Human Resources – Performance Management System and KPIs

Human Resources is responsible for initiating the performance evaluation process for the department to assess the performance of its staff. In addition, Human Resources is tasked with designing and developing the Performance Management System.

Human Resources would need to know the business for its critical success factors. Human Resources plays the role of business partner of the company. Key performance indicators (KPIs) will be derived from business indicators. These indicators can be tangible or intangible. From the company-wide KPIs, the department would establish the KPIs for their department. Most of us would be able to set this level of KPIs as HR would host a workshop to ensure each department understands and acquires the “How To” when setting the KPIs ie Finance/Cost KPIs, Quality KPIs , customer satisfaction KPIs, employee learning. KPIs and facility/environment KPIs. Human Resources would collect all of this information and monitor progress on a quarterly, semi-annual, or yearly basis.

Human Resources also needs to design and develop a reward system when departmental KPIs are achieved. Prior to this development of the reward system, the evaluation of the performance of the people, that is to say of the managers, executives and operatives. Each level would require different KPIs. From the KPIs, special pay, ex gratia pay, bonus pay, and non-monetary rewards such as a vacation trip, a special celebration, recognition by department or team, as well as the individual, would all be taken into account. for the design and development of rewards. system. Human Resources is to align the Rewards System with the Performance Management System with KPIs.

Human Resources has to further assess the competency of employees. Similarly, Human Resources would need to ensure alignment of the company’s core learning capabilities with individual competency. The resulting gap is the learning gap that will be closed through appropriate means, be it online learning, tutoring, coaching, self-development, or attendance at courses, workshops, and seminars.

Performance appraisal is the process to establish the competency and learning gap as well as the reward system. The performance increase would depend on the performance evaluation input to the department and management for decision making. Human Resources would prepare the notice and the letter to communicate them to the employees. This is also an important topic. Human Resources is the corporate communicator and is responsible for communication with employees.

To be an Elected Employer, the initiatives of the program fall to Human Resources.

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