The approach above was later followed by the ‘behavioural science movement’ whose main proponents were Maslow, Argyris, and Herzberg (Budhwar & Sparrow, 1997, p. 34). These researchers main concern was the ‘value’ side that human resources (HR) presented. They advocated for improved quality and more developed working conditions for employees in the organization. Subsequently, the human resource accounting theory (HRA) was conceived. This approach was the result of a number of progressive advances in the area of HRM (Budhwar and Aryee, 2008). Moreover, this late approach is thought to be the foundation of HRM as a well-defined school of thought (Budhwar & Sparrow, 1997, p. 28). HRA was of the view that human resources were important assets to every firm (Hendry & Pettigrew, 1990, p. 17).
It is important to understand the strategic functions of HRM, particularly performance management and reward management. All these functions are part of the management’s strategy to enhance productivity and employee efficiency in the organization.
Performance management entails a series of measures put in place in order to gauge the performance levels of employees in the organization. It is basically the process whereby the managers and the employees have a mutual understanding of the work prospects and objectives. The process entails getting performance responses, recognizing training and enlargement openings and assessment of performance outcomes. The human resource department is tasked with the responsibility of reviewing the performance of its employees. The performance management process has a number of aims that it seeks to meet. The process is vital in creating a work setting that values constant development, inspires inventiveness, and encourages training and specialized improvement. The performance management has a set of distinct sub-processes that constitute a whole.
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