How to Customize Performance Management System

How to Customize Performance Management System

The performance management is an integral part of a business’s growth strategy. The performance management help improving the operational capabilities, improve resource management, align employees and resources with high-level goals and objectives, maximize the productivity and profitability of the business and make them ready to be reactive and responsive to the abrupt changes in the market and customer trends. The modern businesses face modern problems, the markets are evolving on a rapid pace, the customer demands are skyrocketing, the workplaces become more dynamic, the employee’s demands and needs are also continuously changing. Above all the Dubai and in fact the entire UAE is a very competitive market. The human resource management have evolved a lot over the past decade, with the introduction of Gen Z in worldwide marketplaces the values, norms and standards have transformed a lot. Several surveys are market research proved that the managers and even the employees felt difficult to share an honest opinion in a fear or harming the relationship with their employees, managers or peers. It is not that this bias is new, however, it got amplified in the recent years.

How to Customize Performance Management System

Similarly there are several other variables, such as intense integration of the technology, which have completely transformed the work environment and digital ecosystem. The communication channels have been changed, the digital customer experience is paving its way, the customers are more focused on having a good experience, the competition is becoming tougher day by day, and the customer retention needs more focused efforts than ever before and so on. We can discuss hundreds of different factors that have completely changed the work environment, culture, customer behavior and marketplaces over the years. However, the important thing is to understand that a performance management system is an absolute necessity for a high-performing business. When a business or organization will have to choose a right performance management system they can easily get overwhelmed with the variety of available solution in Dubai and all around the UAE. However, a good one-fit-for-all type of performance management system or solution doesn’t exists, otherwise it wouldn’t be so difficult for many enterprises to implement a best performance management system. That is why the customization is the only way to implement a good performance management system/software which can full-fill all your business needs.

What is a Performance Management Software?

The modern performance management system is software application which is exclusively designed to support a business’s performance management processes. It is like any other software tool that a business might use to improve any other work flow or process. For example, a document processing tools or a complaint center tool is a digital solution to improve the efficiency and performance of the document processing and complaint management processes. Traditionally the performance management was done manually, where the evaluation is majorly based on the reviews by the managers. However the digital performance management system or performance management software is a modern digital solution that help businesses to increase the efficiency and efficacy of their performance management process. By leveraging the performance management software businesses can easily adopt to:

  • Agile Performance Management
  • Continuous Performance Management
  • Contextual-based Performance Management
  • Project-based Performance Management
  • KPIs, OKRs, Balanced Score Cards
  • Performance Management by Objectives
  • Modern Performance Metrics

And much more. The performance management software help businesses adopt to modern practices and methodologies to maximize the outcome of their performance management campaign. Furthermore the performance management software is a great tool to digitalize the performance management processes which brings automation, accuracy and transparency to the system.

What is a Performance Management Software?

How to Customize a Performance Management System that fits all your Performance Needs

Every business and organization have its own very unique culture, work environment, practices, business processes, management structure, strategies, plan, goals, work flows, etc. which make it significantly different from others. The organic evolution, natural growth and the leaders are responsible for this uniqueness and it is considered to be one of the best competitive advantage one can have in highly dynamic markets. This uniqueness also means that every business and organization have different needs hence they need a different performance management solution. There are two major categories of software solutions, whether you are acquiring a software solution for any internal or external business processes, these two categories remain same. The first one if the commercial off-the-shelf solutions (COTS) and the second category is customized, tailor-made or bespoke software. The customized software are exclusively designed to meet the very unique demands of a business hence are more reliable, perform well, integrate within organization easily, and produce much higher and better quality outcome. In this blog we will discuss how a business can customize their performance management system software to unlock the true potential of their workforce and achieve higher goals and objectives.

How to Customize a Performance Management System that fits all your Performance Needs

Customize Performance Management System: Engage Employees in Discovery Phase

Like any other software the performance management system also require a comprehensive discovery phase. Since you are aiming to develop a customized performance management software you need to do proper research before making a plan for the software. Usually business pay adequate amount of efforts in the research and discovery phase however, the most important thing that most of the businesses undermine the importance of engaging employee in the discovery phase. Most of the times businesses doesn’t include employees in the discovery phase or any other phase of the performance management system development. However, engaging employees in the early stages of the performance management system development will help you build a better and more compatible system which will align with the needs and expectations of the employees as well as the business goals. This will help you define the metrics, incentives, goals, objectives, critical success factors, and much more in a way which make sense for the employees. This also help businesses in implementing the new customized performance management system and enable them to adopt it with a more positive attitude and help you achieve better efficiency and efficacy of the system.

