Traditional performance management is always been a fear-based approach which emphasizes more negatives as compared to positives. While many aspects of modern performance management have helped reduce those challenges, others have created new ones. The guiding principle of traditional method has been individualistic whereas modern approach is organization oriented. The traditional method runs on an annual basis whereas modern method runs frequently. Traditional assessment was done by supervisor whereas modern method is self, and peer assessed.

Need for the Performance Management system (Challenges Faced):

  • Most of the times, employees tend to form an image or a certain perception about their peer employees. Hence, at the time of evaluation, these perceptions may blur the actual contribution of the employee and hamper his/her growth.
  • Sometimes, the assessments are not taken seriously which leads to a lack of interest of the employees in the evaluation process. Because of this the results turn out to be vague and not of much use.

These challenges to motivate employees and build an efficient evaluation system which gives actual picture of employee’s contribution to the organizations calls for a modern performance management system.


Modern Performance Management Techniques

1. Review Frequency

Frequency is an important factor for improving performance management. Employee performance needs to be discussed daily. When the corporation notices good work as well as better results, it should award that with a raise, promotion or bonus. When employees in the company receive consistent feedback about their performance, they are happy which can easily be felt from the smooth working of the company to the customer level. This can help the company grow at a constant rate. Bowness says that when managers have ongoing conversations with their employees, including real-time coaching and feedback, those employees become more engaged and connected.




2. Performance Management Software

Performance management can be made easy by using some trusted software build by companies working in the field of Performance Management to help extract the maximum out of their employees by finding best ways to increase the performance efficiency of the employees. With automation, corporate managers can do more to improve the performance in a shorter time as compared to earlier. Reviews should be considered for entire year with extremely personalized and distinct methods.

Enterprise Performance Management software is almost available to all companies irrespective of their sizes and is flexible enough. Also, a tool that includes peer-to-peer communication or group chats should be considered while choosing as they prevent employees from using other tools outside the company domain which are not audited and can cause security issues.


3. Implementation

What matters in any management system is how effectively it is being utilized and how seriously employees and other corporate leaders take it. Therefore, the most challenging and the most important part of developing the best performance management system is its successful implementation in the company. There are various aspects to implementation, but the most important is providing a user-friendly, value-added system that both managers and employees can use effectively.



4. Manager-Employee Relationship

Building and nurturing real relationships with employees work as a catalyst in the faster growth of the organization. When employees and managers sit apart from the conference table, they connect in terms of their mindsets, way of working and know about each other’s personalities better. All this leads to the final desired result required by the organization that the employees share the same goal and vision as their managers. This makes their coordination in work smoother and the employees are better able to figure out what the manager requires and Vice-versa.



These are some of the trends that are expected to disrupt the HR field with continuous innovation and technological advancements.

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