Employee Performance Management (EPM)

Abstract

For achieving the strategic objective of sustained & speedy growth, managing human resource has featured as a vital requirement in all organizations. 'Goal based performance' & 'Management of competencies' have emerged as two important nodes of EPM. More & more organizations are getting focused on increasing employee productivity by using automated systems which have the capability to track & reward performance. Developing employees' skills & competencies has featured as the biggest enabler of performance. Line & Functional Managers are now in focus to drive performance & develop their subordinates. HR departments are looking for the best of solutions which are affordable and easy to implement.

Purpose of EPM

Evaluation of employee's performance for the period already elapsed and identification of his/ her development needs are two important functions of a good EPM system. Performance based remuneration is a strategic part of the EPM since it contributes to the success of employee retention initiatives.

Constituents of a Good EPM System

Organizations use a 'Performance Appraisal' instrument, generally called an 'Appraisal Form'. It is a multi page document which helps in performance review of an employee. The best of documents cater for the following parameters of Appraisal:

• Employee Self Appraisal
• Goal based Performance
• Rating of Skills & Competencies
• Over-all Grade, Relative Rating & Pen-picture
• Employee Development Needs
• Other Important aspects of a good EPM system