Holmes Institute HC2101 Essay: Performance Management in HR

This essay explores the concept of performance management in Human Resources, defining it as a set of activities ensuring company goals are met effectively and efficiently. It delves into key components such as effective planning, employee appraisal, continuous monitoring, feedback mechanisms, and rewards systems. The essay examines various performance evaluation methods, including self-evaluation, 360-degree feedback, and the balanced scorecard, highlighting their roles in assessing employee performance and organizational effectiveness. The importance of performance management at both organizational and employee levels is emphasized, including its impact on employee retention and development. The essay uses examples from companies like Marriott and Woolworths to illustrate practical applications of these concepts, and highlights the significance of adapting to evolving business environments and performance review methods. The essay also discusses the benefits companies gain by conducting a system of performance management in their organizations for employees.

Performance management for HR
5/3/2019

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Topic: Performance management for HR
Performance management is defined as the different set of activities that ensure goals of the
company are accomplished in effective as well as in efficient manner. The performance
management majorly focuses on the organisation, individual, employee, processes, and
department performance. On the other hand, the term performance management is the process
that offers the feedback, accountability, as well as documentation related to the outcomes of the
performance. The aim of the paper is to discuss the major topic that is performance management
and its effective components that make this method effective. In addition to this, the methods,
which are used by the different companies in order to evaluate the performance of the
employees, are also mentioned.
Thesis statement: To understand the concept of performance management, its components, and
different method measuring the performance in the organisation
The term performance management is a broad term that consists of diverse range of activities
and the major activity that is performed by the HR of the company is related to the performance
appraisal as well as feedback. From many years, different researcher has investigated and
conducted the study on the field of HRM as well as industrial organisational psychology that
majorly focuses on the performance appraisal like a technique of measurement. The process of
the performance management is essential to understand as it gives the insight as well as deep
understanding of gaols of this system that are to effective measure the performance of employees
(Van Dooren, Bouckaert & Halligan, 2015). In the present era, the performance management is
affected by different factors that include recruitment and selection process, performance
assessment, job analysis, training.

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In the present era, the performance at the organisation level is important to be considered by the
human resource management of the company. This can be understood with the help of the
effectiveness, efficiency, as well as changeability (Buckingham & Goodall, 2015). The terms
effectiveness shows that the company is effective when they are able to deliver, timely as well as
quality results. In addition, the efficiency level occurs when the company is able to make
optimum use of the available resources for their business operations. Further, the researcher says
that the company who are quick at adapting the changes in the market situation are considered as
well-performed companies. This has been found that the outcomes of the company decided the
performance level of the company.
The method that is used for evaluating the level of performance is balanced scorecard. It is a
performance metric took which is used in the strategic management in order to determine as well
as to enhance the different internal functions of the business and their resulting external
outcomes (Noe, Hollenbeck, Gerhart & Wright, 2017). This tool helps in measuring the
performance based on finance, customer, internal processes and learning & growth. This tool
include both financial as well as non-financial measures that helps in evaluating the proper
performance and accordingly for providing the feedback to them. It has been found that the
companies like Marriott, Hilton and other company implement the balance scorecard in order to
evaluate the performance.
According to Shields, et al, 2015, performance management is major done for the performance
of the employees. Thus, the human resource management team of the company plays a vital role
in evaluating the performance of the employees that is essential to be done by the company. This
has been found that the performance evaluation of organisation is essential but performance
management system includes evaluation of employee’s performance.

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On the other, some researcher shows that performance management is not limited to the
management of the company but for the employees as well. In the dynamic competitive
environment, this has been found that the turnover of the employees is high due to the improper
performance appraisal (Bititci, Cocca & Ates, 2016). The retention of the employees is high, due
to which the strategy of performance appraisal helps the company to retain the employees. For
evaluating the performance of the employees, the company accumulate the data related to their
goals and targets that is attained by them. The companies get the different benefits when they
conduct the system of performance management in their organisation for employees. They can
enhance the skills of employees; contribute in increasing their morale, rise in productivity and
many others. Further, the employees of company also get the benefit in terms of effective
development, promotion, and job satisfaction at the workplace that is enough to retain the
employees with the company. In the research, the researchers have conducted different essential
components of the performance management that are required to consider.
Effective planning is an inclusive process in which the supervisor, manager and employees of the
company sits together in order to set the goals and objectives for the next years. For example, it
includes increase in the work responsibilities that are required to attain by the employees. In the
planning of the performance, the method the company is going to select for evaluating the
performance as well target achievements of the employees (DeCenzo, Robbins & Verhulst,
2016). This will help the company to conduct the employee’s performance review in the
effective manner.
Then comes, appraisal of the employees is one of the major components when it comes to
evaluating the performance of employees. The appraisal review process needs to be objective,
regular, transparent, and other based on the different specific standards that are decided by the

