Implementing New Age Performance Management System in IT MNC: Leveraging Communication and Training

Abstract

Performance management system has been used since decades to measure and manage employee performance. Over the years, changing business scenario, shorter cycle times, changing workforce demographics, ever-increasing demand on performance has pushed organizations to come up with innovative ways to measure and manage employee performance. In order to manage these challenges, performance management system has emerged as a powerful workforce management tool especially in new age growing multinational organizations. Along with the associated process, system and practices, well-implemented programmes are used strategically to create ‘value’ for the organization, managers and employees. Many organizations are redesigning their performance management system in order to make it more meaningful for business. Instead of a backward-looking process with once-in-a-year goal setting and feedback process, organizations are looking at a more forward-looking programmes and practices. The challenge is in designing and implementing performance management programmes that are real time, continuous, consistent and intuitive. More often, internal communication and training are the HRM levers that play an important role. This case of a fast-growing multinational IT firm, 1 undergoing change describes how performance management system was developed and implemented through use of communication and training. The article highlights the purpose, process, challenges and insights from developing and deploying the new performance management tool.