Human Resource – Performance Management System and KPIs

Human Resources are in charge of launching the department's performance appraisal procedure in order to evaluate its employees' performance. Human Resources are also in charge of designing and developing the Performance Management System.


Human Resources would need to be familiar with the company's important success criteria. Human Resources serve as the company's business partner. The business indicators will be used to generate key performance indicators (KPIs). These markers might be both tangible and intangible. Departments would then construct their own KPIs based on the companywide KPIs. Human Resources would organize training to guarantee that each department understands and acquires the "How-To" in setting KPIs, such as finance/cost KPIs, quality KPIs, customer satisfaction KPIs, employee learning KPIs, and facilities/environment KPIs. Human Resources would compile all of this data and track progress on a quarterly, half-yearly, and annual basis.

Change is often unavoidable in the PMS of expanding organizations, whether it is in people's attitudes, technology use, or organizational architecture. When PMS fails, it begins with people's attitudes in general, and their aversion to change in particular. Some of the justifications given by people (at all levels of organizations) for resisting change include:

  1. If everything is going well, why try something new?
  2. Who is he/she (the change agent) to tell me what to do when I am the expert on everything?
  3. I have X years of experience, and my knowledge informs me that everything is in working order here.
  4. These adjustments will eventually fail. Nothing new works in this situation.
  5. Who has time or money to try new things when things are going well at work?
  6. As things improve as a result of these improvements, my control/power/authority over the people and work around me will wane, and I may be forced to retire.
  7. These changes will necessitate collaboration, and collaboration will lessen my importance.
  8. Change entails risk, and I dislike taking risks.
  9. We are in the business world, and the most important aspect of the company is production/operation (as the case may be, depending on the industry). The development of organizations and organizational systems has little to do with production and operations. I don't mind if people fulfill my production/operation goals.
  10. Systems will introduce responsibility, which I am afraid of.

When the department's KPIs are met, Human Resources must also establish and develop a reward scheme. Individual performance appraisals, such as for managers, executives, and operatives, were conducted prior to the development of this incentive system. Different KPIs would be required at each level. Special payments, ex gratia payments, bonus payments, and non-monetary awards such as holiday trips, special celebrations, department or team recognition, and individual acknowledgment would be considered for the design and development of the rewards system based on the KPIs. Human Resources are tasked with integrating the reward system with the performance management system, which includes KPIs.

Employee competency must be assessed further by Human Resources. Human Resources would also need to make sure that the company's core learning capabilities and individual competency are in sync. The ensuing learning gap must be bridged using appropriate mediums, such as online learning, mentoring, coaching, self-development, or attendance at courses, workshops, and seminars.

The process of determining competency and learning gaps, as well as the incentive system, is known as performance appraisal. The department's and management's decision-making would be based on the department's and management's performance appraisal input. The notice and letter to the employees would be written by Human Resources. This is a critical concern as well. Human Resources are the company's spokesperson and are in charge of employee communication.

Human Resources are responsible for the program's initiatives in order to become a Choice Employer.

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