TEAM PERFORMANCE:

Team performance is the process of evaluating the performance of an entire team, not just
an individual. Team performance evaluation is done to get a clear idea of how well the team's
skills are working together. It includes managing team members, motivating them and
providing feedback on their performance.

The purpose of this evaluation is to find out if the team can work together efficiently. The
process starts with setting individual goals for each member and then assigning tasks within
that goal. There should also be constant communication between management and their
employees during this process.
The evaluation can be done either by using a formal framework or informal assessment
methods like checklists, self-evaluation questionnaires and interviews with employees about
their opinion on the team's effectiveness.

HOW TO IMPROVE TEAM PERFORMANCE

1. COMMUNICATE THE COMPANY’S VISION, MISSION AND VALUES

2. TRAIN YOUR TEAM
3. DEFINE CLEAR BUSINESS OBJECTIVES
4. SCHEDULE FREQUENT MEETINGS
5. SET KEY PERFORMANCE INDICATORS
6. ENSURE TEAM COMMUNICATION
7. EVALUATE PROJECT PROGRESS

TEAM PERFORMANCE MANAGEMENT

Team performance management involves the recurring activities to establish

team goals, monitor progress toward the goals, and make adjustments to achieve
those goals more effectively and efficiently. From a systems perspective, the
overall goal of team performance management is to ensure that the team and all
of its members are working together in an optimum fashion to achieve the results
desired by the supervisor of the team. Team performance management is the act of ensuring
that, team performance is continuously improving, whether it's dividing the employee base
into groups, performing evaluation checks or setting diversified goals. Team performance
management involves returning to activities not only to evaluate how the team can perform
them better but also how each part of the team reacts to the goal, including leaders.

If the team performs as leaders expect, or better, management prepares team rewards and
progress instruction examples to help the team continue to perform well. For a system, the
goal of team management is to ensure each part of the process works together to achieve an
optimal goal. Team performance exercises have standardized settings, are repeatable and
aligned toward strategic methods of improvement, especially in a situation where a team may
be less efficient.
How to effectively lead team through PM

1. ensure that there is open team communication.

2. trainer teams to enhance team effectiveness.

3. ensure leadership provides direction to enhance team performance.

4. use team based performance appraisal to develop employees .

5. align team goals with organisation goals.

6. link rewards to learn performance

Common Problems with Performance Management / Issues in performance management

• Competencies/Skills gaps: Organisations are unaware of the skills gaps in individuals,

positions, or groups that they manage. As a result of this lack of awareness, managers
are often blind to the skills possessed by their employees, and those needed by the
organisation.

• Irregular performance activities: There is a lack of regular performance review and

management activity. As a result, organisations remain unaware of performance
issues festering or entrenched within the workforce – until the next scheduled
performance appraisal.

• Lack of Objective Assessment: Too often, employee performance is left to the

opinions of a manager. Needless to say, even the most effective manager’s objectivity
may be questioned if they deliver less than glowing evaluations.

• Irrelevant job descriptions: In most organisations, the job description is the primary
tool against which performance is measured and managed. With irrelevant or vague
job descriptions, employees are left guessing what their performance expectations
are, and managers struggle with managing those vague expectations.

• Inadequate feedback: It’s insufficient, as a performance management measure, to

only let employees know how well or poorly they perform. Feedback must not only
review and highlight performance gaps but must also include clear paths to
performance improvement.

• Inadequacy of formal appraisal systems: One issue with performance management

systems is that they are often too formal. These systems are inadequate because they
are typically scheduled as an annual or bi-annual process and often conducted using a
template/cookie cutter-based system. Over-reliance on solely formal appraisal
systems is often inadequate when it comes to timely and in-the-flow-of-work
 performance management.

• Absence of a “plan” for addressing below standard performance: Highlighting

performance gaps is of no value unless there’s a plan to address those gaps. Lack of a
performance improvement plan leads to a wasted performance management
opportunity.
Role of Top Managers in Performance Management

The top managers play a lead in the entire process by setting trends for the lower rung and
acting as role models for the employees. Their responsibility is to design policies which ensure
an efficient management of performance in an organization and to define and act upon the
core values relating to performance. Top management plays a vital role in convincing the line
managers that performance management can be instrumental in the achievement of business
goals and thus ensure that they take this aspect seriously in their work front for maximizing
employee satisfaction and productivity.

