Human resource management is a discipline originally created to understand and master the relationship between worker and organization. Inspired by the studies of issues with soldiers during the First World War, human relations evolved quickly into a science studying industrial and organizational psychology (https://en.wikipedia.org/wiki/Human_resource_management), forming the precursor to human resource management, as we know it today.
This science has evolved into an organizational department responsible for facilitating talent acquisition, working with functional departments to define job requirements, supporting talent retention and assisting functional leaders in the appraisal and continued development of talent. …show more content…
In some organizations, individual growth is objectified in a formal development plan. Effective use of performance appraisals has the benefit of improving the overall work environment through various actions including disciplinary actions, corrective actions, promotion and variable compensation or rewards. The potential benefits include; increased productivity, better communication between managers and subordinates, enhanced employee focus, and determination of training needs (https://en.wikipedia.org/wiki/Performance_appraisal). Challenges or potential negative outcomes include; inappropriate use of the system, negative impact to quality, subjective evaluations, or derailment of merit or performance - based pay (https://en.wikipedia.org/wiki/Performance_appraisal). Payment in the form of a salary, wages or performance - based bonuses is commonly referred to as compensation. It is customary for employees to receive a wage (or salary) for hours worked or product produced. However, it is common practice to use the outcome of performance appraisals to define merit increases and performance - based bonuses (rewards). An employee 's performance is assessed a score, measured against the pre-defined (and agreed upon) goals and objectives. The aggregate score is then used in a formula to determine what percentage of the possible bonus is awarded to the employee. A survey by Sibson Consulting conducted in 2010 indicated that 66% of respondents saw the sole purpose of the appraisal system to determine reward distribution, consistent with my observation above (http://www.perfectbusiness.com/YourResources/Articles/tabid/106/aid/2953/Default.aspx). Although I believe in the necessity of using as objective a measure as possible in assessing performance and thus incentive pay, managers must ensure that the overall system of "Success