Performance management is not just setting up key result indicators at the beginning of the appraisal cycle and end with rating and subsequent bonuses. It should start with an understanding of how corporate goals are translated to each employee’s KRIs. The result of this process should ideally provide high visibility into the company’s current capabilities and thus set and fine-tune other talent management activities. By analyzing past performance, organizations can understand how they are continuously improving their capabilities to perform, and also identify top performers and potential successors to critical positions.
Performance assessment is not a one-time activity. Organizations should record performance observations and feedback on a regular basis whenever required. Goals and objectives may also change with the change in roles, past successes, and failures. The process should reflect the performance status of employees at that particular time.
In a multidimensional workplace employees work on different projects and their performance needs to be appraised by more than one manager. The goals and objectives are more dynamic; they change as the employees move between projects and teams. The goals should be defined by different projects and rated by the respective project managers.
Organizations should practice 360 degree appraisal process in which the employees get their appraisals done by the ecosystem that they work in. This process does not have to include only the supervisors, peers, and subordinates. It can also include any party (customers and other business partners) that works with the employees towards significant and meaningful goals.
Sophisticated HR software effectively manages your performance management process by fulfilling all these considerations. The software solution reflects, as closely as possible, the requirements and dynamics of the company’s performance management process.