Wednesday, January 09, 2013

Performance is the essential internal engine of an organisation which wants to achieve a notable impact in its sector.

Normally, performance management systems measure what and how of doing a job. However, if we extrapolate it by measuring the potential and the readiness of an individual or plotting individuals on nine-block grid of potential performance without ascertaining its priority or applicability, a lot of management time goes unproductive. Hence, performance programme should be an evolutionary process with elements needing stabilisation.

It is essential for organisations to not only deal with the ‘high performers’ but also with their valued ‘solid citizens’ – the majority of the company’s employees who are not top performers but steady workers who contribute greatly to the overall business. The focus on high performers creates high differentiation on total value preposition. Instead, organisations will have to reward, motivate and engage these ‘solid citizens’ and effectively address poor performance, in order to build a performance-oriented culture.

Finally, if a performance management system needs to run well, organisations should invest in building capabilities of managers to coach and mentor in any kind of performance situations. Though, these days in the Indian industry we tend to create leverage structures and outsource managerial responsibilities, this practice could lead to a situation where managers become incapable of handling pressing demands of being a counsellor/manager/leader. By avoiding a herd instinct, adopting a cohesive approach to performance management aligned to organisations, and avoiding these traps one can improve on the performance culture and create an engaging environment. Click here to read more..

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