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Redefining the Performance Management Model, ETHRWorld |

<p>Chandra Kumar CS, Head - Team Transformation, Varthana Finance</p>
Chandra Kumar CS, Head – Team Transformation, Varthana Finance

By Chandra Kumar CS

Performance management is one of the key responsibilities the HR function shoulders in an organization. This process drives productivity, talent density, retention, and engagement. Performance management systems (PMS) have evolved over the years. The traditional PMS was more of an annual activity to differentiate the performance of employees and fit them on a bell curve to manage the compensation revision and promotion requirements. The process further transformed to capture annual goals, interim reviews, and feedback systems. This added objectivity and clarity to the process as it became frequent.

HR teams have developed processes and automated systems to drive performance management to capture goals, manage interim reviews, and the annual appraisal process. Even so, these changes were not enough to satisfy the organization’s requirements or the employee experience. The process of normalization created disengagement forcing some organizations to get rid of the bell curve model to manage employee morale. To effectively manage 21st-century businesses, PMS needs to be seriously reconsidered in light of the impact of VUCA, talent culture, and the agility required in the business environment.Designing the next-gen PMS

The designing process essentially begins with understanding the expectations of various stakeholders involved — the organization,…

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