HUman CApital Management Essay
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However, only since two decades ago, he whole culture of human resource management changed drastically due to extensive influence of internet, wireless connection and Steve Job. This paradigm shift of HRM was mooted by most of the present Fortune 500 companies such as Apple, Google and Bloomberg. These companies which was formed about two decades ago changed the landmark of Human Resource Management. Human Resource Department changed role from hiring and administrating workforce for the company to engaging and managing talent and human capital to add value to the organization’s performance and success.
The trend was established that human apital or the people of the organization are the core which shall be well capitalised requirement changed drastically. One of it is the performance management of this human capital. This literature analysed on what are the problem faced in measuring performance management or appraisal of staffs, the factors prompting organization to reconsider or overhaul their performance management system and on how organization could improve the performance management system to suit current SHRM environment which the workforce demands.
The problems with the appraisal system were found to be standard of performance measurement, more Judgemental n appraising, poor skills of appraiser and the frequency of performance appraisal. These shortcomings are due to the evolving nature of business environment which are caused by globalization, new approach of people management, knowledge economy, generational expectations, technology advancement etc. Discussion to improve performance appraisal leads to aspect of new philosophy of HRM, improved appraisal model, Strategic Human Resource Management (SHRM), and defined roles of managers.