• Share different tools that a Human Resources department can use to measure performance.
• How can the human resources department make sure that the objectives set are specific, measurable, and time-bound?
• How does risk management play into business performance?
• What is a Balanced Scorecard? How might it be helpful in performance measurement in the human resources department department?

 

a. The different tool for measuring performance are;

• Performance appraisal.
• Productivity test.
• 360-degree feedback.

b. How to make sure the objectives set are specific, measurable, and time-bound.

To have specific objectives, one has to make sure that everyone in the organization and the team tasked with meeting it understands it and also have a clear view of what it entails. Also, it must be related to a single matter that the firm needs to solve or meet.

Measurable objectives are set by having a step by step plan of how to meet it and also have a specific target. It makes it easy to check with the plan how much of the target is met and how much is remaining to make adjustments.

A time-bound objective is set by having a specific period set in the plan to meet the targets. One must make sure that they have specific targets and period of completion of the project to achieve the targets.

c. Importance of risk management in business performance.

Risk management is very important in ensuring high performance and also the competitiveness of the firm. It enables the management to be more confident of what they are doing and hence be more productive in their work. When the firm has a strong risk management system, they have lower chances of failure meaning that their levels of success are high.

It also provides the highest levels of risk that a firm can take without getting into great losses and making high profits. With this, the firm can make profits repeatedly as they understand their limits. The chances of experiencing losses are reduced. It, therefore, acts as a way of boosting confidence in the outcomes.

d. A balanced scorecard is generally a performance metric with the main function of identifying, improving the internal business functions, and controlling them together with the outcomes.

It is essential in measuring performance by focusing on four main aspects of the organization. That is;

1. Learning and growth. This checks on the effectiveness of the training processes on the employees and knowledge retention. Also, it analyses how the employees utilize this acquired knowledge in their day to day work in the firm. It, therefore, checks on the performance where training is concerned.
2. Business processes. Checks on how effective employees and management are when it comes to the production of goods. It is more concerned with how efficient the employees are in running the processes to achieve maximum production.
3. Customer satisfaction. Focuses on how well the needs of the customers are met when it comes to service and also when it comes to the products design produced, the quality and the price which is tied to the cost of production. When the employees offer great services, the employees will get a high rating, and also efficient production will lead to low production costs and prices of the goods.
4. Financial data. It focuses on sales, costs incurred, and income. In this case, the promotion and sales teams are mostly on the spot. It seeks to determine the sales made and how efficient the management was in minimizing the costs of expenditure when it comes to promotion and other logistics like distribution.

Step-by-step explanation

a. The different tool for measuring performance are;

• Performance appraisal. This is whereby specific standards are used to compare the performance of an employee qualitatively. It can also be done during review meetings or evaluation meetings
• Productivity test. It is used in a quantitative measure of the employee's ability to meet expectations. In areas of production, they use it to measure how much the employee has been able to meet the targets set in terms of output in units. It usually measures the effectiveness of line managers in the production department.
• 360-degree feedback. The feedback from all the sources in the organization about specific employees and the management is used in evaluating their performance. The source of the feedback in this case does not matter.

b. How to make sure the objectives set are specific, measurable, and time-bound.

To have specific objectives, one has to make sure that everyone in the organization and the team tasked with meeting it understands it and also have a clear view of what it entails. Also, it must be related to a single matter that the firm needs to solve or meet.

Measurable objectives are set by having a step by step plan of how to meet it and also have a specific target. It makes it easy to check with the plan how much of the target is met and how much is remaining to make adjustments.

A time-bound objective is set by having a specific period set in the plan to meet the targets. One must make sure that they have specific targets and period of completion of the project to achieve the targets.

c. Importance of risk management in business performance.

Risk management is very important in ensuring high performance and also the competitiveness of the firm. It enables the management to be more confident of what they are doing and hence be more productive in their work. When the firm has a strong risk management system, they have lower chances of failure meaning that their levels of success are high.

It also provides the highest levels of risk that a firm can take without getting into great losses and making high profits. With this, the firm can make profits repeatedly as they understand their limits. The chances of experiencing losses are reduced. It, therefore, acts as a way of boosting confidence in the outcomes.

d. A balanced scorecard is generally a performance metric with the main function of identifying, improving the internal business functions, and controlling them together with the outcomes.

It is essential in measuring performance by focusing on four main aspects of the organization. That is;

1. Learning and growth. This checks on the effectiveness of the training processes on the employees and knowledge retention. Also, it analyses how the employees utilize this acquired knowledge in their day to day work in the firm. It, therefore, checks on the performance where training is concerned.
2. Business processes. Checks on how effective employees and management are when it comes to the production of goods. It is more concerned with how efficient the employees are in running the processes to achieve maximum production.
3. Customer satisfaction. Focuses on how well the needs of the customers are met when it comes to service and also when it comes to the products design produced, the quality and the price which is tied to the cost of production. When the employees offer great services, the employees will get a high rating, and also efficient production will lead to low production costs and prices of the goods.
4. Financial data. It focuses on sales, costs incurred, and income. In this case, the promotion and sales teams are mostly on the spot. It seeks to determine the sales made and how efficient the management was in minimizing the costs of expenditure when it comes to promotion and other logistics like distribution.