tenuous criteria like teamwork, attendance, Superior’s satisfaction and attitude.

  • In contemporary epoch HR has to play a strategic role to develop capability, attitude and to initiate performance with quality into the product where the HR has to collaborate with line managers to retain employees, which automatically affects the retention of customers because it is the driving force of customers.
  • The goal of performance appraisal is to allow an employee the opportunity to progress to their full potential in order to meet organizational needs and his/her personal development goals.
  • Through this process, true teamwork and maximum performance can be achieved. The foundation of the performance appraisal process is an improved communication between the employee and the supervisor.
  • The Employee Relations/employee care/ Human Capital unit is available to assist managers, supervisors, and employees in utilizing the appraisal process and resolving workplace performance issues.
  • Due to the paradigm shift and the Gen Y joining the workforce the major concern is not the ratings and hike, now employees are more concerned about the feedback and their Individual development plans.
  • The HR department can now share the feedback with people, both negative and positive which not only increases the communication but also builds the trust of the employee in an organisation.
  • HR’s role in the Appraisals is not just related to the designing of the system but it has moved to a more substantial role of being a mentor, regulator and to look into the details of why a person’s performance is below par.
  • In this new role, HR department also organizes mid term reviews to control the lows and increases the highs with timely checks on a regular basis, in fact it does not remain as a system
  • The evaluation of one’s performance can be utilized for TNI &A, and it helps designing the career plan for the employees.
  • Training and development are better where HR plays an important role in PMS also.

On a lighter note, the HR plays a better role than what is mentioned below…read them and have a good laugh but do not sit back while the management decides the rating of performance appraisals this year….take things in your hand and let them not give the following remarks..:)

A keen analyst: Thoroughly confused.

Alert to company developments: An office gossip.

Consults with co-workers often: Indecisive, confused, and clueless.

Displays excellent intuitive judgement: Knows when to disappear.

Excels in the effective application of skills: Makes a good cup of coffee.

He sets low personal standards and then consistently fails to achieve them.

A prime candidate for natural deselection.

Donated his brain to science before he was done using it.

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