CHANGING TRENDS IN PERFORMANCE MANAGEMENT PRACTICE IN GLOBAL CONTEXT

TEAM PERFORMANCE APPRAISAL SYSTEM

Most of the performance appraisal techniques are formulated with individuals in mind i.e. to measure and rate the performance of the individual employee. Therefore, with the number of teams increasing in the organizations, it becomes difficult to measure and appraise the performance of the team. The question is how to separate the performance of the team from the performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. Sometimes, team based objectives are also included in the individual performance plans (Yasoda, 2016).

BELL CURVE APPRAISAL MODEL

Several companies have resorted to the Bell Curve method to assess the employees’ Performance. Bell curve (i.e., the ‘normal’ distribution curve) is to be viewed more as a forced ranking system imposed upon each and every employee by the organization. This bell curve mode of appraisal has been introduced to categorize best and worst performers because today, it is important for a company to thrive and develop itself in this heavily competitive world (Parshuram & Hegde, 2016).

(Adapted from www.empxtrack.com)

As an example: Microsoft drastically changed its performance management approach nearly two years ago when it eliminated ratings, forced rankings, and grading on a bell curve. It replaced its former system with a system that makes it easier for managers to reward employees for their contributions. Microsoft also eliminated forced timelines for performance management and now encourages managers to give employees more timely feedback based on the rhythm of their business units. In addition, the company abolished the practice of giving a pre-determined target distribution of bonuses. Managers can now allocate rewards in ways that best reflect their teams’ performance, as long as they stay within their compensation budgets.  (Schaufenbuel, 2016)

Finally, successfully embedding a new performance management process, requires HR to provide resources and support in order to meet the needs of the organisation and its employees. Key skills, such as setting clear expectations, providing regular informal feedback and helping employees develop and succeed are not always easy to acquire. To hardwire these key performance management behaviours performance management behaviours, learning opportunities such as training, exchange moments between people managers, bottom-up feedback systems, and individual coaching can be provided (Dewettinck & Blondia, 2016)

References

Dewettinck, K. & Blondia, H., 2016. TRENDS IN PERFORMANCE MANAGEMENT. New york: BE HUDSON.

Parshuram, H. & Hegde, S., 2016. Bell curve appraisal: A critical view. Journal of Management Research and Analysis, 3(4), p.184.

Schaufenbuel, K., 2016. Transforming the Traditional Performance Review Process. Shaping leaders : Driving Results, pp.2-3.

Yasoda, K., 2016. An Emerging Trends In Performance Management System. International Journal & Magazine of Engineering, Technology, Management and Reseach, 3(7), p.553.