performance management process Archives - RSI Concepts - Top IT Solution Provider Company in Dubai, UAE

April 18, 2024

Customizing Performance Management Systems for Diverse Workforces

In today’s dynamic market landscape where the competition is rising and the customer demands are rapidly changing, businesses need to leverage the full potential of whatever resources thay have in hand to gain competitive advantage and to achieve a steady growth. The UAE is a very diverse society, businesses operating in Dubai, Sharjah, Abu Dhabi and other regions of the country knows that very well.

Hence hiring a diverse team is common, however, business leaders and HR often doesn’t realize that recruiting people from multiple cultural and technical background is not enough, in fact in order to leverage the full potential and all skills of their multi-cultural and diverse workforce, businesses must have to integrate this to the very core of their performance management process.

When the performance management process will be optimized to manage diverse workforces, everyone will feel valued. Employees who feel valued tend to perform well and it this also help reducing the employee turnover. Performance management is a systematic approach involving processes, strategies, and analysis which ensures every employee perform well, their progress is measured towards their goals and their goals are weigh as per their contribution in the high-level organizational goals and strategic objectives.

For that businesses use a digital performance management system which provides a comprehensive framework to streamline performance management processes. In this blog we will discuss how a customized performance management system can transform your performance management process for your diverse workforce.

Customizing Performance Management Systems for Diverse Workforces

Understanding the Digital Performance Management System

Before we discuss the importance of customizing a performance management system for diverse workforces, it is important to understand what is a modern digital performance management system? A modern day’s digital performance management system is a digital tool which provides a complete framework to ensure that employee’s performance is fully aligned with the organizational goals.

It also help unlocking the true potential of the workforce, and help forming cross-functional and high-performing teams which lead to operational excellence. The performance management system majorly includes planning, goals setting, performance monitoring, evaluations, development and acknowledgement process.

Here are the key components of a digital performance management system:

Goal Setting: Setting up clear and realistic goals for employees, teams and different business functions which are aligned with the high-level organizational goals and strategic objectives. Modern performance management systems often utilize SMART Goals framework.
Continuous Feedback: Cultivating a culture of continuous feedback where employees are evaluated periodically, given coaching, and their goals are aligned with organizational goals. This help identifying areas of improvement, setting up plans and acknowledging the achievements.
Periodic Evaluation: Annual reviews are not as that effective anymore. Modern performance management systems include periodic evaluation and assessment to measure employee progress towards pre-set goals and established performance benchmarks.
Aligning with Organizational Goals: One of the most crucial function of a digital performance management system is that it helps aligning the individual and teams’ goals with the high-level strategic goals and objectives of the organization to boost productivity.
Employee Engagements: A digital performance management system provides a systematic approach to integrate employees in important performance management tasks, fostering a culture of collaboration, accountability and engagement.
Employee Development: Performance management system helps HR and manager to create and provide right opportunities to the employees to enhance their skills and to elevate their potential through regular training, coaching, and mentoring and technical development programs.
Recognition and Rewards: Recognizing high-performer and acknowledging their contribution by offering incentives, bonuses, promotions or other form of benefits. This will help raising their loyalty and it will also boost the morale of the entire team.
Performance Improvement: There should be a framework to improve the performance of those employees who failed to achieve their goals. The digital performance management system offers tools to setup and modify goals, take actions, set timelines for the improvements.
Statistical and Analytical Data Tools: The managers can utilize in-built data capturing and analytical tools to understand performance patterns, trends and identify the areas of improvement to make informed decisions.
Continuous Enhancement: A digital performance management system provides integrated tools which help businesses continuously evaluate their performance management strategy and make enhancements to ensure higher impact and efficiency.

A digital performance management system is a very powerful and effective strategic tool that can help businesses and organizations to continuously improve their performance, productivity and profitability by fostering a highly engaging organizational culture where employees feel connected, empowered and are provided with suitable opportunities to enhance their technical and behavioral competencies.

Understanding the Digital Performance Management System

How Businesses can customize the Performance Management System for Diverse Workforce?

Businesses in Dubai, Sharjah, Abu Dhabi and all around the UAE are facing bigger challenges with managing diverse workforce. When it comes to workforce diversity, there are several factors that should be considered, for example, here in UAE a large population of expats is living, the government itself is encouraging to diversify workforce to have an inclusive culture. People coming from different backgrounds, countries, cultures and ethnicities, furthermore we also have generational difference too.

The new workforce who belongs to Gen Z. is more tech savvy, have different customs and expectations, the people from Millennial and Generation X have different customs and expectations. When an organization is hiring they need different level to experience, qualifications, and in today’s modern world, the technology also plays a crucial role, hence an organization has to diversify their workforce, which is a great and very positive thing, it helps building strong and productive culture.

Why Customizing Performance Management System is Important?

A one-size-fits-all approach to performance management overlooked the unique strengths, challenges, and contribution made by an individual in a diverse workforce. Customizing performance management system will help businesses enhance their capabilities to collect and analyze contextual performance data with superior efficiency and efficacy. A performance management system that doesn’t include cultural factors tend to be ineffective or in some cases it could hinder and harm the performance of the organization.

Cultural and behavioral understanding help managers understand how their certain actions and feedback could be perceived by the employees. This will influence the way how employee interpret goals and objectives, and how they would interact in a team. Understanding all these factors is extremely important in order to ensure the employees remain fully aligned with the high-level strategic objectives while participating effectively in their team goals and also perform well for their individual goals.

Why Customizing Performance Management System is Important?

Before Customization Identifying Key Performance Metrics is Crucial

Before customizing the performance management system it is extremely important to identify the key performance metrics. These key performance metrics should be aligned with the high-level organizational goals and objectives to ensure the entire workforce will progress towards achieving them. This will also help you defining the success incorporating the performance criteria for productivity, performance, quality of work, customer satisfaction, leadership, coaching and training, and professional development.

When clear and easy-to-understand criteria are established it is relatively easier to communicate goals, expectations and feedback. With a diverse workforce the biggest challenge is always with communication and feedback, when clear KPIs are set, the goals and objectives are easier to communicate and understand. Furthermore when the employees are given tools for self-evaluation they can easily understand feedback and are able to evaluate and assess their performance against their goals.

Before Customization Identifying Key Performance Metrics is Crucial

Establishing Effective Communication Channels

The customization of a performance management system begins with establishing highly effective communication channels. Communication is a key to a successful implementation of a performance management system. The communication should be both understandable and quick. The organizations must build clear and easy-to-understand resources, guidelines and instructions which will help all groups of employee to understand the performance management system and evaluation processes along with the expectations of the performance management process. This will help connecting them and integrating them within the process.

Providing open, transparent and easy communication channels can greatly enhance communication and employee engagements. Every HR and business leader knows the importance of employee engagement, and the communication is a key to enhance engagements. This will help employee to take feedback, share their concerns openly, and it will help managers building trust which boost the impact of the performance management system in a diverse workforce.

Establishing Effective Communication Channels

Providing Continuous Feedback and Coaching to Build Trust

The diverse workforce doesn’t mean management difficulties, but it means there could be many complementary and unexplored sets of skills and strengths in every employee of the workforce. The HR and business leader have to explore those skills to leverage them to boost their employee’s potential. A digital performance management system typically offers continuous feedback and review framework which is essential for understanding the hidden strengths and also the areas of improvements.

This will help managers unlocking the true potential of the employees while discouraging stereotyping and any type of bias. A perfectly designed performance management system provides transparency and fairness which help gaining employee’s trust. When the differentiation of class, ethnicity, cultural background, and gender is neutralized, the employees feel more equal, important and valued. This raise their loyalty and encourage them to perform better.

Providing Continuous Feedback and Coaching to Build Trust

Culturally Sensitive Feedback and Communication Tone

Throughout the performance management processes there could be various interactions and reviews along with constant communication and feedback between the managers and the employees. It is extremely important to drive methods and way to include cultural sensitivity in all communications. A certain word or wording could be acceptable by one culture and could be disrespectful or considered blunt by another. Hence all feedbacks and communications are revamped to make them more culturally sensitive.

This also doesn’t mean that you should dilute your message, but it means conveying the right message in right tone which is both understandable and acceptable by the recipient. Businesses must have to train their HR and managers to enhance their cross-cultural competencies to ensure higher employee satisfactions. For example, in some cultures directness is appreciated and in some it is considered somewhat rudeness, hence a well-trained manager could ensure all employees are happy and satisfied while the message is conveyed effectively.

Culturally Sensitive Feedback and Communication Tone

Customized Performance Reviews and Contextual Data

Most of the performance management systems have a standard employee feedback reviews mechanisms, totally disregarding any aspect of cultural background, individual challenges, and contextual data. Flexibility is a key when you are customizing performance management system for a diverse workforce. A digital performance management system is exceptional at offering such flexibilities and customizations. It is also important to include employee feedback and consider it too.

Regular and continuous feedback is a great tool to establish a strong relationship with diverse workforce, this will give your employees a chance to share their opinion, concerns and feedback. Regular interactions also help building a productive and positive environment which boost morale and encourage employees to seek solutions of their challenges. Because with diverse workforce, every employee also comes with their set of roadblocks and challenges. A flexible performance management system can help dealing with all these aspects of performance management.

Customized Performance Reviews and Contextual Data

Conclusion

UAE is a country where diversity is celebrated on an unparalleled scale to any other nation, the large population of the country is based on expats coming from all around the world. In such a dynamic marketplace where any business could have employees coming from a lot many different ethnic and cultural background, the customization of the performance management system is not something that is trendy, but it is something that is an absolute necessity. A tailor-made performance management system designed to account for versatile backgrounds, cultures, religions, ethnicities and age groups could be a game changer for a business.

Businesses can unlock the true potential of their employees by embracing their uniqueness, exploring their unique sets of strengths and dealing with their exclusive problems and challenges. A performance management system customized for a diverse workforce ensures every employee feel empowered, valued and engaged within the process which led to higher performance and better communication between the managers and the employees.

In a multi-cultural UAE landscape businesses embrace diversity, it help fostering unique skills and a competent workforce. HR and business leaders always struggle with managing performance that is because of the lack of understanding and focus on diversity and managing a diverse workforce. A digital performance management system customized for your tailored business needs can greatly enhance productivity and operational efficiency which is a key to higher profitability and long term success.