Customize Performance Management System: Engage Employees in Discovery Phase

Customize Performance Management System: Make a List of all Required Features and Performance Metrics

One of the biggest advantage of a customized software is that you can add all the features you want. Every business have different performance objectives and even goals also. The performance management process and practices also differs from case to case, that is why each business requirement is different from the other. It is important that you include all the features that you need. Such as goal setting features, communication framework, performance metrics and data analytical tools. Whatever you want you can include in the system at this stage. The best is always to consult with the external consultant or the performance management software development company. As they would have more experience with the performance management system and their feedback can be very vital. It is important that all the performance measurement metrics are also discussed internally with all stakeholders and relevant personals. You can also engage employees at this stage and consolidate all the feedbacks in one document then refine that document and for a charter document or scope of the work. This charter document or scope of the work will include all the features that you will be getting in your customized performance management system. It is important to invest as much time and effort as you could in this stage as it is the most crucial aspect of the customized performance management software development.

Customize Performance Management System: Make a List of all Required Features and Performance Metrics

Customize Performance Management System: Intuitive UI (User Interface)

For any software the UI or user interface is a key to success. Studies have revealed that people tend to avoid complex software and their efficiency declined with complex UIs and difficult user experience. Same is applicable for your customized performance management software. If the UIs are simple and easy-to-navigate the user response will be good. Furthermore it is important to customize your UIs look and feel to match with your company branding. The navigation of your customized performance management software should be simple enough to let user access the tools/features or information within a few clicks. Performing different tasks should be simple, such as defining KPIs, setting up goals and objectives, viewing performance data or any such feature should be easily accessible for all the users. Furthermore several features can be added in UIs to make them more intuitive and user-friendly such as adding tool tips, mouse hover functions, dialog boxes to share instant help materials, a dedicated help and FAQs section and guidance for the users to understand each feature of the customized performance management system. Offer simple options to save the work and continue it on the next day/session. That is a very useful feature. The textual content should be simple, avoid using complex and technical terminologies and use plain and simple language to make the system more understandable.

Customize Performance Management System: Intuitive UI (User Interface)

Customize Performance Management System: Digitalization and Automation

One of the biggest advantage of implementing software based solution for manual processes is the digitalization and the automation. The digitalization means that the performance management software will convert manual processes in digital which are more convenient. It also allow several dashboards for different users with different level of access and according to their job roles. The administration or higher management and power users will get maximum system access. This enable businesses to make a process simpler and convenient. For example, if a manager want to schedule a one-to-one discussion or meeting with an employee, they can schedule it in the system. If reviews are to be conducted this can be scheduled, and the management will get full overview of what is happening. If a review is pending they will immediately know, if they want to get the information that who conducted the review and what were the findings, etc. and all that can be done with a few clicks. Furthermore the automation help managers collect the performance data automatically which can save a lot of time and efforts and make the processes even more convenient. These are the advantages which enable businesses to easily adopt to continuous and agile performance management practices and other more frequent performance reviews.

Customize Performance Management System:Digitalization and Automation

Customize Performance Management System: Third-Party Integration

In today’s modern work environment the organizational software, tools, and databases work in harmony with each other where a well-connected network and data sharing mechanism is development to increase collaboration and communication between different software and tools a business is using. The performance management software is not different, it also support different levels of integration. However, most of the time the HR managers or the decision makers doesn’t realize that certain technological platform are better in integration than the others, furthermore it also depends on the existing network and digital ecosystem. So, the technology that you are selecting to develop your customize performance management system should be able to integrate with your existing business tools, enterprise solutions, databases and central information center. The central information center is a digital hub which hosts the data of all connected software and tools. Your new customized performance management software should be able to integrate. It doesn’t matter if you need integration or not, but the compatibility should be there. As organizations and businesses keep growing and high-performing enterprises need support from their IT infrastructure. That is why it is important to ensure your new customized performance management software will support the required third-party system integration.

