Human Resources – Performance Management System and KPIs


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 plays 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. From the companywide KPIs, department would then establish its department KPIs. Most of us would be able to establish this level of KPIs as Human Resources would arrange workshop to ensure each   department  understand and acquire the “How-To” in setting KPIs, namely  Finance  / cost KPIs, Quality KPIs, Customer Satisfaction KPIs, employees learning KPIs and facilities/environment KPIs. Human Resourc would collate all these information and monitoring the progress from quarterly, half-yearly to annual.

Human Resources also need to design and develop a reward system when the department KPIs are achieved. Prior to this reward system development, the performance appraisal for individuals, that is for managers, executives and operatives. Each level would require different KPIs. From the KPIs, the special payment, ex-gratia payment, bonus payment and non-monetary rewards such as holiday trip, special celebration, recognition for department or team as well as individual would be taken into consideration for the design and development of the rewards system. Human Resources is to align the Reward System to Performance Management System with KPIs.

Human Resources has to further assess the competency of the employees. Likewise, Human Resources would need to ensure the alignment of the company core learning capabilities with the individual competency. The resulting gap is the learning gap to be close through appropriate media, be it online learning, mentoring, coaching, self-development or attending course, workshop and seminars.

Performance Appraisal is the process to establish the competency and the learning gap in addition to reward system. Performance increment would depend on the performance appraisal input for the department and the management for decision making. Human Resources would craft the notice and letter to communicate to the employees. This is also an important issue. Human Resources is the corporate communicator and is responsible for employees communication.

To be a Choiced Employer, the initiatives of program fall on Human Resources.

Source by Charles Franklin Wong

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