What is Performance Management System?
To help in fulfilling the strategic goal of the company, a continuous activity of communication is ongoing throughout the year between employees and employer is known as performance management.
Considering skills, goals, and ability of employees how to fulfill the objective of the company is the main aim of the performance management system. This activity creates the manpower to have an understanding of achieving the overall goal of the company.
What is the importance of Performance Management System?
Nowadays most of the organizations are working under the pressures as they have to manage more work under less duration to remain in the competition. At this point, it is very much essential that employee should understand the importance of their contribution to achieving the goals and objective of the organization. If the organization is implementing effective performance management on regular basis it will have a wide range of benefits for the employer as well as for employees.
Performance management can also be considered as an employee’s individual evaluation/ job performance. Effective management will judge that whether an employee is performing well or not. From a survey, it is found that 74% of the employees think if their efforts are being recognized they feel motivated.
Human resource department will see the assessment well but to see the overall company’s success, employees performance management is important. 45% of the HR Superior think that annual performance review is very less effective as compared to regular review.
What are the challenges faced by traditional Performance Management?
There were few challenges with the traditional performance management system.
Have a look at some of the aspects:
Absence of Motivation
Previous management systems which were managed manually were not able to decide properly that which employee needs to be paid required compensation based on their performance. Due to that employees were not getting motivated.
Subject to Appraiser Bias
The leaders who look after the performance review can sometimes do the favor of the employees who are their relatives or friends, which can be harmful to the growth of the company.
In the past management system reviews were done as and when required. Due to that employees were working at the time of review which can create more stress for them. Growth of company may affect due to this kind of tradition.
The tasks which are done manually have many errors as compared to tasks done automatically. So when HR leaders check the performance of many employees might create mistakes, which can make a negative impact on employees.
To take performance review of many employees manually can take more time which leads to delay in the appraisal of employees. This process makes employees demotivated and creates an unhappy environment.
What are the solutions to improve Performance Management?
Every company’s growth is based on the performance of employees. So to make them motivate and give them proper compensation is the primary duty of all the companies. As we all know that preceding performance management systems were having many drawbacks, factoHR provides automated performance management software with many advanced features. Have a look at our some of the features:
Motivation based on KPI
factoHR provides the feature of Key Performance Indicator (KPI) in software, which measures the performance of employees based on the tasks given to them. So employees tasks will be recognized and give motivation to them.
Performance is being measured automatically so there is no chance of being bias to any employees. This can lead to trustful environment among all the employees.
As performance management is based on KPI, which means that all employees will have to complete their tasks in given duration. So all the employees will work on daily basis and will not feel stress at the end of the quarter, six months or year.
Generate automatic performance management review report
Automatically generation of performance management report will lead to less or no errors. factoHR gives that trust to employees that their tasks are being considered and have attention on all the employees.
Anywhere, anytime performance reviews
factoHR provides cloud-based performance management system, so any HR person can view the report of any employee anywhere, anytime. This also takes less time in reviewing report. From here you can download the Automated Performance Management PDF. Click on Download and get easily.
To learn more about what factoHR, HR & Payroll can do for your business. Book Free Demo !!! Call us on +91 782 000 3100 | Mail at email@example.com
Schedule Free Demo
To learn more about what factoHR, HR & Payroll can do for your business. Book Free Demo !!!
Call us on +91 782 000 3100 | Mail at firstname.lastname@example.org