In this blog we have discussed various crucial aspects of customizing performance management system for diverse workforces, if you want to learn more about the subject or if you want our help to implement a culturally sensitive digital performance management system for your diverse workforce, 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.

February 11, 2023

Performance Management System: Best Practices

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

January 4, 2023

How to Customize Performance Management System

The performance management is an integral part of a business’s growth strategy. The performance management help improving the operational capabilities, improve resource management, align employees and resources with high-level goals and objectives, maximize the productivity and profitability of the business and make them ready to be reactive and responsive to the abrupt changes in the market and customer trends. The modern businesses face modern problems, the markets are evolving on a rapid pace, the customer demands are skyrocketing, the workplaces become more dynamic, the employee’s demands and needs are also continuously changing. Above all the Dubai and in fact the entire UAE is a very competitive market. The human resource management have evolved a lot over the past decade, with the introduction of Gen Z in worldwide marketplaces the values, norms and standards have transformed a lot. Several surveys are market research proved that the managers and even the employees felt difficult to share an honest opinion in a fear or harming the relationship with their employees, managers or peers. It is not that this bias is new, however, it got amplified in the recent years.

Similarly there are several other variables, such as intense integration of the technology, which have completely transformed the work environment and digital ecosystem. The communication channels have been changed, the digital customer experience is paving its way, the customers are more focused on having a good experience, the competition is becoming tougher day by day, and the customer retention needs more focused efforts than ever before and so on. We can discuss hundreds of different factors that have completely changed the work environment, culture, customer behavior and marketplaces over the years. However, the important thing is to understand that a performance management system is an absolute necessity for a high-performing business. When a business or organization will have to choose a right performance management system they can easily get overwhelmed with the variety of available solution in Dubai and all around the UAE. However, a good one-fit-for-all type of performance management system or solution doesn’t exists, otherwise it wouldn’t be so difficult for many enterprises to implement a best performance management system. That is why the customization is the only way to implement a good performance management system/software which can full-fill all your business needs.

What is a Performance Management Software?

The modern performance management system is software application which is exclusively designed to support a business’s performance management processes. It is like any other software tool that a business might use to improve any other work flow or process. For example, a document processing tools or a complaint center tool is a digital solution to improve the efficiency and performance of the document processing and complaint management processes. Traditionally the performance management was done manually, where the evaluation is majorly based on the reviews by the managers. However the digital performance management system or performance management software is a modern digital solution that help businesses to increase the efficiency and efficacy of their performance management process. By leveraging the performance management software businesses can easily adopt to:

Agile Performance Management
Continuous Performance Management
Contextual-based Performance Management
Project-based Performance Management
KPIs, OKRs, Balanced Score Cards
Performance Management by Objectives
Modern Performance Metrics

And much more. The performance management software help businesses adopt to modern practices and methodologies to maximize the outcome of their performance management campaign. Furthermore the performance management software is a great tool to digitalize the performance management processes which brings automation, accuracy and transparency to the system.

How to Customize a Performance Management System that fits all your Performance Needs

Every business and organization have its own very unique culture, work environment, practices, business processes, management structure, strategies, plan, goals, work flows, etc. which make it significantly different from others. The organic evolution, natural growth and the leaders are responsible for this uniqueness and it is considered to be one of the best competitive advantage one can have in highly dynamic markets. This uniqueness also means that every business and organization have different needs hence they need a different performance management solution. There are two major categories of software solutions, whether you are acquiring a software solution for any internal or external business processes, these two categories remain same. The first one if the commercial off-the-shelf solutions (COTS) and the second category is customized, tailor-made or bespoke software. The customized software are exclusively designed to meet the very unique demands of a business hence are more reliable, perform well, integrate within organization easily, and produce much higher and better quality outcome. In this blog we will discuss how a business can customize their performance management system software to unlock the true potential of their workforce and achieve higher goals and objectives.

Customize Performance Management System: Engage Employees in Discovery Phase

Like any other software the performance management system also require a comprehensive discovery phase. Since you are aiming to develop a customized performance management software you need to do proper research before making a plan for the software. Usually business pay adequate amount of efforts in the research and discovery phase however, the most important thing that most of the businesses undermine the importance of engaging employee in the discovery phase. Most of the times businesses doesn’t include employees in the discovery phase or any other phase of the performance management system development. However, engaging employees in the early stages of the performance management system development will help you build a better and more compatible system which will align with the needs and expectations of the employees as well as the business goals. This will help you define the metrics, incentives, goals, objectives, critical success factors, and much more in a way which make sense for the employees. This also help businesses in implementing the new customized performance management system and enable them to adopt it with a more positive attitude and help you achieve better efficiency and efficacy of the system.

Customize Performance Management System: Make a List of all Required Features and Performance Metrics

One of the biggest advantage of a customized software is that you can add all the features you want. Every business have different performance objectives and even goals also. The performance management process and practices also differs from case to case, that is why each business requirement is different from the other. It is important that you include all the features that you need. Such as goal setting features, communication framework, performance metrics and data analytical tools. Whatever you want you can include in the system at this stage. The best is always to consult with the external consultant or the performance management software development company. As they would have more experience with the performance management system and their feedback can be very vital. It is important that all the performance measurement metrics are also discussed internally with all stakeholders and relevant personals. You can also engage employees at this stage and consolidate all the feedbacks in one document then refine that document and for a charter document or scope of the work. This charter document or scope of the work will include all the features that you will be getting in your customized performance management system. It is important to invest as much time and effort as you could in this stage as it is the most crucial aspect of the customized performance management software development.

Customize Performance Management System: Intuitive UI (User Interface)

For any software the UI or user interface is a key to success. Studies have revealed that people tend to avoid complex software and their efficiency declined with complex UIs and difficult user experience. Same is applicable for your customized performance management software. If the UIs are simple and easy-to-navigate the user response will be good. Furthermore it is important to customize your UIs look and feel to match with your company branding. The navigation of your customized performance management software should be simple enough to let user access the tools/features or information within a few clicks. Performing different tasks should be simple, such as defining KPIs, setting up goals and objectives, viewing performance data or any such feature should be easily accessible for all the users. Furthermore several features can be added in UIs to make them more intuitive and user-friendly such as adding tool tips, mouse hover functions, dialog boxes to share instant help materials, a dedicated help and FAQs section and guidance for the users to understand each feature of the customized performance management system. Offer simple options to save the work and continue it on the next day/session. That is a very useful feature. The textual content should be simple, avoid using complex and technical terminologies and use plain and simple language to make the system more understandable.

Customize Performance Management System: Digitalization and Automation

One of the biggest advantage of implementing software based solution for manual processes is the digitalization and the automation. The digitalization means that the performance management software will convert manual processes in digital which are more convenient. It also allow several dashboards for different users with different level of access and according to their job roles. The administration or higher management and power users will get maximum system access. This enable businesses to make a process simpler and convenient. For example, if a manager want to schedule a one-to-one discussion or meeting with an employee, they can schedule it in the system. If reviews are to be conducted this can be scheduled, and the management will get full overview of what is happening. If a review is pending they will immediately know, if they want to get the information that who conducted the review and what were the findings, etc. and all that can be done with a few clicks. Furthermore the automation help managers collect the performance data automatically which can save a lot of time and efforts and make the processes even more convenient. These are the advantages which enable businesses to easily adopt to continuous and agile performance management practices and other more frequent performance reviews.

Customize Performance Management System: Third-Party Integration

In today’s modern work environment the organizational software, tools, and databases work in harmony with each other where a well-connected network and data sharing mechanism is development to increase collaboration and communication between different software and tools a business is using. The performance management software is not different, it also support different levels of integration. However, most of the time the HR managers or the decision makers doesn’t realize that certain technological platform are better in integration than the others, furthermore it also depends on the existing network and digital ecosystem. So, the technology that you are selecting to develop your customize performance management system should be able to integrate with your existing business tools, enterprise solutions, databases and central information center. The central information center is a digital hub which hosts the data of all connected software and tools. Your new customized performance management software should be able to integrate. It doesn’t matter if you need integration or not, but the compatibility should be there. As organizations and businesses keep growing and high-performing enterprises need support from their IT infrastructure. That is why it is important to ensure your new customized performance management software will support the required third-party system integration.

Customize Performance Management System: System Administration and Configuration

Usually the HR managers or other decision makers doesn’t emphasize on the customization features and abilities of the system’s administrative panel. Most of the time when the word customization comes, people often think it is having a change in the source-code of the program or layout, which is only done by skilled professionals. However, every software also have an administrative control panel which allow certain level of customization which help system administrators and power users to manage and modify the system’s features and certain aspects. That control panel is very vital for a performance management software. Obviously it depends on the vendor, but on your part you can think of different scenarios that you could face in future which might require to make certain changes in the system. For example, currently you are conducting employee performance evaluation twice in a year, you might want to ramp up the frequency by conducting performance evaluation after each quarter. You might want to set up on-demand based reviews and assessments such as project-based performance evaluation, etc. Similarly there could be so many different scenarios and practices which you are not needing today but maybe in the distant future you might going to need them. Similarly you might want to control the alerts, notification, or even the data access for different users, etc. All these features will be available on the administrative control panel which will allow you to change or customize the system configuration to suit your needs and requirements.

Customize Performance Management System: Mobile Compatibility

The performance management system is a very important tool, the key to better performance management is always communication, in case of a performance management software you will always want your employees to interact with it more often. However, usually businesses keep the access to such systems restricted within their networks, or even the access is not the issue such software and tools come with desktop version only. The administrative and user access panels and dashboards are mostly web-based interfaces. Which means that an employee will have to login to a web-page in order to interact with such systems and software. The modern performance management system is also a similar software, it offer multiple web-based UIs (user interfaces) which can be accessed through a web browsers. However, these days the smartphone and mobile technology have completely transformed our work and personal behavior. People tend to spend more time on their smartphones and mobile devices. Above all there would be a lot of employees who will be always on the go or who will be working off-campus. For all such employees interacting with performance management software could be a big problem. That is why offering mobile compatibility can significantly increase their interactions and engagements which also have positive impact on the performance. The mobile compatibility can be achieved by two methods, one is making your UIs responsive and the other is offering a dedicated smartphone application. Both methods are good, but the dedicated smartphone applications tend to offer a better user experience.

