New trends on Performance Management



Sarmistha Roychowdhury,

                         Dy. General Manager HR-DCW Limited, 

In the current date optimization of resources is the need of the hour, optimization of workforce, adopting high-tech process into the current systems and enhancing employee productivity. Organizations are continuously crafting best practices at workplace, inventing, reinventing and re-engineering HR systems &process to meet the dead ends of the its existence failing would mean to clear road for competition.

Retrospect, traditional models of performance management process contained lot of restrictions and limitations. Yesteryears performance Management was focused on appraisals. The method impeded ongoing feedback and limited honest dialogue. There was no solid evidence that the process motivated people. Performance appraisals appeared to seek the negative as the tendency was to look for what is not working or to stress the weaknesses of the employee. The process was focused on the individual, rather than the system organization.

With evolution of market& globalization the role of transactional HR activities has cease to exist. The transformed HR has now moved to boardrooms playing critical role as HR business partner.

“What gets measured gets done but we should be very careful about what gets measured”. Albert Einstein reportedly had a sign on his office wall that stated: “Not everything that counts can be counted, and not everything that can be counted counts.” When it’s all said and done, we must make improvements—actual, tangible improvement—in our equipment and facility reliability and life cycle operating costs. Measurements and metrics will not do that alone.

The consciousness approach towards appraisal process to enhance performance of the organization realized, anchored to functions like strategic planning, goal-setting etc. through various tools of Performance management system as stated below

Development of role & mission statement.

  1. Establishing strategic goals/strategic plan.
  2. Defining key results areas.
  3. Establishing indicators or effectiveness, goals, or organizational objectives.
  4. Establishing, or negotiating individual employee objectives.
  5. Establishing performance standards for each objective.
  6. Action planning for each employee.
  7. Periodic measurement and assessment of status of each objective.
  8. Coaching/training to remediate deficits.

Within an MBO system the performance management process pertains to the management of individuals, beginning with the assignment of individual objectives through to the final, formal assessment process.

According to Bucky Couch, executive vice president of talent management Lumesse North America, while more organizations are working to unlock employee potential and improve performance, many remain naive or unable to put in place processes to engage their staff.

Few steps showcase new trends in employee performance management

Goal alignment not to be overlooked, implement & case goals:

  Alignment is more than just business language. If HR professionals and senior leaders, who work closely with them, achieve alignment, they can improve business performance and engage their people. An organization can map its strategy, and then convert that direction to actionable goals for every employee.

  • Make the connection between pay and performance: 

For organizations that make performance management a priority, connecting pay with employee performance is key. 

  • Hold managers accountable for developing their people: 

Although cascading goals and pay for performance can provide clear direction for the manager-employee conversation, a manager must step forward and lead. Employees want and need feedback, and true performance management can’t just be a once-a-year event. It has to be an ongoing conversation in the workplace, where managers focus less on telling employees how to get things done and more on offering advice about how to accomplish goals.

  • Develop goals based on financial metrics for all employees: 

Some organizations believe financial metrics are only relevant to senior managers or certain roles. Many find it challenging to establish financial metrics for most or all employees.

  • Monitor retention of top talent: 

The cost of turnover is often more than the price of recruitment, orienting, training and time to productivity. Retaining high-performing employees (HIPERs) and high-potential employees (HIPOs) will create organizational success. 

  • Integration: 

Integrated human resource management supports the long-term goals of the company through hiring, retention and improved employee appraisal activities. 

  • Automation: 

 The true value of automated HR functions is improved employee satisfaction, and better customer service. Employee inquiries can be answered quickly due to availability of immediate access to information in personnel files, and managers can see exactly when key performance evaluations are due. 

  • Integrated Assessment: 

Integrated computerized human resources systems allow your department managers to ensure each employee has met every training requirement through a variety of assessment methods.

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