Every organization wishes to become a high performing entity being performance is the true litmus test for survival in business and for that performance management system is put in place by HR. Then, why it happens that in spite of having a system, organization is not successful in developing a performance culture at workplace? The answer could be that the system was actually not of performance management but of performance evaluation only with ingredients of command and control. It does not help organizations to develop people as performers and a culture of performance at all levels but reduces to a mere tool of granting compensation, pay increases and promotions which are largely based on mathematical figures. It is incongruent with the values based, vision driven, mission oriented work environments. The present widely practiced PA system damages workplace trust, undermines harmony and fails to encourage personal best performance.
The management thinkers and HR professionals at global level have raised their concern and advocated for need of change in the present performance management system because according to research studies, 54% of the employees in India have felt that their company's performance management system was not effective. Such perception is likely to increase feeling of frustration that negatively affects their performance and defeats the whole purpose of setting up PMS.
Any effective PMS is composed of two components-process and people. While HR can develop processes, the challenge comes when other component that is people (manager) responsible for driving the whole system is not competent enough in people skills and derails the whole system by bringing the elements of bias, subjectivity and fear. The yearly event with focus on past weaknesses of employee can not bring development in performance. The system may not be bad in concept but certainly poor in execution. Building people management capabilities in managers is the key for success. We build system through some processes and think that it will also take care of skills of the person responsible of making it successful. Most probably, here we fail.
The time is to review PMS and revamp it by making it more effective and developmental. It has to move from competitive evaluation to coaching, development and recognition. It has to do away with forced rankings. Goals have to-be from output to quality. The system should discuss not only weaknesses but also strengths. We need not focus only on criticism but also on improvement. It has to move from past to future. Your PMS should support your objective to create a motivated, accountable, reliable, dedicated and contended workforce. Major goal is to create high performance organization with a workplace in which people can develop their full potential. The system should be where individual employee feels that it is about me and designed for me. It must find myriad ways to challenge employees to contribute their strengths more intelligently over time.
The cover feature of April 2014 issue is to find out what an effective PMS should have, what people skills are required to make it successful and what are the challenges HR may face in creating high performing culture from experts of the industry and academia like Dr. TV Rao, Dr. Aquil Busrai, Ms. Nandini Chawla, Ms. Smita Dash Sahoo, Mr. S.Varadarajan & Mr. Sujit Bose, Dr. Pallab Bandyopadhyay, Mr. Emmanuel David,Mr. Maurizio Morselli, Mr. Jaydeep H. Goswami, Mr. Indranil Banerjee & Dr. PVR Murthy.