UNIT 3
Role of HR Professional in Performance Management
Future Role of HR Professionals in Performance Management
1. Strategic Partner:
In today’s organizations, to guarantee their viability and ability to contribute, HR managers
need to think of themselves as strategic partners. In this role, the HR person contributes to
the development of and the accomplishment of the organizationwide business plan and
objectives. The HR business objectives are established to support the attainment of the
overall strategic business plan and objectives. The tactical HR representative is deeply
knowledgeable about the design of work systems in which people succeed and contribute.
This strategic partnership impacts HR services such as the design of work positions; hiring;
reward, recognition and strategic pay; performance development and appraisal systems;
career and succession planning; and employee development. HR professionals as a strategic
business partner will be required to perform the following functions:
(a) HR professionals will be required to craft and execute corporate strategy which results in
inimitable results, actions, and behaviour of human resources of the organization.
(b) The HR professional will have to play a pivotal role in the identifi cation of performance
gaps, benchmarking, and enabling a higher level of individual performance so that the
synergistic effect can be obtained.
(c) He shall be entrusted with the job of taking stock of performance-related issues and
problems on a proactive basis,
(d) He shall assist managers and top management in boosting overall organizational
performance through human resources by creating appropriate performanceoriented work
culture, devising innovative reward and compensation systems, managing talent pools,
developing competencies and managing appropriate ethical behaviour in the organization.
2. Making Effective Forecasts:
In this global business scenario, only those organisations are successful which are making
effective forecasts and taking appropriate steps to take the maximum advantages. This is
possible only when the employees of the organization are capable, competent, motivated,
and committed, and deliver excellent performance on a continuous basis. Performance
problems are likely to occur in such a scenario. Now, there are two ways open to HR
professionals-either wait for the inevitable performance problem to occur, or pre-empt
performance problems by sniffi ng around. Given that results have to be correct the fi rst
time, only pre-empting the performance problem is open to HR professionals of the future,
as the old proverb goes ‘prevention is better than cure’. Therefore, by pre-empting
performance problems, HR professionals can save organizations a lot of cost in terms of
failed efforts, lost opportunities, counselling time and efforts, etc.
3. Acting as ‘Performance Counsellor’:
Performance counselling is a manager initiated strategy for improving an employee’s
performance. Performance counselling is a supportive process conducted by a manager to
enable an employee to define and work through personal problems or organizational
changes that affects job performance. Because it means better bottom-line results,
organizations recognize and reward such managers. Managers with good counselling skills
can get that kind of performance from their employees by using the tools of counselling
4. Employee Advocate:
As an employee sponsor or advocate, the HR manager plays an integral role in organizational
success via his knowledge about and advocacy of people. This advocacy includes expertise in
how to create a work environment in which people will choose to be motivated,
contributing, and happy. Fostering effective methods of goal setting, communication and
empowerment through responsibility, builds employee ownership of the organization. The
HR professional helps establish the organizational culture and climate in which people have
the competency, concern and commitment to serve customers well. In this role, the HR
manager provides employee development opportunities, employee assistance programs,
gainsharing and profit-sharing strategies, organization development interventions, due
process approaches to problem solving and regularly scheduled communication
opportunities.
5. Change Champion:
The constant evaluation of the effectiveness of the organization results in the need for the
HR professional to frequently champion change. Both knowledge about and the ability to
execute successful change strategies make the HR professional exceptionally valued.
Knowing how to link change to the strategic needs of the organization will minimize
employee dissatisfaction and resistance to change.
Appraising HR Functions
Human Resources is responsible for initiating the performance appraisal process for the
department to assess the performance of its staff. On top of it, Human Resources is tasked
to design and develop the Performance Management System. Human Resources would need
to know the business for its critical success factors. Human Resources play the role of
business partner of the company. The key performance indicators (KPIs) shall derive from
the business indicators. These indicators can be tangible or intangible. Few organizations
meaningfully involve the HR function in formulating corporate strategy, designing offerings,
and managing partnerships.
The objective of the HR function is to provide a favourable and supporting climate and
appropriate systems to align the human performance with business strategies of the
organization. The two major crises faced by Human Resource are:
1. Identity crisis in defining its role in the organization, and
2. Accountability crisis in demonstrating the value of HR contribution in improving the
organization’s performance.
1. Operations Perspective: This perspective includes the internal business processes and
their alignment with HR functions. The HR function should fi nd out the key problems and
their effective solution. Metrics based on this perspective allow senior leadership to know
