The ultimate goal of every organization is to stay ahead of their competitors. To achieve this, an organization needs to invest in an efficient performance management system to facilitate the right alignment of every employee’s performance to the organization’s overall performance.

An efficient performance management system should strive to achieve the following objectives:

  • Provide feedback consistently so that the employees feel appreciated for their efforts.
  • Set relevant goals and objectives for the business as well as employees within a predefined timeline
  • Setting the right expectations from the employees based on their caliber and capabilities.
  • Facilitate effective communication and collaboration between the teams to devise solutions to the problems coherently.
  • Set the right performance standards for the employees in sync with their predominant skills, aptitude, and talent.
  • Identify the training and development needs of the employees to facilitate their professional growth.


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The practice of conducting annual appraisal favored by a majority of organizations is outdated according to the millennials. Millennials seek an organization that facilitates robust feedback about their performance towards the organizational goals/objectives, efficient collaboration between the teams, innovation, professional development and thus, enhances the overall employee experience within the organization. They also expect the organization to have a structured plan for their overall growth and development, set clear expectations from them, and if necessary, offer them training programs to impart new skills which can aid them to perform their work more efficiently. A continuous and objective feedback mechanism in place will further enhance the quality of their work in sync with the organizational objectives.

For organizations that are planning to accelerate business growth, it is important to have clarity on few critical aspects- what the organization wants to achieve within a specified time period, how does the organization aims to align every employee’s performance to contribute to the overall organization’s performance and ultimately turn them into highly engaged employees. The performance management system embedded with modern technology enables an organization to manage employee performance and engagement closely and therefore achieve exponential business growth.

As the workforce is dominated by the GenZ generation, they seek to obtain instant gratification for a job well done. So, it is imperative for an organization to invest in an efficient performance management system that can track employee performance on a regular and on-going basis instead of once a year.

A Performance Management system can be defined as a business process that seeks to identify, measure, and develop employee performance to meet the specific objectives of a business. Aligning the performance metrics of all the employees with its long-term business objectives is indeed crucial for a business to grow exponentially. The performance metrics help to quantify the performance of the employees against their objectives and key results (OKR) and identify the scope of improvement to keep them aligned to the overall business goals.

HR Managers can track the performance of the employees through a robust performance management system and give them feedback on a one-one basis. This ultimately helps the managers to gauge the performance of the employees periodically and stay in line with predefined business objectives and key results (OKR).


A robust and efficient Performance Management system should be adept at:


  1. Providing unbiased feedback on a consistent basis

The employees want to know their contribution towards organizational objectives in an unbiased way. Providing proper feedback about their contribution on a consistent basis helps to boost their morale and they will strive to contribute more when they feel their efforts are appreciated.

  1. Setting goals and objectives for the business and the employees at an individual level.

Businesses operate with a predefined set of objectives or targets for a monthly, quarterly, or yearly basis. When employees are knowledgeable about the plans and objectives of the business, they are more likely to contribute effectively to achieve these predefined goals and thus facilitate the growth of the organization. This makes it mandatory for an organization to set goals for the employees at an individual level so that they can strive to achieve it within a set period of time.

  1. Setting the right expectations for the employees.

Setting the right expectations for the employees in sync with their predominant skills not only improves the productivity of the employees but also enable the organization to achieve their goals and gain a competitive advantage in the business landscape.

  1. Facilitate effective communication between teams.

A robust performance management system facilitates effective communication and collaboration between the teams and ultimately enables them to discuss openly the various challenges they face in their day-to-day work so they can all work together to find the right solution to the problems.  Constant communication between the team members motivates the team as a whole, making sure everyone is on the same page.

  1. Set the right performance standards for employees.

It’s not quite right on the part of an organization to expect a high performing employee to produce consistent results throughout his tenure in the organization. Similarly, a low-performing employee cannot be judged harshly for failing to deliver exceptional results at the outset. So it is imperative to set the right performance standards for the employees keeping in mind their inherent skills, talent, and aptitude.

  1. Identify the training and development needs of the employee right for their growth.

Every person is unique in terms of their capabilities, aptitude, and approach towards work. The learning and development of the employees should be an integral part of the performance management system. It aids the staff to attain their maximum potential which will be ultimately beneficial to the organization in the long run.

It is indeed imperative for the organization to invest in an efficient performance management system to stay relevant, innovative, and competitive in the business landscape.

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