The Link Between HR Process and Business Outcomes

The Link Between HR Process and Business Outcomes

In discussing Performance Management with HR professionals we often get questioned about the link between HR process and Business Outcomes. This document outlines the linkage between HR process and Business Outcomes.

Appraisal and Performance Management

HR professionals are very familiar with the appraisal process. Appraisal is however superseded by Performance Management. The diagrams outline the process differences.

It is clear from these two diagrams that the process is different, Performance Management is a more comprehensive process with more employee manager touch points during the year. Following is a deeper exploration of the major linkages between process and business performance outcomes.

Appraisal has little “buy in” from C-Level Executives

The Appraisal process is beneficial for the employee and the employee’s manager. It provides feedback to employees, assists in employee retention and is sometimes linked to remuneration where employees progress through salary bandings where they have good appraisal ratings. Given the benefits outlined above, it is often a surprise to HR practitioners that the appraisal process has little or no support by C Level executives (CEO, CFO, CIO). In talking to C Level executives we often get comments like “yes, we need to do it but it does very little for me” or “the reason every one does it is to justify a salary increment, it has little or no effect on organisational performance”.

Other comments include:

“I hate doing reviews, they are a waste of time and do not change employees behavior”

Even though these comments made by C Level executives fly in the face of good HR practice, they are however often accurate from a C Level executives’ perspective. C Level executives are charged with delivering business outcomes not ensuring good HR process.

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