Customize Performance Management System: Scalability, Upgrades and Maintenance

The scalability, upgrades and the maintenance are the most important components of any custom software development project. Similarly your customized performance management system should also have a crystal clear strategy, plans and mechanisms for the scalability, upgrades and maintenance. Another great advantage of the customized software application is that they are exclusively designed for a particular business and the ownership belongs to that business and not the vendor or outsourcing contractor who is developing the software. This completely solve all commonly associated problems with the scalability, as the customized performance management software is completely owned by the business itself, hence they can expand it as much as they want, they can have unlimited numbers of the users without paying anything extra. There would be no monthly or annually fees or subscription charges or associated licensing fees. The upgrade policy can be mutually worked out with the vendor or outsourcing contractor. Since you will own the customized performance management system software hence you are not bound to the same vendor, you can have in-house team to keep the system up to date or upgrade it whenever needed or you can sign an agreement with the vendor or any other third-party software development company who is familiar with the technology and can support your with further customizations in future. Same is the case with the maintenance too.

Conclusion

In the present day’s dynamic marketplace and skyrocketing customer demands, it is crucial for a business to efficiently and effectively utilize its resources. For that every business have some kind of performance management strategy. Usually businesses follow traditional by-book methods to execute a performance management strategy. However, the marketplace have changed very rapidly and the performance management is also not the same as it was a decade ago. This require businesses to be more proactive and reactive towards abrupt market changes which is why businesses adopt and implement technological solutions to increase their capabilities, productivity and readiness to respond to the market changes. A performance management system is one of the most important part of any business’s success strategy. However, recently businesses in Dubai and all around the UAE have started adopting customized software and application instead of going for COTS or commercial off-the-shelf solutions. The biggest advantage of the customized performance management system software is that business can design is exclusively to meet their specific and unique needs. Unlike COTS the customized software doesn’t require you to adopt the new system and make changes to your existing processes, practices and methods.

The customized performance management system can easily integrate in the existing digital ecosystem and it can be designed as per the user’s demands hence very less or no training is required. Furthermore the businesses own their customized performance management system which means that their data will be more secure and they can customize the system the way they want in future as well. There are several other advantages of the customized software which make this method far superior than acquiring a commercial off-the-shelf software solution. That is why reason we wrote this blog to help our audience understand how they can customize their performance management system software to maximize its efficiency, impact and efficacy. If you have any question or if you want to learn more about the subject or if you want us to help you design and develop your new customized and cost-efficient performance management system software, 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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December 13, 2022

Why Automating Performance Management is Important for Businesses?

In the modern fast-paced markets such as Dubai or anywhere else in UAE the businesses need a very effective performance management strategy to boost their efficiency and operational capabilities in order to compete with the tough competition. The performance management is an integral part of any business’s success strategy. It help improving the entire work environment and organization’s culture and groom employees to increase their potential, capabilities, skills and performance. For any business producing maximum outcome form the resources they have in hand is a perfect strategy to maximize their profits and sustain a steady growth. It is also not only about the outcome, it is also about the quality of the outcome that matters. For any business it is crucial to utilize all resources effectively and extract maximum high-quality outcome from these resources. In order to have an excellent skilled hard-working workforce, the HR will have to face many challenges, one of the biggest challenge is employee turnover and the second is lack of motivation among the employees.

Here the important thing for the HR is to understand that the employees spend almost most of their day at their work, the workplace environment, organization’s culture and the relationship of employees with the managers and with peers is what determines the success or failure of business. The employee performance have a huge impact on the quality of products and services a business or organization produces. The traditional performance management methods are already failing businesses and both employees and managers are losing faith in orthodox performance management practices. According to several studies both the managers and the employees are not happy with once a year evaluation and appraisal process. The Dubai and in fact the entire UAE is one of the most competitive marketplace. The competition is very high due to favorable market conditions and government policies and the customer demands are also very high, which is why the performance management become an essential in order to sustain growth.

What is the Difference between the Traditional and Modern Performance Management?

The performance management is a set of processes and actions that a business takes in order to evaluate and improve the performance of the employees by the end of each year. The employee appraisal or evaluation once a year or twice a year is no longer effective due to highly customer oriented, dynamic, and rapidly evolving markets. There was several other problems with the traditional performance management system such as the entire process was manual, the transparency is poor, and the quality of data is low and many more. The modern performance management systems digitalize and automate the performance management process. The modern performance management system is based on a software application which not only digitalize the performance management process but it can also automate several steps and collect a wealth of performance data. Furthermore the digitalization and automation improve the efficiency and reduce the resources required to conduct the appraisal and performance management processes.

What is a Digital Performance Management System?

A digital performance management system is a software based solution for performance management and appraisal processes. The HR department is responsible for all these activities, however, the performance management system provides a much better visibility with live coverage of performance data and intuitive dashboard which are available for everyone. The HR users can utilize their dedicated dashboard, the senior managers, board of directors, MD/CEOs, etc. and even the individual employee can have their performance dashboard with different level of access to the performance data. For example, the individual employees might be able to see their own performance data or at maximum they might also get an overview of their peers’ performance. The line managers or supervisors will be able to access the performance data for their subordinates and so on. The digital performance management system offers a user-friendly workflow which matches with the administrative hierarchy of the business. These dashboards are connected with the core application that is usually hosted at a server.

The digital performance management system server application is the brain of the system, it contains all of the source codes, algorithms and the actual data collection and analysis is done at the server side application. The performance management system software can be hosted at online hosting, in-premises servers, and at cloud which makes it very flexible and convenient. The different user dashboards are dedicatedly designed for the different levels of the management in order to provide the relevant and important information on the priority. The intuitive user interfaces make navigation simpler and easier and allow managers and user to perform several analysis based on the data collected and it also enable them to prepare performance reports and download them in pre-set formats. The digital performance management system provides a structured framework for the reviews and communications, and help businesses improve their management practices. Furthermore it is a digital tool and it can automatically collect a tremendous amount of performance and analytical data which is not only very helpful but also reduce the efforts required for the performance management process.

How Digitalization and Automation of Performance Management Benefits Businesses?

The digitalization and automation are used to facilitate human work, it help reducing human efforts, bring more accuracy to the processes and tend to produce high-quality outcomes. The digitalization and automation of performance management can help businesses in adopting to modern performance management practices such as agile or continuous performance management which is the most effective solution for the performance management needs in the modern marketplaces. Businesses always adopt new methods, systems, tools, software and solutions to improve efficiency and operational capabilities. With the rise of AI (artificial intelligence) ML (machine learning) and smart algorithms our entire lives are revolutionized. Just think of the social media, people use it for various purposes such as for communication, or for entertainment or to gain commercial benefits and so on. All this is possible because of the artificial intelligence (AI) based smart systems and computer programs. That is why businesses can leverage the digitalization and automation in their performance management process to make it more accurate, highly efficient, cost and resource effective and less time consuming.

The digitalization and automation in performance management process offers many advantages, such as it improve the overall efficiency and efficacy of the process. Traditionally the performance management is a very time and effort consuming process that is also one of the reason businesses conduct performance analysis once or twice a year. But things have changed drastically, especially since past decade, now a day in such a modern and fast-paced work environments the businesses need to be more vigilant and responsive towards unexpected scenarios and abrupt market changes. Which is why the businesses in Dubai and all around the UAE are proactively seeking modern performance management systems which can provide them a comprehensive solution for all their needs. Here are the key advantages of digitalization and automation in performance management processes.

Adopt Agile and Continuous Performance Management Practices

The Dubai or in fact the entire UAE is a very dynamic marketplace, it has tougher competition, the trends are rapidly changing the customer needs are continuously growing and the businesses need to align with those changes and demands very quickly in order to remain relevant. On top of everything the competition is also very high and the businesses need to establish a strong brand image by gaining a greater competitive advantage in order to attract more customers. These circumstances demand unorthodox solutions, which lies in agile and continuous performance management methods. The agile performance management is conducting performance evaluation and appraisal more frequently than traditional methods, usually the performance cycle is three months or less. Whereas the continuous performance management is a cyclical performance management which consists of more frequent performance management cycles throughout the year. The continuous performance management cycle includes evaluation, planning, setting up goals & objectives, conducting reviews, collecting feedbacks, and more frequent communication/check-ins.

Usually the agile and continuous performance management terms are interchangeable however, the difference is not major so businesses often utilize a mixture of both performance management types. Whatever the case is these types of performance management are not possible without adopting digitalization and automation within your performance management process. On an average the performance management and appraisal processes require a lot of efforts and resources which is time-consuming and expensive too. However, with the help of a digital performance management system and the automation it offers, the performance management become easier, less time-consuming and highly cost-efficient. In fact the digital performance management system offers a continuous monitoring and provide real-time performance analysis data which help businesses to quickly adopt to changes and align themselves with the market trends. It also increase the readiness of the management to deal with unexpected situations and interruptions in the regular operations due to internal and external factors which significantly reduce the negative impact of such incidents.

Improve the Transparency of the Performance Management Process

Studies have revealed that both the employees and the managers showed distrust at the traditional performance management process. Mostly it is due to lack of transparency and other problems that are associated with the manual processes. However, with the digital performance management system as most of the steps are fully automated the employees and managers both trust it. As the system keep record of historical data and provide a full 360 degree view of the employee performance hence the chances of missing out something or personal bias are reduced. Furthermore the modern performance management focus more on the contextual performance rather than measuring the outcome alone. Which also goes in favor of the employees and help manager to understand the actual performance of the employee for the entire performance cycle unlike traditional performance management where usually the managers focus only on the most recent events and incidents. Moreover the data is digital and stored in the performance management software which also raise the trust of the employees.

Acquire In-depth Performance Data with the Digital Performance Management System

Another great benefit of digitalizing and automation the performance management process is the ability to acquire highly accurate and in-depth performance data. The system can automatically collect a variety of KPIs, it can link the data from multiple departments and provide a broader picture of the performance. It also help facilitating various performance management methods such as 360 degree reviews, KPIs, OKR, Balanced Score Cards, Behavior KPIs, Technical Competencies and much more. The managers can also manually upload performance data to the system which further enhance the quality of the performance data. The ability to automatically and manually collecting digital data also have other perks. Such as it provides a variety of in-built analytical tools to assess and evaluate the employee performance from multiple angles. The performance management system also help filling the communication gap between the employees and the managers by providing a structured framework for the one-to-one interviews, discussions, and performance reviews. All this data is very helpful in taking effective and impactful decisions and help improving the outcome of the performance management cycle.

