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Financial Sector’s Human Performance Management

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International Journal of Management Science and Business Administration

Volume 8, Issue 1, November 2021, Pages 37-44


Financial Sector’s Human Performance Management

DOI: 10.18775/ijmsba.1849-5664-5419.2014.81.1003  
URL: https://doi.org/10.18775/ijmsba.1849-5664-5419.2014.81.1003 

Zsolt Barna

Ph.D. Student University MATE Gödöllő, Hungary

Abstract: The past few years, the companies of the financial sector focus on the efficiency even better because of an economic crisis which can be experienced in a year. Because of this the many times obsolete benchmarking systems modernization became important.

Characteristically at construction industry firms and the IT and the system developed by them is used in a financial sector, but any companies may be useful where it is necessary to accomplish aims for him, it is necessary to work together with others, or there are key competences, which are essential, to the filling of the scope of activities.

Now the big part of the enterprises’ employees home office-ban works, the benchmarking is useful in a situation like this. The leaders’ big part suffers from lack of information in connection with his colleagues’ performance, because of this if the leaders have the aims in sight, it they onto the readiness of tasks which can be broken down, the pressing feeling stemming from the isolation decreases then.

Keywords: human performance management, financial sector, ERP, employee, company.

Financial Sector’s Human Performance Management

1. Antecedent 

We see that the modern, big company expectations reached the financial sector. It is necessary to be efficient his work in the same environment, than in other, different organizational structure with a similar profile employee, characteristically in privately-owned companies’ case.

The leading companies consider the human informatics solutions supporting their function a strategic key issue. The economic players may not expect a special competitive advantage of the application of the module of the integrated corporate management systems like this already on a global level at the same time.

The information technology changes, the integrated corporate management systems (ERP), and the introduction of other innovative IT solutions, and his spreading the human resources put the role of company into another contexts inside the organisations. His popularity increases continuously among the companies, since keeping a mirror makes those characteristics measurable, the single areas may contribute to it fundamentally you are all even to an organization’s optimal function.

This basis is expected already the everyday life the support of IT-section since ERP the introduction of systems turned into the condition of staying in the competition already. Suitable stook is not at the companies’ disposal in all cases despite this to the introduction of the eligible integrated informatics system solutions. This human evaluator is especially true for systems because the main direction is the administrative support of the mentioned function, the fundamental one many times – GDPR rules tangent – the treatment of data, including related financial information possibly with the colleague’s salary.

The corporate management one is related to systems despite economic expectations, the big number of the introduction projects unsuccessful, since the decision process of the initiations setting it off is not prepared properly, the decisions made in the company’s inapposite life cycle you are in time they drag on, the projects exceed the companies’ resources being available often because of this.

In the system, it is not possible to entrust introductions to information specialists in the deficiency of organization science knowledge. The software developers’ abilities specified by the management already only are capable of his forming.

The organizational management is hard for the business specialists because of his software developers’ incognizance at the same time to recognize the opportunities residing in the systems. Because of this, the companies already ERP systems fight that of introducing. Currently, on the market, ERP solutions exceeding the complexity of systems turned into available ones.

The market-leading big companies already a trend creator they are in a period, which is technology, will yield change, I consider it important one because of this to examine, the state companies the function change of a human performance evaluator’s systems, the future commissioner the role of technologies the border of the informatics and the management science.

2. The Timeliness of the Specialty

The primary function of the informatics supporting systems was the increase of the organizational efficiency and the cheque of the organization’s operation according to the definition of the company management until now. This function focused on the head activity fundamentally. Today’s market and organizational circumstances changing demand the existence of the systems laying the foundations for the corporate informational base simultaneously, on a human side, but already not only merely as an administrative supporter.

Control shirt from a viewpoint examining these systems, himself the human resource management it is favored on the human policy planning, on the cheque of the plans, the economic analysis and it was made of this through reports, with the co-ordination of the human resource management processes and for the organizational claims with the mapping of truth. Here the human resource owes management’s efficiency and his efficiency his examination. We measure it, and we concretize the expenses of related decisions and his benefits with the human resources.

Informatics developments bring a necessary change of view, and this process leads to the increase of the number of the informatics projects with human concern. To the successful realization of the projects necessary managerial knowledge does not stand for a provision at most companies, requests exterior advisers’ withdrawal because of this.

The suitable data basis to the use of evaluative devices not sufficient the extension of the corporate structure, onto spotlighting the control shirt is according to need. The business aspect system of the control shirt, it is necessary to rethink the organizational information flow and the questions of the organizational coordination along the extensions being based on the informatics systems.

