The most important aspect of human resource management practice is employee evaluation. The performance of any organisation is determined directly by the performance of the employees. It is possible to monitor the evaluation if the employees of any company via the use of human resource evaluation systems. These systems are done continuously with a view to retaining useful employees. Some organizations, because of their soft approaches, have incurred huge losses due to the fact that most employees are joy-riders in the organisation.
These employees are considered a liability to the organisation because they contribute very little for the productivity levels. This means that their cost benefit ratio is high (Smith, 2006). Improving the performance of individual contributors translates to overall organizations’ improvement. Human resource development managers are hence faced with the challenge of answering the question, what is to be done to improve the performance of an employee this year?
Some organizations also publicize the exercise to be able to explain how the system will work and its benefits to the workers. The common human resource strategy used in evaluation of employees is tight control strategy. This strategy allows managers to monitor the daily activities of the workers and make sure that
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Some explicit rules governing the conduct of employees are not usually desirable as it portrays a top-down approach. The evaluation practice also promotes self-assessment for the employees which means that there is humble communication from one employee to the other with an objective to outperform each other . IBM as an electronic and telecommunications manufacturing company, keeps the quality of its products high to not only meet the expectations of their customers but also to keep up with the competition from the many growing companies in the sector.
To do this, they have made sure that they have employed quality staff to perform most operations that are considered delicate. Frequent performance monitoring and evaluation will ensure that product and service quality are achieved by the company. According to a report by the New York Business Magazine of June 2006, IBM had increased its annual turnover for the year ending December, 2005 largely because of its employee monitoring and evaluation program introduced at the beginning of the same year .
Industrial relations and organisation’s performance In the recent days, human resource management practices have extended its functions to include managing relationships with other systems of industrial relations such as workers and trade unions, organizations; employers i. e. their managers, trade and professional organizations, employer representatives etc. ; government agencies, legislation boards and international bodies.
All these diverse relations are now being handled in some organisation’s human resource management departments. Industrial relations are directly influential in promoting international businesses for these organizations . It will in one way or another make negotiation for reduced taxes, investment opportunities and standardization of import duties for their organizations if they intend to go global.