Top managers are expected to develop a high performance culture in an organization by

ensuring the following:

▪ By communicating an organization’s mission and values to its customers and

employees.
▪ By clearly defining the work expectations and communicating to everyone for ensuring
success in the achievement of business goals and facilitating an overall performance
improvement.
▪ By keeping the employees informed about their progress towards the achievement of
goals and suggesting corrective actions for non-achievement of performance.
▪ By establishing a shared belief amongst the employees regarding the importance of
continuous improvement in performance.

Role of Line Managers in Performance Management

The line managers or the front line management play a very crucial role in implementing and
enacting the HR policies. Hence, it is very important for the management to ensure that the
line managers possess a right attitude towards the performance management approaches
and equally possess the right competencies for executing it. The line managers mostly
consider the performance management process as a mere bureaucratic chore and hence they
consider it as a sheer waste of time. Some managers lack the required skills for reviewing the
performance of the employees, providing feedback and identifying objectives along with
them. These limitations can be overcome by adopting the following remedies:

▪ By providing leadership from the top.

 ▪ By communicating with the line managers about the importance of performance
management in driving successful results and how it is a part of their responsibility.
▪ By maintaining simplicity in the overall process of performance management.
▪ By reducing the pressure from the line managers by making the process an ongoing
one instead of an annual review.
▪ By involving the line managers in the design and development of the performance
management processes by representing them in pilot studies.

VIRTUAL TEAM

A virtual team (also known as a geographically dispersed team, distributed team, or remote
team) usually refers to a group of individuals who work together from different geographic
locations and rely on communication technology such as email, instant messaging, and video
or voice conferencing services in order to collaborate. The term can also refer to groups or
teams that work together asynchronously or across organizational levels. Powell, Piccoli and
Ives (2004) define virtual teams as "groups of geographically, organizationally and/or time
dispersed workers brought together by information and telecommunication technologies to
accomplish one or more organizational tasks.

Principles of Ethics in Performance Management

The key principles of ethical performance management are as follows:

• An ethical performance management system directs its employees to respect the

core values of the organization. Because the ethics practiced by the organization is
in conjunction with its environment. On the other side, the organization respects
its employees and provide good working environment so that they will generate
the result as per the potential.

• This system is designed to make transparency in its operation and all the parties
involved in performance management system respect each other’s needs, values,
and preoccupations.

• It emphasizes individual responsibility for personal decision making, behaviour,

and action rather than collective responsibility.

• This system put emphasis on employees respecting and actively considering the
ethical concerns and issues of all stakeholders, rather than focusing merely on
shareholders alone.
 • This seeks to build or change culture to a state in which the vision of the
organization includes its employees, its customers, and the society at large. The
values and norms of organization support employee’s decision making, behaviour,
and actions consistent with an ‘ethical’ vision.

• This system provide fair and free environment to its employees so that employees
can get the opportunity to scrutinize the basis upon which the important decisions
were made.

PERFORMANCE MANAGEMENT AND REWARD

Lockett (1992) had very rightly said that “the essence of performance management is the
development of the individuals with competence and commitment working towards the
achievement of shared and meaningful objectives within the organization. All this supports and
encourages the achievement.”
Performance Management is a process which is designed to improve organization team and
individual performance. It is a shared/participative process, an integrating process which is
based on agreements on accountability, measurement and review, feedbacks, development and
improvements on a continuous basis. In the present scenario, the biggest challenges before the
compensational reward system are to attract the right kind of human capital and to motivate
them to develop and perform in a way that increases shareholders value. The moment unless
their reward and compensation system accomplishes these two objectives, most organizations
cannot be affected in a highly competitive business environment. Just in case, simply spending
a large amount of money is not enough; the money must be spent in ways that attract, retain
and motivate the right people

COMPONENTS OF REWARD SYSTEM

The key components or elements of an organization’s reward system can be categorized as
follows:
1. Financial Reward
The financial rewards include direct monetary rewards in terms of cash for their work and
achievements. For example Salary, wages, incentives etc. given to the employees.
2. Non-financial Rewards

Behavioural scientists have been describing for the past 50 years that non-financial rewards is
critical which contains many of the reward components for improving workplace performance.
The non-financial rewards can be given in different forms which are as follows:
1. Enhanced Dignity and Satisfaction from Work Performed: - It is the least costly and one
of the most powerful rewards an organization can offer to an employee to recognize the person
as a useful and valuable contributor at the workplace. When this kind of recognition is given,
it leads to employee feelings of self-worth and pride in making a contribution. At the same
time, there are few people want simply to be given something. They have the personality who
would much prefer to know that through their own efforts, they have earned and deserved
rewards. Every compensation and non-compensation reward component used in organization
should carry with it the message. “We need you and appreciate your efforts.”

