In the present times of globalization and modernization, no company can hope to get the best out of its employees unless it has a well-defined performance management system in place. It is a holistic tool that helps in uplifting the overall development of an organization.
The Indian workplace is composed of extremely complex and diverse habitats. Performance management is one of the most contested practices that organizations undergo on a regular basis. While there is not much debate on the value of performance management, the effectiveness of the process and how organizations can use it for building a high performance workforce are of supreme concern. Listing key elements for building high performance teams via Performance Management Systems.
Develop a culture of transparency
To develop a transparent culture within an organization means to gauge the strengths and weaknesses of employees within an organization. It also emphasizes to safeguard this information within the walls of the company and transparency can play a valuable role inside the company walls. The organizational culture has a potential strength of making or breaking business. It highlights on how to develop a sense of ownership among the employees. By sharing numbers with employees and not only just executives; leaders can increase employees’ sense of ownership.
Goal setting with clear understanding
It is quite essential for every employee to have a clear understanding of the goals and how to integrate it with the existing work pace of the organization. Organizations need to work thoroughly on this aspect which aims to set clear and explicit opportunities and goals across distance and boundaries to furnish the geographically dispersed workforce in today's organization. Furthermore, the expectations and goals set should be active enough to respond to the frequent changes as a result of external factors. A mechanism should be available for effective and regular feedback among all team members.
Managing the Employee skill set
Although various organizations have well defined set of goals but they lack in its proper implementation. It may be the case that some goals need adjustments; other times employees just may not have the skills to achieve the target goals. Performance appraisals for employees had the main motive of identifying the gaps in skill sets of employee but nowadays however, it is defeating the overall purpose of improvement. Well defined improvement is clearly visible when there is a consistent and active feedback loop. Hiring should be done on the basis of potential and not solely on experience. Further, proper training and development programs should be conducted, that informs about the performance and skill gaps to be inculcated.
Fostering a optimistic environment
Celebrating the achievements of an organization together helps to acknowledge people’s hard work, boosts morale and keeps up the momentum. Apt goals help the employee to understand the set of roles and responsibilities they need to perform. In addition to this, appreciation for their role and positive feedback can lead to excellence of an organization. Also, this trend is being practiced consistently within various organizations to motivate the employees. High performance ratio and success are neither dependent on one or two simple factors nor the result of one or two things. The entire context depends on how an organization operates which greatly impacts the results.
Performance Management system should be a well planned, clearly communicated, embraced by leadership, effectively administered and should have a positive impact on productivity, performance, employee engagement and customer relations.