Effective human resource management depends on having the right people in the right jobs at the right time, to meet rapidly changing organizational requirements. Right people can be obtained easily, but fitting them into the right slots and maximizing their potentials can be very taxing. As you read on, you’ll discover several proven outlines and strategies adopted by FORTUNE 500 firms to turn an “ordinary” human resource management into an effective, profitable and sustaining management-styled.
From the above definition, we could comprehend that human resource management should not merely handle recruitment, pay, and discharging, but also should maximize the use of an organization’s human resources in a more strategic level. An important aspect of an organization’s focus towards achieving high levels of competency and competitiveness would depend very much upon their human resource management style and practices that contribute directly towards profitability, quality, and other desirable goals.
Staffing, training, compensation and performance management are basically important tools in owning an effective human resources management that shapes Fortune 500 firms’ responsibility in meeting KRA, KPA and KPI. Meeting these yardsticks simply means meeting shareholders’ wish to reap on their investments, customers whose wants for high quality products are met, employees who
want their jobs in the organization to be interesting with attractive compensation, and lastly, the community who would want the company to contribute the their wellbeing indirectly (i.e. resolving environmental issues).
Common rules and procedures of human resource management are consistently followed by Fortune 500 firms which form basic guidelines on their practices. Teamwork among lower levels of staff and the management should be created and maintained to assist in various angles that would deem necessary in eliminating communication breakdowns and foster better relationship among employees. If we dwell deeper, many Fortune 500 firms adopt a human resource management style that emphasizes on “encouraging” corporate culture — to develop employees talents, create a positive and conducive work environment.
Performance appraisal (PA) is one of the important components in the systemic process of human resource management, according to Wilbert Buiter, Head of Group Human Resources ING Group. Why? The most ideal way to rate the effectiveness of an employee (of all levels) is his results -which is the key information. The information obtained through performance appraisal provides foundations for recruiting and selecting new recruits, training and development of existing staff, motivating and retaining a quality work force by adequately rewarding their performance. Without a reliable performance appraisal system, an effective human resource management system falls apart, because there is no reliable benchmark for the recruitment of new staffs, development of existing staffs and retention of quality workforce.
There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing their objectives and duties. The collected performance data are used to provide necessary skill training as well as professional development.