2. Enhance Physiological Health, Intellectual Growth and Emotional Maturity :- If the

organization is considering the number of hours a person spends on the job i.e. on travel to and
from the work site, and off the job in attempting to resolve job-related problems frequently
receive minimal attention until a serious problem occurs. Once this situation occurs, it overrides
all other employee concerns and activities. In present scenario, the modern health practices
recognize the direct relationship between the physiological health and intellectual and
emotional well-being of each individual.
3. Promote Constructive Social Relationships with Co-workers :- There is an old saying
that “One man is no man.” Although there are constant reminders of what one dedicated person
can achieve, there are even more reminders that one human alone is weak and however, with
concerted action, people can accomplish almost anything.
This is the world of extreme specialization where people need and rely on other people more
than ever. There is the opportunity to interact in a socially constructive manner with other
people is one of the most valued rewards gained from working to enjoy the comradeship of
workplace associates.
4. Design Jobs that Require Adequate Attention and Effort:- The jobs were designed so
that workers could be taught quickly how to perform a few highly repetitive tasks and workers
then were required to perform these few tasks for as long as they remained on the job. It is
proved to have serious drawbacks what first appeared to be an efficient way of melding human
resources with machine technology.
5. Allocate Sufficient Resources to Perform Work Assignments:- When the organization
requires employees to perform assignments for which they have neither the knowledge nor the
skills opens the door for problems. In this situation, not only is the organization likely to suffer
because of outcome failures but employee job-related interest and satisfaction are apt to break
down because of the likelihood or inevitability of failure. In these times, most employees seek
a sense of accomplishment from their work and they want some degree of challenge, but they
also want to feel reasonable, sure that they can succeed.

6. Grant Sufficient Control over the Jobs to Meet Personal Demands:- Behavioural
scientists have discussed the need to grant employees greater opportunity to participate in
organizational decision-making processes from the 1950s to the present time. The
organizations are composed of all kinds of people with all kinds of decision-making desires is
one problem with this participation concept. There are some people who simply want to be told
what to do, to be shown what is an acceptable level of performance, and then to be left alone
to do their jobs. At the same time, there are few people in every organisation want to tell top
management how to run the organization.
7. Offer Supportive Leadership and Management:- This dimension is very crucial and
difficult to separate from all other non-compensation rewards, but it is so important that it must
be recognized as a unique dimension of the non-compensation rewards and not just a
component of the other factors.

LINK PERFORMANCE WITH COMPENSATION

A performance appraisal system is often the link between rewards which the employees hope
to receive & their productivity. The linkage can be thought of as follows:
Productivity — Performance appraisal — Rewards

Performance-based compensation affirms the idea that there will be rise in pay for performance
accomplishments rather than for seniority.

Variable pay
Pay for performance linked with normal compensation is also known as variable performance-
linked to pay or contingent pay where a performance-oriented philosophy is followed.
The organizations do not guarantee additional or increased compensation simply for
completing another year of organizational service instead, pay and incentives reflect
performance differences among employees. The employees who perform will receive a larger
compensation increase but those who do not perform satisfactorily see little or no increase in
compensation.

Thus, there are employees who perform satisfactorily, advance in relation to market
compensation levels, whereas poor or marginal performers may fall behind. Along with this,
the bonuses are determined on the basis of individual, group, and/or organizational
performance. There are few organizations follow totally performance-oriented compensation
practices. However, in the midst of organizational restructuring occurring throughout many
industries, organizations look for compensation systems that break the entitlement mode and
even in the public sector, some organizations have recognized the need to shift toward more
performance-oriented reorganized compensation practices.
Whom to Reward

The rewards are symbols of appreciation and recognition and it reinforce what the organization
values and wants to be strengthened. Therefore, almost every one related to the organization
can be covered by the reward system.
Individual Employees: The individuals who were showing exceptional behaviour and high
performance should be rewarded and they are being rewarded by all organizations that follow
a reward system. The variable pay is one type of reward and probably about 20% of managers
are likely to get rewards.
Teams: It has been already stated that individuals work in teams, and the organizations need
strong, cohesive, competent and self-managed teams and therefore it is required that in future
more and more rewards should be given to teams. The teams need to be empowered by giving
more autonomy and resources to high performing teams.
Organization: Exceptional performance by the organization needs to be celebrated and
everyone belonging to the organization then has a sense of pride.

