Transition In The Ways of Measuring Performance Management
“The value of achievement lies in the achieving”. — Albert Einstein
The management of employee’s performance is very significant for an organization’s success. It is very essential for individuals, teams, and organization to perform at their highest capabilities. It provides them with the energy to go on and achieve more.
However according to Mercer’s Global Performance Management Survey, where 1056 companies participated from 53 countries around the globe only 3% reported that their overall performance management delivers exceptional value. Companies with pay-for-performance philosophy-89% but companies that track and measure the alignment of ratings and compensation- 42%.
Performance Management has always received negative reviews. Despite its poor popularity, it can’t be ignored. But what is the reason behind it? Where is the gap? What does a modern employee want from its employer?
Today an employee wants more involvement, wants to be truly invested in, more accountability and more transparency.
Traditional performance management approaches are outdated. They fail to achieve what they were designed to do i.e. increase performance. Hence in order to survive in the market, organizations need to shift from traditional approaches to much more agile performance management approaches.
“A workplace filled with and driven by employees with positive attitude vibrates continually to the tune of service excellence and passionate team success”-Ty Howard
Regardless of the size, industry, and scale, companies have started to completely redesign their performance management system. They have started to create culture, structure, policies, and processes that fuel the employees to outperform the competition.
How Performance Management is evolving?
1) Top-down approach to collaborative approach:
In a top-down appraisal, the manager and employee typically meet in person to review the employee’s performance. The halo effect could appraisers to over-score an employee across the board because of a general liking for him. But now companies are adopting a better and a new approach. The new approach encourages people to collaboratively set expectations for the year, get feedback on a regular basis, and create a plan for growth and development.
2) Annual Event to Ongoing business process:
More and more organizations are deciding the so-called “bell curve” (of “normal distribution” of performance) is outdated. They are removing this “annual” appraisal event to a more formal real-time discussion. It enables the employees to adopt a continuous learning and development curve. The regular feedback given to employees will help enable them to identify through increased self-awareness how their own performance can be improved.
3) An inconsistent paper process to Automated Enterprisewide:
The old systems of performance management were very laborious resulting in piles of sheets and complex data. However, a technology-based performance management system can touch on many of the most vital HR areas — from goal setting to career development — to boost productivity, optimize compensation, and improve retention. Technology also lets managers track progress toward organizational goals and identify competency gaps that require attention.
4) A standalone process to Crowdsourcing:
One of the main appeals of the crowdsourcing is that the managers are not always in the best position to judge an individual’s performance and progress. So organizations have come up with a better way to resolve this issue i.e. to use “social recognition” and wisdom of peers to form a more reflective picture of performance in an innovative bottom-up approach.
The performance management system is still evolving and in the near future, one may expect a far more objective and transparent system.