HR Management: Performance Measurement & System Implementation

This report explores how organizations measure the performance of key talent, focusing on financial metrics like profit, cash flow, and return on invested capital, alongside non-financial measures. It emphasizes the importance of cost-benefit analysis, quantifiable performance dimensions, and the use of performance matrices to evaluate goal achievement. The report also details strategies for implementing effective performance management systems, including well-designed planning processes, alignment of employee and organizational goals, training, open communication, and regular performance appraisals. The ultimate aim is to maximize organizational performance by ensuring that performance management systems accurately reflect and support strategic objectives.

Running Head: Human Resource Management 1
Human Resource Management
Name
Institution

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With regard to your answer to (d) above, how does the organization measure the
performance of this group of key talent?
The organisation measure the performance of the group of key talent in different ways.
First, the performance measures focuses on stability of the accrued profit, cash flow earnings,
and returns in invested capital among others. Cost benefit is highly considered, as well as
performance dimensions which should be measurable to avoid biasness in the assessment.
Secondly an alternative can be used to ensure the correctness of the assessment. The
performance matrix is used (Holmberg, 2000). It provides evidence of financial and non-
financial goal achievement. It has to configure organizational strategic goals whereby employer
and employee’s agreement should be realistic and achievable. This assessment involves
organizing systematic feedback sessions and reviewing of performance whereby high and
average performers are observed. Weighting to each matrix is assigned depending on the level of
importance thus higher performance issued to individuals and lower performance to team
evaluation. The employee’s performance highly affects the matrix.
(Part2): How does it ensure that a right performance management system is in place
to maximize their performance?
To ensure that right performance management system is in place in order to maximize the
organisations performance, the following has to be adhered to; to begin with, the business should
ensure that it has a well-designed performance planning process which entails the expectations of
the employee goals and objectives that they should work on. The expected performance of the
business should move hand in hand with the processes carried out there. The goals of the
employees should not differ from those of the organisation which are result oriented rather than

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process oriented. Training gives the workers consciousness which is required in an organization
by the workforce. For example, they become time conscious, and gain some leadership qualities.
To enhance good performance in the organisation the employer should promote good
communication, preferably dialogue with the employees (Holmberg, 2000). Good
communication all through the business arena enables smooth flow of activities, thus increasing
the yield in the business .This allows them to out speak the challenges they come across and
what to do to improve performance. Employer should also supervise to ensure that necessary
data is collected, observation and documentation done in the required manner at the right time.
Lastly performance appraisal meetings should be held to evaluate their set goals, whether
achieved or not, review to assess their progress at the mid of the year and take a performance
assessment at the end of the year.

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References
Holmberg, S. (2000). A systems perspective on supply chain measurements. International
Journal of Physical Distribution & Logistics Management, 30(10), 847-868.
https://www.performanceconsultants.com/performance-management-coaching-ikea-case-study