What is the most important human resources management (HRM) activity? You are unlikely to find a direct answer. The answers may include a list of HR functions like recruitment and selection, training and development, performance management, employee relations, rewards and recognition. So, we do not have a specific answer.
We asked our all-powerful, new AI-driven ChatGPT the same question and got a similar answer: See the question and answer below.
There is only one problem. Many of you won’t agree with the answer.
Peter F. Drucker said, “The fundamental task of management remains the same: to make people capable of joint performance through common goals, common values, the right structure, and the training and development they need to perform and to respond to change.”
Our view is that the most important HR function is performance management.
We recognize that the above quote was made not strictly in the context of HRM. However, the importance of performance management is undeniable.
If you view management through the prism of outcomes and results, performance management ought to be the most important activity. After all, HRM objectives are arrived at by cascading the company objectives. That is what performance management is all about.
In other words, performance management is pivotal in human resources management. All HR activities must be performed to achieve superior performance. Recruitment, training, reward and recognition and employee engagement must all be focused on superior performance. Everything must point to performance. See the figure below.
The figure also reflects the inter-relatedness of the diverse HR activities. Superior performance cannot be achieved in isolation.
What is the practical value of this assertion?
The above discussions lead us to a conclusion: Performance management is the most crucial aspect of HRM. Performance management can give you the highest ROI among all HR investments. Therefore, the resources and efforts must primarily be focused on performance management in any company. To improve company performance, attain the visibility of staff performance first.
Need help? Please contact us today. We shall be glad to help you strengthen your company performance management system.
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