Evolving performance management for post pandemic success

As we are heading to a highly unstable, more fragile economy, the organizations need to evolve performance management system to sustain in this VUCA economy. The circumstantial spontaneity, uncertainty, adoption of new virtual/hybrid methods of working, and the blurring of the walls between home and work demands a complete overhaul of existing performance review methods and processes. More than ever now is the time to ring in the changes concerning the performance management system across the levels within the organization. Unsurprisingly, next-generation performance management depends on digital monitoring and tracking platforms to generate real-time analytic insights.

What is a Performance Management System?

In this ever-changing world, it has now become imperative for top management of the organization to understand the significance of the Performance Management System. It comprises various vital HR functions like continuous progress review, real-time feedback, frequent communication, training employees for improving performance, recognizing good work, rewarding improved performance, goal-setting, etc. This is now not the sole responsibility of the HR Dept. anymore but should be considered as a key component in building a strong workforce essential for achieving business outcomes.

Constituents of Performance Management

Performance Management consist of two important elements:

  • Process – It articulates the Organization’s strategy and how it is linked to the organization Structure, performance measures, review system, etc. It includes strategy formulation & implementation through the process of Strategy planning and evolving Thrust Areas at a higher level for the organization to head.
  • Information System – It encompasses and incorporates information about the external environment and information relating to the internal operations of the organization.

That is how we ensure, organizations are able to succeed as an organization of tomorrow.

Benefits of an Effective PMS

Performance Management facilitates the effective delivery of strategic and operational goals. Some of the tangible benefits that may accrue to any organization having the PMS are:

  • Improved employee engagement with continuous and timely feedback to help them grow professionally
  • Helps in achieving desired business goals
  • Higher sales growth and lowers the cost
  • Improved Ontime deliveries and Management control
  • Improved processes resulting in transparency within the system
  • Improved decision making & implementation
  • Providing maximum opportunities for career growth.
  • Establishing clear performance objectives by facilitating an open communication and a joint dialogue.
  • Helps in accessing employees career path with respect to its profile
  • Helps in dealing with troublesome employees without resorting to terminating their employment.
  • Tracks organization’s goals which leads to improved productivity.

Our Approach towards Performance Management System

It is a well-articulated process that goes through various stages

  • Stage 1: Prepare

    Our team of PMS experts understands your purpose, goals, and objectives to set the stage for a Performance Management System.

  • Stage 2: Develop

    We develop a system with a clear focus on Business requirements.

  • Stage 3: Orient

    This stage involves orienting and training key stakeholders / PMS Champions.

  • Stage 4: Handhold

    Our team provides support and guidance for implementation of the System.

Few interesting facts about Modern Performance Management Systems

  • 80% of the rising generation wants instant gratification rather than a formal review: They prefer to be awarded when the work is done rather than waiting for 12 months for annual review. The duration between them is really long and makes half of the people forget about it.
  • 90% of performance reviews are mentally exhausted: A person starts to doubt itself when the results only depend upon recent activities. According to research, when a person is not understood in the workplace it demovates them and impacts its brain function.
  • Performance reviews satisfactory are for only 5% of HR leadership : In actual fact, 95% of managers are displeased with long-established performance management customs.
  • 51% of employees are of the opinion that annual reviews are grossly inaccurate: Considering the preponderance of events that occur within a space of 6 months to a year, it may not be out of place to say annual reviews may be irrelevant in this regard.

Hence, performance management system is used throughout the year to help enhance communication and documentation between employees and managers. It helps the organization to achieve the set goals and helps to improve the skills of all the employees.

Engage and inspire performance excellence in your people to achieve the results that matter to your business. NamanHR can show you the way.

Client Success Stories


What are the components of a performance management system?

Most people make the mistake of addressing performance management as performance appraisal. In reality, the performance management system is much bigger and of more value than a performance appraisal. The components of an effective performance management system include:

  • Performance Planning (may include employee objective or goal setting)
  • Performance Diagnosis and Coaching
  • Data Gathering, Observation and Documentation
  • Performance Appraisal Meetings
  • Ongoing Performance Communication

What is Performance Appraisal?

A performance appraisal is usually conducted annually, semi-annually or quarterly. It reviews an employee’s job performance and contribution to a company. Also, a performance appraisal evaluates an employee’s achievements, skills and growth, or lack thereof. Most companies use performance appraisals to give employees feedback and also to make increment, bonuses and termination decisions.