The HR and business leaders in Dubai and all around the UAE are largely agree that the traditional performance management methods are outdated and unable to meet the needs of a modern fast-paced, digitally connected, and data driven workplaces. This is because two major factors, first the conventional performance management process is manual which makes it very expensive and time-consuming, the second problem is the poor quality of performance data which also raise transparency concerns. The modern performance management systems are based on AI (artificial intelligence) powered smart software engine and autonomous algorithms which can produce far more superior qualitative and quantitative performance data.
The traditional performance management methods have failed to enable businesses leverage the true potential of their employees. In the modern highly competitive and dynamic market landscape the flawed performance management practices could harm your performance and can have negative effects instead of improving employees’ engagement and productivity.
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What is a Modern Performance Management System?
Well the definition of the performance management system is still the same, no matter if it is a traditional or modern performance management system. The performance management system provides a structured framework which help businesses monitor and improve the performance of their employees and align them with the strategic goals to help business increase its effectiveness and operational capabilities and drive progress and growth towards the high-level organizational goals and in long terms, excel towards the mission and vision of the business.
However, the modern performance management system is a software based solution which help streamlining several processes, introduce automation to the system and maximize the efficiency of the process. The modern performance management systems are so effective and efficient that a business can easily convert the traditional once-a-year performance management process into a round-the-clock process enabling businesses to leverage the benefits of agile and continuous performance management practices.
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Modern Performance Management System Strategies and Best Practices
The primary goal of implementing a performance management system is to maximize employee engagement, satisfaction and provide them a culture and environment where they can unlock their true potential and help business achieve its high-level goals. In the last two decades we have witnessed a huge evolution in the markets all around the world. The major cause is massive adaptation of the technology and IT solutions. Furthermore the technology penetration in an average person’s daily life has also been causing paradigm shifts in market trends and customer behavior.
This have changed the way businesses were operating in the past. Especially in Dubai and all around the UAE where the technology has deeply penetrated the entire society and markets are very dynamic the businesses need to adopt to modern methods, practices and technologies in order attract and retain customers. The performance management was one of the most overlooked process, and still to this day a lot of businesses in the country are following the traditional methods.
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However, this is changing rapidly and we will see within a couple of years the conventional performance management will become obsolete. When it comes to modern performance management systems, there is no one solution that fits all. Every business develops and evolves differently and every business is unique, two businesses can never be same even if they operate in same market and industry.
However, there are some common strategies and best practices that can be equally beneficial for all. In this blog we will compile these best performance management practices which can be a real game changer for everyone, regardless of industry, size or type of the business.
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Performance Management System: 1. Continuous 360 Degree Reviews and Feedbacks
The 360 degree reviews were and still are one of the most important part of performance management system. The 360 degree performance reviews are feedback from multiple sources including managers, supervisors, peers, team leads, cross-department teams/management, stakeholders, and even external sources such as customers and suppliers, etc. The modern performance management systems are very robust, intuitive and make it very simple to conduct continuous 360 degree feedback campaigns. The continuous feedback from manager will help them understand their performance and progress, it is also very helpful in aligning the employees with the most important strategic goals.
The annual reviews and feedbacks are outdated, both employees and the managers have concerns about this practice. The continuous feedback on the other hand help employees perform well, in fact businesses have witnessed 3 to 4 time better performance by enabling continuous performance feedbacks and reviews. The intuitive performance management system can greatly help in improving the process and making it easier and convenient for all participants.
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Performance Management System:2. Agile Goals and OKRs
Setting up goals, building strategies and making plans are the foundation of any performance management system. The goals are the ultimate guideline for the entire process, however, most of the time business leaders and HR don’t emphasize much on the process of setting up goals. The long-term and high-level organizational goals and objectives are hard to swallow by an ordinary employee, however, when the same goals are broken down into smaller goals, it immediately start making more sense. When the high-level goals are segmented into smaller attainable steps or key results, it become easier for an employee to understand them and achieve them.
The OKR stands for objectives and key results, usually the goals are set at the beginning of the performance cycle, however, there could be interim reviews to revise the goals according to the circumstances. The performance management system provides a dedicated dashboard for the 360 degree reviews and feedbacks along with innovative features to further simplify the process which help increasing employee engagement and improve the outcome.
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Performance Management System:3. Increased Employee Engagement
The employee engagement is one of the pillar of any performance management process. Businesses who do not listen to their employee’s or doesn’t include them in the planning and strategy building stages of the performance management process are tend to have lesser performance and productivity. No matter how strong and frequent the communication is between the employee and the managers, there are certain things that might be hidden form the sight of the manager. Especially during the goal setting processes, building strategies and making plans to execute those strategies, the employee involvement can boost performance to several times.
Involving employees in those processes not only help management increase the success rate but it also motivate employees to put more efforts which definitely boost the performance. When employees are heard by the management and their say is included in the decision making processes, they feel more connected and responsible, which raise their morale and encourage them to perform better.
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Performance Management System:4. Public and Social Recognition
With the integration of the Gen. Z and a monumental shifts in the market trends and overall behavior, the monitory compensations which were the strongest motivator just about two decades ago have lost its power. Now a days the monitory compensations and social recognitions works side by side, in fact many market researches and surveys have proven that the employees value public praises and social recognition more than the monitory rewards. According to these surveys the Public Recognition or Social Recognition was the most memorable recognition according to the majority of the participants.
The performance management system offers a variety of tools and features to enhance your reward and recognition process. It provides dedicated dashboards and employee community hub where employees and the management can share their remarks and appreciations. These public and social recognitions are visible to each and every employee, hence when the employees are publicly praised for their achievements, they feel more proud of their accomplishments which help to boost their morale and performance.
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Performance Management System:5. Continuous Development Discussions
The more frequent and regular discussions help management to understand the performance and progress of the employees and give employees a chance to discuss their problems/obstacles or to seek guideline and help from the managers which can significantly increase their success rate. The continuous development discussions and check-ins help employees achieve their goals and give management a chance to course-correct and align employees with high-level goals to keep them on track. The collaborative conversations are always empowering, it help employees express their concerns and understand the management’s expectations.
The performance management system offers great features such as scheduling continuous development discussions and check-ins on a pre-set time frame and frequency to align the employees with the goals and to help them with their professional and personal development needs. The employee development discussions are very helpful in improving employee engagement and strengthening their relationship with the management.
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Conclusion
The HR and business leaders in Dubai and all around the UAE are agreed that the traditional performance management system has lost its value and flawed performance management practices can bring harm instead of benefiting the business. Therefore almost all categories and industry sectors are rapidly adopting to a more technology-based modern performance management system. The modern performance management system is a software based highly integrated application which not only greatly increase the data quality and quantity but also help businesses to implement the modern strategies and adopt to market-proven performance management practices.
The HR and business leaders should also understand that every employee wants to succeed, they want to grow and develop both professionally and intellectually, and the employees want to achieve their goals and like to be praised and admired. In this blog we have listed the best modern performance management system practices which will help you make your performance management process beneficial and appealing for both employees and the management.
If you want to learn more about the subject or if you want our help to implement a highly effective and tailor-made performance management system for your business, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.
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