For our company performance play a vital role in determining pay, promotions, transfers, terminations and other such decisions that impact well-being as well as the overall company performance. Thus access to objective performance evaluation systems is key to the overall benefit of the company, employees and the society. An objective performance management system will help improve the relationship between the managers and their subordinates as well as boost motivation (Jackson et al.2011).
As a newly designated manager for the HR department, we would ensure that performance management is properly designed, documented and implemented (Pope, ). It should be clearly understood that proper execution of the program cannot be done without cooperation of line managers and unless the top management shows commitment to it. Activities such as ensuring performance management is embraced on a daily-basis, timely completion of performance reviews, providing valuable feedback throughout the process and making developmental opportunities available to high performers are all responsibilities of line managers. Thus it is the proper execution of the performance management program by management and line-managers that can make or break it. The role of HR for this proper execution would be to:
According to the evaluation of past organizational practices, some departments have informally attempted to introduce performance-based pay systems in the form of appraisals. This process needs to be properly documented and managed by the HR department in coordination with other department managers. It has been proven in a study conducted by Subramanov, Krause, Nortom and Burns in 2008 that creating a model for competitive pay can be used as incentive to enhance a company’s performance via enhanced employee performance (Chow et. Al, 2012). Some aspects that the new appraisal system should incorporate are: