Performance Management Changing Trends and Global Examples

Photo Credit: Google Image, 2017

Its an important process of strategic human resource management undoubtedly much talked about, every organization as some form of performance management system in place. Jaldeen (2016) industry captain suggest and support the view that HRM professional are having harsh views of Performance Management some consider that it should be “Jettisoned” or “Worst- kept Secret” in companies, “absurdities of corporate life”. Despite the negativity they all agree that it’s a strategic HRM function and the benefits are many-fold if appraisals are executed effectively.  They include motivated staff, enhancement of productivity, job satisfaction, high performance, building relationship between employers and employee (Armstrong, 2017).

On the other side of the coin HRM professional are of the view that performance appraisals and management issues are perennial and have to change in keeping with times and if HRM and industry professionals are looking at effective motivation, compensation plans, rewards and awards of high performance employees. Fortune five hundred firms likes that of General Electric, Microsoft, Netflix and Google have abolished appraisal systems after decades in 2015 (Jaldeen, 2015:  McKinsey, (2016) calls for innovations, development and changes to enhance performance management. The best in the industry are of the view that PMS should be taken to the next level of making it continuous or abolish the process.

Numerous organizations are of the view that the PMS is not working effective employees feel bitter, demotivated and mistrustful of the process. Hence HRM professionals are readdressing the issue in their company. One of the reasons for this is that PMS is strategic and could influence the company’s competitiveness. Thus, leading to high performance, satisfaction and motivation of its people that can lead to better performance measurement and high performance and satisfaction leading to competitiveness.

The new trend in performance management include more frequent appraisals, Continuous Reviews processes and feedback to enable employees achieving goals and better organizational performance. Literature suggest that problems with performance appraisals has led some commentators to call for abolition of the process or a renewed focus on important elements of performance appraisals are not new they are decade old (Chubb, Reilly, and Brown, 2011).  

Reference

Armstrong, M., and Taylor, S., (2017) A hand book of human resource management practice. Fourteenth Edition. Published by Kogan Page UK.

Chubb, C.,   Reilly, P., and Brown, D., (2011)   Performance Management Literature Review. Institute for Employment Studies, UK.

Jaldeen, R.M, (2016) Megatrends; Human Resources Management 2020, Published by The Training Partnership. Series 1, Volume 1, 2016. Available as download on http://seniormanagersforum.blogspot.com

Mckinsey (2016) Ahead of the curve: The future of performance management. Mckinsey Quarterly, May 2016. McKinsey & Company. All rights reserved.