Role of performance management in HRM

Role of performance management in HRM

Human Resources play an important role in monitoring the performance of the company as well as the employees. HRM designs a specific performance management framework which covers both execution and design.

Some of the important Human resource contributions in the company’s performance management framework are as follows:

  1. The basic theory of the Performance management framework.
  2. Defining the key responsibilities areas of the employee
  3. Defining the assessment matrices and the core competencies of the employees.
  4. Creating and employing a performance management system.
  5. Selecting the rating scale for the performance to be measured.
  6. Establishing a methodology of executing the performance management system.
  7. Opting for a development needs identification system.

The role of the human resource manager is important in the formulation of the performance management system. Starting from execution to design, the role of the HR  is to manifold and every role if well played can prove to be a highly beneficial for the organisation.

Few of the world’s best companies who have incorporated a highly developed and substantial performance management system, most of the times acknowledge their HR leaders or HR managers for placing such an effective system at place.

Of course, the design element of the performance management system is critical but the real test is the HR, as he can add value during the execution of the entire system. This exercise can be sensitive and the below-mentioned points should be kept in mind while implementing a performance management system:

  1. The present air of culture and core values of the company.
  2. In the case of multiple businesses, grading of each business with respect to the group of employees present.
  3. Defining first-time promotions and the people who are eligible to the promotion, to the performance management system.
  4. Integration of core and vital competencies of every role and its connection to the performance management system.

Few of the established HR functions or HR teams across the company have essential contributions during the execution of the performance management system process in the company and these roles can be categorised into three major categories. This has to be noted that these roles can be only chosen by the Human resource members as it depends on the life stage of the human resource function in that particular company.

These well defined and major roles are:

  1. The role of a Business Partner: Provision of detailed insights into the projects, preparing an objective assessment and sharper performance distribution.
  2. The role of the facilitator: Provision utilities for a smooth execution of plans; queries resolutions of multiple natures by different employee groups; formulating the promotion forms; helping employees understand their promotion.
  3. The role of the employee development champion: Place and implement the performance management system, identifying the employment developmental needs, form patterns for collective company development.

These are the important roles that an HR Manager shall choose from which depends on the company requirement and further play them effectively in order to make a difference. It might also be necessary in cases that an HR manager might be required to play one these mentioned roles.


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