The quality of the human resource management in any company greatly influences its activity and competitiveness. Generally, human resource management changes the way the company operates and supervises its people. The main task of HR department is to supervise, employ and instruct workers in the way that helps the company meet its goals. Human resource officials are challenged with developing new incentive plans capable of attracting and retaining highly qualified individuals with fewer financial resources than in times past. Many human resource managers are meeting this challenge by developing internal reward systems that are based on intrinsic needs.
The ability to monitor and measure performance has the greatest impact on organizational performance. Global and national competition has forced many healthcare organizations to look for new ways to enhance organizational performance without significantly increasing costs. Performance management enables human resource management by regulating employee motivation and ability. When used correctly, performance management aids human resource managers in the areas of formal performance evaluations, objective setting, and developing a linkage between performance and rewards. Well-developed performance management systems utilize input and feedback from a variety of sources, including employees, organizational management, and outside stakeholders.
Performance management systems allow human resource managers to quickly identify those behaviors that help the organization achieve its goals and those behaviors that are detrimental to productivity. These systems regulate employee performance by focusing on employee behavior, skills and outputs. In order for these systems to be beneficial to the human resource department, they must be flexible and capable of rapid change in response to changes in the internal or external environment.