With the aim to attract, retain and reward the right talent, most companies in India are reworking on their appraisal system, or the performance management system, a survey revealed.
What changes are companies making?
52 percent of the respondents have either made or are planning to make changes in their staff appraisal systems in the near future to tackle the additional challenges caused by a growing young workforce, technological advances, a multi-generational workforce and a growing economy
Close to 20 percent had done away with individual ratings. The idea behind the move was to make systemic changes, which indicated that bold approaches to performance evaluation and management would be seen in the near future
The Performance Management Trends Survey, conducted by PwC India in 2015, was the primary source of the studyâ??s findings and analysis.
Why is a change in the system important?
"We are at the point of inflection that requires organisations to not just cut cost, but transform the way performance is driven and measured. Current systems are focused on shareholders. However, in todayâ??s scenario, employees are key stakeholders of the business," PwC India Leader People and Organisation, Padmaja Alaganandan, said, according to PTI
â??Creating new performance indicators, measuring employees on relevant metrics and motivating critical talent will be a vital enabler for corporate success in future,â?? Alaganandan, said
What do employees feel about the appraisal system change?
Only 12 percent of the respondents believed that their current performance management system was highly effective in achieving its stated purpose
They feel that while there is considerable use of performance systems in recognition of individual contribution, they are not as frequently utilised in the recognition of team contribution
"With collaboration being the cornerstone of workplaces today, it is worth exploring why organisations are not reflecting this reality by giving due weightage to team contribution in performance evaluation," it suggested
93 percent of the respondents felt that the primary purpose of the entire exercise was supporting business objectives
A key contributor to employee dissatisfaction and their perceived mismatch of expectations was the fact that little or no focus was given on employee outcome such as promoting team work and driving organisational culture
Source:- Indiatoday
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