Organizations very often mistake performance management with the process of performance appraisal. However, there has been an increasing realization that performance management and performance appraisal are significantly different.
Performance management is the identification of how an individual’s contributions can be improved and developed as opposed to simply appraising. At this point, most progressive organizations are looking at performance management as a means to improve the skills and development opportunities for individuals and teams.
A bell curve does not agree with the whole concept of how individuals perform in an organization – the belief is purely that the workplace has lots of average people and some good folks. Due to this, decisions start getting taken about who is “good’ and who isn’t. That fundamentally is a process of defining limitations in how you help an employee grow or develop.
Many organizations are moving away from a timebound annual set of performance expectations to looking at performance of an individual on a holistic long term basis. Organizations should encourage individuals to take a long term view of their careers and look at the process as an input to providing value added support in developing careers. I must also admit that in a maturing market, such as India, the bell curve is somewhat useful as it provides the discipline to managers.
Data on performance indicates that in India, the number of people at the top of the curve has declined between 2003-04 and 2014-15. At the same time, the number of people rated at or below target performance has increased. As a lag strategy, performance of an individual is measured at the end of a period against a set of defined targets. An organization can fundamentally change the performance management system to a lead strategy by enabling managers to motivate and drive outputs and outcomes. Managers should strive to drive positive behaviours.