Customize Performance Management System: Third-Party Integration

Customize Performance Management System: System Administration and Configuration

Usually the HR managers or other decision makers doesn’t emphasize on the customization features and abilities of the system’s administrative panel. Most of the time when the word customization comes, people often think it is having a change in the source-code of the program or layout, which is only done by skilled professionals. However, every software also have an administrative control panel which allow certain level of customization which help system administrators and power users to manage and modify the system’s features and certain aspects. That control panel is very vital for a performance management software. Obviously it depends on the vendor, but on your part you can think of different scenarios that you could face in future which might require to make certain changes in the system. For example, currently you are conducting employee performance evaluation twice in a year, you might want to ramp up the frequency by conducting performance evaluation after each quarter. You might want to set up on-demand based reviews and assessments such as project-based performance evaluation, etc. Similarly there could be so many different scenarios and practices which you are not needing today but maybe in the distant future you might going to need them. Similarly you might want to control the alerts, notification, or even the data access for different users, etc. All these features will be available on the administrative control panel which will allow you to change or customize the system configuration to suit your needs and requirements.

Customize Performance Management System: System Administration and Configuration

Customize Performance Management System: Mobile Compatibility

The performance management system is a very important tool, the key to better performance management is always communication, in case of a performance management software you will always want your employees to interact with it more often. However, usually businesses keep the access to such systems restricted within their networks, or even the access is not the issue such software and tools come with desktop version only. The administrative and user access panels and dashboards are mostly web-based interfaces. Which means that an employee will have to login to a web-page in order to interact with such systems and software. The modern performance management system is also a similar software, it offer multiple web-based UIs (user interfaces) which can be accessed through a web browsers. However, these days the smartphone and mobile technology have completely transformed our work and personal behavior. People tend to spend more time on their smartphones and mobile devices. Above all there would be a lot of employees who will be always on the go or who will be working off-campus. For all such employees interacting with performance management software could be a big problem. That is why offering mobile compatibility can significantly increase their interactions and engagements which also have positive impact on the performance. The mobile compatibility can be achieved by two methods, one is making your UIs responsive and the other is offering a dedicated smartphone application. Both methods are good, but the dedicated smartphone applications tend to offer a better user experience.

Customize Performance Management System: Mobile Compatibility

Customize Performance Management System: Scalability, Upgrades and Maintenance

The scalability, upgrades and the maintenance are the most important components of any custom software development project. Similarly your customized performance management system should also have a crystal clear strategy, plans and mechanisms for the scalability, upgrades and maintenance. Another great advantage of the customized software application is that they are exclusively designed for a particular business and the ownership belongs to that business and not the vendor or outsourcing contractor who is developing the software. This completely solve all commonly associated problems with the scalability, as the customized performance management software is completely owned by the business itself, hence they can expand it as much as they want, they can have unlimited numbers of the users without paying anything extra. There would be no monthly or annually fees or subscription charges or associated licensing fees. The upgrade policy can be mutually worked out with the vendor or outsourcing contractor. Since you will own the customized performance management system software hence you are not bound to the same vendor, you can have in-house team to keep the system up to date or upgrade it whenever needed or you can sign an agreement with the vendor or any other third-party software development company who is familiar with the technology and can support your with further customizations in future. Same is the case with the maintenance too.

Customize Performance Management System: Scalability, Upgrades and Maintenance

Conclusion

In the present day’s dynamic marketplace and skyrocketing customer demands, it is crucial for a business to efficiently and effectively utilize its resources. For that every business have some kind of performance management strategy. Usually businesses follow traditional by-book methods to execute a performance management strategy. However, the marketplace have changed very rapidly and the performance management is also not the same as it was a decade ago. This require businesses to be more proactive and reactive towards abrupt market changes which is why businesses adopt and implement technological solutions to increase their capabilities, productivity and readiness to respond to the market changes. A performance management system is one of the most important part of any business’s success strategy. However, recently businesses in Dubai and all around the UAE have started adopting customized software and application instead of going for COTS or commercial off-the-shelf solutions. The biggest advantage of the customized performance management system software is that business can design is exclusively to meet their specific and unique needs. Unlike COTS the customized software doesn’t require you to adopt the new system and make changes to your existing processes, practices and methods.