Digital Performance Management Help Increasing the Quality of the Personal Development and Training Programs

For any organization the personal development and training programs are very important they are expensive hence the business need to ensure they achieve the desired goals. Designing a training program or guiding employees through a career path is a very complicated part of performance management. The digital performance management system collect a variety of analytical data and performance matrices which can help managers identifying the strengths and weaknesses of their employees and even the entire teams. For example the managers can easily compare the employee performance in different setups or circumstances such as if an employee is working at a customer service center where the business is offering multiple services, when the employee is working on certain services they perform well and when they have to work on certain services their performance might decline. As the digital performance management system brings automation to the process so it can collect performance matrices in real-time which help managers identify the exact cause of poor performance.

The reliability and outcome of the training and personal development programs is heavily depending on the data and information that are being used to design those programs. If the performance data and information are incorrect or insufficient then the managers tend to make guesses or start making assumption which is very bad for the efficiency and efficacy of such programs. Furthermore the employees are continuously monitored hence the business can also evaluate the impact of the training and personal development programs by simply comparing the performance matrices from before and after these programs. Here it is important to understand that the training and personal development programs are expensive and they require a lot of effort and time which means it is absolutely necessary to get the desired outcome of these programs. Thanks to the digitalization and the automation the management can collect valuable performance and business intelligence data to ensure the training program or personal development program they will offer will make the desired affects.

Increase Employee Engagement and Reduce Turnover

The lack of employee engagements and the high employee turnover rate is one of the most common problems any HR department faces. Here in Dubai and all around the UAE the markets are rapidly growing the job opportunities are in abundance which makes employee retention more difficult. The digital performance management system not only collect valuable business intelligence and performance data but it also help increasing employee engagements. It offers dedicated employee dashboard where they can see their performance in real-time and it also enable employees to see the performance of their peers which encourage them to perform well. The digital performance management system include employees in the decision making processes which not only increase employee involvement and engagement but also raise their sense of responsibility and encourages them to perform well. It also increase employee engagement by offering them a platform to share their opinion and feedback. Furthermore it facilitates the communication and improve the employee interaction with the management and increase their engagement which tend to yield better performance.

The biggest cause of the employee turnover is the lack of engagement which cause stress, uncertainty, lack of trust on the performance management and training programs and inability to choose a right career path, all these reasons cause employees to switch jobs more often. The digital performance management system address all these problems and offer an effective solution. Furthermore when the employee engagement is increased and their involvement in decision making or other important tasks is increased they feel more connected with the business and tend to stay longer. The digital performance management system brings transparency to the performance management process and it help building a fair reward and recognition system which not only improve the performance but also increase employees’ trust on the system and help them bridging the communication gap which increase their success rate and keep them interested in their work and raise their morale. All these advantages help HR to retain more talented employees and increase employee satisfaction.

Make Reward and Recognition Process Fairer

The reward and recognition is one of the most important part of any performance management process. Employees simply crave for respect and recognition. It is not that the monetary reward that matters, in fact verbal or written appreciation can do wonder. Several studies have shown that the employee put monetary and non-monetary rewards at equal. With traditional performance management methods the biggest problem is lack of transparency and trust. Employees usually don’t trust it, they think and feel that the reward and recognition processes was not fair, another most common perception is the presence of bias and favoritism. Although the favoritism and bias is very common in traditional performance management methods, but the another major aspect is unfair or inaccurate evaluation. Since with manual process the managers tend to focus only on the most recent events and performance they might completely neglect the early year achievements. Furthermore the lack of contextual performance appraisal and consideration of external factors is absolutely absent from the system.

The traditional performance management methods usually failed to achieve the fairness in the reward and recognition process which can satisfy the employees. However, the digital performance management system brings automation to the process, it collect data and provide real-time analysis which are available for both the managers and the employees as well and the peers can also view the performance of their colleagues. These feature brings transparency to the system and make it more acceptable and fairer. The rewards and recognition is purely based on the performance data which completely eliminates the bias and human emotion form the equation and make the process more accurate, fair and justified hence the employee satisfaction is high. The one who got rewards are happy with their performance as they know what exactly they did to earn it, and the poor performer would also know where they have to make improvements in order to compete for the better performance and success.

Conclusion

The performance management is an essential business function these days, every business who want to compete and want to grow must have a great performance management strategy and system in place. The Dubai and in fact the entire UAE is a very dynamic, competitive and fast-moving market. It requires businesses to be more vigilant, pro-active and prepared for the abrupt changes, unprecedented market trends, competition and innovation. The UAE as a country has proven to be the innovation capital of the entire MENA region. That is why business need to unlock the full potential of their human resource to maximize the quality and quantity of the outcome. Furthermore the HR department’s top priority is to make sure the business have the required talent and technical skills to deal with all the problems they are facing and they might be facing in near future. For that the HR department always emphasizes on employee retention, training and development programs. In order to keep your employee motivated a fairer and justice based evaluation is absolute necessity.

A digital performance management system not only ensures employee satisfaction, but it also ensures the maximum performance which translates to high profitability and growth. The digitalization and automation of the performance management processes help the management acquire a great deal of valuable performance data and business intelligence which help them keep their employees motivated, engaged and loyal all the time. RSI Concepts is a leading custom software development agency in Dubai, UAE and is among the pioneers of the customized performance management system software solutions. If you want to learn more about the subject or if you want our help to implement a highly cost-efficient and effective tailor-made performance management system, 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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December 10, 2022

Why Organizations need Performance Appraisal System in UAE in 2022

The performance appraisal system is a great tool for the HR department. It help them to unlock the full potential of their workforce. The performance appraisal system is a necessity in a competitive marketplaces such as UAE. The UAE is one of the largest economy of the region with a high-paced growth and very friendly environment for businesses. That is why businesses and organizations are flourishing in the country. The local market and the international markets both are accessible form the UAE and this has attracted a lot of businesses and organizations to operate in the country. These circumstances also led to a very competitive market with high standards and very high customer demands. In order to ensure the sustainability and growth a business must have to operate at the maximum levels of efficiency and productivity. These factors led to a rapid adaptation of the digital performance appraisal systems all across the entire country. Businesses have started implementing various different types of performance appraisal systems however, most of the businesses preferred a customized performance appraisal system in 2022 and we are hoping to see a rise in this trend in coming years.

A modern performance appraisal system is a digital tool that enable businesses to evaluate their employees with high accuracy and enable them to identify factors that are impacting the performance of the employees. The biggest advantage of a digital performance appraisal system is that it is a data-driven performance framework which provide highly accurate and structured methods to evaluate the employee performance and help businesses align them with the high-level organizational goals and objectives. Traditionally the performance appraisals are a very time and resource consuming activity, hence only done once or twice a year. However, with the help of digital performance appraisal system several processes can be automated and the data is fully digital which enable businesses to conduct a performance appraisal with very less resources, time and efforts. The businesses who use a performance appraisal system usually have more performance evaluation cycles in a year, usually quarterly, but it can be further reduced to monthly or even project wise appraisals.

Why Organizations in UAE Needs a Performance Appraisal System in 2022

Since the economies all around the world are recovering from the 2020 pandemic, the marketplaces have evolved rapidly and become more customer oriented. Furthermore the customer demands and trends are also continuously changing. The competition and other market conditions are also rapidly changing and need businesses to be more vigilant, resilient and proactive. A business can only respond to such changes quickly enough if their employees and resources are working at their full potential. Most of the time businesses have all the ingredients of success, but still failed to achieve their goals because they are not performing as well as they could. The performance appraisal system provide a structured framework to manage and improve the employee performance and drive productivity by effectively evaluating the employees, solving their problems and inspiring them for better performance. The modern performance management systems have become more integrated, smart, and easy-to-operate and become more autonomous than ever before which makes the process more effective, accurate and agile.

Advantages of the Performance Appraisal System

The performance appraisal system have many advantages which makes it as perfect companion for modern businesses in 2022. As the system is digital so it can offer great visibility and customized view of performance data for different user groups. It provides a structured framework for communication and help organizing the conversation repository which also enables it to offer various comparative analysis and past performance data. Here are the key advantages of the performance appraisal system:

1. Align Employees with the Organizational Goals and Objectives

The performance measurement might seem a simple process however it is not as that easy to integrate a performance appraisal framework in organizations. For that businesses require a good performance management strategy which always begins with defining the goals and objectives for the employees, managers, teams, departments and for the entire organization. Each organization has a long term vision, all their annual or shorter goals are derived from that vision. Obviously the vision or mission is not something that can be fully communicated to the individual employees. However, the vision and mission statements can be communicated effectively to the employees along with their goals and objectives which are derived from the organizational goals and strategic objectives to achieve that vision. The top management define the organizational goals and objectives that are always aligned with the vision and mission. Then these goals and objectives scaled down to the departments, teams, and individual levels. These goals will provide a reference point to measure the performance.

The employee performance is measured based on their progress towards their goals and objective during a given time period or appraisal cycle. For example if the appraisal cycle was for 3 months, the goals of an employee was to produce 300 parts at a lathe machine and they have produced 250 parts during that time period then their progress can be measured as 83.3%. That was a very simple matric the performance measurement was simple and easy. However, most of the time the performance measurement is a bit more complex that is why the managers set quantifiable goals for the employees so their performance can be measured accurately. In some cases only one matric is not enough to measure the actual performance which makes things a bit more complex. For example, in case of a service center, a service agent was given a goal to serve 300 customers in 3 months, however, they served only 250, but their performance can’t be taken as 83.3% success. In fact it the customer experience that is equally important. Just by calculating the number of customers alone can’t determine how beneficial the employee was for the organization.

