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August 24, 2026Journal of Monetary Economics and Management

The Key Performance Indicator (KPI) System as a Tool for Improving the Efficiency of the Personnel Management System

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Authors

AGAminat Gamzatova

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Overview

Conceptual analysis demonstrates the strategic utility of key performance indicators in human resource management, highlighting essential implementation practices and common operational pitfalls.

Key Points

  • Examine the function of Key Performance Indicator (KPI) frameworks in optimizing the efficiency and strategic alignment of personnel management systems.
  • Comparative analysis between traditional performance appraisal methods and KPI-based evaluation frameworks.
  • Identification of core HR performance dimensions, SMART criteria alignment, and integration pathways with compensation and incentive structures.
  • KPI frameworks improve organizational efficiency by cascading strategic objectives into specific metrics across recruitment, staff turnover, development, satisfaction, and HR economic return.
  • Effective implementation relies on aligning metrics with compensation while avoiding systemic pitfalls, such as metric proliferation, excessive financial bias, inflexibility, and low staff engagement.

Cite This Study

Aminat Gamzatova (2026) studied this question.

synapsesocial.com/papers/6a8c23d1bca056c88e6dfddbhttps://doi.org/10.26118/2782-4586-2026-464-469
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