Performance management & measurement in HR and payroll

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.
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Performance management & measurement in HR and payroll International Journal of Management (IJM) Volume 8, Issue 6, Nov–Dec 2017, pp. 76–80, Article ID: IJM_08_06_009 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication PERFORMANCE MANAGEMENT & MEASUREMENT IN HR AND PAYROLL NITU YADAV Assistant Professor, Department of Management, Ahir College, Rewari, Haryana 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 http://www.iaeme.com/IJM/index.asp 76 editor@iaeme.com 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. A Performance Management System Includes The Following Actions 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? Objectives of Performance Management The fundamental goal of performance management is to promote and improve employee effectiveness. It is a continuous process where managers and employees work together to plan, monitor and review an employee's work objectives or goals and his or her overall contribution to the organization. 3. PARAMETERS OF PERFORMANCE MANAGEMENT Individual Performance The performance of the Individual forms one of the crucial pointers of Performance management. The two most basic parameters Include output of the person towards the objectives of the hired position and minimum productivity time span. http://www.iaeme.com/IJM/index.asp 77 editor@iaeme.com 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. 4. PAY ROLL MANAGEMENT The payroll process typically includes calculating employee pay, recording payroll transactions and determining and paying payroll taxes. A company must have in place a timekeeping system that accurately reflects the hours put in by nonexempt employees as well as the regular salary payments for exempt workers. Employers typ ...