The digital performance appraisal system allow businesses and managers to set up goals along with the scale to measure the progress. Usually the goals and objectives are defined using SMART framework, it means scalable, measureable, attainable, realistic, and time-bound. Adopting SMART framework can eliminate almost all major mistakes that any HR or line manager can make setting up goals for the employees. The employee performance appraisal system allow both the employees and the managers to access the system through their dedicated dashboards to monitor their performance and progress in real time. Which is also very helpful in encouraging the employees to perform well. Furthermore the performance appraisal system also support managers to communicate the goals and objectives to the employees along with their impact on the high-level organizational goals and objectives. When the employees know what their efforts worth for in term of achieving the high-level organizational goals, they tend to perform well. Communicating the organizational goals and objectives is crucial for the employees to understand how they are and how they can contribute to the organizational goals and objectives.

2. Organize Communications and Reviews

The digital employee performance appraisal system provides a structured communication framework and make communication more effective, organized and convenient for both parties. The communication is the most crucial aspect of performance management. An organization can never achieve higher performance without an effective communication mechanism in place. The communication help the management to acquire the required feedback to understand the performance and progress. It help them understand what employees are doing, how they are doing and what is to expect from them in future. Furthermore it also help management understand the employee’s problems and help them identifying the factors that are harming the performance. The performance appraisal system streamline the communication, it provides a structured framework to establish effective relationship between the managers and the employees. All one to one sessions are logged, scheduled and recorded in the system along with the regular performance reviews and other feedbacks. This will help management take actions to improve the performance and increase the chances of success.

3. Increase Employee Engagements and Collaboration

The digital employee performance appraisal system allow managers to include employees in decision making processes which increase employee engagement. When the managers and the employees collaborate to set goals the employees are most likely to achieve them. It is the employee who can completely understand their circumstances, limitations and strengths. The managers obviously have a good understanding of work environment but it is the employee who have deeper knowledge about the ground realities. When the employees and the managers sit together the chances are they will set more realistic and achievable goals. This help increase the success rate and also increase employee morale. Moreover when the employee knows the goals are set with their consent they are most likely to get attached to it and feel more responsible for that. This encourage them to put extra efforts to achieve such goals and increase the success rate. The success itself is a great factor to increase employee courage, confidence and passion about their work. The increase employee engagement and collaborative environment always tend to produce better performance and higher productivity.

4. Bring Transparency to Reward and Recognitions Processes

The reward and recognition is one of the primary objective of any employee performance appraisal system. Traditionally the employee performance appraisal system was based on manual assessments, which are usually done by the managers. This method is outdated and no longer viable, employees in businesses and organizations are not happy with the traditional assessment processes. Usually the employee complain about the lack of transparency in the system. Studies have revealed that the managers only consider the most recent and most prominent events to assess the overall performance of the employee for the entire year. Most of the time the managers failed to recall the employee performance and behavior from the earlier months of the years, which in itself cause a lot of problems and reduce the accuracy from the system. However, the digital employee appraisal system can record and provide the employee performance data of the entire year. The managers can view the employee performance of the entire year along with the recorded reviews and feedbacks at their dashboard which help improving the accuracy and transparency of the system.

The employees are also provided with the data collected by the employee performance appraisal system hence the chances of misconduct or mistakes are very less. There is no room for favoritism or personal bias in the evaluation process which also build confidence of the employees on the system and produce highly accurate performance data. Furthermore the management can embrace the employees who have performed well and they can try to improve the performance of the employees who lagged behind. The appreciation, recognition and reward for good work plays a crucial role in employee satisfaction and raise their morale. It also increase their loyalty and motivate them to perform even better. The performance appraisal system doesn’t only rely on the reviews of the manager, but it collect quantifiable performance data and also allow other stakeholders to provide feedback. The peers, managers, senior management, cross-department managers, and even relevant customer can provide their feedback which significantly increase the transparency of the performance appraisal process and help gaining employee’s trust.

5. Offer a Better Career Path to the Employees

The employee performance appraisal system is a great tool to harvest future leaders. The modern performance management is leaning towards more contextual analysis rather only measuring the quantity of the work. The employee performance appraisal system help managers to implement contextual performance measurement techniques and enable them to include both the quality of the work and the quantity of the work in the evaluation process. Furthermore the performance appraisal system also help businesses effectively analyze the skills, technical competencies and the behavioral competencies which help them determine the exact value of an individual employee. The employee performance appraisal system can also be integrated with the accounts and help HR department with cost-accounting appraisal processes. It is extremely important for an organization to determine the exact value of individual employee and then propose them right career path to keep increasing their potential and talent. When the employees are provided with the right opportunities they grow, when they grow they become more beneficial for their organization. This require highly accurate performance data and in-depth analysis of the strengths and weaknesses of each individual employee which is only possible with a digital employee performance appraisal system.

6. Improve HR Efficiency

The performance appraisal either annual or interim is one of the most important function of the HR department. It requires a lot of resources, efforts, planning and time. The primary function of the HR department is to select the right talent for the business, retain employees, ensure employee satisfaction to maximize the outcome and keep filling the skill gap in the organization’s talent pool. These all tasks require a lot of in-depth understanding of the workforce and individual employee. The digital performance appraisal system not only help HR department achieve their organizational goals, but it also facilitates all these processes and make the appraisal more simpler and easier this it help boosting the efficiency of the HR department. It is the employee performance appraisal process that generates the right data to let HR understand what talent and skills they have and what is missing or what can be added to further boost the productivity of the business. Without accurate performance data the HR’s decisions could be risky and might failed to generate the desired outcome. That is why the employee performance appraisal system is absolutely essential for the HR in modern work environments in 2022.

7. Improve the Efficacy of the Training and Development Programs

The training and personal development or employee development programs are crucial for any business. They are expensive and it requires a lot time and efforts to develop an effective training and employee development program. The employee performance appraisal system not only provide the required information and performance data that help HR to design most effective training and personal development programs but it also help the HR to further analyze and evaluate their training and development programs. The HR departments can complete several appraisal and performance cycles to reach to a conclusive decision for these programs. This means that it also require a lot of resources and time. Once the HR department have designed an employee training and development program they can measure the efficacy by simply conducting another appraisal after those programs to measure the effects. The performance data will provide highly accurate results which will help determining the efficacy of these programs. The HR department can further tweak and upgrade those programs to generate the desired outcome. That is why the employee performance appraisal system is so crucial for organizations.

8. Reduce Employee Turnover

The employee turnover is one of the most impactful factor at enterprise and organizational performance. The HR department have invested a lot of efforts and resources to hire an employee, then the business will also have to bear the retention cost. Usually the HR can successfully target the right talent but the problems come when the HR will have to retain those highly-talented and ambitious employees. Most of the time the organization failed to retain those highly valuable and talented employees. There could be so many reasons why employee leave but most common is the lack of appreciation, acknowledgement, engagement and future score at the job. The employee performance appraisal system help the HR to solve employees’ problem and fulfill their needs which help reducing the employee turnover. When the employees are happy and satisfied with their current position they are most likely to stay. The employee satisfaction can be achieved by gaining their trust, appreciating them for their efforts and helping them out when they are not performing well. The employee performance appraisal system help streamline the communication, it improves the employee satisfaction and engagements, it improves communication and help HR to understand the needs and problems of the employees. Which help HR to take actions to retain employees and prevent unwanted disruptions in the performance.

Conclusion

The UAE is a rapidly growing economy and a very competitive marketplace, the businesses and organizations need performance appraisal system to maximize their productivity and profitability. In the year 2022 we have witnessed a huge increase in the adaptation of the modern performance management methods and digital employee performance appraisal systems. This is an indicator of how important it is for the modern work environment. No matter how expensive and advanced IT infrastructure an organization builds, or how modern and effective solutions they have acquired for their daily operations, if the employee are not performing well then everything else is just worthless. That is why the businesses emphasize a lot on performance appraisal systems. The traditional appraisal systems have already failed the business and organizations in UAE and in fact all around the world. The employees and the managers both are rapidly losing faith in the traditional appraisal methods and practices all around the world. This requires businesses to adopt a modern and highly advanced employee performance appraisal system.

The employee appraisal system is a digital tool it helps businesses set up most effective goals and also enable them to communicate these goals effectively to the employees. It help monitoring the employee performance in real-time hence make managers more ready and prepared for interruptions and unprecedented scenarios. It help improving the evaluation practices and provide highly accurate performance data which help the HR and the management to take informed and effective decisions. The modern performance appraisal system also help organizations to reduce the cost of the appraisal process and make it very simple so much so that the businesses who have implemented a digital performance appraisal system can conduct performance appraisal activities many times a year. It also help businesses to adopt modern appraisal practices such as in-depth contextual based performance reviews and support them to boost the skills and performance of the employees over the time. RSI Concepts is a leading employee performance appraisal system provider in Dubai, UAE. If you want to learn more about the subject of if you want our help to build a highly efficiency and cost-effective customized employee performance appraisal system for you. 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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June 1, 2022

How to Develop Customized Enterprise Performance Management Software?

This blog will provide you basic understanding of the performance management system software and how you can develop a customized enterprise performance management software. In Dubai and all around the UAE the markets are very competitive and the customer trends are always changing. If a business wants to excel in such environment they must have to make sure that each business function is working at their maximum level and each individual employee is delivering the best of their work.The performance management is not a one time work, in fact it is a continuous process that can take years to reach to the maximum performance and efficiency. Businesses use performance management systems and software for various factors that directly or indirectly impact the overall performance of the business.

There are several benefits of the performance management software. The biggest advantage of any performance management software is that it allow the management to implement their strategy more effectively and communicate their goals with the employees. It help employees understand their job roles, business’s expectations from them, their contribution required in the high-level organizational goals and objectives and it also provide them the roadmap/plan to effectively meet the expectations and ensure maximum performance and efficiency. The performance management software can easily track the current performance and it also keeps the past evaluations which help the management to understand the employee and it also help them to assess the employee development programs and training programs and a lot many things.

Today’s world is heavily data driven, no matter which industry or business sector you belongs to, the data is crucially important. The technology have rooted deeply in our daily lives. Especially in Dubai and all around the UAE where the technology and digital IT infrastructure is dominating the businesses, it is crucial to have effective and efficient digital strategy. Now a day’s even a small retail store can’t operation without a simple digital POS machine. As much as the business grows the integration with modern technology and solutions grows too. A performance management software is one of the best asset a business can utilize to achieve its long term and short term goals. There are two major types of enterprise performance management software. One is the off-the-shelf or ready-made solution which is provided by several vendors, the second type is customized enterprise performance management software which is far superior then the off-the-shelf solutions.

