Is the key ingredient for Deloitte on global human capital trends?
Reinventing performance management
Deloitte redesigned their performance management system ,they realised that our current process for evaluating the work of our people and training them, promoting them and paying them accordingly is increasingly out of step with our objectives .more than half of the executives questioned and believed their current performance management approach drives neither employee engagement nor high performance. It will have no cascading objectives, no once a year reviews, and no 360 degree feedback tools. Its agility one size fits one, and constant learning underpinned by a new way of collecting reliable performance data. They would never arrived at its design without drawing on three pieces of evidence: a simple counting of hours, a review of research in the science of ratings and a carefully controlled study of our own organisation
Objectives of performance management
Is to measure and improve the performance of employees and increase their potential and value to the company.
• Is the most usual justification for an organisation to have a performance appraisal system?
• Through the performance appraisal process the individual leans how they performed during the twelve months and can use that information to improve their performance.
Facilitating promotion decisions:
• Performance appraisal ensures that the organisation makes a good decision by ensuring that the position is filled by a capable individual.
Facilitating layoff or downsizing decisions:
• The economy forces and organisation to downsize and performance appraisals ensures that the talented individuals are retained within the organisation.
Encouraging performance improvement:
• Good performance appraisal indicates areas where individual need to improve their performance.
Encouraging coaching and mentoring:
• Managers must be coaches to their team members and mentors to their protégés
• Performance appraisals indentifies the areas where coaching is required and encourages manages to take an active coaching role.
Additional objectives of performance appraisals
• Review the performance of the employees over a given period of time
• To help the management in exercising organisational control
• To diagnose the strengths and weakness of the individuals so as to identify the training and development needs of the future.
• Provide information to assist in personal decisions in the organisation.