After selection process completed, next step will be transferring the fresh human resource by training into experts. Even from the time of training performance evaluation of the employees starts. It is one of the most important factors to Judge Company’s performance. If employees of the company are doing their work with devotion and commitment, it means that company is progressing. Performance management is one of the important tools to evaluate performance of human resource. As national railroad company expresses in the mission statement that an aspect of company mission is continual improvement, growth and development. So to be a progressive company it is necessary that company human resource should also progress in monetary terms as well as in skill.
Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization (Keeping the Right People, 2014). It is important as it helps in differentiate effective employees with counterproductive employees. One main objective is to check whether employees are giving their best to the company or not. It is also important to keep staff motivated. It also helps by providing information about the deficiencies in the employees which can be improved by designing training for the employees.
There are different techniques to evaluate performance of the employee. The performance appraisal is the main source to evaluate an employee’s performance. It has three major roles i.e. administrative, Development and others. The administrative aspect of the performance management system is to make personnel decisions like promotion or demotion of the employees. Development aspect is that it helps employee in the form of feedback for personal development. It also helps organization by providing valuable information about capabilities and gaps.