Outsiders: The customers, suppliers, vendors etc. can also be covered in the reward system.
What to Reward

It is obvious and proved that rewards are meant to reinforce desirable behaviour, high
performance, values etc. It is about whatever the organization wants to be strengthened and
promoted further and some of the following aspects can be rewarded; some of them are:
Performance: Employees performance needs to be rewarded; both of individuals and teams
and the criteria of performance excellence and their weightage may be already determined.
Organizational level: At the end of every year the organization have to declare profit, market
share, customer satisfaction, employee satisfaction, achievement index of one thrust area. They
should also celebrate exceptional events like new product launches, export awards, crossing a
significant milestone etc.
Unit/Department level: They should declare in advance the internal customer satisfaction,
innovations leading to efficiency, achievement-index-of one thrust area, quality, culture
building, team work, creativity, internal customer service, cost reduction, strategic initiatives,
etc. Any of these could also become annual thrust areas or some other thrust areas could be
declared by the organization or the unit/department.

Speed and efficiency: Ericsson Falcon Award is given for Speed and efficiency. The purpose
of this award is to promote a fast, urgent work pace with speed and efficiency. The Qualifiers
are: increase in efficiency; cost savings for the company; earnings/rewards for the company.
The demonstrated behaviours for the award are:
Exceeds timelines consistently, Completes projects in record time, Always withstands
pressures,
Does not wait for assignments, decides what is needed to be done, Respond promptly to
sudden/unexpected problems in own unit/department
Loyalty: When employees of Hughes Software complete their first year, they are presented a
watch; when they complete five year, they (and their families) are given a company paid
holiday. Ernst & young also reward people who stay in the company in considerable time.
THE KEY CHALLENGES OF EMPLOYEE REWARD SYSTEMS
Rewards not understood by people: - The employees in general are not aware of the process
that goes behind the plan, design and delivery of the Reward Programs. The same are also not
communicated adequately/effectively to the people, and the engagement/involvement of the
line managers are also not sought in the process either. As a result, HR is not able to either
articulate or maximize the value of such Rewards to its internal customers.

Rewards not linked to company’s business:-While planning and designing the Employee
Reward Programs, it is often found that HR actually works in isolation or at best with a only
few chosen stake holders who they are ‘comfortable’ with, and not in overall alignment with
the company’s goals (vision/mission) or its business strategies. The same results in a lack of
broad alignment between the employee needs and the employer’s top objectives.
Rewards not linked to employee performance: - More often than not, it is the ‘perception’
around the intent and efforts of employees, rather than the actual results or outcome delivered
that drive performance measures and the rewards associated with the same. Developing clear
expectations, creating a clear line of sight, setting achievable goals and establishing a credible
measurement system are some of the areas that such companies should focus on. Leading
industry research reveals that more than 80% of highly successful companies consistently
display certain common attributes like clear/common employee goals and performance based
rewards.
Rewards not linked to the job to be performed:-The absence of a proper Job Evaluation
System or well-designed Job Descriptions often fail to differentiate between the real job at
hand and its worth, as against loosely crafted designations/positions. The pitfall of the same is
an incorrect/inappropriate job mapping exercise with the equivalent market jobs, resulting in
‘orange to apple’ and not ‘orange to orange’ kind of job matches, and hence
incorrect/inappropriate worth/price linked to such jobs during the hiring of employees and their
annual salary reviews.

Rewards not linked to the labor market: - Those companies which do not track their
competition or compare their salary levels with the industry are always at a disadvantage of not
paying their employees Market level salaries, and hence losing out in talent attraction/talent
retention. It is always wise to get Market Salary Data periodically, and fresh custom surveys
providing real time data are the best options, as database study reports have their own
limitations.
Rewards not linked to individual employee needs:- Most of the time, the Employee Reward
Programs end up being flat and linear, in the name of standardization and equality. The
spectrum of rewards must be flexible/adaptable, as the motivational factors are different for
different groups of employees and their respective needs/purposes must be met. While ensuring
overall fairness and equity in the system, the way to go is ‘different strokes for different folks’.
Such companies will need to focus on building their internal capabilities, processes, tools and
data to address their Employee Reward Systems in a robust and scientific manner, and ensure
that fine balance between employee expectations and business needs for retaining that
competitive edge in today’s market place.