The customized enterprise performance management software provide more control, flexibility and it is very cost-efficient in the long term. Here in this blog we will discuss how a business without any prior experience or expertise can develop a high-quality enterprise performance management software.

Step 1: Develop Customized Enterprise Performance Management Software – Discovery Phase

For the enterprise performance management software or any other customized enterprise solution the first step is called discovery phase or requirement gathering phase. A business owner or senior manager can either take matter into their hands or they can also appoint a project in charge who should take responsibility of everything. The first step starts with the research. Not too technical, only basic research to understand the software and it is better to look up for some case studies and go through them. This will provide you a basic understanding of the enterprise performance management software and what other businesses are doing and how they are doing it. You can easily find those case studies online and also on the websites of the custom software development companies. If you are located in Dubai or anywhere in the UAE it is better to look up for the case studies from your region. Anyways, case studies no matter from where would be a great start. This will provide you excellent understanding of what you can do and what you can expect from the customized enterprise performance management software.

Step 2: Develop Customized Enterprise Performance Management Software – Set Goals and Make Plan

Whenever a business invest in any solution or software the first thing they do is to set a goal and then select the appropriate tools to achieve those goals. For customized enterprise performance management software the prime objective is to boost the performance of the entire business including all its business functions, management, and the individual employees. But the biggest challenge is that each business have certain limitations in terms of resources and capabilities. For example if you want to improve a product you have an excellent team who can design a great product but your production facility is running on old machinery which is not capable of manufacturing that product. In that case you can’t achieve your goal. So, the goals should be realistic and achievable. That was just one example, there could be hundred different scenarios where the business can face a road block.

Anyways, setting up goals like improvement in customer retention, increase in sales and improvement in resource management are the goals that any business can easily achieve. For those goals the business can set objectives such as 20% reduction in customer churn rate, 15% improvement in NPS (Net Promoter Score), 30% reduction in customer wait time, etc. For these objectives the business can make workable plans and good strategies. Such objectives are clearly quantifiable hence a plan can be built to achieve those objectives and overall organizational goals. A customized enterprise performance management software allow businesses to easily implement their strategy and execute plans effectively to insure their goals will be achieved.

Step 3: Develop Customized Enterprise Performance Management Software – Hire a Custom Software Development Company in Dubai, UAE

For the development of customized enterprise performance management software hiring a custom software development company in Dubai, UAE could be a trickier task. There are hundreds if not thousands of software development companies located in Dubai alone and there are many more all around the UAE. This makes it difficult for a business owner or the manager to select a right software development company for their customized enterprise performance management software. Here are some steps if followed as per the following order could help you identify a good service provider:

Make a list of 10 to 12 custom software development companies in Dubai or anywhere in UAE
The list can be prepared by simple Google search or you can ask your colleagues, friends and professional connection to suggest software development companies or it can also be a combination of both
Spend some time on exploring the websites of all the companies that you have in your list
Scrutinize their websites in terms of design, the information, overall look and feel, their portfolio, business partners, awards, testimonials, and media center (blog, PR, case studies, etc.)
Trust on your guts and rearrange the list by putting the best at the top, you can also discard a few at this stage if you feel they are not good enough or doesn’t have strong profile
Contact all of the short listed software development companies and ask them to sign NDA with you, then share your project plan, objectives and goals with them and ask them to submit their proposal and quotations
Analyze those proposals and discard the companies who failed to understand your requirements correctly or who are offering you a very vague, general purpose type solution
Now you would be remaining with only 4 to 5 or maybe even less companies, ask them to provide you the contacts of at least any 3 customers to whom they have provided a similar solution and take their opinion about the vendor
Now start negotiation on both technical and commercial proposals and try to reduce the project cost as much as you could while getting maximum features
Now you are in a position to easily select the best customer software development company
Sign agreements and agree on a project plan as well as payment and other terms and conditions

If you are still reading you might have noticed I haven’t mention anything about off-shore customer software development companies at all. There are hundreds of off-shore companies who are serving customers here in UAE but there are thousands who could get you to a failure. In addition to that any off-shore company is not bound by the UAE laws that protect customers in such business transactions. That is why it is better to avoid off-shore service provider and chose a customer software development company in Dubai, such as RSI Concepts or anywhere else from the UAE.

Step 4: Develop Customized Enterprise Performance Management Software – Project Execution

The customized enterprise performance management software project execution is a simple and fairly straightforward. Since the project plan is already drawn the scope of the software is already agreed in the previous stages now it is only the matter of time. However, there are some important things that you should consider when the project enters into the development phase. Here is how the customized enterprise performance management software development project is executed step by step:

Wireframe: The wireframes are layouts and diagrams that describe how the actual software will look and how each functionality will be provided. It is basically the blue print of the entire software.
UI/UX Design: The UI (user interface) and UX (user experience) is crucial for the success of any software. Be vigilant at this stage, carefully examination of the UI and all the screens will provide you the details of the UX. At this stage changes can be made easily, on later stages the changes could cost you more time and money.
App Development: The app development phase is where the developer add source code and develop algorithms. All the functionalities are developed at this stage.
Quality Testing: Some development companies do in-house testing some also invite customers to participate in this phase. Either way the final product is tested to see if all the features are working as per agreed previously or not. The software development company also do bug-fixing and quality assurance at this stage.
Security Testing: For any business the data collected by the enterprise performance management software is crucial. So a detailed security testing is required. Usually business acquire a third-party to do the security testing.
UAT: The UAT or user acceptance test is done by a selective group from the actual software users. Majorly the project teams, management and some key employees perform UAT. Once approved the project is ready for the launch.
Beta Launch: The beta launch or soft launch is a pre-launch step, in this the software is made available for a larger group of users. Who test it and usually the training also take place during this stage.

Step 5: Develop Customized Enterprise Performance Management Software – Launch

In the launch phase the customized enterprise performance management software is made available for all the users and it starts operations. After the launch another important thing is the maintenance of the customized enterprise performance management system software. Such software doesn’t usually require much maintenance. As they are usually at the cloud or online hosting, which is managed by the service provider so businesses doesn’t have to worry much about it. Even if it is hosted in in-premises data center, the management team could easily keep it operational. However, it is still very beneficial to sign an annual maintenance agreement with the development company. As it can provide additional support and few minor changes can also be accommodated under that agreement.

Conclusion

The enterprise performance management software is a very important asset for any business or organization. It provides the management with a real-time and 360 view of what is happening. The enterprise performance management software provide both macro and micro level monitoring features which are very helpful for improving efficiency and boosting employee performance. The managers can get the performance data which help them to quickly identify the hurdles and issues and provide them a chance to evaluate their actions and changes that they made to overcome those obstacles. Furthermore the enterprise performance management and appraisal software is a key component to reduce employee turnover and improve the overall workforce of the business. A capable team and efficient business processes are key to productivity, profitability and growth.

RSI Concepts is a leading custom software development company in Dubai, UAE with specialized skills and experience in customized enterprise performance management software. If you want to learn more about the subject or need our help to develop a super-efficient customized enterprise performance management software for you, please feel free to contact us via our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

Check out this: How the HR should select a Performance Management System?

May 30, 2022

How the HR should select a Performance Management System?

For any business the human resource is considered to be the backbone of the business. The HR is responsible for hiring skilled staff. The HR is also responsible for employee retention and employee happiness. Job satisfaction is a very positive factor and can boost one’s performance by many times. Here in Dubai and all around the UAE the market is very competitive, the customers are also very savvy and there are other challenges too which makes it extremely crucial to make your employees productive and efficient. For that businesses uses multiple methods and tactics, most of the businesses use a performance management system. The main reason to use a performance management system is to measure and evaluate the employee performance and their impact on the high-level organizational objectives and goals. Basically the performance management system is used to make sure all the employees and departments are working in the right direction to achieve the high-level organizational goals and objectives.

The continuous performance monitoring and evaluation also help encouraging employees to perform well. The performance management system is also used to improve employee’s capabilities. It helps HR in many ways and it enable businesses to implement employee development programs which help them improving their employees’ professional skills and capabilities. The performance management system is also a great tool to understand the strengths and weaknesses of the employees which help businesses in effective and efficient resource planning and management. All these benefits can help businesses and organizations in achieving their goals and objectives and maximize the productivity and profitability of the business.

When it comes to implementing a performance management system there are several options available in the market. Here in Dubai and all around the UAE the off-the-shelf and ready-made solutions are in abundance which also makes it difficult for the HR to decide which system they should acquire. Obviously each business have different needs and plans, so in this blog we will discuss how the HR should choose the right system for their needs.

What is a Performance Management System?

A performance management system is mainly a software which have in-built features that allow the businesses and organizations to execute the performance management tasks and strategy. There are two major parts of performance management. First part is called performance management system which is drawing a roadmap to achieve the goals. The second part is performance appraisal system which is basically measuring the performance and progress of each individual employee, teams, departments and management with the reference to the high-level organizational goals and objectives. Although most of the time the performance management system and the appraisal management system are interchanged and referred to as the performance management system only.

The performance management system software can be hosted on cloud, online hosting or in local/in-premises data centers. The system is interlinked with the central information center as well as all necessary systems and tools via API based integration which enables it to synchronize, update and push data to and from other systems.

Here are a few important things that the HR should consider while selecting a performance management system:

Performance Management System Software Technology and Platform

For any performance management system the software technology and the platform is crucial as it will not only support businesses with customization and scalability but it also have huge impact on the cost. The performance management system must be built on a widely available technology. Hence the changes or customization should be easy. These days many performance management systems are utilizing open-source programing platforms which is very cost-efficient and easy to customize. Furthermore the performance management system should be able to provide easy and cost-efficient scalability. The performance management system’s software consists of user interfaces (UIs) and a core server application.

The server application is where all the source code and algorithms are stored and executed. Hence the software platform should be able to support multiple server technologies such as online hosting, cloud hosting, local or in-premises hosting solutions. This will enable the business to choose appropriate solution as per their convenient and doesn’t put extra strain on the expense by forcing them to opt for a particular hosting technology.

