Challenges in Performance Management
Source - garagestock/Shutterstock.com
Performance management refers to the process of establishing targets,
monitoring progress, getting feedback and evaluating the performance of
employees. Based on the evaluation training or rewards will be given to the
employee to increase efficiency and employee retention. Constant communication
between operational level employees and tactical level employees is mandatory
to achieve the targets of the company, in other words, to have a higher
individual performance which directly impacts on reaching towards the mission
of the company.
In a world emerging from technological advancement performance management is crucial for a company to be in the competitive market.
Given
below is a list of challenges faced by HRM in the current modern world.
- Remote
work environments – With the occurrence of the Covid-19 pandemic, most
companies were forced to adopt remote work. Many employees and millennials
prefer working in flexible environments rather than traditional work
office hours which directs difficulty in monitoring employee performance
effectively.
- Shifting
demographics of the workforce – The modern workforce comprises employees
from differing cultures, backgrounds, age groups and education.
Millennials prefer modern updated technology while employees in other age
groups might have resistance to adapting to the latest technology.
Therefore, it has become challenging to evaluate each employee's
performance based on this Earl, C. et al (2017).
- Ensuring
objectivity – One of the main challenges faced by HR practitioners is to
have an unbiased, fair performance management review as employee
relationships might influence subjective evaluations. This also challenges
providing accurate and constructive feedback about performance.
- Employee
engagement – This is a necessity to have increased performance of the
company. Although due to the demanding and fast-paced job market, it is
rather challenging to increase employee engagement. Other than that
ineffective communication and weaker work relationships decrease employee
engagement in the company towards performance management.
Source -https://www.insperity.com/blog/connect-employees-companys-mission/
How to overcome the challenges
- Provide
consistent and continuous feedback – Traditional annual performance
reviews have become ineffective towards increasing performance in today's
context as we are facing a dynamic competitive market where regular
feedback has become essential to a company. Employees who receive regular
feedback are 3.5 times more likely to be interested in their work,
according to a Gallup survey, by R. Sutton, and B. Wigert (2019).
- Use
of data and analytics – With the increasing technological innovations, use
of data could be used to analyse the KPI of employees and find areas which
need to be developed. Based on this, HR can decide on rewards,
compensation or training, Sharma, A. and Sharma, T., (2017).
- Encourage
a culture of learning and growth – Encouraging employees on continuous
learning and growth could assist them in building new skills that could
give them a competitive edge to be in the job market as well as to reach
targets for the company. As an HR practitioner, HR could also have regular
training, micro-learning facilities and mentoring sessions to facilitate a
learning culture within the organization. Employees are more motivated to
perform and retain in the company when they receive proper training on the
job Bersin, J., (2008)
- Setting
clear goals and objectives: Based on the vision and mission, strategic
level personnel set targets for the organization to achieve at a specific
date. These targets should be communicated properly to the operational
level staff to make them achieve the targets. More clarity on the targets
would directly increase the chances of achieving those targets in a
shorter time frame.
In Conclusion
References
- Bersin, J., 2008. The high impact learning organization. Bersin & Associates Industry Report, 1. [Online] accessed on 02.04.2023
- Earl, C.,
Taylor, P., Roberts, C., Huynh, P. and Davis, S., 2017. The workforce
demographic shift and the changing nature of work: Implications for policy,
productivity, and participation. In Age diversity in the workplace (Vol. 17, pp. 3-34). Emerald Publishing
Limited. [Online] accessed on 02.04.2023
- https://www.gallup.com/workplace/249332/harm-good-truth-performance-reviews.aspx [Online] accessed on 02.04.2023
- https://www.hrbartender.com/2020/leadership-and-management/effective-goal-setting/[Online] accessed on 02.04.2023
- Sharma,
A. and Sharma, T., 2017. HR analytics and performance appraisal system: A
conceptual framework for employee performance improvement. Management Research Review, 40(6), pp.684-697. [Online] accessed on
02.04.2023
Performance management is a crucial process that involves setting goals, assessing performance, providing feedback, and developing plans for improvement. However, there are several challenges that organizations may face in implementing an effective performance management system. Here are some of the challenges
ReplyDeleteWell addressed. I agree with you on the fact that annual Performance review is in ineffective. The goals employees set for the year most of the time become outdated and priorities change with time. Also, structured quarterly performance review meetings will definetly keep employees on track though it sounds time consuming. However organizations should understand that the time is thier investment for effective performance management
ReplyDeleteThe article discusses the challenges faced by HR practitioners in implementing performance management in the modern business world. The author argues that remote work environments, shifting demographics, ensuring objectivity, and low employee engagement pose significant challenges in performance management. The author suggests that consistent and continuous feedback, use of data and analytics, encouraging a culture of learning and growth, and setting clear goals and objectives can help overcome these challenges. The arguments made in the article are supported by various sources, including the study by Earl et al. (2017) on the challenges of managing a diverse workforce and Bersin's (2008) work on the importance of proper training to motivate employees. I agree with the author's argument that these challenges need to be addressed to improve performance management.
ReplyDeleteI agree that in the quickly evolving business climate of today, the use of conventional annual performance review methodologies may not be appropriate. Organisations can be flexible and able to adjust to market changes by receiving ongoing input and holding frequent brainstorming sessions. Employees must fully comprehend how their job contributes to the organisation's broader mission and vision in order for performance management to be in line with organisational goals.
ReplyDeleteHi good article. Performance management is essential in any organization to consistently perform with proper employee engagement. Performance should not only be evaluated by the numbers or targets but also with the effort that the team or individuals put in. Every effective performance management system should encourage employees to pursue objectives that are closely related to wider organizational goals in order to assure the accomplishment of these. This helps you to accelerate business growth while fostering the performance, productivity, morale, and wellbeing of your staff.
ReplyDeleteGood article on one of the key factor in an organization. As this has direct impact on employer and employer understand key players inside the organization. I believe continuous improvement on evaluations and frequent re-visit on the task/goals will play a major role on performance management, As the business change quite frequently.
ReplyDelete