Updated: Jun 6, 2019
Managing performance is about as much fun as taking your vehicle in for an oil change, new tires or any other servicing. And much like taking your vehicle in for routine maintenance check can help you avoid a costly repair down the line, regularly evaluating performance of employees within your organization can help you prevent costly side effects from underperforming, unsatisfied and unengaged employees. That is why it’s very much important to create a robust performance management system that the entire organization can embrace.
An effective performance management system plays a crucial role towards the improvement of the organizational performance by managing performances of each teams and individual employees in a cascading chain model. It ensures the achievement of the overall organizational ambitions and goals meet. An effective performance management system can play a very important role in managing the performance in an organization by:
· Ensuring that the employees recognize the importance of their contributions to the organizational goals and objectives
· Guaranteeing each employee recognizes what is expected from them
· Ensuring proper aligning or linking of objectives and enabling effective communication throughout the organization
· Facilitating a cordial relationship between an individual employee and the line manager based on trust and empowerment
Performance management practices can have positive influence on the job satisfaction and employee loyalty by:
Providing open and transparent job feedbacks to the employees on periodic basisEstablishing a flawless linkage between performance and compensationProviding learning and development opportunities to develop employees both professionally and personallyEvaluating performance fairly and distributing incentives and rewards Recognizing and rewarding outstanding performer in an organization.Providing ample opportunities for career growth.
Zoho performance system provides the best solution to all your performance related requirements. The richer your performance reviews the better your employees' performance. With Zoho People your organization can have a 360-degree, continuous feedback system and evaluate employees with customized performance appraisal methods. It provides various features like:
1. 360-degree feedback:
360 degree feedback permits you to use multiple raters such as supervisors, peers, direct reportees, subordinates and external raters (clients or vendors) to provide feedback on an employee. The feedback is often used as a benchmark within the employee's development plan/self-evaluation plan.
Reviews shouldn't be an once/half yearly thing. Let employees empower to review their peers, and be reviewed by them, all throughout the year. With peer and subordinates review, managers can quickly gather insights about each member of the team. Also, if employees wish not to reveal their identity, they can choose to give anonymous feedback through Zoho people.
2. Set realistic goals to achieve growth:
Goal setting is the first phase of an performance management system and also the most crucial one. Setting clear objectives/goals help motivate individuals and organizations to do their best in an effective way. Goals can be short term or long term oriented. Goal setting helps to identify both short and long term goals, outcome of each goal, identify action item to achieve these goals, recognizing obstacle, prioritizing goals and timelineing each goal.
With Zoho People employees, Hrs, or managers can set goals and track their progress of each goal. Employees can also get ratings from their managers about completed goals periodically.
3. Streamline your appraisals and reviews:
Without periodic review its difficult to track the progress of each goal. Periodic reviews helps to find out where an employee is going right or wrong. And to provide both positive and developmental feedback to the task in much better way.
With Zoho, you can customize your organization’s appraisal cycle. With self-appraisal, employees can detail all their skills and review their results during each appraisal. You can also have multi-level reviewers like manager, peer, client, subordinate and make sure all the reporting heads give their reviews. Once you've consolidated the performance reports, you can complete the whole report with a single click.
4. Tag skill set of employee:
Zoho People helps you to tag the skills required for various jobs/roles and empower employees to highlight their own skill sets. This helps you to be able to utilize the most proficient employees for a given project, eliminating the need for a tiresome search. It reduces your resource management cost for employees on bench also.
5. Assess the right way – KRAs:
KRAs or Key Responsibility Areas, are based on the job description of an employee and are used when assigning tasks that they are expected to perform. Employees are solely responsible for the exact KRAs assigned to them. Now a days organizations are also using team KRAs to improve team effectiveness. KRAs are larger goals. For example, as a recruiter, your KRA would be to recruit good candidates and fill all vacant positions. KRA can be used as a tool to measure performance of an employee, along with other modules like Goals, Skillsets etc. KRAs can be created and mapped to a department/unit or a Designation or both.
6. Detailed performance reports and analytics
Use zoho’s powerful analytical features to evaluate employee performance and identify areas for development. The skill-set matrix model and 9-box grid model reports help you see the talent, the potential, and the performance of your team at a glance.