What is the Most Important Purpose of Performance Management

15/08/2022 hrms

Reading Time: 4 minutes

Performance Management is key to successful business growth in this decade for any company, be it small, medium-sized, or large. Gone are the days when organizations used to function with old-school methods. An organization of today needs to realize the true purpose of performance management to create processes and optimize methodologies to grow their business revenue and profits exponentially and consistently.

What is Performance Management?

Performance Management refers to a system of processes, methodologies, and activities curated by the HR department of any organization to extract maximum productivity from their employees and maintain the growth trajectory. The end goals of Performance Management consist of boosting the skills as well as competencies of the employees with a given organizational framework so that business needs are achieved consistently.

Why is Performance Management Important?

Performance Management in other words is a framework where everyone in the organization is in constant communication with the other person to get the job done according to the set Key Performance Indicators (KPIs). The Top Senior Management Communicates with the Managers, managers with the team leads, and the leads with the executives. This is critical for successful business functioning because it facilitates multiple aspects.

What Is the Role of Performance Management in an Organization?

Performance Management when implemented correctly in any organization helps in multiple areas such as –

Providing constructive and meaningful feedback to the team members. When ongoing feedback is communicated precisely to the respective team members, it maximizes overall productivity, and goals are achieved faster.
Teamwork makes the dream work. The purpose of performance management is not just to facilitate communication between teams, but aim to strengthen team bonding and facilitate greater levels of collaboration to solve the given problems.
Every employee in an organization function based on some predefined SMART goals. Another important purpose of performance management is to promote goal setting in every aspect of work and make the employees understand what is expected from them precisely. It drives short-term as well as long-term goal setting.
As time passes, the roles and responsibilities of employees change and evolve. Performance management helps employees understand the true content of their assigned goals with changes in roles and responsibilities with projects and designations. It clarifies the purpose with which they should operate to achieve their goals.

Here’s How Performance Management Optimizes Employee Productivity

It helps the company and senior management identify the areas for development for every single employee. The true purpose of Performance Management is to ensure that the best performers deliver outstanding results and the normal performers steer towards producing the best results. It’s always about upskilling and continuous development to boost performance and maximize productivity.
You can recognize who is the best team member based on merit. With a performance management system implemented in place, you can recognize and reward them which will boost their morale and encourage them to give their 10x.
Another important purpose of Performance Management is to provide employees with a clear and well-defined path to growth. When employees have a precise path in front, it motivates them to give their all in.

Performance Management is not just about Employees

It also takes into account the roles of senior management and leadership in guiding, motivating, and supporting the entire team regularly.

When Vice presidents and managers applaud their team members in private or in front of the entire team, it means a lot to the employees.

So, What Is the Importance of Performance Management in Reality?

It can help you change the face of your organization and put you on the path to growth you can never imagine.

It’s a true asset that should never be overlooked or put on the less priority list. Performance Management equals true business success in 2022 and beyond.

What are the Objectives of Performance Management?

There are 5 Key Objectives of Performance Management that are crucial for any business today. Those revolve around –

Make your employees and team members more accountable for the organization.
Developing them into the best versions of themselves.
Recognizing their contribution to the company and rewarding them accordingly to boost morale and confidence.
Aligning them with the company processes and guidelines to maintain harmony and order.
Making everyone involved realize the true baseline values with which the organization operates.

What Is the Scope of Performance Management in 2022 for an organization?

The scope is huge. Performance management is precisely the backbone of any organization in 2022 and will be for years to come.

Getting the job done through your employees is the hardest yet most rewarding feeling a business owner can experience.

As an entrepreneur, when you strive to bring value to your clients, performance management will help you deliver excellence every step of the journey.

So, what is the most important purpose of performance management?

It’s creating value for every stakeholder involved. Be it your clients or employees, Performance management helps an organization build its credibility and trust amongst everyone.

When your clients and employees will trust you, they will stick around you for a long period, thus reducing your attrition rate significantly.

