When we talk about the five dimensions of Human Resource Management (HRM), we list down the following, namely,
Recruitment & Selection,
Training & Development, and
Compensation & Benefits Management.
These five dimensions, though equally important, often fail to secure equal attention from Human Resource (HR) managers. The facts that performance management is not just an annual performance appraisal and training is not the only solution to effective performance are forgotten by the HR managers and the management team. As a result, successful organizations, happy with their existing success status, are actually deprived of a potential growth that could have been achieved should they have invested more attention to performance management than only performance appraisal. For instance, the total HR performance of your company is worth $10, which means your employees’ performance is resulting revenue worth $10. Among this set of employees, some are excellent performers, some are good, some moderate and some poor. This difference in performance level are due to the fact that some are using 100% of their potentials, some working below their full potentials and some working at zero or marginal potentials. The challenge of equalizing the difference in performance level lies in an objective performance management system.
Prior to explaining what performance management is, it is important to know what performance management is not, which will help you gain an insight that what your managers have assumed to be performance management may be just an annual performance appraisal confined to an hour’s meeting with a performance appraisal form to be filled up and signed by the employee and his supervisor.
□ What Performance Management Is Not:
– it’s not just an annual performance appraisal
– it’s not imposing targets/goals on an employee by his supervisor
– it’s not only evaluating individual job performance
□ What is Performance Management:
– it’s Management By Objectives (MBO)
– it’s about setting SMARTER goals
– it’s about planning to perform
– it’s about periodically reviewing progress in performance
– it’s about evaluating performance for further improvement
– it’s about delivering reinforcement for performance success and performance failure