Performance management is still a foundational component of the talent management’s organization. Its’ general purpose is to improve and support a worker’s performance, and not just evaluate it. Performance management also represents all the processes that leaders and managers utilize to manage, reward, assess, lead and develop employees effectively and efficiently.
Well, at least that is the ideal definition of performance management.
The new Performance Management practices
However performance management has been addled by a lot of difficulties historically and that is why steps are being made to revolutionize the whole process. What used to be a once a year event, done towards the end of the fiscal year, is no longer the norm. Now, leading companies are handling performance management as an ongoing set of activities and events focused on employee development. There is now a greater emphasis on supporting the employees and helping them instead of just doing an evaluation at the end of the year.
The Important term to take note of is “Continuous”
A research done by Deloitte shows that companies that have an ongoing set of activities that focus on the development, giving support and help for their employees yield better talents, employees and business results than those who don’t.
Some examples of said activities that these organizations are implementing are managing and coaching, rewarding and recognizing, goal-setting and revising and development planning. Interspersed throughout all these are performance appraisal events that still put the focus on the employee’s overall development and performance.
Organizations that encourage their employees to continuously revise and review their goals throughout a quarterly (or more frequent) period, tend to yield a stronger performance both in business and finances for the company. These companies are also better at managing their expenses than those who do not employ such practices.
Another point made by the study is that the organizations who have effective managers in terms of teaching and coaching generally resulted in higher employee engagement and productivity. Not only that, having this sort of managers also gave way to better financial performance as well as customer satisfaction as compared to organizations with ineffective managers or coaches.
These revolutionary acts in performance management theory and thought can cause some important ripples in the workplace. Along with the continuous evolution to the process that has been discussed, it is also important to note that performance management has been leaning towards becoming more data-driven and does not rely on assumptions as was the case before.
The focus of performance management has also shifted greatly from mere appraisal to a more personalized approach in employee development. These changes in the process have also caused some changes to the technological aspect of performance management.
Suffice to say, technological solutions related to performance management should be able to support its rapid evolution.
Future-Proofing Performance Management
The question now is how to future-proof the performance management process in your organization. In order to do that, specifically in the technological aspect of things, you must consider the following:
- continuous learning
- mobile delivery
- functionality in coaching and management
Also, it is important to have the ability to track and ascertain goal completion and to give progress reports of your team as well, especially for HR professionals and managers. The modern set of performance management products usually provide easy to understand graphical and visual representations of data that are important to the decision-making processes of managers.
It is important to note that even the best and latest in technology will be of no use if the business practices of an organization is poor. As more and more thought and changes go into the evolution of performance management, it is highly recommended that you continuously invest time and effort into improving your business strategy and practices as well.
About Benjamin Goewey
Founder, President, and Principal Consultant of Datamensional, LLC.
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Ben has been passionate about providing actionable, relevant, and timely information for decision makers to help them make decisions more quickly and effectively and helping transform organizations as a result. He has been a Business Analytics and data guru for nearly 11 years and enjoys seeing the positive impact an effective solution can have on an organization.
Ben currently leads a team to bring the best practices of Business Analytics as well as hands on implementation to companies big and small.
Specialties: Performance Management, Analytics Strategy, System Architecture, Sales Management, Sales Analytics, Marketing Analytics, Business Intelligence, Reporting, Data Integration, IT Management, Data Warehousing, Management Decision Support, Dashboards, KPIs, Automation.