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Automating Performance Management

Automating Performance Management

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Published by smh9662
Automatic for the people: why automation of performance management is an organisational imperative
Automatic for the people: why automation of performance management is an organisational imperative

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Categories:Types, Business/Law
Published by: smh9662 on Feb 17, 2013
Copyright:Attribution Non-commercial


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The automation of performance and talent managementprocesses brings a multitude of benefits, which make it,arguably, a prerequisite for effective people management.A bespoke approach to online performance managementallows HR professionals to meet the specific needs of anorganisation, thus creating competitive advantage.
Automatic for the people: why automation of performancemanagement is an organisational imperative
Original insight 
Executive summary 
Employee performance management is a fundamental business process that too manyorganisations fail to get right. It is critical to realising the full potential of individuals andmaximising business performance. Leading organisations recognise the value of theirworkforce and aspire to create a high performance culture. Most achieve this through theimplementation of performance management processes that are underpinned by an onlinesystem.
The secret to success is to adopt a bespoke approach, implementing a system andprocess that is the ‘best fit’ for the company rather than ‘best practice’. Our experience showsthat what works for one company may fail for another.Despite the advantages of online performance management systems being well-known,some HR professionals have been slow to respond, preferring to follow rather than lead.There’s also been a reliance on off-the-shelf automated systems that incorporate softwarevendors’ definitions of best practice. This is not the most effective option for the majority of larger companies. We argue instead that, when automating performance management, HRprofessionals should shape and deploy a process that is tailored to fit the specific needs of their organisation, thus creating competitive advantage.An historical challenge for HR professionals has been getting buy-in from senior executives –with the need to deliver a strong business case demonstrating the return on investment. We’llset out exactly how implementing the right online solution for performance management canbenefit your business and demonstrate what returns you can expect. We’ll also present casestudy examples of HR practice that employ bespoke automated systems and conclude with aguide for applying this approach.For clarity, we define performance management as a process that establishes a sharedunderstanding of organisational success and an approach to leading and developing peopleto ensure this is achieved.
98% of ‘best inclass’ companiesuse an employeeperformancemanagement process, versus 59%of other firms.
- The Employee PerformanceManagement Benchmark Report:Managing Human Capital fora Competitive Edge. AberdeenGroup, 2006.
 Automating performance management processes makes it easier for companies to alignemployees’ individual goals with corporate objectives. It makes measuring performance andassessment simpler and more consistent, and allows companies to see clearly their best andpoorest performers. Such insights are invaluable in a climate where headcount reduction issadly a necessity for many companies, which equally want to retain their talent.When considering the merits of automating performance management though, it’s reallyimportant to convince senior executives to look beyond the bottom line and appreciate theother, in some cases less tangible, benefits too. By embedding an effective performancemanagement process, companies are demonstrating a willingness to invest in employees.This will impact directly on retention of high performers, who are keen to plan and developtheir career.Also, we’ve found many instances where, by going through the automation process, companieshave taken the opportunity to reassess existing practices. This results in standardisation andconsistency of performance management processes, is impossible to achieve with an offlineprocess as too much is open to interpretation by line managers in different business units.
 Time to reappraise the appraisal
A large proportion of employees – approximately 40% – remains dissatisfied with theirappraisal process.2In addition, it seems that line managers too share concerns regarding performancemanagement processes. Research shows that 61% of managers don’t believe existingappraisal processes are driving greater performance.3 These figures should worry businessleaders as ineffective appraisals will lead to a dip in employee satisfaction, which has a directcorrelation with business performance.Companies must get the basics right. Crucial to engaging employees is ensuring they haveclear goals and objectives. Yet 30% of private sector employees don’t know what theircompany’s objectives are. Individual and corporate objectives should be aligned – if anemployee understands what is expected of them and how this fits in with company objectives,they are more likely to be engaged and motivated to perform. Furthermore, alignment of objectives is also crucial in ensuring your business strategy is ultimately successful.
How do managers and their subordinates benefit?
An automated system can make a huge difference in simplifying performance managementby making it more transparent, giving all involved greater confidence in the process.Employees are clearer on what’s expected of them and can see how their objectives supportorganisational goals, resulting in increased engagement.With less time spent on functional processes, line managers are free to focus on careerplanning, coaching and development for direct reports, making it easier to identify, nurtureand develop talent. A cautionary note here though – it’s important that an online system isn’tseen by employees or managers as a barrier to face-to-face discussion. It should aid andinform, rather than replace, performance-related conversations.
 1. How automating performancemanagement helps people processes
A huge number of employeesare dissatisfied with performanceappraisals. Our research shows this is due to thelack of clarity andinvolvement insetting goals.
- Performance ManagementReview: An analysis of the ETSEmployee Survey. ETS plc, 2009.

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