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  • Writer's pictureLili

What is people management?

Updated: Dec 4, 2023

People management, also known as human resource or employee management, is the process in which an organizational or team leader manages, guides, and motivates team members at work. It aims to increase employee satisfaction, improve productivity, and ensure that team goals align with organizational goals. People management includes recruitment, training and development, performance evaluation, motivation and rewards, and handling conflicts between employees and teams.

Why Is People Management Important?

People management is essential to any organization as it can help employees reach their full potential, increase job satisfaction, and contribute to achieving higher company performance. Modern companies are placing increasing importance on this and adopting innovative approaches to improve employee engagement and satisfaction. The importance and impact of effective people management in the workplace are far-reaching and can be summarized in the following key areas:

1. Employee Engagement and Satisfaction:

When employees feel valued, supported, and recognized, they are more likely to be engaged in their work. Engaged employees are motivated, committed, and enthusiastic about their roles, leading to higher productivity, quality of work, and innovation. Effective people management practices, such as clear communication, feedback, and recognition programs, contribute to a positive work environment that enhances employee morale and job satisfaction.

2. Talent Acquisition and Retention:

By implementing robust recruitment and selection processes, organizations can identify candidates with the right skills, experience, and cultural fit. A strong employer brand and positive reputation in the job market also contribute to attracting high-quality talent. Once talented individuals are hired, people management practices such as training, development, and career advancement opportunities help retain them. This reduces turnover rates, saves recruitment costs, and ensures a skilled and experienced workforce.

3. Performance and Productivity:

Establishing clear performance expectations, providing regular feedback, and offering opportunities for skill development contribute to improved individual and team performance. Effective performance management systems align individual goals with organizational objectives, ensuring that employees understand their roles and how their work contributes to the overall success of the organization. By addressing performance issues promptly and providing support and resources, people management can help employees reach their full potential, thereby driving productivity.

4. Employee Development and Training:

Providing opportunities for skill enhancement and career advancement not only benefits individual employees but also improves the organization's capabilities. Effective training programs can enhance employees' knowledge, skills, and competencies, enabling them to perform their roles more effectively. This leads to higher job satisfaction, increased motivation, and improved employee retention.

5. Employee Relations and Conflict Resolution:

By fostering open and transparent communication channels and creating a supportive work environment, organizations can build positive relationships among employees through effective human resource management. Effective conflict resolution mechanisms help address issues promptly, minimizing potential disruptions and maintaining a harmonious work environment. This contributes to higher employee morale, collaboration, and teamwork.

6. Compliance and Legal Responsibilities:

People management ensures compliance with labor laws, regulations, and ethical standards. It encompasses fair treatment, equal opportunity, anti-discrimination practices, and promoting diversity and inclusion. Adhering to legal responsibilities protects employees' rights and safeguards the organization from potential legal risks and reputational damage. Compliance with employment laws and regulations also promotes a culture of fairness and respect within the organization.

What is A Performance Management System?

Performance management system is considered a critical part of people management, focused specifically on assessing and improving individual and team performance within an organization. While it is closely related to people management, it has distinct characteristics that set it apart.

Key Aspects of Performance Management System:

Goal Setting: Performance management begins with setting clear, measurable goals for employees. These goals align with the organization's objectives and are often established through a collaborative process between employees and their managers.

Continuous Feedback: Regular feedback is a hallmark of performance management. Managers provide ongoing feedback to employees, addressing strengths and areas for improvement. This feedback loop allows employees to make real-time adjustments and improvements in their work.

Performance Appraisals: Periodic performance appraisals are conducted to formally review an employee's performance over a specific period. These evaluations may include self-assessments and discussions between the employee and their manager.

Development Plans: Performance management includes the creation of individualized development plans. These plans outline the steps employees need to take to enhance their skills and competencies, aligning their growth with their career aspirations and organizational goals.

Rewards and Recognition: High-performing employees are often recognized and rewarded within the performance management framework. This may include promotions, pay raises, or other incentives.

Relationship Between Performance Management and People Management:

The performance management system plays a crucial role in managing individuals and teams, addressing specific aspects of individual and team performance. While both aim to enhance employee satisfaction and organizational success, they differ in the following ways:

Scope: Managing individuals and teams involves a wide range of activities, including recruitment, training, conflict resolution, and compliance. In contrast, the performance management system primarily focuses on evaluating and improving an employee's performance.

Timeline: Performance management is often conducted in cycles (e.g., quarterly or annually), while the ongoing management of individuals and teams spans an employee’s entire tenure within the organization.

Focus: People management prioritizes the overall well-being of employees, covering aspects such as job satisfaction, personal development, and the work environment. The performance management system, however, concentrates on specific performance-related objectives and feedback.

In summary, while the performance management system is a subset of managing individuals and teams, it addresses the critical aspect of evaluating and improving employee performance. These two aspects are interconnected, with the performance management system contributing to the broader goal of effective management within an organization.

The HROTG Workforce Management System

HROTG is a performance management system designed to help organizations effectively manage personnel. It has the following features:

1. Data-driven Decision-making: HROTG collects and analyses employee data, enabling managers to make better-informed decisions based on the information.

2. Personalized Development Plans: HROTG creates personalized development plans for each employee based on their needs and capabilities, assisting employees in achieving career growth.

3. Real-time Feedback and Communication: HROTG provides real-time feedback and communication tools, helping employees and managers to better interact and collaborate.

4. All-in-one application: HROTG operates as a human resource management system, attendance system, and performance management system, easily managed in one app.

HROTG establishes a competency library classifying by skills, knowledge, and education, and applies it to the company's internal database to generate individual performance evaluations. Charts can display the performance of different employees, divided into three main categories: below expectations; meeting expectations; and exceeding expectations.

Based on performance, HROTG operates also as a performance management system and develops follow-up plans, such as preparing training programs; promoting potential employees; and terminating and rehiring employees. In personnel management, HROTG standardizes the rules, making the guidelines clearer, so the company no longer needs to waste manpower on routine processes, while employees can have a better understanding of their performance and direction.

By adopting the HROTG Workforce Management System, organizations can better manage personnel effectively, increase employee engagement and satisfaction, and ultimately achieve higher performance. If you are looking to introduce an innovative people management tool for your organization, HROTG is a worthwhile option to consider.

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