Do you remember getting a candy drawn on our notebooks when we performed well?
Obviously, we do. Golden days!
We got a candy or any remark such as “Good” or “excellent”. It boosted our confidence among the whole class. That also helped the teachers to keep track of students who perform exceptionally.
Well, a few things don’t change at all. We used to get those remarks then and now we are the ones giving them to our employees.
As HR, performance management plays a significant role in our HR duties. We can call it the backbone of our business since we must ensure that the personal and professional goals of the employees and organization align.
But isn’t it too tedious to evaluate the performance of each employee manually? Why do we have technology for?
Well, the answer to this is HRMS.
Performance management is a process in which the employer monitors, evaluates, examines and communicates with employees to make sure that their performance is aligning with the companies’ expectations and goals.
In the process, the manager supervises the performance of an employee and communicates with them regularly to ensure they don’t face any issue that might hinder their performance.
This increases the overall performance and productivity of the employees.
Performance management is nothing but continuous communication between the manager and the employee established to make sure that the employee is working effectively and efficiently.
What else do we need performance management for? Let’s see.
- Ensure higher productivity: A performance Management system ensures that the employees are working thoroughly. This helps them to bring out their best and present themselves in a completely different manner. It enhances their confidence, increases productivity, reduces stress, and distributes the workload.
- Establish clear communication: Performance management allows the HR manager and the employee to establish clear communication between them. This helps the employers to introduce their expectations to the employees and vice versa.
- Align personal and professional goals: A good Performance Management system lets the employees align their personal goals with the organization’s. It allows them to grow personally while dedicating themselves to the company.
- Increased engagement: When a Performance Management system is processed, it encourages the employees to participate in putting their point of view. This increases the engagement of the employees.
- Continuous feedback: Feedback and surveys conducted to compute Performance Management help the employees to work on their weak areas. When a report is generated on performance evaluation, the employee knows what to do next.
Although there are numerous ways to evaluate the performance of an employee such as,
- Self-evaluation.
- Peer reviews.
- Feedback and surveys.
- Benchmarking.
- Performance indicators.
And much more! But what if I say that we already have an automated system that doesn’t require much hard work?
Cool, right?
Well, the good news is that we do have a system for it, and we call it the Performance Management System.
Performance Management System, abbreviated as, PMS, is an automated system that evaluates, computes, and monitors the performance of employees consistently. Technologies have made things easier for us.
We literally don’t have to do much manual effort to do anything today.
The Performance Management System is a collaborative and continuous processing system that works with employees and employers to meet their expectations and goals.
We need a proper Performance Management System to,
- Increase employee retention: A proper Performance Management System will ensure that the employees are recognized for their dedicated and devoted nature towards the job. This recognition will improve employee retention in the company.
- Evaluate accurate performance measures: Since the Performance Management System is a technological and consistent way of evaluating performance, it will ensure that the computation is highly accurate and unambiguous.
- Get regular feedback: Performance Management System generates regular reports about the performance of the employees. This helps the employers to know the employees who are working effectively, and it also helps the employees to know the areas they need improvement in.
- Ensure higher productivity: The Performance Management System ensures higher productivity as it sets the employee and employer expectations clearly. Ongoing feedback process allows the employee to get better with respect to their performance.
Human Resource Management System, abbreviated as HRMS, is the most sophisticated type of HR software known today. It is primarily used for storing employee data, payroll management, attendance tracking, training and development.
One another usage of HRMS is Performance Management.
HRMS plays an unavoidable role in measuring and computing the performance of an employee. These are:
- Data management: HRMS is a central system for maintaining all the essential employee data. This may involve their set of goals and expectations, feedback summaries, performance measures. Now, having access to the information, the HR manager can easily interpret the employees’ expectations from the organization.
- Clear objectives: HRMS allows the manager to set the performance metrics against which the performance of the employees will be measured and computed. Having KPIs (key Performance Metrics) helps the employer to know the accurate performance level of the employee.
- Regular performance evaluation: Using HRMS for employee performance can help the employer keep track of their performance. This will ensure that the growth measures are computed accurately since they can be an important aspect of their future success.
- Generating Report: HRMS simplifies the process of generating employee specific reports. It allows the employer to check the trend in the employee’s performance growth, necessary for creating a growth-specific report for them.
- Feedback and reviews: HRMS accelerate the process of conducting the feedback and review process. It helps the employers to send feedback forms to all the employees at once and collect them back on time for evaluation.
Let’s see what you should consider while buying a performance management system for your company:
- Organizational goals: While searching your performance software, always set your priority to the organizational goals.
- Complexity: The software shouldn’t be too complex to understand that it takes a lot of time, money and effort to make it a habit.
- Customization availability: Check if the software is customizable. This will ensure that apart from the general features you have software that meets the company needs.
- Budget friendly: One of the most important factors that supports the decision to buy an HRMS is the budget. Always create a layout for your HRMS along with the budget that you can afford.
Conclusion
In this fast-paced and competitive world where every day is a new challenge, you cannot stick to those traditional approaches to get your work done. A report by Deloitte shows that
The redesign of performance management is picking up speed: 79 percent of executives rate it a high priority, up from 71 percent three years ago, with 38 percent calling the problem “very important.”
This shows how important it is for us to learn and get our hands on new technologies as soon as they arrive. We need to change our style to stay strong in the industry.