Introduction
Performance evaluation and management involve creating a relationship between the employees and HRM in an organization to optimize the resources for better work output. A good performance and management plan involves effective and consistence communication between the workers and employers which in the long run leads to the growth and development of an organization. Therefore, as a human resource manager, one should ensure the workers align their skills and knowledge with the resources and strategies of an organization. This will help achieve both the short-term and long-term goals of the human resource department.
Most HR departments struggle to achieve the organization’s set goals and fails to meet their targets due to poor performance management and evaluation techniques. It is fundamental for the HR department to have a plan that outlines how different talents among the workers can be managed and evaluated to enhance good employee relationships. In this paper, the researcher uses goal setting theory to analyze evidence-based evaluation methods such as ranking method, graphic rating, critical incidence method, and management by objectives (MBO) (Cascio, & Aguinis, 2018). Furthermore, the HR manager can promote good partnership with employees through performance management practices such as 360-degree feedback, career development, and goal management. The HR department should also embrace the skills and knowledge of the employees through talent management. Talent management involves the aspects of applicant tracking, resume tracking, employee onboarding, and employee recognition.
Performance Evaluation Methods
Performance evaluation in HRM plays a key role in improving the quality of work input from the employees. PE also inspire workers to make greater achievement and lays down the foundation for increments and development of an organization. The employee’s performance is evaluated when the duties assigned to them are well executed and aligned with the organization’s goals. Therefore, goal setting theory was developed to help HR in making strategies which align with the objectives of the firm. The theory was set found by Edwin Locke, who advocates for the setting of hard goals for better performance in future (Locke & Latham, 2019). The performance evaluation involves goal setting theory when setting the objectives and analyzing the feedback. HR has to ensure that the objectives are clear, challenging, have committed stakeholders and reliable feedback, and the task involved is complex.
The performance evaluation methods used in HRM are divided into traditional and modern. The traditional method comprises the ranking method, which involves categorizing the workers from the best to the worst. Ranking helps to evaluate the capability of the employees as well as focus on the objectives of the organization. Another method for performance evaluation is the use of graphic rating scales. In HR, one has to grade the employees based on their performance in each role. The graphic rating scale technique lists the number of traits among the employees.
Another performance evaluation method is the critical incidence. HR will have to focus on the critical behaviours of an employee at a certain time and compare it with other repeated incidences. The rated traits of an employee’s rated work help HR determine the expected output of an employee. The traditional performance evaluation method focuses on appraising the employees based on their characters (Cascio & Aguinis, 2018). The modern performance evaluation techniques are based on the organization’s goals. The first one is using the management by objective (MBO) tool.
The performance is graded against the achievement of the set goals in an organization. Therefore, the HR manager has to set high standard objectives which the employees must achieve based on their skills, capabilities, and knowledge. For instance, when an organization has marketing officers, HR will evaluate the worker’s performance by analyzing the new customers, markets and sales attained by the marketing person.
Monetary value can also be used by HR to evaluate performance hence the aspect of Human resource accounting (HRA). Workers are important in an organization and need to be reimbursed. The HRA assesses the employee’s performance using the income earned by an individual. The income of an employee is a proportional fraction of the income generated by an organization (Koziol & Mikos, 2019). Therefore, when using the HRA as a performance evaluation method, HR will have to pay the employees based on their efforts and hard work towards achieving the organization’s goals.
Performance Management
Performance management is used in an organization to help monitor the operation and appraisal activities. Concerning the goal-setting theory, HR has to align its strategies with the goals of an organization. Therefore, the performance management software should be adopted by the organization to help in creating a conducive environment to explore the potential opportunities in an organization (Wood, 2021).
The first step in performance planning is to ensure a mutual understanding of the job responsibilities among different stakeholders in the organization. HR will have to highlight the nature of the role and the key responsibilities needed by the worker for the business’s success. The performance management system will help in identifying primary roles that an institution can assign to its employees. After identifying the key roles and duties of an employee, HR will therefore set standards and expectations for each role played by an individual. The job expectations should be time bound and aligned to the goals of an institution (Wood, 2021). Furthermore, the employer must assign jobs that match the qualifications and capabilities of the worker.
The third step in performance management and planning is setting the goals and objectives in the human resource department. HR has to use SMART objectives when conducting the performance planning process in an organization. The set objectives must be specific for a given role, measurable, ambitious, reachable and time-bound. With performance goals, employees will be able to determine what they is expected to achieve in a given period. The performance management system will also help monitor talents among employees in an organization.
Talent Management
In HRM, talent management is key as it helps evaluate different capabilities, skills, and knowledge possessed by the employees. Workers have different skills that make them distinguished hence division of work and specialization (Seidel, 2019). The performance management system will help in monitoring different talents among the employees in an organization. The primary objective of talent management is to identify how the employees have used their resources and capabilities to achieve the goals of an organization.
Talent can be monitored through the applicant tracking technique, whereby the information relating to different job applicants is saved in a database with the employers. Through this technique, HR will be in a position to determine whether the selected employees meet the payment schedule as highlighted in the Human resource accounting (HRA) method. The human resource accounting method will monitor the talents of the employees by analyzing the output/ results of the worker with respect to the amount of salary paid to them. Therefore, those who produce good returns will be paid higher than other workers. Therefore, during the interview process, it will be easier to hire well-skilled personnel for a given job. Talent is also managed through a resume database whereby resumes for different candidates are evaluated and filtered by HR when recruiting in order to get the right personnel for the advertised job (Barkhuizen & Gumede, 2021). Talent management supports the objective setting theory as it helps in selecting the best and most talented employees that could help in the achievement of the goals of the organization. Talents are also managed through employee recognition. People are awarded based on their talents possessed by them. Some employees have added some skills to their talents. This makes them professional hence a need to reward them highly (Barkhuizen & Gumede, 2021). A good HR system also sets training programs that help equip employees with better skills. Training also improves the capabilities of the employees hence advancement in talent.
Conclusion
It is vital to embrace performance evaluation, performance management and talent in an organization as it boosts the operations of an organization. The performance evaluation methods rely on the application of goal setting theory that helps HR to align the human resources strategies with the organization’s objectives. The performance evaluation tools comprise the management by objective (MBO) and human resource accounting (HRA) which involves the aspect of remunerating the employees. Talent management involves monitoring different capabilities of the employees and relating them with the goals of the organization. Talents possessed by the employees in an organization must meet the needed standard and goals of the organization as per the performance evaluation tools.
References
Barkhuizen, N. E., & Gumede, B. (2021). The relationship between talent management, job satisfaction and voluntary turnover intentions of employees in a selected government institution. SA Journal of Human Resource Management, 19(0), 12. Web.
Cascio, W. F., & Aguinis, H. (2018). Applied psychology in talent management. SAGE Publications. 978-1506375915.
Koziol, W., & Mikos, A. (2019). The measurement of human capital as an alternative method of job evaluation for purposes of remuneration. Central European Journal of Operations Research. Web.
Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half century retrospective. Motivation Science, 5(2). Web.
Seidel, M. (2019). The mportance f recruitment and selection process. Humanities & Social Sciences Reviews, 7(2), 01–09. Web.
Wood, S. (2021). Developments in the HRM–Performance Research stream: The mediation studies. German Journal of Human Resource Management: Zeitschrift Für Personalforschung, 239700222098694. Web.