Performance management, monitoring & evaluation holds deep and valuable importance for an employee. This is especially true for a multinational company. It consistently gives motivation to an employee to improve his/her performances. At the same time, while keeping a self-track of previous records and activities. It also develops in an employee the skills and attributes of self-management. Furthermore, also includes personal development. Also holds elements of personality development, time management and conflict management. All entities that are highly significant for an employee to move higher up in the hierarchies. Employee performance management is not only good for an employee’s career prospects. But, also is integral in terms of the development strategies for the company.
Career management strategies always brings employee towards improving their performances. Furthermore, to be an asset for the company in which they are working. They demonstrate the attitudes of employees in terms of time management and dealing with co-workers. On top of this, peers and handling issues while coming up with solutions. The various different KPI’s or Key Performance Indicators that are adopted by different companies for assessing employee behaviours always play a positive role in their nurturing. It’s the attitude of bigger companies and MNC’s, that they not only know how to use an employee’s potential. But, they are also well equipped to deal with the weaknesses and improvise the strengths of employees while training them. All these training & development activities are also part of the performance management goals. In addition to this, targets made for employees. In small and medium sized companies these are things that can help the company move up the ladder. Furthermore, grow along with their employees. Attitudes and behaviours always matter for sustainable results in the future.
HELPS IN RETENTION OF TALENT & TALENT MANAGEMENT:
The talent management is a key aspect in a company regards to the retention strategies. In performance management the importance of retention strategies holds most stars. As it is the motive of the company to retain the best talent and skills in their company. Hence, as part of a good investment strategy. Why you are important for the company? A question you should keep asking yourself as an employee. Ironically, would also help in performance management and monitoring. The higher management and the HR is always looking for people like these who are determined enough. Further, they keep asking themselves why they are a key for their organisational goals.
Investing in people is not that easy as it needs skills to work out the talent and abilities of an employee. It is vital for an investor to know the ups and downs of an investment. This is irrespective of it being an investment in ‘work force’ or in terms of ‘intellectual property’.
KEEPS EMPLOYEES ENGAGED & ACTIVE:
Something that motivates employees from the inside to take the challenges and start acting as an active member of a company. Employee engagement is the biggest focus of the management team. Furthermore, strategies needs to be worked out to keep employees engaged with activities of self-development. Hence, as well as working for the goals of the firm.
According to a survey based on results from a MNC in Canada 91.5% of employees would prefer their managers give them feedback. Furthermore, the development opportunities in real time. While the same survey revealed that 82% would prefer a feedback that is quarterly. This surely means that a huge number of employees are interested in their performance management. Hence, along with the day-to-day organisational goals that they are achieving. Some of the employees in a company having dis-satisfaction regards to their appraisal methods took part in a survey in an American Pharma company. 65% of the employees felt that their performance review was incomplete & missing somewhere. 61% have feelings for the process being outdated. While 51% were uncomfortable and raising issues with their managers in between the reviews. However, in the same survey, a massive 75% felt that they should be more effective with much more frequent feedback. Finally, 67% of the executives in the survey don’t learn about employee concerns until the performance review.
PERFORMANCE APPRAISALS IS DIFFERENT FROM PERFORMANCE MANAGEMENT:
The performance appraisal that is pay rise, increments, incentives and perks have nothing to do with performance management. However, the appraisal has some dependencies on the performance management activities in place in a company. The performance management is considered in most companies as being a proactive approach. Obviously, adopted and custom made for the sake of employees. While the performance appraisal is more or less a reactive approach. The motive in performance management is to look forward. While, performance appraisal is dependent on strategies of backward looking, i.e. on basis of previous appraisals. In most organisational cultures performance management is a flexible strategy that is consistently ongoing. While performance appraisal is found to be a rigid operational strategy. Ironically, that has a frequency of once in a year, dependent on company to company.
THE BENEFITS OF PERFORMANCE MANAGEMENT:
Holds a number of benefits as performance management is the approach that is transformed and adopted according to a company’s goals. In a growing company it helps a great deal in making a culture. Furthermore, then maintaining it for bigger and better results. Also, holds benefits while gaining the competitive advantage against the competitor’s. Hence, as a competitive advantage is the most wanted twist in the tail.
When organisations successfully engage their customers and their employees. They surely experience a 225% boost in performance-related business outcomes. Finally, helps in making practical benchmarks for a company.