Human resource is one of the most precious assets across contemporary organizations and companies. For this reason, enterprises have to invest on them to promote and improve their employees’ performance. An effective mechanism to develop corporate and human performance is to design and establish a system of performance management so that it improves employees’ performance by determining explicit organizational objectives and coordinating them with individual goals.
Current work aims to determine the impact of performance management on human resource performance across head offices of Agricultural Bank branches in Tehran (the main goal) and prioritize among performance management components and human resource performance components and also present some procedures to improve human performance using performance management components (sub-goals).
Data collection in this paper was conducted by questionnaires and through libraries and questionnaires were considered as data collection tools. To this respect, a questionnaire containing 30 items was designed based on five-point Likert scale and its validity and reliability were confirmed. Along with data analysis, statistical models including single-variable regression (to examine the impact of performance management on employees’ performance), multi-variable regression (to investigate the impact of performance management components on employees’ performance), Smirnov Kolmogorov (to address normalization of variables distribution) and Friedman (to rank variables) were used.
The results of current research showed that there is a positive and significant relationship between performance management and employees’ performance and also between performance management and components of employees’ performance at ?=0.01 and all research hypotheses were acknowledged. Finally, components of performance management and human performance were prioritized through Friedman test according to which in variable “performance management”, components “plan”, “do” and “check” respectively were from 1 to 3 ranks and in variable “human performance”, components “evaluation”, “incentive” and “clarity” were among rank 1 to 3, respectively.
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