The most common challenges faced by any organization these days relate to talent retention, increasing productivity and profitability. An organization's survival greatly depends on its ability to efficiently manage the available resources and remain competitive in a continually changing business environment. In such a situation, employee performance and productivity have ceased to be mere administrative matters but have now become essential elements of a broader key business strategy. At the core of this strategy lies the PMS, which had become entrenched in a system of documenting and measuring employee performance rather than as a vehicle for developing better employees. These days organizations are looking for PMS that links pay-for-performance with current best practices, focusing on improving employee performance and retention as also enhancing organizational effectiveness.
Performance Management is the process by which businesses evaluate performance, plan employee development and align them with organizational goals. In spite of this, the performance review happens to be one of the most uncomfortable routine that both manager and the employee have to face. This stems mostly from the fact that managers are not in a position to make solicitous evaluations either because they are undertrained or inexperienced or may find it difficult to give candid performance feedback.
At the same time, employees get demotivated because they feel their performance and contributions are not duly evaluated. The HR department merely oversees the whole process instead of making any significant value-additions. However, now the businesses have increasingly come to realize that their employees are their biggest assets and the key to maintaining their competitive advantage and performance. Businesses are consequently recognizing that managing employee performance uncompromisingly can help in identifying top performers and developing an optimally performing workforce. |