SAVVY HRMS has the Best Performance Management Software that Business Trusts!

Performance Management Software from SAVVY HRMS is trusted by thousands of companies across India and abroad.

Businesses from all verticals use their array of cloud-based performance management tools to boost the productivity of their team members which eventually puts them on track to achieve exponential growth.

Try their Performance Management Software today to skyrocket your business to a whole new level!

HR Software

15 Functions of Human Resource Management to Ascend Your Business Big Time

08/08/2022 hrms

Reading Time: 9 minutes

Definition of Human Resource Management

Human Resource Management is the strategic approach to manage people effectively and efficiently in an organization. It helps businesses to gain competitive advantage in the industry. Human Resource Management is responsible for keeping an eye on the complete end-to-end employee life-cycle as well as business growth of a company.It is that important element which makes sure the smooth functioning of an organization.

Need and Importance of Human Resource Management

Employees are the organization’s most important asset, and it is vital that organizations take good care of their People. Implementing the right HR practices & policies can ensure that your employees are happy, growing and productive at their workplace. Right HR policies ensure adherence to the rules and regulations of the organization and its smooth functioning. Nowadays, organizations use a more people-centric approach, Which results in enhanced employee performance, high retention and lower attrition rates, helping in exponential growth of businesses. Thus, making the role of HR managers and an HRMS is even more important.

Focus Areas:-

Few key focus areas of HRM with respect to employees are Recruitment and On-boarding Tracking employees in terms of leave and attendance, Managing employee pay and Employee-benefits, Training and Development, Performance Management and appraisal, Reward management etc. HRM ensures that the organization is able to achieve success through people. HRM focuses on implementing the policies, procedure strategies to achieve the organizational goal within a targeted time period.

Evolution Cycle To New Trends of Human Resource Management

From earlier times when the concept of industrialisation laid down human resource management is always needed to manage and drive the relevant man-power for industrial growth, Nowadays the goal is same to drive HRM for the organizational growth but in more people centric way, By focussing more on right talent and addressing the talent grievance at right time, retaining the right talent and awarding it for better performance and to drive it maintain and boost such performance in futures as well, further HRM includes anything and everything associated with the management of employment relationships in the firm.” The words anything and everything in the definition explains the wider range of issues comprising policies, such employment contracts and ways in which employees may be involved and participate in areas not directly covered by the employment contract thus ensuring suitable work life. The overall purpose of human resources management is to ensure that the is organization is able to achieve the success through people

15 Key Human Resource Management Functions

PLANNING 9. COMPLIANCES
RECRUITMENT 10. EMPLOYEE WELL BEINGS
POLICY FORMULATION 11. SUCCESSION PLANNING
MAINTAINING WORK CULTURE 12. RESOLVE CONFLICT
PERFORMANCE MANAGEMENT 13. INDUSTRIAL RELATIONS
LEARNING AND DEVELOPMENT 14. EMPLOYEE WELL BEINGS
EMPLOYEE ENGAGEMENT, 15 MAINTAINING RECORDS
ADMINISTRATIVE RESPONSIBILITIES

PLANNING

Planning is the first and most important part of HR. HR planning plays a vital role in meeting the organization’s current and future talent demands. Human resource planning may be viewed as foreseeing the requirement of organization and future supply of human resource and making necessary adjustments between these two and making a sufficient and effective plan to ensure this. To support this HR planning, Organizations generally draw out the budget to help them and the HR department make an actionable plan to achieve their target and meet the talent needs of the organization.

