1.1 Performance Management System Performance management system is developed for the human resource term of any organization. At present, HR does the complete process of performance appraisals manually.
In the existing process, each employee has to fill the HR. The HR manually keeps track of form submission of each employee and submits these forms to the managers for review. The managers then review each employee’s form and hand over the reviewed form back to HR. This process is tedious in keeping track of each form submission, sending reminder mails in case of failed submission before the due date and keeping track of the manager’s review for each employee.
1.2 Features of performance management system1.3 Purpose of performance management system To automate all the processes of the performance appraisal, a web based PMS can be used which has two kinds of appraisal system: Half yearly and fortnightly reviews. The system maintains the the employee detail along with the manegers information, the information of all locations, departments and designation maintained in the organization. This system allows HR to design the performance appraisal form and fortnightly review form.
This being a web based application, employees across locations forms and HR can track the complete appraisal process with this centralized system. PMS is integrated with a centralized system to pull employee information which enables its integrity of employee information across various applications in the organization.1.4 Benefits of performance management system High affordable No extra expense Automated system Saves transaction time Reporting and analysis tools Speeds up the complete process1.
5 Significance study of performance management system Employee Recruiting Excessive employee attrition is more costly than many managers realize. First, there is the cost of recruiting an employee to replace the one that left. Recruiting costs can include paying a search or employment firm and for advertising. A HRMS can help place and promote the right people in the right jobs because it can maintain a list of skills for all employees, as well as skill requirements for positions within an organization. The system provides an inventory of skills throughout the organization. Placing employees in the right jobs that fully utilize their skills will result in more fulfilled and motivated workers.
A HRMS can track and manage the employee performance appraisal process by scheduling appraisals when due, recording appraisal results and identifying areas where employees need to improve. Praising employees for work well done and helping them grow professionally, using an appraisal system, provides workers with a healthy and motivating work environment. Regulatory ComplianceHuman resources must comply with a variety of laws and guidelines, such as Equal Employment Opportunity Commission, or EEOC, guidelines, meeting tax filing and remittance guidelines, and assuring safety in the workplace by complying with Occupational Health and Safety Administration, or OSHA, guidelines. One important module of a HRMS is payroll processing. An algorithm within such a system calculates taxes due and manages tax filing.
Such a module can also electronically transfer money owed to taxing authorities. Cost ControlThe cost of human capital is a large expense for most companies. A HRMS provides a way to compare budgeted versus actual payroll expense by payroll type, such as overtime hours and by department. The accounting department, senior executives and department managers normally budget annually and review payroll costs monthly. Profit ImpactA HRMS can improve customer profitable.
Employees will feel motivated to achieve more because you can will more easily recognize their achievements; the company will attract and retain better talent, and you can budget the use of human resources in a more effective manner.
