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ABSTRACT
The article brings out a proposed strategy map and respective key performance
indicators (KPIs) in human resources (HR). The article provides an overview of how
HR activities are supported in order to reach the partial goals of HR as defined in the
strategic map. Overall the aim of the paper is to show the possibilities of using the
modern Balanced Scorecard method in human capital.
Performance management is a procedure by which managers and employees
cooperate to arrange, screen and audit a employee's work goals and general
commitment to the organization. More than just an annual performance audit,
performance management is the constant procedure of setting targets, evaluating
progress and giving on-going instructing and input to guarantee that employees are
meeting their destinations and vocation objectives. The principal objective of
performance manager is to advance and enhance employee adequacy. It is a persistent
procedure where manager and employees cooperate to arrange, screen and survey a
employee's work destinations or objectives and his or her general commitment to the
organization. This paper concentrates on performance management and measurement
in HR and payroll.
Key words: KPI’s (Key Performance Indicators), HR (Human Resource), Organization,
Performance, Management, Perspective.
Cite this Article: Nitu Yadav, Performance Management & Measurement In HR and
Payroll. International Journal of Management, 8 (6), 2017, pp. 76–80.
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6
1. INTRODUCTION
Many companies have implemented tools for measuring their performance in order to stay in
business and come in contact with tough competition. Organizations must face not only to more
demanding conditions but in the current period to the world financial crisis as well. Due to these
reasons, the organizations are forced to measure performance of the organization and contribute
to the stability of the organization in today´s competitive environment. Organizations try to
measure performance according to the financial drivers but in the recent period top leaders
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Performance Management & Measurement In HR and Payroll
attempted to find new performance indicators which would take the “wind from sail” to their
rivals in the market.
2. CONCEPT
PERFORMANCE MANAGEMENT
The role of HR in the present scenario has undergone a sea change and its focus is on evolving
such functional strategies which enable successful implementation of the major corporate
strategies. In a way, HR and corporate strategies function in alignment. Today, HR works
towards facilitating and improving the performance of the employees by building a conducive
work environment and providing maximum opportunities to the employees for participating in
organizational planning and decision making process.
Strategic Perspective
1. Do we have the talent we need to be the successful in Future?
2. Are we investing in growing our HR Capabilities?
Customer Perspective
1. Are we viewed as great place to work?
2. Are we creating environment that engages our people?
Operational Perspective
1. Are our HR management processes and transactions efficient and effective?
2. Are we using technology to improve HR efficiency?
Financial Perspective
1. Is our return on investment in People Competitiveness?
2. Are we managing our Cost of Turnover?
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Nitu Yadav
Retention Rate
Retention rate judge on the Turnover rates among new employees who were selected by the
organization under specific job profiles.
Employee Satisfaction
The satisfaction of the employees is very important in judging the performance .The satisfaction
of the recruited candidate is measured in terms of behavioral satisfaction from recruiter.
Cost to Hire
Monitory point is very important factor of any business it is related with the newly recruited
employees. Next part is salary sometimes newly recruited employees demands a higher amount
than the expected one.
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Performance Management & Measurement In HR and Payroll
PAYROLL SYSTEM
8. CONCLUSION
In conclusion, the firm intends to implement will enable it to satisfy the expectations of its
stakeholders in the long run. The firm will follow all important phases that are related to the
new strategy to ensure the system is aligned to the long term vision that guides its operations in
the industry. More importantly, performance management systems implemented by the firm
will focus on opening up decision making processes to enable employees to develop their
professional skills in the long term. As a result, this will allow employees to contribute to the
long term success of the organization by proposing valuable ideas which will improve the
quality of results attained. Appraisal systems which the organization will use will enable it to
be fair to all its employees to encourage them to attain good results in their respective
workstations.
http://www.iaeme.com/IJM/index.asp 79 editor@iaeme.com
Nitu Yadav
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