With the changing dynamics of business models, macroeconomic trends, and digital disruption, performance management has become a hot topic of discussion in the HR function. While some of the organizations have re-modeled their overall approach to measure performance, some are currently thinking of following the industry trend and there are few that might continue with their current approach and may introduce small changes in the times to come.
India is at the cusp of start-up growth, where innovation in fields such as Big Data, Artificial Intelligence, Cloud Computing, Gaming and the Internet of Things has given us a lot to choose from. Even though it is quite a challenge to integrate business processes across corporate borders, it is also a huge advantage for the digital corporate performance management.
Let us come to the one central question of our times. With so much of digital progress that has hastened our ability to serve better, how do we use that same technology to monitor our own performance on an on-going basis?
The performance document will be replaced by an App that will be accessible by a large number of people. The deliverables will keep changing as the variables that impact performance will be updated on a continuous basis
I see a future as follows. The performance document will be replaced by an App that will be accessible by a large number of people. The deliverables will keep changing as the variables that impact performance will be updated on a continuous basis. With uploads of new data, the lanes through which individuals and groups would interact will crisscross under some rule-based guidelines. The actions and the consequences of these actions will be played back to chart out the next course of action.
The App could act as a performance guide to make change happen. The plotting of individual performance against actions will show where the good is happening or likely to happen. The focus will shift to those areas of actions where future data could be hazy.
Future will be more uncertain, so the final destination would have to be piloted with such tools that rely on algorithms which work on optimization techniques. Expectation of business outcome will be packed into the performance management process by using Artificial Intelligence. Objective functions will clash, no one function can be maximized alone. How interdependencies need to be factored will be the key. What actions will get us to an optimal solution will be part of this algorithm.
It is not very difficult to imagine this. In fact, the current scenario is no different. But the challenge is that all actions that are taken by one group are not visible to the others and neither are the implications. The digital technology will help us solution this with ease in the future.
Advancement in performance management systems will ensure better success in employee and organization goals. The best practices once implemented successfully will help manage the entire process much more efficiently.
Predictive performance management involves applying suite of statistical applications that sift through vast amount of data to discover meaningful correlations, patterns and trends. Such analytic techniques for modeling, forecasting and simulating potential outcomes can help answer critical questions such as:
Which measures drive the business progressively?
Where do I need to improve and by how much?
Are employees aligned with the strategy?
How should I adjust my strategy and modify initiatives?
Performance management systems erase some of the doubts form the past; it ensures precise performance appraisal data that is extremely critical during performance appraisals. Access to their goals and evaluations for the coming year, help systems gather more feedback from co-workers and help with a positive outlook towards performance reviews.
Other than accurate data, digitization helps management processes and strategic development. Tools that are driven by technology ease a manager’s evaluation process and help employees become active participants in their review sessions.
Moreover, with automation of HR functions and increased transparency, these tools help align employees with the organization’s objectives and give managers the data they need for compliance and regulations.
There are several benefits to move to a dynamic, technology-based platform from a paper-focused approach, some of them like easy cascading of goals that help link individual goals to the organization’s mission, increased standardization, more precise annual performance ratings, facilitating communication between employees and managers and progress reports across the company.
With a proficient HR system, companies can lessen the administration burdens of traditional performance management systems. The time saved can be invested into bettering the employee development and succession planning.
Organizations using Digital PMS will be better prepared to handle today’s (and tomorrow’s) challenges in the most effective manner. It is fine not to be ideal here, but the winners are those who will dare to move fast to the next level of digitization and move along with the business rapidly.