The customized performance management system can easily integrate in the existing digital ecosystem and it can be designed as per the user’s demands hence very less or no training is required. Furthermore the businesses own their customized performance management system which means that their data will be more secure and they can customize the system the way they want in future as well. There are several other advantages of the customized software which make this method far superior than acquiring a commercial off-the-shelf software solution. That is why reason we wrote this blog to help our audience understand how they can customize their performance management system software to maximize its efficiency, impact and efficacy. If you have any question or if you want to learn more about the subject or if you want us to help you design and develop your new customized and cost-efficient performance management system software, please feel free to contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

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Employee Performance Management Process with PMS

Employee Performance Management Process with PMS

No matter what your business goals are, effective performance management process is absolutely necessary for any business to sustain and grow. The primary objective of performance management is to maximize the employee performance which drive productivity and profitability. In the modern business landscape, where the competition is tougher, the customers’ demands are skyrocketing, and hiring skillful staff is becoming more difficult, the performance management have become crucial for the business. Here in Dubai and all around the UAE, businesses tend to follow traditional performance management methods. A PMS or performance management system/software provides a modern and highly advanced framework to track, monitor and improve performance of the business. Another great advantage of the performance management is that it make businesses agile, responsive and help them deal with the rapid changes in the market and customer trends. The performance management system help businesses effectively build top-level objectives and goals and implement strategies to scale them down up to individual goals and daily tasks of the employees. This align each and every individual employee with the high-level organizational goals and objectives and ensures progress in the right direction.

Employee Performance Management Process with PMS

What is PMS?

PMS or performance management system is usually referred to a software application which help organizations to implement various performance management processes and strategies. The manual performance management requires a lot of resources and it is time consuming, however, when done with the help of a PMS it become simpler, easier, and more impactful. Usually the manual performance management processes have annual appraisal or sometimes biannual evaluation, however, the performance management system (PMS) enable businesses to monitor and manage performance in real-time, it collects data in real-time rather once or twice a year, which make it more impactful. The PMS is also referred to as performance management software, basically it is a software exclusively designed for the performance management processes. The biggest advantage of using a PMS is that it can automatically collect performance data, monitor KPIs, and it also help streamlining the reviews and other appraisal processes. The digitalization and automation reduce the effort and make process more convenient and impactful. The managers get more visibility with the real-time performance data which enable them to take actions in time to maximize the outcome for the performance cycle.

What is PMS?

The managers can view all the performance data such as Balanced Score Cards, KPIs, Reviews & Ratings, BARS data, and other performance matrices at a single dashboard. There are penalty of in-built analytical tools which allow managers to perform several analysis with just a few clicks. The intuitive UIs and simplicity of the system makes it a perfect tool for performance management needs. Furthermore it capture the data in real-time and it is also capable of performing several automated analysis, which allow management to set triggers for alerts and notifications. Every user dashboard gets real-time updates, so the managers can get the very recent performance data which help them understand the current performance, progress and it also help them easily identify the obstacles and areas of improvement. Hence the managers can take decisions in real-time and do course corrections instantly. This also help them rectify the problems and boost the performance of the employees for the performance cycle.

What is PMS?

That is the reason the modern performance management is incomplete with a highly efficient technological solution. The PMS or performance management system or performance management software is exclusively designed for the businesses to maximize its impact and to increase the convenience. The PMS supports almost all modern performance management processes and methods. Here are some of the most important and commonly used performance management processes in Dubai and all around the UAE.

The Pain Points of Traditional Performance Management Process without PMS

The markets have changed drastically in past decade, the businesses have to adopt to new practices and modern processes in order to keep up with the pace. The modern business environment is continuously evolving, the customer behavior and the employee behavior is also changing. This left traditional decades old performance management processes ineffective and prone to errors and mistakes. Businesses, large enterprises, government sector and private sector in Dubai and all across UAE have realized that the modern problems require modern solutions. The PMS or Performance Management System/Software help such businesses and organizations to leverage the technology to improve their performance management processes. Here are a few notable pain points of a traditional performance management methods that can be avoided with the modern performance management processes through a PMS:

