Performance management is one of the most discussed topics across organisations. The reason for the debate is not the value of performance management, but the prime concerns are the effectiveness of the procedure and how business organisations can make use of it for establishing the high-performance team of professionals.
The current design for performance appraisal system has been the most debated topics, for all wrong reasons. In fact, an increasing number of software and consultancy firms have teamed up to work out better and improved ways of appraisal systems. Here are the four latest trends of appraisal mechanism.
Clients often look for the ways for simplifying the form, specifically about object settling, for quietening down the process of appraisal and leaving management and employees with energy for initiating a great as well as meaningful conversation.
Until a few years back, appraisals had an approach based on past results. What went well? What is your grade? What happened? What was wrongly done? However, now the focus has changed to the development plan, object setting and the future. How can we achieve more in the coming year? What can we do to improve productivity? This is a positive change which allows making right appraisal related decisions.
Completely different from conventional developmental 360 feedbacks around the framework of competency, appraisal feedbacks are being sought from several people. From being rare to being common, this requirement has gained immense popularity. The changing and evolving nature of the manager-employee relationship, changing nature of the workplace and of teams has paved a way for this requirement. The main aim is to gain the accurate and rounded picture of performance.
Until recent times, many business organisations continued to use percentages of monthly salary as the basic foundation for giving a bonus to the workforce. This system, however, is becoming less popular. What is gaining popularity, instead, is a quantitative system. This means that bonus is given to employees in a lump sum amount instead of a percentage of the salary. Quantitative bonus lets an organisation do justice to all team members. There is very possibility an employee having low salary might contribute more to an organisation. And, thus, the monthly percentage of salary as a bonus might not do justice while quantitative bonus does.
It is important to keep pace with the changing time. And, when it comes to an appraisal of employees, organisations prefer switching to new trends so that appraisal can be done without any discrimination on any basis. Careful implementation of above stated is a positive trend for performance management. Adding the best practices to an organisation for evaluating the performance of employees can help take the right decision.