The information base is stands for acting for the company’s key issue, the suitable performance indicators (KPI) his compilation. At the same time its question, that, which is worthy of indicators, to concentrate and with what kind of relative weight, a question, was management exclusively till now. They may call the management’s attention to new, organizational opportunities neglected in the ones until now, with the evaluation of the KPI reason standing for acting for the management and the definition of new, indicators supporting the strategic fruition better.

Waiting between the realization of the necessary action plans and the appearance of the change happening in the performance indicators spoils the organizational answerability on a large scale. With the help of the integrated informatics systems, the company can accelerate on the velocity of the data processing, the necessary information’s get more quickly to the decision promoters and the decision makers hereby.

The companies’ reactivity makes progress in big one opposite new environmental condition, at the same time important to examine, that the continuous monitoring with a what kind of effect, is onto the human resource. In as much the system spoils the efficiency of the human resource and a surplus generates a mistake it is necessary to think the application of the systems over the control shirt and according to the aspect systems of the strategic leadership.

Can be foretold the not only the consequences of managerial decisions with a human character, including the hidden and expenses arising on long distance. The quantified data of the expenses and the benefits the leadership turns into financial one which can be communicated on a language towards it, furthering the decision making.

The benchmarking and the human control shirt being attached to this not method, but strategic process: integrative, evaluative thinking and calculation to the judgement of the human policy decisions, affected they his economic and social consequences.

A one like that is device, which helps to accomplish a rational, human resource management sensitive onto expenses. On an exact manner definable indices-system we measure the use of the resources with his help for the management, assuring continuous feedback of the changes for the leadership.

Several of his benefits a control shirt appears in the different, related functions on a side, than the forming of the compensatory strategy contributing to the employees’ stimulation ensuring competitiveness on the labor market, staff number farming, reporting system, the analysis concerning the scope of activities, planning, assessment, you are the trainings, the examination of development opportunities.

The analyses of accountancy from a viewpoint necessary, detailed expense profit analyses can be prepared as the compensation of the decentralization prevailing in the human policy work.

The human resource of which use was made by the organization the basis of the realization of examinations, his measurement difficulty, the organization contributes to the fact that the human resource is management only on an indirect manner as a so-called supporting activity his value creation processes. Everything measurable, it is necessary to find it to it only the equivalent (gauge) indices.

The benefit of the system like this, his strength, that with a modular construction, his database with employees related everything stores information. Apart from the employee’s personal data registrable his qualification, his certificates, his competences, his promotion, his managerial experiences. The system the motivating and on the area of career planning efficiently applicable. His part the competence basis performance evaluator module, which helps it, but the performance evaluator does not substitute it talk.

This module of the system can compile suitability and qualification profiles with the help of his results, it is possible to provide their suitable training, but it serves as his basis to unique career planning.

The integration of the human informatics systems used by them, a lot cause a big challenge in a case for the companies the systems, fragmented from each other separated they work. The data are loaded manually, from one of the systems into the other one, filtering, since everybody presupposes that the data were examined at the time of the first getting in already. This does not come true in many cases unfortunately; the wrong data may generate a loud noise in the end use systems because of this.

It with bigger accuracy and better decisions and the strategy adjusting to the market trends better will be able to be formed choosing from more opportunities. With the increase of the single companies’ and supply chains’ informatics integration, the markets’ integration is growing expectedly.

The increase of the integration of the informatics systems contributes to the development of new corporate abilities. The companies to information’s companies at which access is not placed at strong competitive disadvantage and they fall out from the market.

The market dynamics with a type like this led to the decrease of the market player number of the single industrial branches. Relevant literature shows that the difference methods used

3. Benchmarking Techniques

It is possible to measure the organizations’, the leaders’ working there and inferiors’ performance with increasingly more accurate and more subtle methods, techniques, The performance management system his important part the performance for management, which is the leadership one and a managerial science, and one of the youngest branches of abilities.

The leaders must be aware of the benchmarking techniques primarily, since their colleagues must be valued continuously quasi, as what their own chiefs, all of them all value them continuously though informally the inferiors.

The performance management system between frameworks by agreement, on planned strategic, tactical, and operative aims and on levels founding, forward the device of the achievement of performances. The performance consists of related qualitative and quantitative elements with the fulfilment of tasks assigned by the result of activity and the organization always.

From the viewpoint of the firm the performance management a process, as which the firm’s leaders identify it on his row, the aims are set, what the single characters must make in order that the company’s strategic aims should come true how. Follows from this, that not only the individual one, but it is necessary to aim for increasing the organizational performance.

