Performance Management

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Evaluate the role of HR in managing performance. Support your answer with both theory and practice Organisational effectiveness and efficiency has rarely been off the management agenda of all organisations, especially as organisations see it as a good way of sustaining competitive advantage and standing tall in economic downturns. According to the CIPD, (2009) performance management has been around in the language of HR and people management since the 1980’s and its development as a key people management tool. According to Armstrong and Baron, (2004) it is a process which contributes to the effective management of individuals and teams in order to achieve a high level of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved. The features of performance management is for objective settings and review, annual appraisal, personal development plan, self appraisal, performance related pay, 360 degree appraisal, balance scorecard. Organisations use these methods as a means to measure performance to produce productivity. Performance management involves aligning HRM practices so that employee performance and development are enhanced, with the aim of maximising organisational performance. However, goes to show that HR has a key role in performance management process in organisations and these can be seen in terms of: Selection practices and internal promotion: This is a critical element of HRM and when an organisation adopts a strategy achieving superior performance, through the workforce, it will need the right people and will need innovative recruitment and selection strategies to obtain the right employees. Internal promotion is generally seen as a critical way to retain key members of the workforce. Having recruited, developed and trained the “right sort of people”. It is unlikely that managers will want to see these employees leave...
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