Traditional performance management which remains in place in many enterprises follows a series of definite annual steps that take place outside the day-to-day employee-manager relationship. Goal setting, assessing, and rewarding are the three major steps of this practice. It is set to establish a high-performance organization by evaluating employees on whether they achieved their annual goals.
Though this type of performance evaluation sounds like a fine and fair meritocracy, it has got some drawbacks. The major problem is that the goals are set and are rarely updated, and the other is infrequent and inconsistent performance feedback. When the assessment time arrives, employees will have little knowledge of their performance to date.
However, with the increase in technology and adoption of automated performance management solutions, organizations are trying to update performance management to make it more relevant. They are focusing less on assessments and more on training and development. This new approach is operated under the concept that performance is improved through a series of ongoing activities which are the part of the very frame of manager-employee relationship. The new process includes goal-settings and regular discussion of goals, development assessment as a part of regular check-in, and recognizing and rewarding top performers on a weekly, monthly, and yearly basis. This type of performance management could also have a powerful impact on employee retention.
The new approach helps develop employees to their fullest potential through regular training and development. Also ongoing development is much more important for business success. With this method employees will have a clear understanding on the connection between team goals and the company’s goals and how their work connects to it.
Performance management software offers advanced strategies that help you create a high-performance organization which is firmly aligned with business strategy and culture.