In our days the performance the part of an increase for a system in which the stimulation and system of allowance, the competence development is connected, and the quality assurance. Not chance, that many people deal with the organizations’ performance management inside a company for example: the single sections’ leaders, the human resources specialists, and inner and exterior management consultants. A separate section deals with all the performance management’s branches at bigger firms.

4. The Performance Management System as an Accurate Instrument

Individual assessment of two kinds exists beside each other formally in most organizations, the informal one and the formal one. The informal assessment builds upon the leaders’ thoughts, his opinions, since they believe it throughout always, which employee accomplishes it how the expectations. This assessment form but quite subjective, personal contacts, individual cultural tastes, different political views may deform it, to lean on this exclusively so not expedient. This may complement the formal assessment well, however, masks a complete system, that his help regularly (interval) and systematically, setting an objective standard verifiable the colleagues’ efficiency.

The performance management system it is necessary to respond to his fundamental questions at the time of his introduction already, like this not only it, that from a what kind of aim we apply the assessment, but, that who, what, with a what kind of method appreciate, what we consider a performance and how we communicate it.

The judgement of the leaders’ and the employees’ work is not only included in the more important general aims of the assessment but serves a basis to the distribution of the salary, serves concerning a basis to the promotion, relocation, a dismissal. The low one and the leaders with tall competence and employees identifies it, values the previous training programs and the previous workforce may authenticate it selection methods, techniques.

His working direct leader made the assessment of the individual performances exclusively quasi through many decades. You are the driving served separately one once two times with the inferiors in a year and revealed his opinion about the colleague’s performance. He confronted the expectations with the real output. The valued employee had an opportunity for the review of his opinion, the presentation of the circumstances naturally, the potential one expected him onto explaining a level.

Although the individual benchmarking happens based on actual index-numbers in most cases, generally cannot be let apart from attention (sure only on a sprint) the so-called one influencing the performance private factors – for example illness, close relative’s death – neither. It is not allowed to abuse the emotional intelligence requested of the leaders, i mean it is not possible to refer to privacy factors often.

The result of the benchmarking has many consequences. The payment, the bonuses, the professional development one is with being effective in a positive and negative sense among other things and onto the establishment of the promotion opportunities, and onto the performance objective of the next period. The result-oriented assessment important feedback for the employee. In as much from a scope of activities which can be measured well is a word, the performance assessment may happen exclusively based on the results, absolutely (for example income from sales), concerned on a relative manner (for example customers/clients’ index), you are compared to the requirements even (taking the results of a given time as a starting point).

On the homepage of the one of the biggest ERP developers we can see the most important 100 Critical People Analytics Questions. Interest continues to grow in how organizations quantify the financial and operational impact of investments in human capital, most notably in the recent trend toward more transparency in how publicly traded companies report their human capital metrics

The questions are the following:

  • What percentage of your operating expenses are invested in compensation and benefits?
  • Is the ROI on human capital increasing or decreasing?
  • In the last five years, has workforce productivity increased, decreased, or remained the same?
  • What is the average time to full productivity for new hires?
  • How does this vary among internal and external hires?
  • What is your revenue per employee, and how does it vary across your markets?
  • Is your efficiency – measured by profit per FTE – increasing or decreasing?
  • What percentage of poor performers become good or better performers within a year because of your individual development efforts?
  • What percentage of underperforming managers turn around their performance by the next review period?
  • What percentage of your critical roles are staffed with below-average performers?
  • What percentage of your managers did not have an employee promoted in the last two years?

Last, but not least, the question of the compensation and benefits. Recent trends point toward increasing transparency of how total reward programs are used to incentivize employee engagement, productivity, and behavior.

Accordingly, there is high demand for data on compensation and benefits, especially for senior executives concerned about rising pay-roll costs. However, your HR department should also address questions about how a total rewards program can facilitate faster or better execution of your business strategy. 

Table2: Main menu / HR module

Source: https://rizing.com/hcm/software-solutions/

4.1 The Evaluator

A person makes the assessment of the individual performances today mostly (about the new methods, the details come later), because of this not it doesn’t matter, that who is it evaluator. The performance evaluator’s selection depends on the aim of the assessment, the type of the conditions of the assessment between a quite complex task, many people, and his valued individual characteristics.

Let the evaluator be person who can have the inferior’s activity, his behavior in sight the best possibly, and not only his results, but is aware of his performance in his process. Obvious so, that the evaluator generally the direct superior.

This rule is not carved in stone, it is possible to choose it from a number additional solution because of this: the evaluator may be the employee himself (self-evaluation) but may express expert opinion on apart from the organization partner, you are a client being in a contact with the colleague even.