RECRUITMENT

Nowadays organizations are more focussing on providing a great place to work for their employees along with other benefits. It is important for organizations to be lucrative to attract the right talent and to be willing to work for them, it is only possible when HRM has made an effort to do so. Hence all the functionalities of the HR are connected to each other because implementing the right policy and maintaining the right culture helps you to make organization people willing to work. Recruitment is not only the process of filling the vacant position with the right candidate but attracting that talent to work for you and retain the same in long term for business growth. This one is the most difficult task for an hr just because of sourcing a candidate from an online portal to fill the position with the right one, it includes a lot of analysis and dependencies on the candidate that they are willing to join or not. The process of hiring is a tough process as it is like finding the best from the pool of candidates who are eligible and right for the position. Technology and automation helps a lot in the process of shortlisting candidates from any of the sources available, connecting with candidates, keeping track and record of their candidature and making sure they are suitable for the particular position. It saves a lot of the time of the HR and they can focus more on investing their time in judging the candidates on various parameters rather than simple interview(Scientific approach can be added in the system to judge a candidate).Technology can take care of the entire Recruitment and onboarding process in a large scenerio. To find the right tools and technology to do the job best it takes analysis and consideration for the same, the technology is available in the industry and advisable to use.

POLICY FORMULATION

Policy formulation is an important part of Human Resource KRA and it is the backbone of any effective business, Policy formulation depends on the organization work culture and the according to new changes in the era. policy contains rules and regulations related for companies & employee welfare. Every single employee has to follow them to maintain the decorum of the organization. An organization without a strong set of policies won’t run too long and can suffer from controversial and inconsistent decision-making. Policy formulation is the part of HRM because HR is responsible for managing people effectively with the right set of policies and are very much aware about the human mind set and engagements of employees. It is suggested that “Organizations should be first Policy driven than people driven” are much healthier in their work culture.

The benefits of a reasonable and well-defined policy framework include:

Lay down the road map of standard practices
Improve Communication Gap
Helps in decision making
Minimize the chances of dissatisfaction between managers and subordinates
Set Accountability
Helps in awareness of organizational culture to its employees.

MAINTAINING WORK CULTURE

One of the crucial functions of human resources management is maintaining a good work culture. This function is connected to previous functions of policy making and an effective implementation of those policies ensures a better work culture. A company’s culture is most important for the image of the organization, the people may be willing to work for an organization highly depending on their image of their work culture. A healthy work culture of the organization is important for employee growth as well as its levels of involvement and dedication for the organization and with timely achieving targets and objectives of the organization. an organization must have a flexible work culture so it can make an employee happy and retained in the organization.Healthy and playful culture helps to learn and achieve at the same time.

PERFORMANCE MANAGEMENT

Performance management is an important human resource function.It is an ongoing process of communication between employees and their supervisors that occurs throughout the year to monitor and review employee performance and overall contribution to the organization. It also helps to boost employee performance and productivity.Performance management is necessary to motivate the employee through their performance check and appraisal. Performance management aims to set clear employee objectives, define key result areas (KRAs) and drive the result that which employee needs a particular training to enhance its performance. These performance plans are in sync with the organizational goals and objectives. Performance management systems is a set of tools that provide 360-degree feedback, where the team members, senior managers, subordinates management offer insights into employee performance.

Tech allows to set the goals and give insights at which level these set goals are achieved with respect to task and organization.Performance management helps to boost organizational productivity, find training needs of employees,helps them to become more productive, saves time to find out the lag in the achievement of goals, and largely ensures consistent performance.

LEARNING AND DEVELOPMENT

Learning and development, a subset of human resources, aims to improve group and individual performance by increasing skill and knowledge. Learning and development is the most important part of an organization’s talent management strategy and design to align group and individual goals and performance with organization’s overall vision and goals .

Tech plays a major role in managing the learning and development of the employees. It(HRMS) helps the HR department to keep record of each and every employee training needs analysis(TNI) recovered at the time of the induction programme in the organization and at the later stages of the association too.

Both employee and employer want to enhance the skill of the employee during his tenure so setting proper training methods to enhance the learning of employees through various sources is a key function of the HR department.

Nowadays learning is very easy through various resources available and get certified, L&D management ensures to provide their employees with such sources to get certified for the particular role.

