Performance

Management
 Research shows that previous systems, such as yearly appraisals, are outdated and can
even serve to decrease employee engagement and motivation. In light of this, more
companies are turning to performance management than ever before
 Performance management is a strategic approach to creating and sustaining improved
performance in employees, leading to an increase in the effectiveness of companies.
 94% of employees would prefer their manager gives them feedback and development
opportunities in real-time, and 81% would prefer at least quarterly check-ins with their
manager, according to the Growth Divide Study.
 Studies show that employees do best with feedback on a monthly or quarterly basis, with
regular check-ins serving as a zone to problem solve, adjust goals as necessary, and to
refresh their focus on the goal
 Reviewing goals quarterly or more frequently are almost 50% more likely to have above-
average financial performance.

 Based on the survey results taken from internet done by multiple sources.

o 62% of employees feel that their performance review was incomplete

o 48% did not feel comfortable raising issues with their manager in between
performance reviews
o 61% feel that the process is outdated
o 74% feel that they would be more effective with more frequent feedback
o 68% of executives don’t learn about employee concerns until the performance
review
 When employee engagement increases Absenteeism, turnover, shrinkage, safety
incidents, patient safety incidents and defects in quality are lessened by at least 25%
 When organizations successfully engage their customers and their employees, they
experience a 240% boost in performance-related business outcomes compared with an
organization with neither engaged employees nor engaged customers.
 Deloitte’s Global HR Trends report shows that nearly 70% of organizations have started
to reinvent their performance management process.
 Modern performance management has progressed far beyond employee satisfaction, it
focuses on employee engagement and motivation because, highly motivated employees
are proved to be 125% more productive that those who are merely satisfied
 Organizations that provide continuous feedback have 14.9% lower turnover than other
businesses that offer annual appraisals

Based on the above following will be my suggestions which can be implemented:

 Since Performance Management plays a crucial role in the entire organizational

development, proper pre-defined Development driven Performance Management should
be incorporated as its used by 64% of companies.
 Following the trend set by companies like Google, Adobe, Facebook for their performance,
what I’ve learnt is they primarily focus on developing and training their managers for
success where their performance is directly impacted by how frequent they are checking
in with their subordinates and aiding them thus enabling a continuous synchronous
feedback system and allows them to set SMART Goals. This improves the performance of
all the employees and solves any issues before it becomes a problem.
 Simultaneously we may follow these for effective evaluation at the end of the cycle for
appraisal:
o As per the pre-defined performance cycle (monthly, quarterly, half yearly, and
annual), reviews are launched for employees.
o Once the performance cycle ends the employee should be given a task to complete
a self evaluation
o After employee self-evaluation, the review task is forwarded to managers where
they are prompted to submit their evaluation
o Both the manager and employee should meet to discuss and approve the
evaluation or send back to employee requesting for changes based on the
parameters
 One area where the employee has excelled well in annual performance
cycle review
 Two areas where they haven’t done good in it
 Three areas which can be included and exceled for the next performance
cycle
o If the review is approved, the manager awards an overall rating to the employee
o The rating awarded by the manager is sent to the employee for acknowledgement.
o Once the ratings are approved from both the employee & employer the final rating
will be forwarded to the HR team for processing
o Identify top performers and reward them properly
o Spot underperformers and trigger performance improvement plans