MEANING AND CONCEPT OF ETHICS

Ethics is a system or code of moral standards of a particular person, group or profession. Ethics
may be defined as the actions an individual take on himself to ensure his continued survival
across the dynamics. In essence, it deals with whether to perform certain kinds of action or not
in line with what is acceptable to the society as a whole. Therefore, ethics is the process of
deciding as to what is good for human beings.
“Ethics may be defined as a process whereby we choose between competing moral and/or
economic values.” Ethics is a process of rational thinking aimed at establishing ‘what values
to hold and when to hold them’.
Principles of Ethical Performance Management

1. An ethical performance management system directs its employees to respect the core values
of the organisation so that ethics practiced by the organization is in conjunction with its
environment. On the other side, the organization respects its employees and provide good
working environment.

2. An ethical performance management system is designed to make transparency in its

operation. All the parties involved in performance management system respect each other’s
needs, values, and preoccupations.
3. An ethical performance management emphasizes individual responsibility for personal
decision making, behaviour, and action rather than collective responsibility.
4. An ethical performance management system put emphasis on employees respecting and
actively considering the ethical concerns and issues of all stakeholders, rather than focusing
merely on shareholders alone.

5. An ethical performance management seeks to build or change culture to a state in which the
vision of the organization includes its employees, its customers, and the society at large. The
organization’s values and norms support employee’s decision making, behaviour, and actions
consistent with an ‘ethical’ vision. 6. An ethical performance management system provide fair
and free environment to its employees so that employees can get the opportunity to scrutinize
the basis upon which the important decisions were made.
Ethical issues and dilemmas/Realities of ethics in PM

1. Performance Appraisal: Performance appraisal lends itself to ethical issues. Assessment of

individual’s performance is based on observations and judgement. HR managers are expected
to observe the performance in order to judge its effectiveness. Often managers tend to rate those
employees highly whom they consider to be their loyalists. They inflate their performance
ratings and reward them for performance they have never exhibited, or perhaps could never
deliver. Such managerial unethical behaviours and actions have a detrimental effect on the rest
of the employees including performers.
2. Value Conflict: Every organisation has its own set of core values and the organisation
expects that its employees should honour and practice these values. On the other hand the
employees also have their own set of values and goals. They want follow their own value rather
than the organisation’s values.
3. Politics on Workplace: Workplace politics is the major concern in these days. According to
a survey it is estimated that 18 per cent of an administrator’s time is spent resolving conflicts
among employees. It states that use of such intentional behaviour is designed to acquire power
or to protect their self-interest.
4. Employee Engagement: Many talented employees’ shows dis-interest to their jobs. They
tried to maintain the minimum level of performance to hold on to their jobs. They spent their
times on other unnecessary activities.
5. Taking Unnecessary Credit: Many managers show their employees work as their own. They
take unnecessary credit of their employees work. These managers are either incompetent or
dislike to work, and manipulate their subordinate’s good work as their own. These kinds of
issues adversely impact the performance of employees.
6. Illegal and Unethical Practices: These kinds of activities include feudal treatment given to
employees, bribery, backstabbing, office politics, etc. All these activities affect the outcome of
performance management. According to a survey of Ernst and Young, India maintains
comparatively higher fraud levels at 42 per cent with global level of 27 per cent. Such unethical
managerial behaviour has a devastating impact on the morale, motivation, commitment, and
the performance of employees.
7. Multiple Loyalties: Many people feel an obligation to promote the interests of special groups
or friends. Loyalty is an ethical value. However, the primary loyalty is to the code of ethics and
the public good. The obligation can become unethical when it extends to making sure that a
special group or individual benefits at the expense of other groups.
Developing Code of Ethics/Ensuring Ethics in PM

