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International Journal of Management (IJM)
Volume 8, Issue 6, Nov–Dec 2017, pp. 76–80, Article ID: IJM_08_06_009
Available online at
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6
Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
PERFORMANCE MANAGEMENT &
MEASUREMENT IN HR AND PAYROLL
NITU YADAV
Assistant Professor, Department of Management, Ahir College, Rewari, Haryana
ABSTRACT
The article brings out a proposed strategy map and respective key performance
indicators (KPIs) in human resources (HR). The article provides an overview of how
HR activities are supported in order to reach the partial goals of HR as defined in the
strategic map. Overall the aim of the paper is to show the possibilities of using the
modern Balanced Scorecard method in human capital.
Performance management is a procedure by which managers and employees
cooperate to arrange, screen and audit a employee's work goals and general
commitment to the organization. More than just an annual performance audit,
performance management is the constant procedure of setting targets, evaluating
progress and giving on-going instructing and input to guarantee that employees are
meeting their destinations and vocation objectives. The principal objective of
performance manager is to advance and enhance employee adequacy. It is a persistent
procedure where manager and employees cooperate to arrange, screen and survey a
employee's work destinations or objectives and his or her general commitment to the
organization. This paper concentrates on performance management and measurement
in HR and payroll.
Key words: KPI’s (Key Performance Indicators), HR (Human Resource), Organization,
Performance, Management, Perspective.
Cite this Article: Nitu Yadav, Performance Management & Measurement In HR and
Payroll. International Journal of Management, 8 (6), 2017, pp. 76–80.
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=6
1. INTRODUCTION
Many companies have implemented tools for measuring their performance in order to stay in
business and come in contact with tough competition. Organizations must face not only to more
demanding conditions but in the current period to the world financial crisis as well. Due to these
reasons, the organizations are forced to measure performance of the organization and contribute
to the stability of the organization in today´s competitive environment. Organizations try to
measure performance according to the financial drivers but in the recent period top leaders
Performance Management & Measurement In HR and Payroll
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attempted to find new performance indicators which would take the “wind from sail” to their
rivals in the market.
2. CONCEPT
PERFORMANCE MANAGEMENT
The role of HR in the present scenario has undergone a sea change and its focus is on evolving
such functional strategies which enable successful implementation of the major corporate
strategies. In a way, HR and corporate strategies function in alignment. Today, HR works
towards facilitating and improving the performance of the employees by building a conducive
work environment and providing maximum opportunities to the employees for participating in
organizational planning and decision making process
.
A Performance Management System Includes The Following Actions
Strategic Perspective
1. Do we have the talent we need to be the successful in Future?
2. Are we investing in growing our HR Capabilities?
Customer Perspective
1. Are we viewed as great place to work?
2. Are we creating environment that engages our people?
Operational Perspective
1. Are our HR management processes and transactions efficient and effective?
2. Are we using technology to improve HR efficiency?
Financial Perspective
1. Is our return on investment in People Competitiveness?
2. Are we managing our Cost of Turnover?
Objectives of Performance Management
The fundamental goal of performance management is to promote and improve employee
effectiveness. It is a continuous process where managers and employees work together to plan,
monitor and review an employee's work objectives or goals and his or her overall contribution
to the organization.
3. PARAMETERS OF PERFORMANCE MANAGEMENT
Individual Performance
The performance of the Individual forms one of the crucial pointers of Performance
management. The two most basic parameters Include output of the person towards the
objectives of the hired position and minimum productivity time span.
Nitu Yadav
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Retention Rate
Retention rate judge on the Turnover rates among new employees who were selected by the
organization under specific job profiles.
Employee Satisfaction
The satisfaction of the employees is very important in judging the performance .The satisfaction
of the recruited candidate is measured in terms of behavioral satisfaction from recruiter.
Cost to Hire
Monitory point is very important factor of any business it is related with the newly recruited
employees. Next part is salary sometimes newly recruited employees demands a higher amount
than the expected one.
4. PAY ROLL MANAGEMENT
The payroll process typically includes calculating employee pay, recording payroll transactions
and determining and paying payroll taxes. A company must have in place a timekeeping system
that accurately reflects the hours put in by nonexempt employees as well as the regular salary
payments for exempt workers. Employers typically withhold income tax from employee
earnings; at the end of the year, they must report all wages, tips and other compensation paid.
Companies also must withhold Social Security and Medicare contributions from employees'
wages and pay a matching amount.
Objectives of Payroll Management
1. Control and access employee information whenever you want.
2. Save time for everyone with payroll direct deposit
3. Increase your organization’s strategic human resource capabilities
4. Integrate to general ledger, project management, and bank reconciliation applications
5. Human Resource (HR) management solutions can help you fulfill the potential and
6. Increase the loyalty of your workforce while minimizing the cost and complexity of
7. Recruiting and performance management.
5. OBJECTIVES OF THE STUDY
Objectives of the studies are that both factors are important factors in an Organization. Different
types of decisions require different processes and criteria. For example, an employee’s annual
merit increase is typically based on the organization’s budget, changes in the labor market for
the specific job, the employee’s salary relative to her peers’ and her performance. In contrast,
a decision about who to promote is based on performance and demonstrated potential to operate
successfully at the next level.
Payroll tasks can include keeping track of hours, calculating wages, withholding taxes and
deductions, printing and delivering checks and paying employment taxes to the government.
Performance Management & Measurement In HR and Payroll
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6. DESIGN OF THE PAYROLL
7. SUGGESTION & RECOMMENDATION
If you've ever worked for a large corporation, you can probably recall feeling apprehensive as
you walked into your boss's office for your annual review. You can probably also identify with
your employees’ fears that they might leave your office after a review feeling disappointed and
bewildered, their raises up in smoke and their confidence shaken. Thus you and your staff may
think of employee evaluations as a necessary evil
We would like to share and suggest some points to be take care for a successful work flow
of an Organization.
1. Conduct regular ongoing audit.
2. Institute a transparent Payroll Policies.
3. Seek employee input to improve payroll process effectiveness.
4. Make a self-review part of the process for everyone.
5. Consider a multi rates process.
6. Define the rating scale and scoring system.
7. Check the Inside and outside Tax polices of payroll.
8. Providing training for Managers and employees.
8. CONCLUSION
In conclusion, the firm intends to implement will enable it to satisfy the expectations of its
stakeholders in the long run. The firm will follow all important phases that are related to the
new strategy to ensure the system is aligned to the long term vision that guides its operations in
the industry. More importantly, performance management systems implemented by the firm
will focus on opening up decision making processes to enable employees to develop their
professional skills in the long term. As a result, this will allow employees to contribute to the
long term success of the organization by proposing valuable ideas which will improve the
quality of results attained. Appraisal systems which the organization will use will enable it to
be fair to all its employees to encourage them to attain good results in their respective
workstations.
PAYROLL SYSTEM
EMPLOYEE
DATA
PAYROLL
RECORDS
RATES HELP
Nitu Yadav
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