Performance management is a broader and a complex function where various activities are

integrated together to make organisation run effectively and efficiently. Performance

management includes activities like goal setting, continuous progress review frequent
communication, coaching and mentoring the employees for better performance and
developing their skills and rewarding achievements. It redirects the effort from busyness
towards effectiveness.
Performance management is now becoming a challenge to the company due to the complexity
of the current business landscape and additional challenge rises because of ever changing
talent,technology and economics landscape. Leaders are looking to deliver' more for less over
a longer period of time'.
It not only focuses on employees but too many other aspects of organisations like the
department, the processes,the programs, the product and services and the overall
organisation.
Performance management has attracted the attention of many organisation nowadays and in
near future it will still grow it is getting more integrated with the processes light talent
management career development pay based on performance and t and d management. Now,
the companies are changing their HRM practices and making their performance management
system more effective and easy to implement some of the examples are Arvind Mills who has
created manpower planning and resource group which will prepare job description and
structuring the job for the employees and was responsible for recruiting the and selection
process also and their many more companies were now changing their HRM practices. The
company do so because performance management has a positive influence on job satisfaction
and employee loyalty.
Performance management in India is going under a great change and India occupies the pivotal
position by
● Advance in the workplace and networking technology
According to PWC report 2015, now the what places are becoming virtual and to manage this
the HR department of any company needs to develop virtual management skills when will the
work force and even the commoditised jobs are becoming redundant
● Multi-generational workforce
According to PWC report 2015,increase lifespan and increased retirement ages have created an
aging faction of the workforce that bring for diversity and skill sets to the workplace but also
increases the complexity of employee management.
● Optimistic Indian economy
IMF and World bank India is becoming the fastest growing economy from 2016.
● Burgeoning young workforce.
According to PWC report, India generate 7.2 million new workers every year visa added to the
labour pool but has low rate of High school enrolment and completion which formally reduces
the skilled workforce you just around 2%.
When it comes to how employee performance is managed, the contingent workforce is
changing the game. Today's workforce has been transformed into a dynamic ecosystem
consisting of wage-earners working alongside contract workers, freelancers and gig workers.
The need to manage it is the same as the alternative workforce is growing. However, only 16%
of leaders believe strongly that they have an effective performance management system.
The future is seeing the teams of HR trying new approaches including new scientific insights,
productivity research and technological development in a field as dynamic and fast - changing
as HR.
Trends that are expected to refine in the future of performance management are
● Continuous performance management
In 2017, Deloitte’s Global Human Capital Trends reported that ​70% of companies​ were in the
process of reinventing their HR performance management process. Just a year later,​76% of
companies​ surveyed have reinvented their performance management to be more continuous.
Organizations are realizing that the old way of doing performance management no longer
works
Today's employees want authentic employee - manager relationships and opportunities to
develop and advance their employees. This generation marked the beginning of disruptive
performance management.
● Increased focus on individualized employee support
Personalization is now a key factor in building an enjoyable customer experience, with
businesses using the same approach in management of performance. More managers will
change their management strategy in the coming year to take a personalized approach to
motivating people to help them meet their performance goals, which in turn will boost team
performance. Managers will be offered tools to adapt to individual data and feedback
conversations.
● People analytics will become essential
According to the ​2018 Deloitte Global Human Capital Trends report,​ 84% of leaders surveyed
said analytics was one of the most important trends. Why? As companies try to improve their
ability to lead people, they are relying on data to provide insights that can help with issues like
productivity and employee engagement.
HR is investing heavily in the area of people analytics, Deloitte reported, with more than 70%
of respondents saying they are currently in the middle of major projects that will help them
integrate data in their decision making. Much of the people analytics will be fueled by AI and
robotics, the Deloitte report said. AI will become an HR helpmate, identifying and interacting
with recruiting candidates and helping employees explore career options.
No matter how well - meaning the performance intentions of a company are, analytics can
show what the results of a company really are. This can be a very useful mirror, especially if
companies want to address issues such as diversity and pay equity
● Feedback will be backed up by meaningful conversations
Over recent years, the performance management dialogue has targeted heavily on the
impor​tance of frequent, period of time feedback. However, the quantity of feedback isn't a
silver bullet that may magically produce a workforce of engaged and productive employees. If
companies need to attain genuine performance gains, frequent feedback must be
accompanied by regular coaching conversations, during that the manager and employee step
back and replicate on the feedback that has been given, mistreatment it to discover strengths
and highlight areas for development.
● Rethinking job roles
When you ​enable​ ​staff​ ​to try and do​ what ​they are doing​ best, it makes your team ​a lot
of​ innovative and productive. ​analysis​ shows that ​hr​ of ​staff​ ​wish​ ​the power​ do what ​they are
doing​ best, ​in spite of​ their role. ​they're​ driven by purpose and managers ​World Health
Organizations actively promote their development. Companies can move to what referred to
as “job crafting”, that area unit job roles engineered around associated degree employees
strength and interest.
Tom Haak, founder and director of ​The HR Trend Institute​, describes how it works in his
article, ​The End of Static Jobs:
“When there is an assignment, there is a process to look at the capabilities (qualitative and
quantitative) required for this specific assignment. The wishes, needs and capabilities of people
connected to the organization are known, or captured as part of the process… Teams are not
built of people with specific fixed jobs, but of people who have specific skills that are needed to
deliver the assignment.”
● Arrival of Artificial Intelligence (AI)
AI is having a major impact on recruitment and apprenticeships— in these fields tech with a
continuous innovative approach has been achieved. The AI attentive approach will be directed
at performance management in 2019. For the organs, we can begin to make use of AI to derive
theme from a large number of qualitative data collected from feedback, objectives and
conversations, and for the moving to continuous conversations and feedback. Then we can
move forward with software, which coaches employees and managers on the basis of the
feedback received and maybe even predicts the future performance of high-performing
workers on the basis of patterns.