The given below are the key guidelines to maintain an ethical performance management system
in the organisation.
1. HR Responsibility: HR professionals are responsible for adding value to their organisations
by developing HR functions. HR professional are responsible for maintaining the balance
between the performance improvement and ethical behaviour in the organisation. The HR
professionals shall act as ethics custodian for the organisation and train and develop human
resources for dealing effectively with relationship issues of morality, integrity, and honesty
with other stakeholders particularly customer, suppliers, and society at large.
2. Developing Standards: Human resource professionals must strive to meet the highest
standards of competence and ethics and keep abreast of organizational strategy, mission, and
objectives on a continuous and consistent basis. They must drive ethics training of top
managers and employees on a wide scale and educate them on the significance of ethics in
attaining high performance standards. Through performance management system, HR
professionals shall transmit ethics to employees, managers, and external stakeholders.
3. Ethical Leadership: Human resource professionals must exhibit individual leadership in
making performance management a truly business aligned, transparent, and credible
management endeavour. They should act as an ethics communicator for their organisations.

4. Fairness and Justice: There should be fairness and justice in respect of rewards and
recognitions for employee’s work achievements and their contribution in improving the
organisational competence and performance. Human resource professionals are ethically
responsible for promoting fairness and justice in the organisation. They must enable a culture
where ethical behaviour and action is a key performance criterion.

5. Conflict Management: Human resource professionals must safeguard the interest of all
stakeholders to eliminate the conflict arising between manager-employees, employer employee
and employees-organization on certain issues related to rewards and recognition etc.
6. Transferring Information: Human resource professionals should ensure truthfulness of
communication in respect of performance feedback and counselling and help top leadership in
taking informed personnel decision.

AUTOMATION IN PERFORMANCE MANAGEMENT

The secret behind an organisation achieving a greater level of success is its robust performance
management. It includes the various processes that it puts into place in order to measure and
reward the effort of its employees for meeting and exceeding the expected goals. The key to
your organisation outperforming your competitors is to improve the morale of your employees,
increase their overall productivity, and create a sense of loyalty amongst them through
performance management.

A performance management system is effective when it successfully establishes a genuine pay

for performance culture which helps to develop employee engagement. The pay for
performance process entails linking a company’s compensation process to the individual or
team performance by setting, measuring, and rewarding employees appropriately when they
achieve the performance benchmarks.

IMPROVING EXECUTION ASPECTS OF PERFORMANCE MANAGEMENT

1. Start slow, ideally with a single department. Try a new system driven by cascading goals
with one department or business function, such as IT or finance, rather than roll out the new
assessment process to everyone simultaneously. With that one function, note the key learnings
and adjust the new performance management system as needed before rolling it out to other
departments. By the time the entire company uses the new system, it should be working well.
2. Use technology, particularly for cascading goals. It should be easy to keep track of who’s
responsible for what. That doesn’t mean using a Google spreadsheet. Use a simple, intuitive
performance tool that offers broad visibility and easy access for everyone so that completing
or modifying a goal takes mere seconds. Ideally, you’ve also started with a department where
one or more midyear changes in objectives are likely, so this will give you the chance to test
out the technology in a fluid, real-world situation.

3. Apply what you learn with continuous performance management to end-of-year

reviews. If you’re going to use a system of continuous performance management, make sure
you leverage its power in the time and place where it truly counts – at end-of-year review
time. Use the system to inform and report employee evaluations, and compare the experience
with the review process the year before. How was it better and what were the deficiencies?

4. Keep it simple. Start with standard goal templates and then edit them to fit each department.
Many companies are looking for the same types of positive feedback, such as being a good
team player, good communicator, or effective project manager. Modern performance
management tools can provide goal templates that are already 80% complete, which makes the
process easier for everyone to adjust to and continue to use on a daily basis.
5. Listen to your people. Find out how everyone feels about the new system, from entry-level
employees all the way up to the executive level. Does continuous performance management
help people do their jobs better? Also look at the business. Does it perform better with people
more in touch with their goals on a rolling basis? Is retention stronger? Implement HR metrics
that tell the story of how the new system is performing.