Exclusive and Intuitive User Interfaces (UIs)

For performance management system or in fact for any system it is extremely crucial that the users are able to use it without any trouble. The intuitiveness and simplicity improves user experience which improves the overall efficiency and efficacy of the system. For the performance management system as it should be utilized by different all of the employees who all have different level of IT proficiency and computer knowledge, so the user interfaces should be designed to keep the users in mind. In a standard performance management system there are several different types of user interfaces which are all designed for different user groups, for example the user interface (UI) for the employee would be very different from the user interface for the CEO or the top level executives.

That is why it is extremely important that the user interface is easy to understand and intuitive. In some cases if training is required then the training should be provided to the staff. An employee or even a manager can only get the full benefits of the performance management system if they could use it easily.

Flexible Goals and Objectives Implementation

This is the most important part of any performance management system. The performance management system must have to be very flexible and user-friendly to enable the users to easily set goals and objectives in the system. At every managerial hierarchy till the individual employees the system administration (which is top level management) should be able to transmit the goals and objectives. In-built features should allow the board of directors and senior management to communicate the high-level organizational goals and objectives with the head of departments, directors, etc. and then they should be able to communicate those goals to their respective teams. For example the director operations should be able to set goals of the managers from the department and then they can do the same for the next level of employees and then the line managers, supervisors, etc. and at last the individual employees. This should be available for all business functions.

In this way the high-level organizational goals and objectives can be effectively communicated to everyone in the chain and businesses can get better results. Furthermore a good performance management system always encourage inputs and feedbacks from the individual employees and lower level management, which help them understand the goals much better and when employee have their say in planning and strategic affairs they feel more compassionate about their work and become more loyal with their employer. This can help improving their performance too.

Strong Monitoring Tools and Dynamic Strategy Implementation Approach

Most of the time the high-level organizational goals and objectives never changed, they remain same for the entire year. However, due to unplanned and unforeseen circumstances the individual goals and plan of action can be changed to remain on course for the high-level organizational goals. This requires continuous monitoring of the performance and the progress. A good performance management system should be very flexible towards implementing strategy and plans. It should provide continuous performance data to the managers and supervisors and let them change or amend the goals at any time. This course correction help them dealing with unforeseen events, interruptions and unplanned events.

Another upside is that it also provide continuous performance data to the employees as well and provide them with a chance to improve their performance to reach their goals and objectives. Furthermore it also estimate the impact of the individual performance on the overall performance of the team, department and the organization as well. Which also help encouraging the employees to perform well and it gives them a sense of importance which is good to improve employee loyalty and employee retention.

Continuous Employee Feedback

For any performance and appraisal management system the employee feedback is absolutely essential. It provides management a chance to evaluate the employees in a more accurate and better way and it also help reducing the communication barrier which is usually present among the junior employees and the management. The performance management system should have a dedicated in-built module for the employee feedback management. Where the managers should have ability to schedule one-on-one feedback sessions for any of their subordinate and also the manager who will be conducting the feedback session. The performance management system should also include online feedback features to conduct online surveys and feedbacks.

Furthermore the peer-to-peer, top-to-bottom and bottom-to-top feedback collection mechanisms should be available. These features can become very handy for the HR department and they also help understanding the problems and issues of the employees in greater depths.

Employee Appraisal Management & Reward Modules

The employee appraisal management is a very crucial part of the performance management. The employee appraisal is basically their performance during a particular time period. The employee appraisal management modules measure the employee performance on the bases of their progress towards the objectives, goals, and their contribution in the overall organizational goals and objectives. The appraisal management is the key component that is used to align all organizational resources with the high-level organizational goals and keep everyone on track to ensure the high-level goals and objectives will be achieved. The management by objectives is a modern appraisal method that involves employees in goal setting and strategy building process. Furthermore there are other methods too such as behaviorally anchored performance scales, 360 degree feedback, straight ranking appraisal, accounting appraisals, etc. and many more.

A good performance management system should not only support all these methods but it should also be able to allow the management to customize and configure their own methods and techniques. The appraisals play a crucial role in improving the overall productivity and profitability of the business. On the bases of the performance evaluation the performance management system should also help businesses to implement an effective reward program. The reward program help businesses in improving employee’s morals, encouraging them to perform even better in future. Furthermore the performance management system can provide accurate data on technical and behavioral competencies which help businesses to setup and plan training programs and it also help them in measuring the effects of the trainings and skill enhancement programs. This help HR to improve the overall operational and professional capabilities of the entire workforce.

KPIs, OKRs, KRAs, and other Matrices

The performance management system have in-built performance measuring matrices. These matrices are used to track, monitor and measure the performance of the entire business along with all its business units, departments, teams, and employees. The KPIs are Key Performance Indicators which are used to measure the performance of the individual employees, teams, departments, and even the entire business. The KPIs are used to communicate what is needed from an employee and quantify their work to assess the performance. While the KRAs or Key Result/Responsibility Areas are matrices that are used to measure the employee performance in terms of the expectations from their job role. Majorly the KRAs are used to clearly communicate the job role of the employees and give them a perspective of what the business is expecting from them and what should be their contribution.

The OKRs means Objectives and Key Results and it is a fairly new performance management method. The OKRs are reviewed more frequently (usually at the end of each quarter) and they are transparent both horizontally and vertically. The OKRs are different from KPIs as the KPIs provide the measure of the effectiveness of the existing processes, the OKRs mainly address the change and growth and it measures how far a business have progressed in in a certain time period in pursuit of their goals and objectives. These are some matrices that any good performance management system should have. These matrices and a lot many more such matrices improve the efficacy of the performance management system.

Performance Management System with Remote Access Enabled

A good performance management system must also have capabilities to provide access to the employees remotely if needed. These days in general our dependence on the smartphones and mobile devices is increasing. In fact most of the people use their mobile devices as their primary device to access the internet and do regular tasks. Furthermore businesses in Dubai and all around the UAE usually have many branches and most of the time employees are deployed off-campus or at project sites. This means that all of the employees wouldn’t have access to the computer or they won’t be able to come to the head-office to access their performance management system dashboard. Sometimes the higher management and stockholders also want to access the system from remote locations such as if they are at home, or at a business trip or if anything urgent came up while they are not at the office, etc.

That is why having the facility to provide remote access via mobile and smartphones could be a great advantage. Businesses can also integrate special purpose interactive kiosks with the system which can provide access to the performance management system from remote locations and make it possible for all employees to access their dashboard any time and from anywhere. Such features are very helpful in improving the effectiveness of the system and help businesses improve their performance in all sectors.

Performance Management System Cost – Customized VS Off-the-shelf Solution

Obviously the cost is one of the major factor. Whenever a business planned to acquire a new system or tool the cost is always an important anchor point. The ROI is calculated on the bases of the cost and the returns a business gets from the software or system. There are two types of performance management systems on the bases of their cost and usage agreements. Some companies are providing ready-made or off-the-shelf performance management systems which can be acquired on the rental bases or at different subscription plans. In both cases the scalability is expensive and the business must have to pay for the plan or package they have opted for. Usually these plans and packages are designed for general purpose hence most of the businesses end up paying for unwanted features and tools as well.

The data is stored in the service provider’s storage and business have no control over it. Another big disadvantage of off-the-shelf solutions is that they are hard to customize and sometimes businesses have to wait for a long time to see the new features in the updates. If any customization is done, it remains limited and it is also very expensive and in some cases it is not permitted at all.On the contrary the custom-build performance management systems provide full control and freedom. The business usually acquired a software development company like RSI Concepts or they hired a team of programmers and developers. In any case the business have full ownership rights over the software and it’s all resources. This make scalability a non-issue and business can include as many employees, departments, branches and everything whenever needed without paying hefty charges or upgrading fees.

Furthermore the full ownership frees the business from dependency on a single vendor and businesses can move to a new vendor or service provider without losing anything or going through the migration problems. This make customized performance management systems more superior and cost-efficient. In the long term the cost to benefits rates are excellent and the business have more control and freedom over their performance management system.

Conclusion

The performance management system is a very critical component of any business’s management. Businesses use a digital performance management system to plan and execute strategies as per their goals and vision. However, when it comes to selecting an appropriate performance management system the HR department had to be very careful. The performance management system could have a significant and long term impact on the business’s growth and productivity. In this blog we have listed some basic features which will help the HR department to choose the best solution for their performance management needs. A performance management system help businesses to set realistic goals and help them implementing strategies to achieve those goals. It significantly improves communication.

The performance management system also help employees’ in understanding their job roles, the expectations from them and the importance of their contribution in the overall high-level organizational goals and objectives. The feedback and planning tools help businesses including the employees in planning and strategy building phases which increase their trust and improve their relationship with the business.A performance management system is absolutely necessary for any business. Each business grows, some grow faster and some at a slower pace but eventually each business grows and their internal business processes become more complex and sophisticated. A performance management system ensures the business sustain that growth and with the growth it also improves it workforce, operational capabilities while ensuring higher productivity and performance.

RSI Concepts is a leading performance management system provider in Dubai, UAE. If you want to learn more about the subject or if you need our help to provide you a high-quality performance management system, 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.

Check out this: Employee KPIs and Performance Management

April 29, 2022

Why do businesses need both the performance management and performance appraisal?

For any business it is important that all its resources are performing at higher performance with maximum efficiency. Every business small or large must have limited resources, hence they have to utilize their resources in a way that they can achieve maximum productivity and profitability. The performance management is also necessary for the business as it enables them to align all human resources, assets and strategies with the organizational goal and vision. Every business function and every operational tasks is dependent on the employees, if the employees are performing well they will produce better result hence the efficiency of each and every business process is dependent on the employee’s performance. Business in Dubai and all around the UAE are rapidly adopting performance management systems and tools. There are several reasons why businesses acquire a performance management or performance appraisal systems.

For any business or organization it is crucial to monitor and rectify problems and challenges that employees are facing in order to boost their performance. This will help businesses to obtain employee trust and loyalty which in return also increase performance. Furthermore the performance and progress should be in a direction to achieve something. All businesses and organizations always set their future goals, vision and mission. The enterprise’s performance is optimized and increased to achieve those high-level goals. In this blog we will cover performance management and performance appraisal and their importance.

What is Performance Management System?

A performance management system is a tool that facilitates performance management process. The performance management process is basically a set of all the efforts and activities a business do in order to keep its employees on track and aligned with the organizational goals. The main objective of doing performance management is that the employees and all other resources remain aligned with the high-level organization goal. The performance management process encourages employees to perform well and perform in the right direction so the high-level organizational goals can be achieved. The performance management process and system also enable managers and supervisors to engage with the employees and encourage them to work better.

