Human Resources is responsible for initiating the performance appraisal process for the department to assess the performance of its employees. On top of it, RECRUITING is tasked to design and develop the Efficiency 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 efficiency indicators (KPIs) shall derive from the business indicators. These indicators can be tangible or intangible. From the companywide KPIs, department would after that 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 placing 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. To this reward system development prior, the efficiency 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, unique celebration, recognition for department or team along with individual would be taken into consideration for the design and development of the rewards system. RECRUITING is to align the Reward System to Efficiency Management System with KPIs.
Human Resources has to assess the competency of the employees further. Likewise, Human Resources would need to make sure the alignment of the ongoing company core learning capabilities with the individual competency. The resulting gap is the learning gap to be close through appropriate media, be it on-line 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. Efficiency increment would depend on the efficiency appraisal input for the department and the management for decision making. Human Resources would craft the notice and letter to communicate to the employees. That is also an important issue. Human Resources is the corporate communicator and is responsible for employees communication.
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