4 Best performance management methods used by modern enterprises

Performance management is a must-have for every organization, whether it’s to ensure goal alignment or driving productivity. Around a decade ago, organizations were focused on annual performance reviews and feedback. However, this approach no more works as the world of work have moved to a digital hybrid model. This is where the traditional performance review process and the technologies aiding those fail. Performance management needs a modern approach.

In the current working environment, managers need to pay heed to every detail, listen to employees’ suggestions and aid them in achieving their goals on a continuous basis. Working remotely in a healthy professional environment is only possible when the performance management process and systems are evolved to the new realities embracing work, workforce and workspaces. Simply put, modern enterprises need to adopt the following methods of performance management.

Goal orientation method

Goal orientation reflects the actions and steps of employees and organizations regarding accomplishing their predetermined organizational objects. It is a type of strategy that affects how the firm addresses its plans and revenue for upcoming projects.

Every business around the world is naturally goal-oriented in some manner, goal orientation plays a vital role in fund allocation and focus. Strong goal orientation focuses on the ends for which the tasks are made and how those ends will affect an individual or the whole company. Employees and organizations with strong goal orientation will judge the effects of achieving the goals and the ability to fulfil that specific strategic goal with the present skills and resources.

Continuous performance management

In the traditional performance review method, employees were not given feedback on their performance regularly, and they were unable to bring meaningful changes.

To resolve this issue, a continuous performance management method came into existence. In this method, instead of providing annual performance reviews, managers and employees connect regularly to discuss employees’ performance and ways for improvement. The process differs from company to company. Some companies arrange meetings weekly, whereas some go for monthly or quarterly meets. This method has become popular among organizations that want to implement modern performance management tools in their daily operations.

Nudge-based method

For successful management, it is essential for an organization to focus on re-evaluation and look for new methods when challenges arise. The most recent method that grabbed the attention of practitioners is the idea of nudging in the management process. This method promises to resolve organizational issues by relying on subtle nudges. It pushes behaviour that promises to align employees with the organization’s goals in a better way.

Modern performance management systems like entomo built for this future of work principles helps organizations in following this method seamlessly by offering personalized insights to employees and driving team goal achievement. It leverages distinctive machine learning models that can create actionable insights, data and dashboards which nudge employees towards performance behaviours. Organizations that are looking for an innovative and updated performance management method need to focus on such strategies for success.

360-degree feedback

In the traditional performance review method, employees’ performance was evaluated only based on their manager’s perception regarding their work and performance. Views in this assessment technique were one-dimensional, and employees found it difficult to understand their progress and improvement.

The360-degree feedback changed the annual review process by incorporating peer reviews in the modern performance management system. Managers can gather feedback from the employees’ teammates, and other individuals working in the organisation to have a better understanding of the employees’ performance and dedication.

Individual biases are a norm and not an exception. They affect not only the motivation of employees but the resultant performance of the organizations too. Therefore, 360-degree feedback, assessment-centre method, and continuous performance management are required to improve the performance review process for both employees and managers.

entomo is a people experience platform built for the digital world of work. Powering 30mn+ users across organizations world-wide, entomo unleashes digital experiences that transform engagement, performance and talent development using hyper personalized insights and nudges. entomo's clients include Global fortune 500 and large enterprises and Governments across Asia and MEA. entomo is also voted as a leader in G2 software marketplace across multiple categories.

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