Design a Management Mechanism for Performance

Performance management systems in India face serious questions about their credibility, according to a study. Many employees doubt whether such systems effectively identify superior performance or properly reward it.

When evaluating their company’s performance management system, managers and executives must understand this: Any system will fail if employees doubt its credibility. Indian employees need to establish an emotional connection with their superiors or peers at work.

A system may appear to have all the right elements that encourage employees to perform better in a team or that help a team perform better in the organization — communication, coaching, development, and recognition. Still, if employees lack faith in the system, it will not achieve its intended purpose. This is particularly true in India. Studies, such as those of well-known psychologist Geert Hofstede, Ph.D., suggest that Indian employees need to establish an emotional connection with their superiors or peers at work. Workers respect a company’s need for processes and procedures, but that respect is influenced by the personal trust among the members of a workgroup.

Our analysis of the data shows that companies in India struggle because many employees doubt whether a performance management system can actually identify superior performance; they also question whether these systems effectively reward good performance. These emotional responses affect employees’ perceptions of how robust the system is and whether it can distribute rewards fairly and effectively.

In 2010, Gallup asked employees in several different industries across India for their opinions on various aspects of performance management systems. Gallup found that Indian employees, especially those with three to 10 years of experience with an organization, strongly feel that most performance management systems are not capable of distinguishing superior performance.Sand maker:http://www.hx-china.com/8.html
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Unfortunately for managers and executives, there is a strong relationship between this perception and an employee’s level of engagement in his or her workplace. Of employees who strongly disagreed with the statement ‘The performance appraisal system at [my company] clearly distinguishes superior performance,’ 51% were actively disengaged. On the other hand, of the employees who strongly agreed, 2% were actively disengaged.

Before delving into the underlying emotions that surface in a performance management system process, managers and executives must make sure that the criteria used to evaluate an employee’s performance are clear. Employees from India or anywhere else want their appraisal rating to reflect their output and achievements. Companies must ensure that workers understand what is expected of them and how they will be rated on meeting those expectations.

This approach returns some obvious benefits for rotary kiln. Gallup’s analysis found that of the employees who strongly agreed with the statement ‘I am clear about the criteria by which my performance is evaluated,’ 66% were engaged. In contrast, only 1% of employees who strongly disagreed were engaged.

Even if some element of the performance bonus is dependent on factors that are outside the employees’ control (such as organization-wide performance bonuses), it is imperative that these conditions are explicitly noted on the date of hire. Such forethought can alleviate emotional distress for both the employee and the companymanufacturing sand maker. And considering the impact of emotion on engagement, employees who are not distressed may be much more receptive to the very unemotional nature of performance management systems.

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