As all this new trends in performance management implemented by the companies to improve the
efficiency and effectiveness, this trends have benefit at 3 folds:

● Organisational level
● Department level
● Individual level.

Organisationallevel

As mentioned above then new trends helps the organisation to settheir strategy and goals according
to the individual and team objective so that it is easy to achieve the overall objective.If the
organisational performance improve employee retention and loyalty of the employees will also
improving by overcoming the barriers of communication. Expectations for the employees will
be communicated to them and accountability about the duties and responsibility increases
which will have a positive impact on cost reduction and thereby increasing the profit for the
company and creating of good image in eyes of the stakeholders.

Departmentlevel

By making performance management continuous process and providing feedback on a daily basis it
will save time and even reduce conflict between the employees and the manager. By
introducing artificial intelligence efficiency will increase and there will be cost reduction
because one robot can be trained for doing many activities for which many people would be
required. By doing so at department level consistency and efficiency in will increase.
Even people analytics will help at departmental level by creating the right job for the right person at
the right time and the companies nowadays are thinking of doing redesigning of the recent
 jobs and creating new job roles which will be challenging and help the employees to create a
better relationship with the manager and the organisation​.

Individual level
Has new trends are coming it is helping the employees to develop their own career path because now
the new trends focus more on individual development and then at organisational level
development which was not the case before. Because of AI new job will be available for the
employees to enhance your skill knowledge etc.
Continuous performance management and feedback will help them to know about their area of
improvement at very early stage so that they can improve their performance in the remaining
period andget promoted at early life.Even the expectations from them will be known to them
and they will be accountable for the same so they will be more motivated and satisfied with
your job which will enhance all performance and contribute to the overall development of the
organisation​.

 
CHALLENGES:
The performance management challenge in organisations has many dimensions in today’s
business environment and creating focused initiatives to overcome these challenges is not a
silver bullet approach. In many cases remuneration schemes are driving the performance
system, which creates a number on long term consequences in organisational behaviour and
culture. In other cases senior management are so focused on scorecard management to hold
people accountable that the creation of the scorecard is not aligned with business focus areas,
but rather a number of deliverable projects and tasks.

* ​Following are some of the challenges in Performance Management:

1) Lack of Alignment

The first challenge is the lack of alignment due to various organisational processes being
created in isolation. The link between Strategy development, budgeting and operational
planning is developed by different groups of people with different frameworks being used. The
performance management system lacks alignment between individual performance,
departmental performance and organisational delivery and so all systems default back to
financial measurements.

2) Lack of Measurements
 The second challenge happens at various levels of the organisation in that poor measures are
developed, in many cases targets are set but no relevant measure is put in place. In other
cases no data can be collected or is kept as evidence to track performance.

3) Leadership and Management commitment

The Leadership and Management challenge has a huge impact on integrating and aligning a
management system to deliver a comprehensive performance management system. The
commitment and understanding of leadership and management of the requirements for
achieving a workable performance system is critical to performance success.

4) Managing of the performance system

Managing a performance system in an organisation requires a disciplined framework; it

requires the organisation to work off one master plan broken down into relevant parts and
areas of responsibility. The management responsibility at various levels needs to understand
the contracting, measurement development and appraisal process very well and apply it
consistently. Secondly management needs to appreciate that performance management is not
an event but something that is managed daily but recorded and reported at certain times
through reviews and appraisals.

5) Managing poor performance

The management of poor performance is normally a reactive action, but in many cases it is
delayed and therefore turns into a discussion that is difficult to make relevant. Another reason
poor performance is not managed on time is the lack of valid measurements and the collection
of required evidence and measurement data.
The solutions for these challenges are embedded in a comprehensive approach ensuring
alignment or planning, management and performance systems

Conclusion

Performance management is a broader and a complex function where various activities are integrated
together to make organisation run effectively and efficiently.

Performance management is now becoming a challenge to the company due to the complexity of the
current business landscape and additional challenge rises because of ever changing
talent,technology and economics landscape.

Performance management has attracted the attention of many organisation nowadays and in near
future it will still grow it is getting more integrated with the processes light talent management
career development pay based on performance and t and d management.