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company earlier so that it does not lead to any issue (Bratton & Gold, 2017). Effective
performance management need continuous monitoring as well as it guides the employees to
perform their corporate duties in right manner so that they can contribute in enhancing their
probability of the successful achievement of the targets.
The performance management system includes the feedback that is provided by the company to
the employees in order to achieve the gaols. Thus, the feedback is considered as one of the vital
element when it comes to the effective performance management and review because it leads to
the awareness among the employees about their adequacy that contribute in accomplishing the
goals of the company (Cascio, 2015). In this system, the employees get the open as well as
transparent feedback from the managers that guide them to take the right steps in the near future.
In addition to this, the manager provide the coaching, mentoring as well as training which might
be required by the employees in order to meet the assigned gaols of the organisation.
On the other, some research shows reward is another important component of the effective
performance system as without effective rewards and recognition the process of appraisal is
incomplete. These rewards include the formal reward as well as recognition, which is part of the
review of performance as well as the management process in order to enhance or motivate the
employees and team that helps them to meet their targets (Quanbeck, 2019). The achievement of
targets will be possible with the help of the motivation and this leads to many new opportunities
for the employees. This has been found that offering the effective rewards as well as recognition
for the improved performance is a way of modelling the behaviour of the employees. The
employees can make efforts in terms of qualify the same at very next appraisal by continue
contributing to the goals of organisation (Bailey, Mankin, Kelliher, and Garavan, 2018). The

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above are important components that make the performance system more effective for the
companies.
The evolving environment of the business numerous changes and one of the major change is
change in the different methods that are adopted by HR for reviewing the performance of the
employees. The different methods of appraisal that are available include self-evaluation, 360-
degree feedback, ratings scale, and behavioural checklist (Mone & London, 2018). The most
commonly used method by the HR is self-evaluation in which the employees of the company get
the chance to evaluate the work done by them in order to achieve the goals and objectives of the
company (Root, 2019). For instance, Woolworths Company follows the self-evaluation method
at the time of the performance review or approval system.
In the end of the paper, this can be said that management of the effective performance
management is essential. It has been found that the performance is done at the organisational
level in which the performance off the company is evaluated. This has been found that Balanced
scorecard tool is used by the company in order to evaluate the performance of the company.
However, there are some studies, which show that the performance management system includes
the appraisal of the employees working within the organisation. The employees of the company
find the performance review process annually in which their performances are reviewed and they
get the feedback for the same. In the end, the different methods, which are used by the company
for the performance review, are stated.

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References
Bailey, C., Mankin, D., Kelliher, C. and Garavan, T. (2018) Strategic human resource
management. Oxford University Press.
Bititci, U., Cocca, P., & Ates, A. (2016) Impact of visual performance management systems on
the performance management practices of organisations. International Journal of Production
Research, 54(6), 1571-1593.
Bratton, J., & Gold, J. (2017) Human resource management: theory and practice. Palgrave.
Buckingham, M., & Goodall, A. (2015) Reinventing performance management. Harvard
Business Review, 93(4), 40-50.
Cascio, W. F. (2015) Managing human resources. McGraw-Hill.
DeCenzo, D. A., Robbins, S. P., & Verhulst, S. L. (2016) Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Mone, E. M., & London, M. (2018) Employee engagement through effective performance
management: A practical guide for managers. Routledge.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017) Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Quanbeck, J. (2019) The Elements of an Effective Performance Management & Review Process
[Online] Available from: https://work.chron.com/elements-effective-performance-management-
review-process-27543.html [Accessed on 1st May 2019]

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Root, G.N. (2019) Methods of Performance Evaluation [Online] Available from:
https://smallbusiness.chron.com/methods-performance-evaluation-1869.html [Accessed on 1st
May 2019]
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015) Managing employee performance & reward: Concepts, practices, strategies.
Cambridge University Press.
Van Dooren, W., Bouckaert, G., & Halligan, J. (2015) Performance management in the public
sector. Routledge.