At the time while this role is being played, an impact on the outcome on business is being made. Outcomes from the study by Paul R. Bernthal, and Richard S. Wellins reveal that hard and oft outcomes are considerably higher when HR strategy is remarkably higher when HR is strategic, proactive, has a technological bent and is influential. During the recent years, researches connecting human capital to the bottom-line have become very normal. It is the employees who run the corporation and it would be sheer foolishness to think that investments in people do not generate a return. The ploy is to ensure that whatever procedures are employed to leverage employee talent is executed efficiently and to understand the genuine advantage of strong human capital. (HR on the Edge- Future Trends you need to know today)
Improving Performance Management System:-
The solution for an improved performance management system is through an Integrated Performance System. Integrated systems are build around a cohesive theme like a business strategy or value creation, and are concerned with estimating the important aspects like business strategy or creation of value, and are concerned with estimating the important aspects of the structure which connects the performances of the people and processes in the organization with the planned results for the stakeholders of the company. Integrated systems exemplify the quality issues of production, customer satisfaction focus of sales and marketing, and the monetary aspect of accounting, within other corporate sub-systems. The complicated structure of integrated performance measurement systems is increasingly advantageous to management; however it does not eradicate some of the fundamental difficulties of performance measurement. Unavoidable disconnect is still there between the need to be aware of the future and the capability to measure just the past or present. (Improving Corporate Performance Measurement)
Several of the things we estimate today might have the power to give insight into the coming years, but just future results cannot be estimated. It has also to be recognized that business are extremely complex organization which give increasingly more scope for measurement which can efficiently be utilized by the management. The challenge of lowering the necessary number of measures to a crucial few will all the time be present. Despite all these difficulties, the advantages of measurement integration counter balance the costs in a big way. A superior measurement system assists in aligning the actions of people within the organization to make sure that they work in a collaborative manner to achieve the intended goals....
An integrated system helps in building a 'single version of truth' that assists to stay clear of clashes and confusions resulting out of data that is inconsistent or unsuitable comparisons. Ultimately, an integrated system encourages persons by communicating a sense of evenhandedness and logic in the scorekeeping. (Improving Corporate Performance Measurement)
It is seen that 85% of an organization's value might be stand for in the shape of intangibles in the balance sheet of a company. Simply as there are systems and processes connected with the formation of hierarchies for the measurement of human capital, skill and proficiency levels are also present in employing these systems. At the activity level, transactional measurement of routine HR activities like new recruitment, termination of jobs, transfers, promotions are used to fulfill internal management reporting necessities, give compliance to Govt. As per their regulations. (the value of people: the challenges and opportunities of human capital measurement and reporting)
References
Bernthal, Paul R; Wellins, Richard S. HR on the Edge- Future Trends you need to know today. The Human Resources Forum. Retrieved from http://www.peoplesoft.com/media/en/pdf/ihrim_best_practice.pdf" http://www.ddiworld.com/pdf/ddi_HRontheEdge_Report.pdf. Accessed on 25 February, 2005
Chan, Alvin. 2004. The Challenges of Human Resource Management. 28 December. Retrieved at http://www.webpronews.com/ebusiness/management/wpn-36-20041228TheChallengesofHumanResourceManagement.html. Accessed on 25 February, 2005
Henson, Row. HR in the 21st century: Challenges and Opportunities. Retrieved at http://www.peoplesoft.com/media/en/pdf/ihrim_best_practice.pdf. Accessed on 25 February,
Reilly, Gregory P; Reilly, Raymond R. 2001. Improving Corporate Performance Measurement. Journal of Cost Management. July/August. pp: 42-44. Retrieved at http://www.performance-measurement.net/news-detail.asp?nID=34Accessed on 25 February,
Silvers, Samuel J; Aimone III, William F. Integrated Performance Management - the key to generating business insight. Retrieved at http://www.deloitte.com/dtt/cda/doc/content/IPMWHITE2.pdf. Accessed on 25 February, 2005
Sumlin, Roger. Common Performance Management Challenges - White paper. Retrieved at http://www.ddiworld.com/pdf/wpperfmg.pdf. Accessed on 25 February, 2005
Weatherly, Leslie. a. 2003. The value of people: the challenges and opportunities of human capital measurement and reporting. HR Magazine. September. Retrieved at http://www.findarticles.com/p/articles/mi_m3495/is_9_48/ai_108315188/pg_2Accessed on 25
