How to develop effective Performance management programs?

For a growing organisation, it is foremost important to be sure what it wants at the end of the day. Business intelligence ( core competency gap analysis, business econometrics, capability analysis, Resource inventory, Human Capital inventory, Human Capital Potential analysis etc.) should play a very important role while we set our goals and plan our KPIs, for individuals to perform. A clear vision and communication from the Leadership to the bottom of the pyramid is essential for individuals to PERFORM and not only WORK. Clear communication answering all WHY, WHEN, HOW, WHOM and WHAT is very important to set the Performance targets and expectations right. Once it is done, the earlier exercise of having Business intelligence helps to find out exactly who over-achieved, just-achieved,and not-achieved. A high performing organisation will have all resources aligned to optimal level to achieve where they set out for. If Business Leaders have these in their kitty, then having a Performance Management system makes sense, to find out the stars and the moons, and reward them accordingly.

360º degree feedback allows each individual to understand how his effectiveness as an employee, co-worker, or staff member is viewed by others. The most effective 360 degree feedback processes provide feedback that is based on behaviors that
other employees can see. So by using this feedback they can make decision on his/her remuneration and incentive payments.

Dear friend nowadays competency frameworks are seen as an essential vehicle for achieving organizational performance through focusing and reviewing an individual’s capability and potential. Moreover a competency framework can be a key element in any change management process by setting out new organizational requirements. Employees have a set of objectives to work towards and are clear about how they are expected to perform their jobs.

I believe balanced scorecard  is a strategic performance management methodology that translates strategy into action throughout every level of an organization. It uses four balanced perspectives like financial, customer, internal business process and employee learning and growth to measure the performance. Since it helps to identify and monitor crucial performance measures and metrics, managers use it for performance improvement.