  1. Course Correction: The traditional performance management processes such as annual or biannual evaluation doesn’t give enough time to the employees to do course correction. The PMS on the other hand ensure real-time monitoring and performance evaluation, the managers can instantly understand if an employee is deviating.
  2. Rating Mechanisms:The traditional performance management processes have poor rating mechanisms, which led both employees and the managers to not trust the rating process. The PMS makes monitoring simple, effective and highly accurate with modern KPIs and performance tracking mechanisms.
  3. Transparency: The traditional performance appraisal processes lack transparency, due to no check and balance on the employee’s actual performance and heavily rely on the reviewer’s point of view. The PMS resolve this problem effectively and provides a framework to monitor the performance and it also provides universal rules and criteria to measure the performance.
  4. Goals and Objectives:The traditional performance management processes lack ability to set achievable but challenging goals for the employees. The PMS allow businesses to setup effective goals and objectives on the bases of the employee capabilities, strengths and also ensures the employee’sgoalsand objectives align with the high-level organizational goals and objectives.
  5. Employee Engagement:The traditional performance management processes lack adequate employee engagement which make them less productive and in some cases counter-productive. The PMS encourages more frequent discussion, reviews, feedbacks and evaluation which encourages both employees and managers to improve communication and engagements.

The Pain Points of Traditional Performance Management Process without PMS

The modern performance management with PMS (Performance Management System/Software) help businesses avoid all of the above. The ability to digitalize the performance management process and automated data collection allow businesses to effectively execute their performance management strategies to achieve their high-level organizational goals and objectives.

PMS Helps Setting up Goals and Objectives

Setting up goals and objectives is one of the most important and crucial aspect of performance management process. PMS help business set up realistic goals and strategic objectives and scale them down to individual employee. This help businesses align all the resources with the high-level organizational goals and objectives. The goals and objectives are basically the criteria to measure the performance of employees, teams, departments, managers, and the overall business. Here are the three most common types of goals:

  • Purpose Oriented Goals: These goals define what performance target or success will mean for each individual employee, hence key performance indicators are set accordingly. The purpose oriented goals are monitored continuously. For example keeping customer happiness and satisfaction equal or above 80%.
  • Project Based Goals:These goals are set for a precise outcome of a particular project along with the timeline. These goals are set for the individual employees as well as for the project teams/departments. For example, the IT team should be able to launch new mobile applications within 3 months.
  • Employee Personal Development: The employee personal development or professional growth oriented goals define the performance level an employee needs to outgrow itself. Majorly these goals require employees to learn new skills & abilities and acquire new knowledge.

PMS Helps Setting up Goals and Objectives

The goal is a long term achievement, however the objective is a short term measureable action/outcome required to achieve a goal. It is important that these goals & objectives are clearly communicated to the employees so they can set target for their performance and try to outperform themselves in the next phase. That is how the performance can be improved and optimized gradually over the time.

PMS Helps Implementing SMART Framework

SMART Framework is a modernized method to set up goals and objectives. The SMART goals tend to produce maximum results. The SMART is acronym, it stands for:

  • SMART – Specific: The goals should be clear, understandable and must point to a particular outcome.
  • SMART – Measurable: The goal should be able to produce the measurable data that can be tracked in order to measure the performance and progress.
  • SMART – Achievable:The goals should be achievable, mostly businesses aim too high, which results in demotivating the employees when they know they can’t achieve them.
  • SMART – Realistic/Relevant: The goals should be realistic and relevant to the employees and teams, so they can achieve them.
  • SMART – Time-bound:Each goal should be time-bound with a clear start and end date, so the employees know when they will be evaluated and in what time they will have to achieve them.

When employees get SMART goals they can focus on a certain thing and improve their professional and intellectual skills. Most of the time when the goals are not set properly the employees doesn’t feel growing, they are performing their tasks aimlessly, and when they look back they think they have achieved nothing. This results in employee turnover which is another factor that impact the performance of a team, department or sometime the entire organization. When employees start achieving their goals which also add value to their experience, skills and capabilities, they got motivated and try to perform better.

PMS Helps Implementing SMART Framework

PMS Streamlines Performance Review Process

The employees always have concerns about the performance reviews, there are several surveys and studies which suggested that the manual performance reviews are not a good criteria to measure the performance of an employee. The manual reviews could be biased and the reviewer usually only consider the most recent performance or incidents to measure the performance of the entire year. Which is never accurate. The transparency and accuracy are some of the major causes that large enterprises have started ditching the traditional performance management and review processes since 2010. Here in UAE businesses have just started adopting PMS (Performance Management System/Software) that is why it is relatively easier for the market to embrace the change. Earlier it was just the large enterprises, organizations, government entities and multinational who had an effective performance management system in place, however, now a days, medium and small sized enterprises and private sector too is rapidly adopting performance management processes to maximize the performance and to gain a better competitive advantage.

