Making the most of your human resources: Best Practices of Performance Managementgitamhbs
Posted by Dr.S.Suman Babu,Asst.Professor,HBS,GITAM University
Performance management has become a significant field in the area of HR and most of the organizations call it as a HR strategy. The word performance management was coined in the year 1976. It was not considered as a distinct approach till mid-1980. This particular concept changed HRM significantly. Most of the organizations started using performance management as an accepted HRM practice. Previously organizations used command and control system but slowly they transformed themselves into commitment system due to changing global scenario. Performance management affects all subsystems of HRM.
Whether employees should be rewarded or punished mostly depends upon their performance. Performance management system takes care of this aspect. Now a days organizations are talking about “Pay for Performance “or “Perform or Perish” as an approach to warn and encourage their employees to perform better.
Why Performance Initiatives Fail?
It is because of lack of effective framework and failure to adopt best practices
Why best practices are critical to organizational success?
There are IT best practices, HR best practices, Finance best practices but there are no comprehensive best practices for organizational performance because it is not previously documented in a structured manner.
Best practices are techniques or methodologies or processes proven through research and through experiences that lead to a desired result.
Adopt the proven best practices of high performing organizations and find out your strong and weak areas in your organisation and leverage the strong areas of your best practices to the weak areas throughout the organization through standardization or consolidation. Improve performance throughout the organization, though people, processes and systems.
How organizations can maximize their performance?
Top performing Australian Cricket Team: They have created a high performing work culture in every department whether it is playing in the nets, batting, bowling, and fielding. They have effectively utilised technology to improve their weak areas. They also know the strong and weak areas of their opponents and accordingly they strategize. They could define, plan and execute all their strategies effectively on the field through continuous mentoring, monitoring by experienced coaches and also through critical feedback to improve their grey areas. That is the reason why they could rule the world cricket for more than a decade. Sustaining as a high performing team over a decade is not a small thing and it needs lot of hard work and commitment from all the players.
The various phases in performance management system are
Defining phase a Planning Phase a Monitoring Phase a Execution Phase a Reporting Phase
Organizations can learn and adopt the strategies implemented by the Australian cricket team, how they could plan and execute strategies successfully and that too consistently. High performing organizations will always create high performing work culture.
Stability of the organization.
It mainly depends upon keeping the employees and teams consistent and focused. Significant cost savings are realised in the stable organization through employee customer retention, profit improvement and productivity increase through committed employees using proven methods and tools to drive results. If you take care of your employees they will take care of the organization.