Every organization wishes to become a high-performing entity since performance is the true litmus test for survival in business. For that reason, a performance management system is put in place by HR. Why does it happen that despite having a system, the organization is not successful in developing a performance culture in the workplace? The answer could be that the system was not actually about performance management but rather focused on performance evaluation only, with elements of command and control. This approach does not help organizations in developing individuals as performers or fostering a culture of performance at all levels; instead, it reduces to a mere tool for granting compensation, pay increases, and promotions, largely based on mathematical figures. Such a system is incongruent with values-based, vision-driven, and mission-oriented work environments. The present widely practiced performance appraisal (PA) system damages workplace trust, undermines harmony, and fails to encourage personal best performance.
Management thinkers and HR professionals globally have raised concerns and advocated for a need to change the current performance management system. Research studies indicate that 54% of employees in India feel that their company's performance management system is ineffective. This perception is likely to increase feelings of frustration, negatively affecting employee performance and defeating the purpose of setting up a performance management system.
An effective performance management system comprises two components: process and people. While HR can develop processes, the challenge arises when the other component, the people (managers) responsible for driving the system, lack competence in people skills. This inadequacy can derail the entire system by introducing elements of bias, subjectivity, and fear. The annual event focusing on employees' past weaknesses may not lead to performance development. The system might not be flawed in concept but is certainly deficient in execution. Building people management capabilities in managers is crucial for success. Often, we design systems through processes and assume they will also address the skills of the individuals responsible for their success. However, this approach often falls short.
The time has come to review and revamp the performance management system, making it more effective and developmental. The system should transition from competitive evaluation to coaching, development, and recognition; eliminate forced rankings; shift goals from output to quality; discuss strengths along with weaknesses; focus on improvement rather than just criticism; and move the focus from the past to the future. A successful performance management system should support the objective of creating a motivated, accountable, reliable, dedicated, and contented workforce. The primary goal is to establish a high-performance organization with a workplace where individuals can realize their full potential. The system should make each employee feel that it is tailored to them and designed to help them grow. It should find various ways to challenge employees to intelligently leverage their strengths over time.
From India, Delhi
Acknowledge(0)
Amend(0)
181Management thinkers and HR professionals globally have raised concerns and advocated for a need to change the current performance management system. Research studies indicate that 54% of employees in India feel that their company's performance management system is ineffective. This perception is likely to increase feelings of frustration, negatively affecting employee performance and defeating the purpose of setting up a performance management system.
An effective performance management system comprises two components: process and people. While HR can develop processes, the challenge arises when the other component, the people (managers) responsible for driving the system, lack competence in people skills. This inadequacy can derail the entire system by introducing elements of bias, subjectivity, and fear. The annual event focusing on employees' past weaknesses may not lead to performance development. The system might not be flawed in concept but is certainly deficient in execution. Building people management capabilities in managers is crucial for success. Often, we design systems through processes and assume they will also address the skills of the individuals responsible for their success. However, this approach often falls short.
The time has come to review and revamp the performance management system, making it more effective and developmental. The system should transition from competitive evaluation to coaching, development, and recognition; eliminate forced rankings; shift goals from output to quality; discuss strengths along with weaknesses; focus on improvement rather than just criticism; and move the focus from the past to the future. A successful performance management system should support the objective of creating a motivated, accountable, reliable, dedicated, and contented workforce. The primary goal is to establish a high-performance organization with a workplace where individuals can realize their full potential. The system should make each employee feel that it is tailored to them and designed to help them grow. It should find various ways to challenge employees to intelligently leverage their strengths over time.
From India, Delhi
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
Performance Management System.doc