Performance Management

4 Interesting New Findings Related To Performance Management

06 Dec, 2017

Factors such as objectives setting, incentives and rewards have been re-designed in such a way that benefits the organization, employee and employer.


As Deloitte, the biggest accounting firm in New York, states, “The redesign of performance management is picking up speed: 79 percent of executives rate it a high priority, up from 71 percent three years ago, with 38 percent calling the problem ‘very important’”.


The need for the Performance Management revolution now exists is because of the changing nature of our work.  



Organizations are now much more interested in feedbacks by employees than they were before. Conversational feedbacks have replaced metric-based assessment that particularly aims to increase the performance output by employees; ultimately, leading to the progress of organizations.


According to a survey by CEB research, 49% of HR leaders have eliminated or are considering eliminating ratings with feedback becoming the core of performance management. Not only this, but the feedback process has become much easier and shorter, being taken on a quarterly or annual basis. The fact that manager overlooks the performance and maintains a relationship with employees helps to maintain the ideal feedback cycle. 

Short Term Goals


Companies have now started to set short term goals, thinking it as a better way to redesign business landscape. According to HR Influencer, Josh Bersin, “companies that set performance goals quarterly generate 31% greater returns from their performance process than annual ones, and monthly performance goals give even better results” 

Two Important Systems


The book, Computers in Industry, states that, “The basic requirements for a successful Performance Manafement system are two frameworks—one structural and one procedural as well as a number of other performance management tools. Inter-organizational performance measurement may be divided into supply chain and extended enterprise performance measurement: the former relying solely on traditional logistics measures, while the latter incorporates the structural aspects of the supply chain system and adds non-logistics perspectives to its measurement arena.” 


Non-logistics performance pertains to the discussions, capabilities and skills that must be taught to employees enabling them to develop important skills for better performance management. Removing any form is bias while promoting, appraising, giving any raises leads to a much better work environment. Deloitte clearly mentions the continuous performance management technique adopted by big companies that have raised performance management. 

Management Capabilities


Several case studies conducted by Cornell University have shown that despite positive feedback implementing regular feedbacks, many companies face an initiakl decline. Furthermore, companies must invest in management capabilities and many companies still have a long way to go in adapting to this frame shift.


It states, “From early observations, unintended consequences include increased costs and time needed to build manager capabilities, costs of developing and implementing technology platforms to supplement new systems of performance review, and possibly legal risks that companies may face without having quantifiable performance management data.”


It is wise to discuss new system implementation before letting old style employee rating reviews go. New systems need to be easy to handle and focus on feedback in a broader perspective rather than rating the employee.



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