If you ask an employee on what a performance management is, he or she will mention that it is nothing but the annual appraisal of his or her performance followed by salary revisions. Employees also tend to view performance management process with a lot of skepticism, as generally they are not happy with the subjective appraisals and get dis-satisfied with their salary revisions.
An effective performance management system should not stop with just once a year performance appraisals and salary revisions. It should be much more comprehensive, and one of the key goals of such an effective performance management system should be to develop employees.
What is employee development?
Employee development consists of activities that are initiated by an organization that would help in the overall development of an employee. An effective performance management system is one which gives high priority for employee development.
Benefits of employee development
When a performance management system focusses on employee development as well, the return of investment from such a system would be good due to the following reasons:
1) Well trained employees become more competent and execute their responsibilities productively.
2) Employees become happy as their development is taken as the prime focus.
3) When leaders are groomed within the organization, it helps in succession planning and reduces the associate costs and risks in hiring a new employee.
4) When facilities are created for employees to do their job effectively and obstacles are removed, it ensures that organization goals are met.
How do you convert your Performance Management System to Employee Development System?
Most companies do performance appraisals once a year and use performance management software for streamlining the process (self-evaluation, 360 degree feedback, manager’s feedback & rating, recommendation, etc.). Due to the volume of the work and stress associated with this process, the process stops with the salary revisions. Ideally, the HRs and managers should extend this process to identify the training needs, strengths & weaknesses of the people/organization, people development needs and put a clear roadmap for addressing them.
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