People and Organizations: Principles and Practice in Global Contexts


Trends in Performance Management:
Performance management is currently become more important in the organization. Lot of organizations seeks to change, moderate & update its approach to performance management system in order to improve its effectiveness & efficiency. Performance management is the process of creating a work environment for an organization in which employees are enabled to perform well in their capacities. According to Radnor & McGuire (2004), there is a revolutionary process in performance management & its measurements during the past 02 decades.

Human Resources Department has a significant role in restructuring performance management systems for the organization. HR should develop the existing performance management systems of the organization identifying the shortcoming of the same in an eventually or replace with new system. Also HR needs support from all levels of staff members in the organization with a real involvement of identifying the current issues with existing performance system to establish a better performance management system.   
Trends in performance management:
There are some modern trends in performance management, which has been success in some organization.

Continuous feedback & coaching: To be effective the continues feedback & coaching of the staff is essential. As an example, NDB Bank has introduce a new Performance Development System (PDS) & obtained feedback of staff reviews of performance of each & every 06 months. It is very simplified & user-friendly system, that HR can get the feedback from the staff accurately & effectively.

Managing & setting of goals & objectives dynamically: Active goals & objectives based performance management system is a new trend, which helps employees & managers to focus on goals dynamically. In the event the assigned goals are changed the employees can reflect those changes in the goals & set new goals. In PDS system of NDB, employee can  see the percentage of goals achievement any time when the actual achievement is included in to the system. Then the employee can plan the future performance considering the gap between the actual & budgeted. 

Social learning: Organizations use comprehensive learning management systems to develop its employees to suite the present requirement of the organization while performing better.

Rewarding Performance: Rewarding employees transparently based only on performance is a modern trend. As an example recently introduced PDS by NDB in 2013, which has improved performance measurement metrics objectively & transparency. To ensure buy-in & transparency the PDS was developed through a bottom up approach with feedback obtained from employees at various levels. With long-term staff retention in mind, NDB Bank also reviewed & revamped the Bank’s Equity Linked Compensation Plan (ELCP) during 2013. As a result all members of staff, regardless of grade or gender, receive regular performance & career development reviews.


Conclusion:
The objective of performance measurement has changed over the past decades. Traditional performance systems based on productivity has been changed by the established organizations in today’s competitive global market. Rewarding staff with proper performance management system is not only enhanced his performance but also increased his or her motivation towards the work. Therefore, performance management is an effective system, which allows organization to achieve its goals. It is very clear that there is strong relation among performance systems, motivation& job satisfaction.

References:
Radnor & McGuire, (2004) "Performance management in the public sector: fact or fiction?” International Journal of Productivity and Performance Management, Vol. 53 Iss: 3, pp.245 – 260.

Brecher, D., Eerenstein, J., Farley, C., & Good, T. (2016). Is performance management performing? Washington, DC: Accenture Strategy.

Toppo, L., & Prusty, T. (2012). From performance appraisal to performance management. Journal of Business & Management.

Comments

  1. IshanJanuary 2, 2019 at 8:34 PM

    Briefing facts on trends of performance management is better & learning points are identical

    ReplyDelete
  2. Salitha BandaraJanuary 6, 2019 at 5:30 PM

    Good article! Very interesting to read

    ReplyDelete

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