In today’s scenario, the functional role of HR has undergone massive changes. The traditional way of performance monitoring is outdated & no longer works. Organizations started to implement a new way of evaluating employee performances. HR works towards the improvement of the employees and facilitates them in organizational planning. Driving a high-performance culture comes from what kind of business strategy you follow.
Performance management is the standardized process by improving the performance of the individuals by which an organization’s performance will be improved.
Reasons performance management systems fail
- 12month or annual goals never work. Some workers work on a month or 1-week goal. Annual performance reviews fail under this scenario which is irrelevant & too rigid.
- Traditional rating systems cause less employee engagement which leads to employee turnover. Companies want managers to talk to their teams 3 or 4 times a year
- Conventional performance systems create competition & hurting the collaboration
Need for performance management system
Performance management is a continuous process it is not limited to yearly reviews and meetings.
- By efficiently managing performance management, it plays an important tool in employee development and motivation. A well-planned track, assessment, reward system, and feedback management can drive the best results.
- Effective performance management doesn’t require expensive software or tool, it contains various tracking mechanisms allowing managers to monitor & spot and address the issue immediately.
- It makes an employee feel respected and motivated. According to a recent study, 96% of employees would like to receive feedback regularly may either positive or negative. It promotes the low performers to correct them.
- It improves both individual and team performances. The review process should be an inherent part of the employment activity in the organization.
- Performance appraisal is not always the financial reward. It can be more paid leaves, adding the responsibilities, more development opportunities, or casual verbal recognition of their good work.
- Developing employee performance plans which include performance indicators and key result areas.
- Continuous review for delivery of performance and frequent communication.
- Comparing the performance standards with predefined benchmarks.
- Promoting employee developmental programs and rewarding systems.
The performance management system is the proactive method of engaging employees and boosting them. Its importance still grows shortly in all the organizations. To keep everyone happy in the workplace and improve the company’s profitability, a great performance management system is an inevitable one.