EMPLOYEE ENGAGEMENT, REWARD AND RETENTION

A basic salary will only encourage an employee to work at the level that is required of them to keep their job. If employers want to encourage their employees to perform at a high level and sync with the organization goals , they may consider offering their employees the opportunity to earn additional pay, perks and recognition. so the employee can encourage and retain themselves for a long period with the organization. Providing additional benefits may include good health plans, holiday packages to employees at exceptional work and many such perks to ensure employees feel their contribution is being fairly assessed and rewarded.it helps a lot in employee satisfaction which ultimately leads to employee retaintion.

Employee Engagement concept not only defines the encouragement of employees towards its work and about the performance of the company but also makes a proper channel of communication and with help of this nerves of employees can be checked that they are happy or not with their managers, peers and with organization at large. This helps to retain the employee and maintain a healthy work culture. An employee can engage with full dedication when they get peace of mind so that their efforts are making a difference. If the employee is happy with their organization, they are able to give their 100%. Engaged employees are more likely to be productive and highly performing.

COMPLIANCES

Compliance is among the crucial functions of the HR department. HR department tasked with ensuring that hiring practices, work rules, treatment of staff, and a range of alternative factors all adjust to the relevant laws laid by the government of a particular geography. Corporations additionally define their own HR compliance policies to be followed internally as well. HR department try their best to meet the compliances not only that it is mandatory by law but to ensure the better lifestyle of their employees as well.

INDUSTRIAL RELATION

Industrial relation show the relationship between employee and employer within the organization formed to be promoting their respective interest, and relation in between employer and employee, management and workers, particularly groups of workers represented by a union.

It is something that organizations could afford to overlook temporarily but a key function of the human resource department is to promote a best relation between management and employees and resolve the conflict between them and to make a healthier relation with them to achieve the vision and mission of an organization.

EMPLOYEES PERSONAL WELL BEINGS

Employee well being is more than providing excellent health insurance plans, absence of physical illness, it is important to make sure employees are safe at their workplace. It is important to set our safety standards as per the work nature and functions. For example, the heavy metal processing industry needs different safety standards than an IT company. It is believed by employees that work- life balance is more important nowadays than compensation so the HR department needs to focus on the physical and mental well-being of employees. The HR department needs to understand why an employee is not performing, is it because of lack of competence or lack of mental well being due to turmoil in his personal life. If the issue is properly addressed properly an employee which is an asset for the company is retained by the organization and can be made well-functioning and productive. HR must establish proper communication channels to deal with the mental and emotional well-being of the employee.

SUCCESSION PLANNING

Succession planning is the core function of HRM. Its aim is to plan , monitor and manage the growth of employees in the organization. A succession plan identifies future staffing needs and the people with the skills and potential to perform in these future roles. The purpose of succession planning is as replacement planning and often involves passing on ownership of a role, designation or position to someone else in the company.

RESOLVE CONFLICT

Human resources ensure the smooth functioning of an organization. Any conflict raises in an organization on the day to day basis, the main KRA of HR is first to decrease such an event by finding the root cause of conflict and addressing the issue.Conflict may occur at vertical or may be at horizontal level, it will depend on the situation so the main role is to solve the conflict between them with the help of right methods and any decision is drive out as per policy of the company and make sure that decision should be unbiased and wise.

ADMINISTRATIVE RESPONSIBILITIES

The final function of HR includes administrative responsibilities such as direct involvement and Human Resource management Systems.

Direct procedure of involvement contains the handling of discipline, performance improvement, promotions, relocations, illness, maintaining cultural,gender and racial diversity, unwanted intimacies etc.

The HR department ensures all policies that are laid out, implemented fairly and will be beneficial for all employees.

Human Resource Management Systems (HRMS) is also an integral part of HR management as it stores employee data and other relevant information. All the insights for unbiased decision making can be driven out of this tool through Artificial Intelligence and machine learning. These systems are available and advised to be implemented to manage the data and can be used for better decision-making.