PMS Streamlines Performance Review Process

Although the traditional performance review processes are failing, but that doesn’t mean the performance reviews are ineffective. In fact the performance reviews can help maximizing the performance by providing valuable feedback to the managers and the employees which help them boost performance and employee engagements. If done correctly with a proper performance management system the performance reviews can help businesses bridging the communication gap between the managers and the employees, it brings more transparency and produce highly accurate performance data. The main objective behind implementing a digital PMS (Performance Management System) is to improve the employee performance review process to promote constructive criticism and acknowledge the achievements of the employees. When employees are rewarded or acknowledged about their good performance and the areas of improvement are highlighted to them, they tend to get motivated to perform better. This way the employees start focusing more on their weaknesses and tend to put efforts to upgrade their skills, knowledge and even behavior.

PMS Streamlines Performance Review Process

Highly Effective 360 Degree Feedback and Reviews with PMS

The 360 degree feedback is one of the most important aspect of performance management. It is a modern method help boosting the performance by increasing employee engagement, motivation and by identifying the problems and obstacles which can impact the performance. The 360 degree feedback is a multi-dimensional feedback mainly collected from the managers, peers, customers, sub-ordinates, stakeholders and any other concerned person or manager. This provide a 360 degree view of an employee’s performance from multiple sources which reduce the inaccuracy and maximize the transparency. There are five major components of this performance management process:

  1. Managerial Feedback: The feedback and reviews from managers are the traditional method of performance management process. This review included feedback from the supervisor or manager, and it can also include feedback from line-managers or higher management.
  2. Peer to Peer Reviews: The coworkers can provide a very unique and precise prospective to the employee performance. More importantly the peer to peer reviews are a great process to evaluate the ability of an employee to perform in a team.
  3. Customer Reviews:The customer’s reviews help businesses understand the performance and behavior of customer facing employees. The customer reviews could be taken from internal and external customers, stakeholders and any other relevant person who interacts with the employee.
  4. Subordinate Feedback:The upward feedback and reviews are not common in traditional performance management processes however, they are critically important. It help evaluating and improving the performance of the supervisors, managers and senior staff.
  5. Self-Appraisals: The self-appraisals are when employees review their own performance. The PMS provide a structured feedback mechanism that let employees look back at their performance and rate it. Usually the self-appraisals are biased, but they allow employees to see their strengths and weaknesses.

Highly Effective 360 Degree Feedback and Reviews with PMS

The 360 Degree Feedbacks and Reviews are a great process to increase employee engagement and awareness. The employees can easily learn what is expected from them and how did they performed and what impact their performance have on the stakeholders. Furthermore the 360 Degree Feedback and Reviews serves as a bedrock for the training, counselling, and employee development processes. The PMS itself encourages employee engagement but the 360 Degree Feedback and Reviews are the best method to boost employee engagement. Employee engagement motivates them to perform better.

Implement Management by Objectives (MBO) Process with PMS

TheManagement by Objectives or MBO is one of the modern performance management process. The PMS enable managers and employees to make plans, set objectives, performance matrices and everything for the upcoming appraisal period. After setting up clear goals and objectives that align with the high-level organizational goals, the manager and the employees have multiple discussions or feedbacks to understand the ongoing progress. After that the manager and employees can readjust their performance goals and objectives to make sure they remain aligned with the high-level organizational goals and objectives, this is also called course correction. Furthermore the Management by Objectives (MBO) process allow the managers to constantly improve the performance and resolve any issues or problems that employees are facing to rectify them in time. This kind of performance management have higher success rate. The Management by Objectives (MBO) also increase employee engagement and raise their level of trust on the managers as well as on the employer.

Implement Management by Objectives (MBO) Process with PMS

The management by objectives or MBO is one of the best way to align the individual goals with the high-level organizational goals. The goals are set under the SMART framework so the success is rewarded and the failure is dealt as per the company policy, usually by more training and counseling or transfer, etc. The Management by Objectives (MBO) can be easily implemented all across the entire organization with the help of a PMS. This ensures the higher levels of success. When employees also got involved in the decision making process such as goal setting, evaluation, etc. they feel more emotionally connected to those goals and objectives. This raise their morale and motivates them to perform better. On top of that the frequent assessment also ensures the employees remain on track throughout the entire performance appraisal period which also amplify the success rate. The MBO is also a great process to maximize the communication and provider maximum understanding of the goals and objectives to the employees and it also tells them what is to be expected from them and how they should do it in order to achieve the goals. That is why MBO has higher success rate.

