EVOLUTION OF APPRAISAL TO INDIVIDUALIZED PERFORMANCE MANAGEMENT TOWARDS THE HUMAN RESOURCE PLANNING PROCESS
TABLE OF CONTENTS
2.1 A critique of the appraisal system
2.2 An evaluation of the process that enabled the performance system to develop
2.3 An evaluation of the issues of how the workforce could be
included in this process
Many literatures have been written and argued on Human Resource Management (HRM) in the past dated as early as in 1960’s. However, only since two decades ago, the whole culture of human resource management changed drastically due to extensive influence of internet, wireless connection and Steve Job. This paradigm shift of HRM was mooted by most of the present Fortune 500 companies such as Apple, Google and Bloomberg. These companies which was formed about two decades ago changed the landmark of Human Resource Management. Human Resource Department changed role from hiring and administrating workforce for the company to engaging and managing talent and human capital to add value to the organization’s performance and success. The trend was established that human capital or the people of the organization are the core which shall be well capitalised to ensure success in current business environment. Therefore, HRM policies and requirement changed drastically. One of it is the performance management of this human capital. This literature analysed on what are the problem faced in measuring performance management or appraisal of staffs, the factors prompting organization to reconsider or overhaul their performance management system and on how organization could improve the performance management system to suit current SHRM environment which the workforce demands. The problems with the appraisal system were found to be standard of performance measurement, more judgemental in appraising, poor skills of appraiser and the frequency of performance appraisal. These shortcomings are due to the evolving nature of business environment which are caused by globalization, new approach of people management, knowledge economy, generational expectations, technology advancement etc. Discussion to improve performance appraisal leads to aspect of new philosophy of HRM, improved appraisal model, Strategic Human Resource Management (SHRM), and defined roles of managers.
Forty years ago, in 1970’s, human resource departments are expected to only contribute to personnel administrative related matters to an organization. Their jobs are limited to personnel functions such as keeping track of job applicants, payroll administration, filing performance evaluation and employee focused trainings. (Wright, 2013) At present world, HR department becomes more important and influential in an organization than ever before. HR manager is playing key role in managing his department workforce in significantly to an organization business needs and thus contributing to its success. (Golden and Ramanujam, 1985) HR department is expected to draw strategic workforce planning for future (Brockbank and Ulrich et al, 1999 ). This role of HRM is basis of Strategic Human Resource Management (SHRM). SHRM in definition; “The linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage”. For an organization , SHRM means viewing HR function and accepting it as a strategic partner of the business, partner in formation and implementation of business strategies through HR activities like Recruitment and Selection, Training, Performance Appraisal, etc. (Armstrong, 2010, pp.3-18) This blatant change of Human Resource Management contributes significantly to aspect of performance management of the...
References: What is performance appraisal?
According to (Pallister and Isaacs, 2003); the definition of performance appraisal is “An evaluation of the performance of an employee
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