Performance Management Gets Digitized


When properly designed and implemented, performance management techniques and processes enable an organization to monitor, manage and improve strategy execution and the delivery of results. Managing performance is too important not to get it right. Many founders or managers find it as one of the most difficult part of their jobs, yet ironically it may well be the most important to the business. Here is a brief overview of performance management and digitizing it.

Performance management is the continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization. Examples of such processes are appraisals and key performance indicators. It involves planning, measuring, reporting and managing progress. At the same time, it also develops the knowledge, skills and abilities of people. Ultimately, the aim is to improve the performance of the organization as a whole and be more successful than before.


Photo by Matthew Henry

The absolute goals of any performance management system are in fact threefold; it could rectify poor performance, sustain good performance and improve current performance. For all individuals involved to properly dissect performance, discuss and understand it then agree at the end, all performance management systems should be designed to generate information and data exchange.

Most performance management processes involve information technology in some form or another as they are required to automate various processes. Examples include payroll systems that support performance-related pay mechanisms, and systems for incentives, recognition and reward. Additionally, to ensure performance data turns into relevant insights helping decision making, the emphasis on analytics cannot be overstated.

Every domain and process in HR has already jumped onto the digital wagon and digitalization of performance management systems has also been gradually gaining momentum in the industry. Some obvious benefits will be that when using digital tools, reviews and appraisals ensure continuity, accuracy, and timeliness. By digitizing the process and having an equal, transparent and fair methodology to evaluate employee performances, human bias are reduced and as a result, this establishes a sense of trust and willingness for the participant as well. Furthermore, it allows for customized and in-depth feedback, as opposed to subjective remarks from a manager. Accountability discussions and goal-setting are undertaken in a systematic and methodical manner. More than anything, digitizing the process of performance management allows for better streamlining, tracking and actually benefiting from the results of the exercise.

Organizations of all sizes and across all industries need to develop, implement and improve their performance management processes. As businesses become increasingly competitive, performance becomes more critical than ever before and no company can afford to ignore performance management. With the spotlight shining bright on work-life balance, work culture, employee value proposition and career growth, digitization of appraisal systems have encompassed the needs of a growing workforce that innovates and collaborates more.

#HR #Technology #EmployeeEngagement #EmployeeExperience

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