The Good, The Bad And The Ugly of Performance Management System

Performance reviews need to be constructive, motivating and looked upon as an opportunity to understand the strengths and shortcomings of your workforce. Unlike traditional means there these evaluations were subjective, comparative and very vague. Well, performance management systems must be more than merely measuring output in terms of ‘pass’ or ‘fail’ too.

Today’s modern businesses have taken up this task more seriously after realizing the immense benefits they bring to the success of the organization.

Here are some of the good, the bad and the ugly of performance management:

The good

Let’s begin on a positive note. Performance reviews in reality must always begin on a positive note. The very purpose of a review must be to get an opportunity to highlight the ‘good’ performances by each and every employee. Starting with a positive energy motivates and encourages the employees and ensures that they continue to do the good work. When you use performance management software, it is all the more easy to identify the good performances. Well, you also get a chance to identify the one’s below the bar. The good part is that you can provide them with the right tools and support to encourage them to do better. Ranking employees according to their performance ensures that you know where each employee stands and what you need to do about it to achieve your organizational goals.

The bad

Many a times, these performance review processes are time consuming and do not provide real time feedback to employees about their performance. It is vital for every organization to ensure that employees get timely feedback so that they take corrective action and get back on their track to success and the success of the organization. This is also exactly why many organizations have moved to performance management software. These software enable organizations to run a ‘continuous’ process of evaluation so that feedback can be given at the right time and employees get enough time to re-evaluate their goals. Well, these software also provide accurate historical data so that an employee can be accurately evaluated over a period of time.

The ugly

Traditionally, when employees were ranked according to their performance levels, the top 10% always got rewarded handsomely and the bottom 10% would be considered for retraining or even let go. But the remaining 80% were all clubbed into one slot that sometimes seemed unfair. Most of the traditional reviews were subjective and there was a lot of comparison of one employee’s performance against the other. This made it impossible to give an exact rating that actually reflected the employee’s individual contribution to the organization – it was always a comparative review. Furthermore, blaming the employees for poor performance was another major hurdle. Today, however, poor performance is looked upon as an opportunity to train and make things better.

Implementing the right performance management software will definitely help strike a balance and help create a holistic process that works in favour of your employees while at the same time helps you achieve business success!