Being an HRM, one of the primary tasks is to have a streamlined system that helps monitor employees across the company. Done manually, the task demands an average of 210 hours to prepare and maintain.
This can make performance management and appraisals seem like an unmanageable task. However, by using suitable software for performance management, the entire process can be made simple.
Table of Contents
Defining Performance Management
A continuous process that involves inputs from both the team leaders and the employees, this helps employees get clarity on their assignments and perform better at their jobs.
By having a software that allows regular monitoring of employees and a framework to evaluate them against, the performance management process can be made streamlined and monitorable.
Understanding the Need for Performance Management
With the help of a performance management tool, organisations have an easier time achieving the following goals:
Whether done manually or with the help of a software for performance management, the above goals are important for the smooth functioning of any organisation.
Manual or Software Tool: Which One to Opt for
As per an SHRM survey, 71% of companies still do their performance reviews manually. This takes a lot of time and effort since it involves:
- Setting up a review system from scratch
- Maintaining employee records manually
- Following up with employees across the organisation
- Manual analysis and appraisals
While the steps seem simple, the process can be huge, especially in larger companies. Further, manual inputs can open up the system to errors as well as bias.
To simplify and make the system more efficient, using software for performance management becomes important.
Software Tools in Performance Management
When any task is done manually, it automatically contains a level of bias from the maker. The same is true for performance reviews as well. As per a Gallup and SHRM report, barely 20% are satisfied with their performance appraisals and feel a drive to do better after receiving them.
Even though 95% of managers do not have faith in the review systems they currently use, it does not eliminate the need for performance appraisals. Instead, it creates demand for a better, more efficient system.
Benefits of Opting for a Software for Performance Management
By opting for a software for Performance Management, the usual benefits received are:
- Easy automation of the process
- Access to both real-time data and employee history
- Avail better performance monitoring
- Assign suitable job roles and targets
- Plan and design better training modules
- Reskill employees and fulfill skill gaps
- Better control over the review process
The 9 box Grid for Talent Management
By plotting employee potential vs performance, employers can assess their employees. When implemented in the 20th century, the 9 box grid was the best HR tool for talent management. This covers reviews, appraisals, feedback, and succession planning.
Using the 9 box grid for talent management offers certain benefits.
By providing the above, the 9 box grid acts as the stepping stone for succession plans.
Drawbacks of the 9 Box Grid in Talent Management
Though useful at one point, the 9 box grid has grown outdated. The main reason is because this appraisal method creates room for human errors:
- Reviews that are partial to certain employees and biased against others
- Subjective instead of objective reviews that are supported by data
- Lack of clarity regarding the review process
Thus, reviews received from the 9 box grid for talent management can demotivate employees. To overcome gaps created alternative tools have come up that are much more promising. This includes Success CirclesTM, IDPs, 360-degree reviews, and more.
Alternatives to the 9 Box Grid for Talent Management
To make up for the deficits left by the 9 box grid, the below tools offer a suitable alternative:
Success Circles™
A comprehensive tool for performance management, Success Circles™ allows Managers to obtain real-time analytics for their employees and classify them as per their performance. It takes into account their targets, achievements, and feedback to provide an analytical view of the following:
Further, over time each employee’s data receives more inputs, making the system much more detailed.
Individual Development Plans
While many companies group workers as per their job roles, a one-on-one approach can prove more useful when it comes to identifying the skills and drawbacks of any particular employee. By opting for Individual Developments plans, team leaders can opt for a personalised approach for a better appraisal of each employee.
360-degree Feedback
Instead of taking the feedback from just managers and team leaders regarding the performance of a particular employee, even peers and co-workers can add their input. This 360-degree feedback paints a more comprehensive image regarding their work and potential.
Performance-Values Grid
Designed by Jack Welch, the performance values matrix groups workers into four sets, namely top workers, solid employees, violators, and non-performers (deadwood). By matching values with results this method is both concise and effective in performance evaluations.
Team-Based and Behavioural Assessments
Some organisations test how well employees work in a group as well as their as well as their behavioural aptitude. This in turn helps companies assign projects to groups and stay assured of efficient project delivery.
To Conclude
Though more commonly used than software tools, manual performance reviews are found across companies. However, this process takes up a lot of man-hours and can be a laborious task prone to human errors. By opting for a software for performance management, the entire process gains clarity and transparency.
Further, with the use of newer models of performance monitoring tools like Success CirclesTM, 360-degree feedback, and more, the drawbacks of the 9-box grid for talent management are eliminated.
Review the needs of your business, look at the features of the available tools, and opt for the one that suits your organisation.