According to this recent report, around 67% of the companies have reviewed their performance management systems and made changes to their performance evaluation system in the last 2-3 years.
The companies have made the following changes to their performance management system:
- Process (76% of the firms)
- System and technology (59%)
- Alignment to strategy (55%)
- Managerial capability and governance (37%)
- HR structure and capability (30%)
Anandorup Ghose, the Partner, AON Consulting India, said, “Process is easier to change, but things that are not changing—like managerial practices—are the ones that can have a bigger impact in enabling business objectives.”
The study which is titled, ‘Performance Pulse of India’ has revealed that 4 out of 10 companies said that the bell curve did not help in differentiating performance. About 19% of the companies reported that they gave up bell curve.
According to Prabhjot Kaur, Senior Consultant at AON Consulting India, “Firms that removed bell curve and registered positive revenue growth highlighted managerial accountability and managerial capability to do performance conversations as top enablers in achieving business objectives.”