Change in performance management system in an organization

In organization context, some employees are survived by just oiling the boss or satisfying by other means without really contributing to the company. We can reduce it through robust performance management system only. That is also not there. So, subjectivity and judgemental decision is inevitable.

I think we should adopt a dynamic performance management system where every day's performance is measured by a feedback system. All employees must maintain a diary and write everyday their achievement. Also challenges faced or behavioural issue.

Main problems of year end performance management system is recency effect and subjectivity.

We have tried all these balanced scorecard, bell curve, ranking method etc etc. But there is no robust performance management system in place till date. Many companies abolished these year end system and adopted daily feedback system. Concept in HR has changed drastically. Talent pool etc are of no value. Every individual, even a sweeper is important. Everybody enters into the organization are important for business. He or she may be an employee, permanent, contractual, contract labour, badli whatever may be the category. Any one of them can impact the business.

Even a visitor affects your business.

 Your activities must be divided into value added activities and non-value added activities. We have to eliminate non-value added activities from the process and outsource the non-core activities or support services.

Introduce lean manufacturing and cut the fat for good organizational health. Otherwise you can not compete in this steep competitive scenario. All types of muda(wastage) should be eliminated. It can be wastage of raw materials, wastage of power, wastage of man hour, wastage of water, gas, energy etc. Quality first, then cost comes.

When medicine does not work, surgery is a must.