Performance Management Tools
In every organization, performance management plays a big role in achieving its goals and objectives. Performance management is carried out by the human resource department. To understand the modern business world better, performance management tool and software have to be examined.
Performance Management Tool includes:
1.) Management by Objectives.
It ensures each and every organization objective is achieved through close supervision of employees and comparison of individuals work to the standards set.
2.) Performance Appraisal.
Is a process of measuring the actual job performance of an employee by comparing it to the expected standards.
Tools used in performance appraisal include:
- Performance tests.
- Management by objectives.
- Field review techniques.
- Graphics rating scale.
3.) Programmers of Recognition and Awarding.
It’s a way of motivating employees. This can be done through promotions, retention for employee for employees on contract or even vacations.
4.) Encourage Personal Development.
Self awareness among employees will reflect good performance of an employee. Employees with career goals will serve the organization with dedication to achieve the most from their employers.
5.) 360 Degree Feedback.
360 degree appraisal is a method of gathering feedback from all the people that interact with the employee to determine their performance. They include other employees, supervisor and also self assessment for better results. Its also known as multi source feedback.
6.) Key Performance Indicators (KPI)
It is an indicator that shows how an organization is effectively achieving its main objectives. It’s used in success evaluation on working towards attaining organization targets.
7.) Framework of Performance Management.
Some of its functions are: to clearly communicate organization goals and objectives, monitor organization progress through performance management, manage organization plans and forecast how to attain organization objectives.
Performance Management Software
Some of the best performance management tools and software includes
- Bamboo HR which is easy to set up.
- Deputy, it’s modern, mobile focused and uses only English.
- SAP Success Factors which is good for midsized business and also expensive as it charges per user per month.
- Namely, it’s good for small businesses.
- Sage. Business Cloud People, it’s good for large businesses, flexible, has tracking apps and can be used to compare multinational companies.
Case studies and Review for the Performance Management Tools & Software.
Organizations that have benefited much from the use of performance management software include:
It practiced the use of a continuous performance management by the help of the software by practicing no performance ratings, check in and frequent, instead of annual reviews. Voluntary employees turnover reduce by 30%.
Introduced weekly check in and quarterly reviews by help of performance management software and removed 360 degrees feedback. They ended up saving 2 million hours per year.
3.) General Electric.
Which removed the ranking tool, done once a year and introduced frequent communications and feedback by a mobile app? There was a great improvement on progress towards goals and it encouraged feedback from peers.
It removed ratings from its performance management and introduced and frequent feedback. They had a good progress of employees growth and career development though motivation.
Also are removed annual appraisals and introduced job conversations which were practiced by rewarding and recognition, encouraging teamwork, sharing experiences and skills development. They ended up benefiting with employee retention.
Cost of Performance Management Software and Tools
1.) Pay Per Employee.
Whether registered in the system or not, an employee’s cost will be charged. Extra fees will include, support or training and setup costs. Here prince ranges between $ 1.50 - $5 per employee per month.
2.) Pay Per Appraisal.
It’s a less popular performance management software model. It is seen to be fair. Pay per appraisal invoices paying for employees, evaluation once it’s done. The per unit cost decreases when there is an increase in the number of appraisal evaluations done. The price range is between $15 - $40 per appraisal evaluated.
3.) Pay Per User.
Here a monthly fee for each user is paid. The price ranges between $3-$10 per user per month. A user is an employee registered on the performance management software. The payment is made through the system.
Companies. That Develop Performance Management Software.
This is performance management software that was founded in 2013 by Parker Conred. It serves the United States with its headquarters in San Francisco. It helps in managing a company’s human resource.
2.) Internet Collaboration Information Management Systems.
It’s based in Holmdel, America. It was founded in 1999 by Colin Day. It’s among companies that develop performance management software.
This performance management software was founded in 2012. It’s human management tools are offered to businesses in the United States.
4.) Automatic Data Processing Company.
It is a company that makes performance management software that offers performance management services to human resource department. It was founded in 1949 by Henry Taube
5.) Bamboo HR.
This is another American performance management software company. That was founded by Ben Peterson and Ryan Sanders. It has many benefits to the users.
Other performance management software companies include:
- Sage Group.
- Ascents Corporation.
- Humi Company.
Advantages and Disadvantages of Performance Management Software
The advantages include:
- Connection and interactions between every employee. The performance management software acts as a God platform for communication.
- Keeping track of personal development. Due to regular feeds on individual performance a performance management software helps in showing employees development.
- Motivation of employees though frequent feedback on their performance.
- Rewarding of successful employees. It helps in pointing out employees that deserve rewards.
- Continuous assessment ensures employees progress.
- Identification of lazy employees. This can be done through comparison of two or more employee’s performance records. More training can be done to improve their performance.
- Helps in career development by showing ones aspirations.
The disadvantage includes:
- The process is complex and time consuming because of its detailed features. Performance Management software works for those who are computer literate because it is a computer based software.
- Misleading and contradicting opinions because it’s difficult to measure performance.
- The weak employees suffer low esteem due to regular comparisons.
- Might be unpleasant and stressful hence an obstacle of progress.