6. Use technology to gain insights and identify issues early. Distracting or irrelevant topics
written or said during the performance management process aren’t helpful and can create
liability for the company. Implementing a legal scan feature will enable the performance review
system to flag certain words loaded in by the manager, particularly problematic terminology
that could lead to incomplete reviews or legal disputes down the line.
7. Start thinking ahead in terms of your broader ecosystem. Don’t just think about which
departments or functions you’re rolling out a supercharged performance management process
to next. Think about how you’re going to augment the performance management system with
other cloud-based applications to create a better overall experience, such as
incorporating learning and skilling solutions. This will allow you to make an improved
performance management process integral to a broader HR strategy that provides both a better
view of the organization and a better experience for people.
8. Train managers and employees alike to develop buy-in. Managers are the gatekeepers of
the new process. If they don’t buy into it and explain its value, employees won’t buy into it
either when the new system rolls out across the enterprise. Both managers and their people
must be able to incorporate the new system into their daily routines easily, as well as believe
in the value it will bring. That’s why executive sponsorship is critical as well.

9. Let the new process drive rewards and recognition. An effective performance assessment
system should leave no ambiguity in terms of how performance is linked to compensation or
recognition. And over time, HR should check if it’s being consistent with who is rewarded in
which ways and how often. The process must be fair for people to embrace it.

10. Always look for improvement. The performance review is never going to be
perfect, so look at the data and talk to people about what worked well for them and what
didn’t, then make adjustments accordingly. The more you work at improving the process, the
more motivated and engaged people are likely to become with both the system and their work.

AUTOMATION PROCESS/ BENEFITS

1. Organizational Alignment:- Automated employee performance management software
allows you to capture organizational, divisional and/or departmental goals in the tool, and make
them easily accessible to employees. Employees tangibly link their individual goals to higher
level organizational goals and document their incremental progress on goals. Supervisors can
then clearly see how employee goals are contributing to the organization's, and identify issues
at a glance. They can also effectively monitor progress on goals, up and down the reporting
chain. This allows you to be sure "the right people are working on the right things" and
supporting the organization's strategy. Effectively aligning employee goals with organizational
goals also tends to increase employee engagement and drive higher performance. It does this
by giving employees a clear context for their work and an understanding of their impact on the
organization.
2. Bench Strength and New Leadership:- Competencies (also called job skills) describe
"how" work should be done by employees, as opposed to "what" work should be done. To be
effective, they need to be at the heart of all your talent management programs. Here again,
automated systems can help. By listing job skills and their definitions in a centralized library,
you can ensure that all your talent management processes, from creating job requisitions, to
writing job descriptions, evaluating employee performance, creating learning and development
materials, and grooming employees for advancement and succession, use the same set of
competencies and work in concert to cultivate them in your employees.
3. Quality Employee Feedback:- To improve and succeed, employees need ongoing
feedback on their performance. Young people entering the manufacturing workforce especially
crave it. Employees need to know what they are doing well and where they can improve.
Automated employee performance management tools make it easier for supervisors to give
their employees feedback in a variety of ways. First, they make performance evaluations faster
and easier for managers to complete, so organizations typically see their participation rates rise
dramatically. This means more employees are getting the performance feedback they need.
Some solutions can even overcome the issue of computer accessibility for production floor
workers, by collecting their input and electronic signature during their performance review,
right from their supervisor’s workstation. Second, automated performance management tools
usually allow you to provide descriptions of ratings, especially for job skills, and force
supervisors to use a prescribed rating scale—helping to improve the consistency of ratings,
which results in employees perceiving the process to be fairer and taking the feedback and
ratings more seriously.

Finally, automated employee performance management tools usually offer supervisors sample
comment suggestions to use when writing feedback for an employee. They may even include
coaching and development tips. Receiving feedback on performance is a known contributor to
employee engagement.

4. Skills Training:- By setting clear goals for employees, communicating required

competencies and setting standards for high performance, automated employee performance
management tools allow supervisors and employees to better identify performance gaps. Some
tools allow managers to then access a catalog of available professional development activities
right from within the employee's performance evaluation, so they can assign appropriate
development activities while they're reviewing employee performance. Supervisors can even
track the completion of assigned development activities and measure the associated
improvement in employee performance, so they can easily verify that the skill gap has been
closed. This functionality is particularly helpful for addressing ISO 9001:2008 6.2 HR
compliance and reporting requirements. Automating your employee evaluation process also
allows you to identify and address critical skill gaps and talent requirements at an
organizational level. Reporting capabilities let you easily review competency ratings,
performance ratings for goals and overall ratings for an individual, a group or the entire
organization. This way, you can proactively identify trends, areas of strength and potential
organizational weaknesses, and put the right learning and development programs in place to
address them effectively.