MAINTAINING RECORDS

One other main admin work is to maintain record of each employee and history of each transaction of employee so that in future any issue comes up with the help of these records, the same can be assessed. Without proper records, it can be difficult, to effectively monitor the performance and productivity level, Maintaining records not about about their personal information but their performance also and documentation records for past and future competency reference, it provides a productivity view to the employer, Builds objectivity into the employer-employee relationship.

CONCLUSION

While these are the few areas of HR functionalities there are a lot more areas in which the HR department deals. The HR department works closely with the owners and decision makers of the organizations to ensure a better growth and development. Ensuring the human touch with becoming hi-tech in terms of technology.

Savvy HRMS is a state-of-the-art complete HCM Suite, a leading provider of cloud-based HRM software to all sizes of organizations looking to engage and empower their employees.

Absence Management Software

21/07/2022 hrms

Reading Time: 3 minutes

Absence and Leave Management Software to Boost Your Business’s Efficiency

Gone are the days when having tech tools for your business was considered an exception. In 2022, they have become a norm. Cloud based business products like absence and leave management software are integral to managing the efficiency of any company today. It’s far more challenging to operate a business without these as they simplify and streamline leave management tasks significantly.

Employee Leave Tracking is a Cakewalk with a Leave Management Software

It’s integral for any company’s efficiency and economic growth to effectively track time offs of their employees such as paid leaves, sick leaves, or any other. Having a leave management system built into your workplace not only helps to maintain sync among your employees and different departments but also keeps company operations on track.

Inefficient employee leave management can derail your business operations within no time.

So here are 5 CRITICAL REASONS why you should get a cloud-based absence and leave management software for your company in order to keep the efficiency and productivity of the business intact.

Determine Time Off Policies with Your HR Leave Management Software

Every company must define and set up leave related policies for their employees. As the company grows and scales, leave management policies keeps changing.

Not only that, having adequate and appropriate leave management policies in place ensures transparency in the organization.

So, it’s highly essential that you get one of the best leave management software for your company that helps you effectively define and implement leave policies in your daily business operations.

Leave Management System Eases Holidays and Leave Balance Tracking

Managing holidays as well as leaves of each and every employee of your organization can be a hectic and mundane task. When you have multiple employees in your company, you have to ensure that everyone gets pre-defined leaves assigned to them and they follow it according to the set policies.

An employee leave management system ensures that you set up a holiday calendar for the entire year which is visible to everyone. In addition to that, you get to configure multiple leaves types of leaves for your employees through the absence management software accordingly.

Your cloud-based attendance management system will automate majority of the tasks for you related to holiday and leave tracking of your employees. This makes employee leave management a walk in the park.

Absence and Leave Management Software from SAVVY HRMS is one of the best and functionality-rich HR leave management system that is trusted by 500+ businesses across the country and abroad. Boost your business efficiency and facilitate better employee leave tracking with the trending leave management software and 10x your business profits.

Compile Comprehensive Leave Reports via Absence Management Software

Efficiently tracking leaves of your employees is essential to making some of the business-critical decisions.

Having a leave management software integrated into your company’s ecosystem lets you track and analyse the leave taking pattern and behavior of your employees.

This is highly essential to determining who takes the most and least number of leaves, is there any specific day of the week when a certain employee applies for time off, and many such aspects.

The bottom line is – A leave management software helps you to figure out and communicate the best solution to your employees so that it’s a win-win for both the parties.

Employee Leave Management System Boosts Overall Company’s Productivity

With a high quality and functionality rich leave management software in place, you will be able to ensure the following –

Why certain employees are taking a greater number of leave regularly and what solution you can devise for them.
Which employees are working more hours and not taking adequate number of leaves regularly?

For the first set of employees, you can facilitate better communication and understand the core reasons behind their frequent leave requests.

On the other hand, for second set of people, you can figure out if they experiencing burn out but not communicating that enough. This will allow you to communicated it to them to take regular leaves so that they feel refreshed, energized and motivated.

