Trends on Performance management
Today’s appraisal system has moved from the traditional annual appraisal systems. Companies have moved on to quarterly and some companies with weekly reviews. It has become highly competitive and the real world for the toughest is it for an individual or the corporate.
There are several critical success factors which are driving it. They are:
- Current cost of living.
- Low operating margins
- Skill sets
- Stock market
- Customer delight.
Be it an individual or a company of any size, these have become the drivers. In the whole momentum the teams/individuals are also expected to align themselves towards the common goal.
If an individual is able to keep his customer/partner content, he/she scores remarkably and deservedly. At the end of the day the organization needs ultimate bliss. Call of the day.
Today the overseas market has become so demanding on skill sets which are making companies to look at their employees very closely in terms of their outputs. Margins have become thin by virtue of the fact that overseas customer feel that organizations are deploying people with low skills and are learning at their cost. Hence the evaluation has become very tight.
The organizations are facing a few challenges in this initiative:
- Lack of alignment and commitment from employees
- High expectations, in spite of low skills.
- Market demand – low cost but high value.
The challenges lead to frequent reorganizations.
Another trend today is that companies identify on a quarterly basis the top ten performers, high risk employees and low performers.
High risk and top target benefited. Middle level performing people stay at their levels. The bottom 10% are either warned or shown the exit.
If you really look at the critical success factors coupled with the challenges, the change in trend has become mandatory.
On the whole it is no more an easy world. It is a life for people or organizations who can compete and are willing to put in their heart and soul, be it in the work place or in the family.
Values stand out. It is the world wherein people tend to compromise on ethics to take the short route and in the process pay for it in the long run. If one is ethical and has values, then the rewards are for sure though it may be long drawn. Better go for high hanging fruits rather than the low hanging ones, right?
There are innumerable living examples on this front. My friend often quotes Azim Premji of Wipro, Subhrato Bagchi if Mind Tree, Deepak Parekh of HDFC, etc as his role models on this front. How true!
In these organizations the change is a constant and lot efforts and money are spent in terms of employee alignment. It is tough but these individuals have exhibited time and again with their tremendous success. Amazing!
End of the day, unless a person is competent in his area of work, in this world one cannot survive with comfort. A harsh reality but it is the fact.
Performance has become the key to one’s success be it professional or personal.