Trends and Challenges in Performance Management

It’s a known fact that an efficient performance management system allows you to tap the full potential of your staff. It is a comprehensive process of monitoring and developing the desired traits of employees and ensuring that they fulfill their responsibilities and contribute to the greater goal of your organization. It’s not a wonder that many organizations continuously change and update their performance management methods so as to achieve greater fairness and accuracy while they evaluate their employees. This is because; the workforce dynamics keep changing and employees demand better and fairer ways for evaluating their performance. New trends emerge and pose a number of challenges for organizations to accurately rate their employees.

Here we discuss some of the trends and challenges facing today’s organizations while they strive to evaluate their employees in a fair and square manner:

Web based performance management software:

Web based systems for performance evaluations are becoming more and more popular. This is mainly because they facilitate the collection of information more conveniently. These systems also provide a common framework for managers to base their decisions on. These kinds of systems also maintain a consistency across the organization as the perceptions of a fair score are made common throughout the organization. These technology based systems however do not address the need for talent development nor do they focus on the link between pay and performance. They simply rate employees over or below the ‘bar’.

Rating scales

One of the most common challenges in an organization’s performance management systems is that it revolves around the rating scale in order to evaluate performance. The challenge here is to define every digit or point clearly so that managers have a clear understanding of how to apply the scale for their team and that the employees too understand where they stand. The most famous five point scale is the easiest for people to understand and interpret.


Managers are by far the most significant part of the performance management system and are essential to the success of the entire process. Hence, the managers will need to acquire the basic skills in order to accurately conduct performance evaluations for their employees. Training in coaching and development planning increases the chances that managers will be able to measure performance and analyze every employee’s results accurately.

Periodic reviews

Performance management is not a onetime process. It is a continuous process that requires periodic reviews for it to show effective results. So, instead of treating it as an annual thing, recent trends show that successful organizations usually have a continuous evaluation process in place so as to ensure that employees receive timely feedback and can work on their competencies in order to contribute to the greater goals of the organization. Recent trends show that many organizations have ceased to conduct annual reviews and treat employee assessment as a continuous process.

It is hence highly essential that you use the right tools and software to conduct a highly efficient performance evaluation process in your organization.