With every passing day, technology is changing many aspects of business industry. Performance
management is one of those aspects to establish a successful business organization. Performance management is a process where managers and employees assemble to plan and review employees’ job objectives. It’s a persistent process having prime target to increase employees’ efficacy.
Over the years the organizations are looking for a best performance management system that could really boost its productivity. A such system that would be able to stimulate feedback and review system in real-time. According to Global Human Capital Trends 2018, the world of work is demanding more customized and connected network of team. Therefore most of the organizations are saying good bye to performance appraisal system. We are not wrong If we say this is a new era of performance management.
Many organizations adopted “Human Capital Management (HCM)” and they really felt revamping in their performance management techniques. This article will mainly focus on how HCM help organizations to establish a successful beginning.
- Goal Alignment and Setting
Before measuring employees’ performance, it’s a good practice to inform them what actually the need of organization. HCM performance management tools allow to set goals for whole organization or for specific working team. Even an employee can set his/her individual goals to keep align with goals set by stakeholders. Employees can review their goals as many times as they want so distracting from track will not be possible.
- Multi-Rater Tool
Feedback process has its own importance in analyzing the performance and attitude of an employee. If this process depends upon single manager then possibly you could miss the precious information. Bringing feedback from co-workers or even from clients can give a more comprehensive information about your particular employee. HCM provides a 360° review or feedback assessment tool which gives more comprehensive analysis of behaviour and attitude of an employee. Employees need to give their feedback on observed behaviour. Based on these managers can create a concise and relevant opinion.
- Performance Reviews and Tracking
HCM gives access to managers to monitor performance of every employee on daily, weekly and monthly basis. Analytical figures based on the performance data help managers to track success and error rates for a given task. Reviewing of both positive and negative feedback about the employees in the entire year gives more clear picture of performance efficiency. The HCM provides a self assessment feature which enable employees to see their day to day activities. Hence they can measure their own performance and key responsibility area (KRA).
These performance reviews have prime importance to understand the full potential of working group. This is basically a form of feedback system which communicates with organization’s employees, what is expected of them, where is the gap in performance and how they can fill the gap.
- Development Tools
One of the best way to inflate performance of employees is to empower them through training and development material. This can be achieved by on-boarding process. HCM has made the on-boarding process effortless and pleasurable. Now employees can access important information like message from CEO, online and offline training videos and recorded presentations that are relevant to their scope of work