the effectiveness, effi ciency, and quality of these HR processes in meeting organizational
and environmental requirements.
2. Financial Perspective: Another important HR function is to keep the cost of compensation
and benefits at an optimal level. The HR professions should consider the organisation’s
ability to pay and other growth perspective. The HR professional’s needs to focus on the
employee’s contribution in terms of financial data with respect to investment made on
employees.
3. HR Perspective: HR perspective includes employee training and corporate cultural
attitudes related to both individual and corporate self-improvement. In these days the
organisational success depends on how effectively the organisations are discovering and
managing their human resources. The key differentiator between the successful and
unsuccessful organisations is the effectiveness of knowledge-worker. Today’s HR function
needs to develop an innovative workforce capable of delivering results at all times,
consistently and continuously
4. Customer Perspective: The recent days the organisations have realised the importance of
customers in business success. The organisational have realised that if customers are not
satisfied, they will eventually find other organisations that will meet their needs.
Employee Assessment system
What is Employee Assessment?
Employee assessments are performance appraisals or reviews used to evaluate employees'
performance and productivity. These tests assess personality, aptitude and skills.
Employee assessments are usually done for compensation review, performance improvement,
promotions, terminations etc.
How to measure employee assessments
Human resource management conducts employee assessments in order to improve their performance
and to monitor what the employee is doing according to what he/she is expected to do.
Methods:
1. 360 degree feedback: multiple evaluation process which includes assessments from superiors, peers
and ones' self
2. SWOT analysis: evaluating strengths and weaknesses of an employee
3. Performance interview: last step of the evaluation process
How do you assess employee skills?
1. Give Your Employees A Test
This is pretty ancient and economical thanks to assess technical and theoretical information. However,
such tests square measure conducted within the “laboratory” conditions, so that they don't provide the
precise image whether or not the worker are able to use the information in reality or not. Use such
check, however solely often - otherwise, you would possibly be frustrated once it involves additional
realistic conditions.
2. Ask To Prepare Self-Assessment
You can send your personnel a questionnaire which they should fill in by themselves. On the one
hand it shows not only their abilities, but also their self-perception. On the other hand, you might not
benefit from such a subjective point of view in either way: Βe their evaluation too optimistic or to
pessimistic. Thus, this method should be used in combination with some other, more objective one.
3. Get Feedback From The Teams
There is some sound judgement in what the team members would say, however it's positive|needless
to say|of course|obviously|as expected|evidently} additional objective instead of simply looking
forward to the opinion of 1 person! raise staff to share their feedback on every other’s performance
(make sure it doesn't go personal!) and see if every of them will do his job on a high level.
4. Put Them In Real Situations
The most economical thanks to train and assess skills - nothing is higher than follow. however what if
you merely cannot risk and leave the “testing” till the time comes. What if during this real time
conditions, your worker fails? ready to} take up this risk? to create certain that your staff area unit
able to perform the task it's safer to begin with different ways. However, if you're certain in high
qualifications of your employees, you'll be able to place them in world conditions to challenge them
and check their proficiency.
5. Let Them Play A Business Game
Current trend of gamification penetrated varied aspects of our lives. these days not solely youngsters
play the games, and plenty of games haven't solely operate of diversion, however additionally serve
skilled goals and area unit created for adults.
6. Ask For Clients’ Feedback
One kind of the $64000 life scenario testing. The distinction is that you just assess the actions when
they need been performed. it's a decent manner not solely to visualize however your worker works,
however additionally to speak with the shopper and learn additional regarding his/her wants. Use this
nice chance, however certify that your employees have already got ample skills to be tested with this
methodology.
Role of HR in Performance Management System
There have been many queries on the role of HR in Performance Management System;
some members bestow correct answers to such questions being raised, this is my take
on the topic: WHAT IS THE ROLE OF HR IN PERFORMANCE MANAGEMENT
SYSTEM.
In most organisations, senior managers and directors detest conducting performance
assessments, usually because they are uncomfortable and inexperienced in conducting
them. They will be typically heard saying that appraisals don’t work and are a waste of
time. A similar approach then cascades down the line and fails the whole system of
performance appraisal.
Before we talk about the agenda here today, why not take a look at the traditional
approach of HR in appraisals and then shift the discussion towards the new strategic
role of HR in managing employee’s performance.
Basically, traditional HR performance appraisal system weighs how well a subordinate
satisfies his boss or superior during the appraisal period. This degree of satisfaction may
or may not be related to how well the employee contributed to corporate goals. Most of
the time, it does not. For this reason, conventional performance appraisal has become a
highly politicized, controversial, biased exercise that creates more dissonance than
teamwork in the organization.

