Performance Management in Human Resources

Performance Management (PM) is a system composed of an orderly series of programs designed to define, measure, and improve organizational performance (Katz & Green, 1997). It is a system developed to ensure compliance with requirements, that is, that staff are in compliance with written standards. PM uses the tools of statistical process control to form the basis for decisions about change. It incorporates the processes of performance awareness, performance measurement, and performance improvement.

Successful PM requires the creation, maintenance, use, and evaluations of mechanisms to define and revise standards and to inform those affected by the standards about them (Katz & Green, 1997). It requires the judicious deployment of fiscal, human, and material resources. It speaks directly to issues related to quality and such traditional quality-oriented tasks as quality assurance, quality control, and continuous quality improvement (CQI). In such disparate settings as sales organizations, hospitals, automobile and other manufacturing facilities, and schools, PM is a vital element of a cross-sectional, organization-wide strategy for coping with uncertainty, managing change, and "growing" an organization while satisfying client and customer needs (Skinner & Mabey, 1997).

Strategic human resource management is integral to PM. The role of human resource management (HRM) w

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se scales have the capacity to encourage an objective approach to evaluating individual effectiveness, which is perceived as increasingly important as hospitals contend with employee morale issues (Grand Rapids Business Journal, 1997). A study by Carpinello, et al (1998) explored the development, implementation, and early results of a comprehensive performance management system for public sector managed behavioral health care. The New York State program included HRM in assessing administrative efficiency and employee performance. This program included the implementation of a set of performance outcomes in workers' job descriptions along with training and education of staff members to achieve these outcome measures. When performance appraisals were conducted, HRM used the framework created by this system to assess employee skills, competencies, and achievements. Simultaneously, the framework provided for the identification of service improvement needs and helped HRM create more effective reward and incentive systems for workers. By integrating the appraisal system into performance management, the program creates organization-wide behavioral expectations and identifies areas in which improvements in quality are required. K
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Approximate Word count = 4538
Approximate Pages = 18 (250 words per page)

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