Performance Management System: The key to unlocking success in 2022!
How inculcating correct methods of performance management systems can help in the establishment of effective performance appraisal in organisations.
In the era of Great Resignation, the word which is outspoken by many organisations is performance
management. Organisations need a regular review of an employee’s job performance and overall contribution to evaluate an employee’s skills, achievements, and growth, or lack thereof. This process helps organisations to give employees a big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. This analysis can be performed at specific time intervals as well as be a continuous ongoing process to make it more effective in this ever-changing business landscape.
Before getting onto this article, check out the different types of performance management systems and their purpose to better understand it’s growing need in 2022!
Why is Performance Management System a boon in 2022?
In the year 2022, where organisations are trekking the mountains of success to strive in the post-
pandemic era, performance management gives organisations the control to analyse their employee’s individual contributions to achieve the desired goal. This is not only limited to analysis but also helps
them in the following ways:
1. Measuring & Rewarding Employee Performance.
Performance appraisals are often performed as a way to reward employees who have a record of
working hard or going beyond the call of duty. When job performance is tracked and measured,
deserving employees can be recognised with rewards like higher pay and bonuses which give them
additional motivation to work hard and perform better in the upcoming quarter.
2. Amplify your team's strengths
Performance appraisal can be utilised for the development purposes of the employees. Performance
management analysis helps in providing the data which can guide employees to improve their
performance in areas that need work and where they are lagging behind. A personal development plan
can be designed to establish development goals and outline practical ways to enhance job performance over a period of time.
3. Better fit for the position
In this technophile world where Artificial intelligence is becoming our new colleagues at work, it is
immensely important for organisations to conduct performance management analysis for performance appraisal. While doing so, organisations can understand the mindset and skills of their employees regarding their adaptability towards new technologies. This will give managers a clear and concise plan to implement the desired technology and also will help them to understand which employee can outshine with these responsibilities and set a goal.
Organisations can only achieve these key advantages of managing performance when the correct
methods are assigned by the HR leaders. It is immensely important to apply the correct and customised method in their organisation to yield the best results out of this. As the workspace is now divided into virtual and physical spaces, HR managers are scratching their heads to identify the correct methods to provide best performance appraisal in this era. The following are some of the methods which can be applied in this ever-changing business world.
Methods of the measuring performance
1. Objective oriented
In this method of measuring performance,managers and employees together identify, organise, and
plan the objective to be focused during the performance appraisal period. At the end of the review
period, employees are judged by the objective achieved during this time interval. Employees who
succeed in accomplishing the objectives are rewarded with incentives, promotions and hikes in their
salaries. This process usually lays more stress on tangible goals and intangible aspects like interpersonal skills, commitment, etc. are often brushed under the rug.
Did you know?
Hewlett-Packard, Xerox and Intel are the top organisations to implement this method for performance appraisal.
2. BARS: The numerical rating.
Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative benefits in a performance appraisal process. BARS compares the employees performance on the different levels and gives them numerical ratings. The BAR scale consists of different statements that employees answer to help analyse the common behaviours that an employee routinely exhibits. These statements act as a yardstick to measure an individual’s performance against predetermined standards that are applicable to their role and job level. Engage and inspire performance excellence in your people with this technique by speaking to our experts now!
Did you know?
BARS is used by customer care units of telecom operators, banks, car rental service companies that deal with the public directly. This method is used by these organisations as they already have predefined numeric values which can be used to compare the performance of employees.
3. Determine their future performance:
In this psychological appraisal method, the hidden potential of employees are determined. This method focuses on analysing the employee’s future performance rather than analysing their past work. The top seven components of an employee’s performance such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits, emotional quotient can be determined using this approach. Qualified psychologists conduct a variety of tests (in-depth interviews, psychological tests, discussions, and more) to assess an employee effectively.
Did you know?
Ford motors, Exxon Mobil, Procter & Gamble use psychological appraisals to test the personality and performance of their employees.
Choosing the right performance appraisal method is more critical than ever since it reflects what you
think of your employees and how much you care about employee morale. Once you’ve found an ideal
performance review method for your needs, the next step is implementing it properly to eliminate
critical performance gaps and address pressing issues that impact ROI. To find a customised
performance management system visit our website.