Why MNCs prefer to Automate Performance Management Systems?

 

Organizations don’t want to know yesterday’s performance trends of employees, they need to know how to make them perform better today and how best we can develop for tomorrow.

None of us look forward to the mundane ritual of annual performance appraisals, not just employees, even managers, HR leaders and even management consultants like me are tired of this yearly chore.

The time and effort spent in administering performance reviews often go in vain as there is very little value addition in terms of improving the performance of the employees and in turn, improving the performance of the business.

According to CEB Inc., 95% of managers are “unhappy” with traditional performance management, and feel that it could be made better. In addition, 59% of employees think that traditional performance reviews have “no impact” on their personal performance.

Instant is the new mantra for everyone! The human psychology has changed a lot as we want everything in the moment. Employees don’t want to wait for a while to learn how good their work was and its impact. They need instant appreciation and instant feedback.

Employees and organizations are in a fast track of growth & development and traditional once in a year reviews don’t work anymore for them. Instead organizations and employees prefer frequent and informal development oriented discussions with their boss / leaders.

The integration of technology does not necessarily replace or substitute human interaction but it does play a supplementary role in optimising the entire process. It makes appraisals efficient, not just a ritual that employees and HR managers detest.

Automation gives real time visibility to business leaders: Automation technology stores tons of metrics on goals, performance, ratings and resources on feedback, conversations and achievements. Real-time analytical reports provide insights to top leaders that enable them to take strategic decisions supported by data.

Even in medium sized organizations, HR is generally inundated with loads of administrative tasks during performance evaluation. This includes distributing relevant forms, some places still manually – self-appraisal, manager appraisal, and following up with people to complete the tasks. In short, processes are never completed on time.

In contrast, an automated performance management system eliminates manual tasks to achieve on-time completion so that HRs can now focus on process improvement.

Talents are multitasking – working on multiple tracks and reporting to different project managers. Linear reviews don’t work as holistic reviews. Organizations have 360-degree feedback to get reviews from multiple stakeholders who are working closely with the employees. Matrix goals management is gaining momentum, where managers responsible to oversee specific goals give the reviews and rating to the feedback associated with the specific goals.

Technology enables us to define relevant feedback form and unique workflow for each work role. Managing customizable feedback forms and workflows manually is a highly complex task and tech automation streamlines the process and lessens the administrative tasks associated with it.

Typically software applications should have built-in functionality to control who can see and update the form, pass through to the next action items based on the workflow, automatic reminders and notifications to complete the task, etc. Automation takes care of all the complexity and delivers the final performance scores within the specified time. Organizations can now carry out quarterly / even monthly reviews to monitor progress, gauge development needs and one year-end performance appraisal for compensation revision and promotions. HR technology helps to blend traditional and modern approach to leverage the collective power.

Regards,

Aparna Subramanian,

CEO & Founder,

Transformational Business Solutions

 

#hrtechnology#

#whyautomateperformancemanagementsystem#

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