Performance Management system for New Age Organizations – Part 1
Performance management system
The present performance management system shows that people have lost faith on the traditional pay-for-performance programs, HR driven performance appraisals and performance management in general. It is one of the relics of the past era that is surviving in many organizations, only because there is no alternative paradigm in place.
Why does a new age organization require a performance management system? let’s take a look !
- Many organizations find that their existing pay-for-performance process does not work well. It does not improve performance, and demotivates employees.
- Many organizations do not believe they have a good pay-for-performance process. In fact, many find these programs do not increase performance.
- Many employees find traditional performance reviews unfair and demotivating.
- Many managers and executives are not good at providing employees with high-quality, consistent and timely performance feedback.
- Social recognition programs help improve employee motivation and performance, while decreasing reliance solely on manager and executive feedback.
- Organizations will start to change their emphasis from top-down-driven, pay-for-performance programs to more bottom-up feedback, recognition and rewards.
- Most organizations have focused on automating existing documents and forms. Although some value has been delivered, in many respects, these solutions have just automated flaws that existed in paper-based approaches.
- Leading organizations will start to shift away from top-down, individually focused, pay for performance to more bottom-up feedback, recognition and rewards. In addition, parts of traditional talent management activities will effectively become crowd-sourced.
Therefore, new age organizations have motivated and better performing employees that increases the productivity of the organization. This is possible by the implementation of an effective performance management system.
Disclaimer : Gartner’s Excerpt report