When the leaders and/you are HR, a section knows it punctually and communicates it towards the employees, what at the given firm the performance, how it is distributed, and we the good performance, it is necessary to publish the so-called kind criteria of the assessment then.

Certain scopes of activities but cannot be manifested easily the results, the aim is necessary to his achievement in this case behaviors, activities, concerned they the proportion of his incidence worthy to appreciate. It on the other hand, with abilities defined for the valued leader or an employee to behave according to the expected ones, habitus (intelligence, preparedness, commitment, etc.) must act. Like this with the assessment of the personality tickets can be judged the competence supply of the valued person, him being disposed towards work.

A scope of activities may not be number on his case shuts only one out from among the above assessment kind criteria to apply. It occurs often that the assessment happens based on more, an integrated kind criterion. The management and HR the organizations may choose from more individual benchmarking methods already today as the result of the fast development of a science and practice.

Techniques appreciating the individuals’ performance in himself so among other things (descriptor assessment, evaluative scales, etc.), and the comparative techniques (for example ranking). The self-evaluation, the behavior is applied often basis watch and assessment, the competence basis assessment, its employee and talked over assessment being based on an objective, the 360-degree between the leader feedback and assessment, and the evaluative centers. From among the abundant method and a technical arsenal worthy to emphasize the latter one two.

4.2 The New Method of the Appraise 

Most many companies apply it in our days, the so-called one 360-degree assessment method, which is quite time-consuming, little imply a subjective element at the same time. His essence it, that a person not only his chief, but all those (you are a part of all those) with who he has a working relationship are valued. For example, from the assessment of a sales colleague’s activity his chief asks an opinion, you are HR section from the sales department’s colleagues, so from the direct colleagues.

An opinion is asked of the companion classes’ colleagues likewise (marketing, financial affair, etc.), With who it is in a valued regular contact. but they are not left out the asked his row the exterior contacts (bank administrators, customers, potential magisterial contacts, etc.) neither.

Generally, the least ten inner and exterior opinions, assessment are being gathered in from the valued one, and the circle is closing with this (it is called 360-degree because of this). The direct leader arrived in from assessments then and/you are HR a section compiles the year assessment, which is talked over with the employee. This thorough and rather objective benchmarking technique takes up much time though (on a corporate level particularly), but is worth it, a lot dared laterally appreciates, gives an answer to many questions, and practically cannot be corroded. It provides safety, lucidity beside this appreciate for him

5. Summary and Inferences (Conclusion)

The organizational one and strategic KPI laying the foundations for efficiency further the definition of performance indicators being equal to a dimension that human one system, which ones the assessment, all of them all help it the control shirt tasks. These his help all inferences like that deductible and decision can be prepared, which one the human resources management to the operating of functions, to the planning his part which cannot be released already by today for an organization.

Summarized so the existence of the suitable information and informational systems, the corporate survival, and will turn into the key issue of market shares in the future, included the human resource management and it from within the assessment of the individual’s performance, let it be state even, even private property, since it is necessary to be valid between market circumstances on the suitable manner on the same one.

Two factors are analyzed mainly in connection with the corporate performance, the efficiency and the uneconomic. From these two factors many other performance indicators can be deduced. His totality provides an organization’s efficiency to the employees’ performance, so to the insurance of the efficient function essential the measurement of the single colleagues’ performance

Table 3:

Source: https://www.saponlinetutorials.com/what-is-sap-successfactors/

 

The good question, “How Does a Bank Achieve Growth Through HR Software?” The best example for this, the Greater Bank Ltd. in Hamilton, Australia. The bank managing 250,000 customers and US$4.2 billion in assets. The Greater Bank Ltd.’s vision is to be a true customer-empowered bank, where it is the customers who decide how they bank. Their mission is to help customers for generations to come. To achieve both, it had to effect cultural and technological changes that it knew could best be introduced through HR. But to be the critical driver of this comprehensive business transformation, HR had to be equipped to perform. Aware of this, Greater Bank was on the lookout for state-of-the-art HR software that could meet the challenge. It asked an outside firm to help to achieve this goal. The bank empowered its staff with dramatically higher compliance training through this program.

With system development – program launching – Greater Bank Ltd. was able to:

  • Increase training compliance from less than 65% with its previous learning management system to 90% within 3 months of implementing this IT-solution
  • Achieve 98% training compliance within 6 months of implementing this software
  • Enable employees to deliver on its vision of being a customer-empowered bank
  • Transform the business through an updated approach to performance management
  • Leverage integrated data to make informed strategic decisions
  • Offer easy-to-use software for employee use

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