Human Resource Management plays an important role in the enhancing the performance of employees in an organization. The efficient HRM policies are being designed in an organization to enhance the performance level to its maximum. Human resource management (HRM) is the process of linking the human resource functions with the strategic objectives of the organization in order to improve performance. We may call in the way that human resource management holds the central live blood role in any organization.
An important aspect of an organization’s business focus and direction towards achieving high levels of competency and competitiveness would depend very much upon their human resource management practices to contribute effectively towards profitability, quality, and other goals in line with the mission and vision of the company.
Talent Management
One of the key for the organization success depends on its managing, attracting and retaining best people. Companies view the ability to manage talent effectively as a strategic priority, and there was a high degree of sophistication about this activity among the companies in our sample. In all companies there are systems in place which identify high potential individuals using clear sets of leadership competencies and validated assessment instruments. These individuals are given a variety of developmental activities, from training, coaching, mentoring, projects, and international assignments, and they are placed on a talent inventory that matches prospective jobs to high potential individuals. Companies have adopted multiple approaches to retain valued talent, including financial incentives, personalized career plans, mentorship programs, and flexible work arrangements, and they place great emphasis on diversity and work life balance in order to compete for the best talent and retain high potential employees
Performance management
Performance management, participative goal setting, with both work and development goals, based generally around balanced scorecard initiatives, provide direct link to strategic objectives. Multiple inputs at the appraisal, with most 360 degree approaches now managed on-line are common for at least mid-level managers and above, and with bi-annual formal reviews and constant informal feedback, often on daily basis, to ensure projects/workload is on track and to ensure adequate resources are being given where appropriate. Developmental focus in the appraisal is a given. The developmental and pay reviews are split in all cases, and the line of sight to rewards is clear in most firms through the use of performance/potential matrices. Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has.
Knowledge Management
Most firms today associate information systems with knowledge management. If a firm has a good system and process for entering and retrieving information electronically, they argue, and then it has a good knowledge management system. Though linked and certainly vital to effective knowledge management, information systems are nothing without appropriate incentive structures, people development programs, personal relationships, and shared vision or goals. Within the HR function, effective knowledge management of practices and systems is key to its value proposition of being able to deliver HR practices and systems that are globally integrated, locally sensitive, and comparatively innovative.