Performance Management System is the process through which a work environment or system is created which enables the employees of an organization to perform according to the best of their abilities and to ensure that the organizational goals and objectives are consistently met. Performance Management involves the way managers evaluate workers, how workers evaluate their managers and fellow employees, and how individual employees evaluate themselves.
There are three main reasons behind performance management
Fixing Accountability for Performance It can be done by identifying, promoting and rewarding exceptional performers and managing poor performers.
Development of Workforce Abilities This can be achieved by enhancing skills, emphasizing desired behaviours, driving a growth mindset.
Engagement of Talent Finally through both of the above, enabling a sense of purpose and helping people find a sense of value in their work and fostering teamwork.
Nowadays there is a lot of hype around performance management. Organisations are realizing the importance of a hybrid approach balancing accountability and development. Feedback needs to be ingrained in daily work and reviews for it to be continuous, consistent and relevant. But that does not lessen the importance of formal periodic reviews of performance.
Feedback conversations should focus on performance and future course of action needed for growth.
It is necessary to identify the exceptional as well as poor performers. It is also imperative to focus on team collaboration, innovation and results.
Lastly companies need to have an effective reward system in place to acknowledge superior performers.
In spite of all the above, there is no perfect performance management design or system. Each organization has to develop an approach attuned to its business conditions and organizational structures. Even within a company, there is a need for customization based on different talent pools, nature of work and what are the desirable employee behaviors. A performance management framework design needs to keep the employees and teams at the center and be designed around what really drives performance. 11th January 2018 From India, undefined