Performance Management System in the near Future: A Quick Look

Performance Management System

The way performance management is conducted is undergoing drastic changes. It is no longer an event, but has developed into a process of dialogue between the management and the employee.

In present times, the need to understand employee satisfaction and motivation remains high, since employees (especially millennials) tend to switch jobs pretty often. Currently, it is about the way performance management is conducted is undergoing certain changes.

As retention and talent management remain a major concern for employers worldwide, organizations are working towards promoting a clearly defined performance management program in their business. Most organizations (globally) now have started including a description of their desired performance management culture, while defining their processes. What is pivotal to this is the need for an organizational culture that promotes transparency, collaboration, open dialogue and agility.

The Bell Curve system of performance management system has given way to new and a unique form of performance management system. This has been done because, it was observed that the Bell Curve system haven’t been successful completely. So, companies like Adobe, Deloitte, Microsoft and Accenture have come up with new ways of employee assessment.

Some of the key modifications within the performance management systems comprise the following:

Rating team members on manager’s own future actions with respect to the team members is also practiced in by few organizations. This solves certain issues related to practices like managers rating employees on the basis of emotional standards.

l setting is no longer an exercise but goals are being constantly reviewed, such as quarterly or half-yearly.

More frequent meetings between managers and employees for setting each other’s expectations clearly—what to give and what to expect.

What is being focused here is that, rating employees on absolute performance rather than using the bell curve system.

The Way Forward

With greater focus on continuous feedback, overall individual development, we are moving towards a more progressive way of assessing performance. In this ever-changing scenario certain practices have become more important and need to be overlooked. Some of these are mentioned below:

  1. Polishing feedback skills of managers:

    This point might come as a surprise, however, managers who provide feedback, need to work on their feedback giving skills. They also must understand that a feedback session must sound more like a two-way conversation between an employee and a manager. Organizations should provide proper guidance to manager, so as how to conduct a performance appraisal.

  2. Facilitating real time feedback:

    Organizations should use more mobile-friendly tools that help in facilitating providing real time feedback to employees. Offering 360 degree feedback helps employees understand how they are perceived and valued in the organization.

  3. Continuous recognition:

    Employees should always feel recognized and cared for. Management must consider recognizing and rewarding employees often. Rewards can be in any form – cash or kinds. As far as recognition, a simple word of praise in front of the entire team can do wonders. All these must be done in order to motivate them and ensure that they are happy. If employees are business will grow invariably.

As times are changing, so are workplace changing. Employers need to assure that they are able to retain employees. Therefore a change in the performance management is very much essential. With the implementation of new changes, the system of performance management will become much more accomplishing and better for both the parties, and ensure overall growth of the organizations.

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