Increasing competition in the business field, across the world, suggest that all businesses must be more careful in their choice of strategies in order to remain competitive. Organizations have realized that they must also derive competitive advantage from the effective management of their people. This article focuses on the means to improve the performance of the individual employee which results in the overall improvement of the organization.

The current status of today's business environment requires organizations to be fast, focused, and adaptable in order to thrive. Booming economy has created the buyer's market. A successful organization is one that continually improves and adapts to the changing environment by rapidly creating and refining the capabilities required for change and success. Given these conditions, survival of an organization largely depends on its people. The success of an organization today, is not just a factor of frequent introductions of new products or use of first class technology alone. Organizations have realized that they must also derive competitive advantage from the effective management of their people. The growth of organizations and their people are comprehensively linked and so the organizations have started focusing on the development of their people in order to facilitate the organizations to grow.

The new generation employees display a greater clarity in their own beliefs coupled with a strong attitude of self-determination. Young professionals, today, are driven to achieve great heights and want to make it faster than ever before. They also have the desire and drive to be the best in the entire industry. Performance feedback and predictions play important roles in all Human Resource Management (HRM) decisions.

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