Performance Management System: A Global Perspective
Performance management is viewed as a system originally curated to ensure better communication between the employees and the employers, such that the employer is rightly able to reciprocate the employees’ inputs. Performance management can, unarguably, be called an issue of prime importance because it targets the most valuable asset of the organization i.e. the human capital. Owing to globalization, digitalization of performance management needs a shift from conventionally practiced annual rating system to innovative and hybrid frameworks in order to reap maximum benefits and ensure competitive gains.
Performance management is, undoubtedly, the essential pre-requisite, beneath and behind some of the most important elements of an organization such as talent management, remuneration, performance feedback and improvement, career growth, employee satisfaction and engagement. Perhaps the biggest hurdle in the way of efficient performance management is the fact that human beings are prone to subjective judgment due to biases when evaluating performance. To address this, many HR leaders stress the need of regularizing and making performance management an organic process. Organizations typically expect their performance management system to drive business objectives, while only a few approach their performance process with a view to drive creativity or recognize team contribution.
Today, bridging the gap between subjectivity and objectivity in performance management remains one of the elemental challenges. The path to revolutionizing performance management encounters this very paradox. For a situation like this, a contemporary problem must be met with an unprecedented solution instead of reminiscing chapters of the past.
In this insight we will try to explore different performance management frameworks and some of the mental shifts that could accelerate the revolution in performance management.