All in all, a leave management system will help you bring out more productivity from your employees.

Absence and Leave Management Software Helps You Maximize Your Profits

There is no doubt in saying that happiness of your employees equals happiness of your customers.

So, when your customers are happy because they get a good service from your company, it will surely bring you more business revenue. The end goal that you will achieve is an enhanced customer service and more profits.

Having a leave management system is integral to this because when they get their much-required break every once in a while, they experience more productivity.

Attendance Management

Challenges and Trends in Attendance Management of Blue Collar Workers

14/07/2022 hrms

Reading Time: 3 minutes

The blue collar workforce constitutes a major chunk of the working population in India. Even before the Covid Pandemic and till today, there have always been a lot of challenges associated with blue collar workers.

Be it managing attendance and work schedules, implementing effective communication channels, or integrating required automation to ease out the overall workflow – with blue collar workers, it always gets challenging in finding the right solutions to many of these fundamental problems.

What problems do blue collar workers face?

Let’s have a look at some of the biggest challenges faced by Blue collar workers as well as companies in India employing them.

Managing Attendance and Work Schedules of Blue Collar Workforce

Poor Attendance Management and work hours tracking. Many Indian companies that employ these blue collar workers do not have efficient systems in place to monitor and manage their working hours and activities.
Due to the absence of proper attendance management software, usually, these companies that employ blue collar workforce lack accuracy in performing on-point background verification of their workers.
Managing your blue collar workforce can get tough in the absence of a uniform platform that provides adequate visibility for the workers.
Many companies that are working with blue-collar workers, do not provide them flexibility in their working schedules. There is often no defined approach for scheduling the shifts of the workers. This in return creates a burden on the larger workforce eventually as their workload increases.
In the absence of proper attendance management software in the blue collar workforce environment, certain employees start stealing work time and also manipulating leaves. Also, due to a crowded workforce and a lack of a proper work scheduling system, the result is the unexpected absence of workers. This results in a loss of Workforce Productivity.
As the majority of the companies that employ these blue collar workers do not have proper attendance management software in place, it often leads to discrepancies in data management, time wastage in managing records, and hinders smooth operations.
Another significant challenge is How to communicate with blue collar workers effectively in the absence of a unified attendance management software / Work Scheduling system. This lack of communication creates distance between the blue collar workers and the company management. Hence, they are not able to fully leverage the skills of their workers.
The absence of a work scheduling system breeds ground for unfair payment practices which eventually leads to the Underpayment of Blue-Collar Workers.

Managing Your Blue Collar Workforce via Emerging Technology Trends

Technology is reshaping Blue Collar Workforce in 2022.

Be it through digital databases of the workers that are maintained by end-to-end recruitment firms, or the adaptation of modern attendance management software / work scheduling systems by companies into their work environment.

They have realized the importance of having a unified system that manages all activities of the workers in one place and tracks their working activities.

Savvy HRMS has one of the best attendance management software to manage attendance and work schedules of blue collar workers. With cutting edge features like employee tracking and management, geotagging and geofencing, and facial recognition, you can track every aspect of your workers right from your smartphone.

These attendance management software products also help in showcasing the skills of the blue collarworkers to the company management thereby enabling them for upskilling and reskilling opportunities.

Apart from that, modern attendance management software for blue collar workers easily detects any type of fake entries in the system. They are well equipped with complex approval workflows in the system so that the head of the department or the IT admin can easily track the names and details of workers operating with a fake identity.

Not only that, but these modern and highly automated attendance management software for blue-collar workers also ensures that any blacklisted worker does not end up in an organization again. These systems consider their Aadhar card and Voter Id details to confirm their identity and remove any data duplicacy. This help companies in keeping away workers that were removed earlier because of any given reason.

In 2022, the majority of blue collar workers have access to a smartphone and the Internet. Hence, they can easily become an integral part of the attendance management Software and adopt technology in their workflow.

This helps in maximizing employee accountability and workforce productivity.

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