Implement Management by Objectives (MBO) Process with PMS

PMS Improves Behaviorally Anchored Rating Scales (BARS) Process

The BARS of behaviorally anchored rating scale is a very common performance management process. The management set behavior examples, and anchor them to a numeric or measureable value/rating scale. This allow businesses and organizations to effectively measure both quantitative and qualitative aspects of the performance. However, most of the performance management processes only focus on the quantitative aspects of the performance. The BARS or behaviorally anchored rating scale is linked with multiple BARS statements that are according to a specific behavior which employee exhibit during a certain situation. These BARS statements act as a measuring tape to measure the performance of the employees. Several market studies suggest that the behaviorally anchored rating is extremely important for the overall performance management. Usually the employee behavior can have 40% share in the overall performance and the rest 60% is their technical competencies and professional skills. Each employee is evaluated against the standard associated to their job role.

PMS Improves Behaviorally Anchored Rating Scales (BARS) Process

The behaviorally anchored rating scale statements are refined several times to set standards for expected behavior against every job role. The BARS is a very effective process to clearly explain and communicate the requirements from each employee. When employees clearly knows what is expected from them, they tend to perform better to achieve their individual goals. The behaviorally anchored rating scale is not like other rating mechanisms, in fact it starts from 5 up till 9, where 5 represents the worst performance, 7 moderate and 9 best performance. Another great advantage of the behaviorally anchored rating scale (BARS) is that it have different statements and rating mechanisms for different job roles, rather a universal rating or evaluation process. This can significantly increase the accuracy and effectiveness of the performance management process. The employees know exactly where they will have to improve their performance and what is expected from them in the next performance cycle. The only drawback of the BARS is that it require a lot of time and effort from the managers and executive administration.

PMS Improves Behaviorally Anchored Rating Scales (BARS) Process

PMS Allow Creating Precise KPIs to Improve the Monitoring Mechanisms

The PMS or performance management system/software is a digital tool, it has capability to integrate with any other third-party software, tool or database. Which enable businesses to effectively create KPIs or key performance indicators for each and individual employees, teams, managers, departments, and even for the entire organization. The KPIs allow the businesses to monitor the performance against strategic and high-level organizational goals and objectives. The KPIs enable businesses to implement a more effective data driven performance management process. The KPI also link the organizational goals and objectives with the individual action. The PMS or performance management system/software allow businesses to set up KPIs in a cascade format where the move from level to level until reached at the individual level. This approach is top-down and often also called pyramid KPIs structure. The SMART Framework works on KPIs too, each KPI should be specific, measurable, attainable, relevant and time-bound. The PMS allow businesses to effectively create KPIs either by customization or using the in-built templates.

PMS Allow Creating Precise KPIs to Improve the Monitoring Mechanisms

The KPIs can significantly boost performance by providing real-time monitoring capabilities. Furthermore the KPIs also help managers to explain employees about their goals and how their performance should be evaluated, this help them perform better.

Conclusion

The traditional performance management processes have proven to become ineffective in the modern business environments. Now a days’ businesses in Dubai and all around the UAE require a highly advanced technological solution for their performance management processes. The performance management system/software or PMS is a software tool that enable businesses to perform performance management tasks in a more intuitive and effective way. Rectify all pain points of the traditional performance management methods and allow businesses to include innovative and customized features to their performance management system. Moreover the PMS allow businesses to implement the modern performance management processes and methods to maximize the outcome of the performance management cycle. The PMS provide dedicated user dashboards for the employees, supervisors, line managers, senior managers, high-level management and stakeholders who can monitor and track performance of the individual employee, team, project, department or the entire enterprise at their dashboards.

The PMS ensures the management get a comprehensive view of the entire organization and each and every single resource. This provide them a better control over the progress and also enable managers to do course correction, make adjustments to ensure the high-level organizational goal is achieved at the end of the performance cycle. In this blog we have listed only a few advantages of the PMS or performance management system/software to provide our audience an overview of how the PMS can meet the performance management needs of the modern businesses. If you want to learn more or if you want us to help you building a modernized, intuitive and cost-efficient performance management system please contact us through our Contact Us page or leave a comment in the comment box below and we will get in touch with you soon.

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