Human Resource Management (HRM) is essentially getting things done through people. Almost all firms today have an established specialist division to provide an expert service, which is dedicated to ensuring that the human resource function is performed efficiently. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to the firm and to existing employees and not to forget, costly to the firms. It also takes time for new staff members to develop corporate cultural awareness, gain experience and firm specific knowledge regarding process, product etc. so ultimately retention management is strategically important in the sense that a firm retains the current human capital it has build up through staffing and performance management. 1 Essentially the task and purpose of this assignment will cover performance review as a key function within HRM as a direct result of trying to improve the employee job performance and the firms overall productivity. Topics that will be covered include:
1.A current performance review model in a an organisation that is familiar to me; 2.A suggested best model to achieve performance reviews that will increase employee satisfaction and motivation; 3.Brief analysis and conclusion of Performance Reviews in general. Obviously the HRM functionality will vary between firms which are different in nature, size, goals, functions, complexity, structure and the product or service it provides. But ultimately the purpose of the HR function is to: “ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs”, that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work grade. (Human capacity in the long run) Introduction to Performance Management
"People are our most valuable asset" or “A company is known by the people it keeps” are clichés which no member of any senior management team would disagree with. Today the rate of change facing firms has never been greater and firms must absorb and manage change at a much faster rate than ever before. In order to face these challenges, firms must ensure that they have the right people in the right positions capable of delivering the right strategy. Not only is employee recruitment and selection important for this but also performance management of the firm’s employees. Armstrong and Baron define performance management as a “strategic and integrated approach to increasing the effectiveness of organisations by improving the performance of people who work in them and by developing the capabilities of teams and individual contributors. 2 What is Performance Management Review?
Performance Management Review is an ongoing, formal and informal process whereby the employee and his/her reviewer communicate and review the achievement of performance expectations and standards over a certain period of time. This is achieved by: •Ensuring the employee understands the goals of the firm as a whole and those of the employee’s division, business unit and specific work team; •Setting the employee’s individual work objectives and linking these to the Firm’s goals; •Confirming the required performance expectations for the employee and the specific role; •Assessing how the employee has performed against the objectives set previously and ensuring the employee have enough feedback to understand her/his performance, celebrating achievements and extend, maintain or improve the employee’s performance in the future. The employee should already have a clear understanding of what is expected, day to day, in the specific role. This is set out in the Position Description, which states the key tasks and responsibilities for the role that need to be completed consistently. It is important to ensure these minimum requirements are met as they will be the foundation for overall achievements and...