What is Performance Appraisal System?

The performance appraisal system or process is a very simple process it measures the performance of the employee. Where performance management system provides a roadmap to achieve the organizational goals the performance appraisal system is used to measure the progress of each individual employees. The performance appraisal system is only used to measure the performance of the employees as per their progress towards the set goals and objectives. The performance appraisal keep records of the performances of the individual employees which can be used by the HR department as well. Basically the performance appraisal system tells business about how productive an employee is. This way businesses can easily identify the highly performing employees and reward them and businesses can also easily identify the employees who have become liability.

Difference between Performance Management and Performance Appraisal

The performance management and the performance appraisal both are used for employee performance however there are basic difference between the two methodologies. Here is a list of some fundamental differences between performance management and performance appraisal systems:

Performance management help and encourage employees to improve their performance, while the performance appraisal only evaluate the performance
Performance management evaluate an employee on the bases of past, present and future, however, the performance appraisal just measures the performance in the immediate past
Performance management increase employee engagement and evaluate the relationship between employee and the employer, however, performance appraisal is individualistic
Performance management continuously monitor employees, evolve strategies and focusing on employee development, whereas, the performance appraisal focuses only on the results
Performance management includes one-on-one sessions and discussions, hence it is very dynamic. The performance appraisal have a top-down approach and is very linear
Performance management always encourage employee development and help facing challenges in present and future however the performance appraisal focuses only past performance
Performance management offer real-time reviews and continuous feedback however, performance appraisal only offers feedback once or twice in a performance period (usually 1 year)
Performance management is better future equipped and easy-to-scale however, the performance appraisal is usually focused on the past performance of the employees

It is clear now that the performance management system and performance appraisal systems are designed and used for completely different purposes although both are covering employee performance management.

Why a Business Should Use Both Performance Management and Performance Appraisal?

The performance management is a continuous process which keeps monitoring the employees and their progress in real-time. This provides the management an added advantage of allowing them to quickly set course or make adjustments if any employee deviates from their set path. This advantage is not available in the appraisal method. However, the performance appraisal process can accurately measure the actual contribution or value of the efforts of the employees towards the high-level organizational goal and objective. That is why it is important to use both systems in parallel. Businesses use performance appraisal system to generate performance data for HR. The performance appraisal will provide accurate employee performance to the HR on the bases of this performance the HR can plan bonuses, awards, promotions, demotions, transfers, training program and much more.

The performance management system on the other hand provides a comprehensive strategic and tactical data which not only measure the employee performance but also help businesses and organizations to set goals, build strategies to achieve those goals, make plans, and assign individual and team goals as per the requirements. The performance management system also helps businesses in communicating those goals and objectives with the employees and also guide them how they could and should perform in order to achieve their individual and high-level goals and objectives. The performance management system can also generate data which can help businesses in understanding their resources, technical skills, and capabilities of each individual employee. This will help businesses in future and it will enable them to make more realistic and practically sound decisions.

A good quality performance management system help businesses and organizations to achieve their long term strategic and financial goals. When the performance management system and the appraisal systems both are used combined the effectiveness and results will be improved significantly. Here are some benefits of using employee performance management system and appraisal system:

Improve Communication between Employee and Management
Convey Goals and Objectives more Effectively
Communicate the Performance Requirements/Needs and Expectation more Effectively
Enable Employees to Evaluate themselves and Provide Feedback about their Individual Goals and Plan of Action to achieve those Goals
Aligning Employees and Resources with the High-Level Organizational Goals and Objectives
Improve Communication all across the Organization and Improve Relationship between Employees and their Managers
Real-time and Continuous Feedback Makes it Easier for Employees to Communicate with the Management
Help Management to Monitor the Performance of the Entire Business or Organization
Enable Management to Swiftly Take Actions to Rectify Problems and Help Employee Facing their Challenges
Increase Employee Engagement, Gain Employee Trust, and Increase Employee Retention

These are some of the most obvious benefits of combining the performance management system and appraisal system.

The performance management and performance appraisal systems when used together can fix drawbacks and gaps of each other. For example:

The performance management system can increase the communication and fill the communication gap which usually occurs in performance appraisal management
The performance appraisal doesn’t clearly communicates the high-level organization whereas the performance management system clearly communicates individual and high-level organizational goals as well as it also include employees in planning and strategy building processes which increase employee engagement
The performance appraisal process worries employees, as the appraisal is done only once or twice the year, and that is the reason most of the employees doesn’t show trust on the appraisal process. However, the performance management process includes regular and continuous employee reviews. Which not only gain employee’s trust and reduce their anxiety but it also help improving the communication between the employee and the manager.
The performance appraisal methods emphasize on increasing the performance and doesn’t clearly communicate how the employee should improve their performance or what is expected from them in the future. On top of that most of the time the communication is very low. The performance management process clearly communicates the goals and objectives, both individual and high-level goals and objectives are defined. The employees are provided with the guidance on how to achieve their objectives and how to improve the performance.
The performance management is continuous and it can collect all the details about the employees and their performance. This data can be made available for the management at any time. However, in performance appraisal methods the evaluation is done once or twice in a year.
The performance appraisal method lacks the employee personal development strategy. However, the performance management focuses a lot on employee’s personal development program to ensure the business always have the required workforce. The personal development program can increase employee engagement and it also help increasing loyalty. However, if the employees feel there is no scope for their personal development then they will leave.
The performance appraisal methods doesn’t help much in increasing employee engagements, gaining employee trust and improving employee retention. However, the performance management methods boost employee engagement and help building a sense of belonging and connection with the business. This also make employees happy and satisfied and it also increase employee retention.

The performance management and performance appraisal both are tools to boost business’s performance. If the employees and other resources start working at their true potential the productivity and profitability increases. That is why both system are important and when used combined can have additional benefits as well.

Conclusion

For any business in Dubai or anywhere else in UAE achieving the high-level organizational goals is a key to success. Businesses use various methods and tools to improve the employee performance. The employee performance is crucial if a business wants to achieve their high-level goals and objectives. The employee performance can be improved by communicating them the goals clearly, assigning them the objectives & tasks, and monitoring them to understand if they are going in the right direction. The performance management and appraisal ensures that the goals and objectives are established and communicated clearly and there is a monitoring mechanism in place which can immediately highlight if an employee is deviating from their set path and allow the managers to take timely actions to reset course.

The performance management also help businesses in evaluating employees and understanding their true potential, skills and capabilities. This help HR in several functions and also provide intelligence data for employee personal development and reward schemes. In short the performance management and performance appraisals are absolutely necessary for a business and its long term growth. RSI Concepts is a leading name in developing and designing performance management systems and tools, if you need any help in your business’s performance management or if you want to learn more about the topic, 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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Tag: performance management process

Understanding the Digital Performance Management System

How Businesses can customize the Performance Management System for Diverse Workforce?

Why Customizing Performance Management System is Important?

Before Customization Identifying Key Performance Metrics is Crucial

Establishing Effective Communication Channels

Providing Continuous Feedback and Coaching to Build Trust

Culturally Sensitive Feedback and Communication Tone

Customized Performance Reviews and Contextual Data

Conclusion

What is a Modern Performance Management System?

Modern Performance Management System Strategies and Best Practices

Performance Management System: 1. Continuous 360 Degree Reviews and Feedbacks

Performance Management System:2. Agile Goals and OKRs

Performance Management System:3. Increased Employee Engagement

Performance Management System:4. Public and Social Recognition

Performance Management System:5. Continuous Development Discussions

Conclusion

What is a Performance Management Software?

How to Customize a Performance Management System that fits all your Performance Needs

Customize Performance Management System: Engage Employees in Discovery Phase

Customize Performance Management System: Make a List of all Required Features and Performance Metrics

Customize Performance Management System: Intuitive UI (User Interface)

Customize Performance Management System: Digitalization and Automation

Customize Performance Management System: Third-Party Integration

Customize Performance Management System: System Administration and Configuration

Customize Performance Management System: Mobile Compatibility

Customize Performance Management System: Scalability, Upgrades and Maintenance

Conclusion

What is the Difference between the Traditional and Modern Performance Management?

What is a Digital Performance Management System?

How Digitalization and Automation of Performance Management Benefits Businesses?

Adopt Agile and Continuous Performance Management Practices

Improve the Transparency of the Performance Management Process

Acquire In-depth Performance Data with the Digital Performance Management System

Digital Performance Management Help Increasing the Quality of the Personal Development and Training Programs

Increase Employee Engagement and Reduce Turnover

Make Reward and Recognition Process Fairer

Conclusion

Why Organizations in UAE Needs a Performance Appraisal System in 2022

Advantages of the Performance Appraisal System

1. Align Employees with the Organizational Goals and Objectives

2. Organize Communications and Reviews

3. Increase Employee Engagements and Collaboration

4. Bring Transparency to Reward and Recognitions Processes

5. Offer a Better Career Path to the Employees

6. Improve HR Efficiency

7. Improve the Efficacy of the Training and Development Programs

8. Reduce Employee Turnover

Conclusion

Step 1: Develop Customized Enterprise Performance Management Software – Discovery Phase

Step 2: Develop Customized Enterprise Performance Management Software – Set Goals and Make Plan

Step 3: Develop Customized Enterprise Performance Management Software – Hire a Custom Software Development Company in Dubai, UAE

Step 4: Develop Customized Enterprise Performance Management Software – Project Execution

Step 5: Develop Customized Enterprise Performance Management Software – Launch

Conclusion

What is a Performance Management System?

Performance Management System Software Technology and Platform

Exclusive and Intuitive User Interfaces (UIs)

Flexible Goals and Objectives Implementation

Strong Monitoring Tools and Dynamic Strategy Implementation Approach

Continuous Employee Feedback

Employee Appraisal Management & Reward Modules

KPIs, OKRs, KRAs, and other Matrices

Performance Management System with Remote Access Enabled

Performance Management System Cost – Customized VS Off-the-shelf Solution

Conclusion

What is Performance Management System?

What is Performance Appraisal System?

Difference between Performance Management and Performance Appraisal

Why a Business Should Use Both Performance Management and Performance Appraisal?

Conclusion