In contemporary epoch HR has to play a strategic role to develop capability, attitude and
to initiate performance with quality into the product where the HR has to collaborate with
line managers to retain employees, which automatically affects the retention of
customers because it is the driving force of customers.

The goal of performance appraisal is to allow an employee the opportunity to progress to
their full potential in order to meet organizational needs and his/her personal
development goals.

Through this process, true teamwork and maximum performance can be achieved. The
foundation of the performance appraisal process is an improved communication
between the employee and the supervisor.

The Employee Relations/employee care/ Human Capital unit is available to assist
managers, supervisors, and employees in utilizing the appraisal process and resolving
workplace performance issues.

Due to the paradigm shift and the Gen Y joining the workforce the major concern is not
the ratings and hike, now employees are more concerned about the feedback and their
Individual development plans.

The HR department can now share the feedback with people, both negative and positive
which not only increases the communication but also builds the trust of the employee in
an organisation.

HR’s role in the Appraisals is not just related to the designing of the system but it has
moved to a more substantial role of being a mentor, regulator and to look into the details
of why a person’s performance is below par.

In this new role, HR department also organizes mid term reviews to control the lows and
increases the highs with timely checks on a regular basis, in fact it does not remain as a
system

The evaluation of one’s performance can be utilized for TNI &A, and it helps designing
the career plan for the employees.

Training and development are better where HR plays an important role in PMS also.
Competencies That Support Effective Performance Management (SKILLS)

planning work and setting expectations,

monitoring and measuring performance,

developing the capacity to perform,

periodically rating performance in a summary fashion, and

Recognizing and rewarding good performance.
Practicing good performance management requires proficiency in certain competencies.
Competencies are observable, measurable patterns of skills, knowledge, abilities, behaviors,
and other characteristics that an individual needs to perform work roles or occupational
functions successfully. Performance management competencies that all supervisors (and team
leaders) should develop and demonstrate include:

Communicating
Establishing and maintaining effective communications with each employee not only
requires good oral and written communication skills, but it also includes the ability to
establish good working relationships. To communicate effectively with employees,
supervisors must establish an environment that promotes an open door atmosphere,
the sharing of ideas, and employee involvement in decision making processes.

Setting Goals
Setting long- and short-term goals with employees gives focus to employee efforts.
When goal setting is done correctly, employees strive to accomplish those goals and
feel confident in achieving them. When goal setting is done poorly, work does not
progress as desired. Knowing how to set goals effectively is an important part of
performance management. To do this well, supervisors need to be able to clarify
expectations and to set realistic standards and targets.

Measuring Employee Performance
Credible measures of performance that employees understand and accept are critical
for achieving high level performance. Measuring employee accomplishments, using
both qualitative and quantitative measures, provides the information that supervisors
and employees need in order to monitor performance.

Giving Feedback
Feedback should inform, enlighten, and suggest improvements to employees
regarding their performance. Supervisors should describe specific work related
behavior or results they have observed as close to the event as possible.

Coaching and Developing
Using their coaching skills, supervisors evaluate and address the developmental needs
of their employees and help them select diverse experiences to gain necessary skills.
Supervisors and employees create development plans that might include training, new
assignments, job enrichment, self-study, or work details.

Recognizing
Effectively recognizing employees is another performance management competency.
Being able to genuinely acknowledge a job well done is critical for strengthening
employees' commitment to do their best. Supervisors should be skilled at using formal
awards programs as well as using informal recognition techniques, including personal
thank yous and voicing verbal appreciation in staff meetings.