Best Performance Management System in 2018

Employee Performance Management System in India
Pricing starts from : USD 75.74 For 100 Employees
Keka provides an employee experience platform for HR and Payroll software that is completely focussed on employees. It a futuristic employee performance management software that mainly concentrates on user experience and breaking down complex workflows into simple tasks.

Worlds Most Powerful Performance Management System
HRMantra is one of the most useful performance management tools that automate complicated HR processes from hire to retire easily using its CRORES of ready to use features. This performance management software gives 10 times ROI by saving 30 minutes per employee per day. It assures 100% project success.

Complete Performance Management System For Monitoring
Automate your performance review process and build a productive organizational culture with HR-One performance management software. Manage everything flawlessly from setting goals to feedback management, performance ranking and appraisal management with this module.  

Next-Gen HR Software For Increased Productivity
Farsight helps organizations in building internal and external HR eco-system through HR automation solutions & services to drive organizational excellence in today's dynamic marketplace.

Performance Management System BY Zoho Corporation Pvt. Ltd.
Pricing starts from : USD 0.76 Employee/Month Billed annually
This performance management tool helps you initiate the appraisal cycle, workflows, customize the appraisal forms, and mail alerts according to your requirements. It is web-based performance management software for small business and as well as for medium and large enterprise. Zoho people is easy to use and user-friendly software with integrates more powerful features.

HRMTHREAD

Efficient HRMS - Performance Management System
This performance management software offers user-defined loan heads and calculation formulae/earnings/deductions/tables etc. It automatically generates all statutory reports and needed by a payroll software. It also includes functions such as Recruitment, PMS, Training and Exit Management.

UltiPro

Employee Performance Tool BY Ultimate Software
UltiPro is SaaS based performance management system to improve the employee experience. It develops performance, succession, compensation management, administering workplace surveys, and measuring employees’ feelings about work through sentiment analysis.

Halogen Performance

Performance Management Software BY SABA
SABA Halogen provides an employee performance management system and employee performance feedback tools. It reduces the burden of admin by automatically collaborating the employee's report. This employee performance evaluation system motivates the employee to focus on delivering the high performance.

Impraise

Performance Management System Monitoring Tools BY Impraise
Impraise is one of the simplest and most useful performance management tools. This is mobile optimized for real time feedback, social recognition, and peer coaching. Delivers perfect apps for leadership development and personal development conversations.

Engagedly

Performance Management System Appraisal Software BY Engagedly
Engagedly is a performance management software that allows for continuous ongoing feedback. Engagedly employee engagement recognition platform you can get team members to motivate each other by rewarding points for significant contributions.

Synergita

A Cloud based Performance Management Software
Synergita is a cloud-based, continuous employee performance management system. It automates employee goals alignment, talent data, continuous performance reviews and feedback, employee development, employee engagement and retention. It is extremely simple and user-friendly.

Insperity

Performance Appraisal Tools BY Insperity
Insperity is a great employee performance management system software that helps to remove all the obstacles of business. This employee performance review software helps you guide your employees to improve the performance to drive the business on top from the rivals.

Reviewsnap

Performance Monitoring Tools BY Reviewsnap
Reviewsnap help make your performance reviews a smooth and rewarding process with its web based enterprise performance management solutions designed to drive exceptional results from your staff. Its fully automated and flexible employee performance management system makes employee performance appraisals more strategic.

PeopleFluent

Performance Appraisal Software BY PeopleFluent
PeopleFluent is the unique performance management system solution. Seamlessly provides talent management, employee engagement software etc. Manage everything, from set the goal to feedback management and evaluate the performance of the team.

PeopleApex

A multi-country Performance Management System
PeopleApex is an integrated end-to-end enterprise-level performance management solution, designed to empower the employee with robust employee self-service (ESS) and at the same time provide a holistic view for managers with manager self-service (MSS).

Page Last Updated On 07/09/2018 03:49


What is Performance Management System?

Performance Management refers to the overall process deployed by the organization to improve the performance of the employees concerning the desired goals of the organization.

To effectively carry out performance management in an organization, an established system with set parameters plays a key role in motivating employees to perform as per their skills. The system deployed to bring out the best in employees and track their performance for subsequent performance appraisal is called Performance Management System.

An intelligently deployed performance management process creates a positive work environment and allows the workforce to perform to the best of their abilities. It is designed with an aim to enhance the performance of employees and encourage them to take the responsibility to improve the business competence and generate better results.

People are the largest asset of any organization. Invariable motivation and inspiration drive any individual’s performance. Enterprise solutions like employee performance management system/performance management software tools are like the cherry on the top for any growing business or a well established one in the rampantly growing universe to ensure improvised productivity, quality, and efficiency of the workforce. In order to manage the performance of an organization as a whole, you need to manage minute tasks in a shrewd manner. Hence, one needs to relate the use of technology by automation of the functionalities of its departments. 79% of executives believe that the redesign of performance management is a high priority. 

Objectives of having an effective performance management system:

  • The foremost objective of any employee management software is to enhance the performance of the employees at the workplace.
  • Promoting a healthy, two-way communication between employees and the management and promote a healthy relationship.
  • Creating a regular flow of communication of organizational goals, expectations, feedback, and coaching.
  • Identifying and resolving hurdles that may prevent the employees from pushing boundaries and achieve their best performance with performance management software.
  • Creating an ecosystem that facilitates personal growth, continuous learning and skill enhancement, as well as better career prospects for employees.
  • Creating a platform that facilitates better strategic decisions, improvisations, and introduce measures for better employee satisfaction.
  • Ensuring improved and deserving performance appraisals and rewards for employees using online performance management system software.
  • Creating a proper measure to calculate the organization’s overall performance based on employee performance, satisfaction, and retention.

Components of the performance management system:

Let us look at an effective performance management software at a finer level. A comprehensive performance management process for an individual starts when the job is defined and ends when the employee leaves the organisation.

To design an effective performance management process, various tools are used such as HR and Payroll tools, cloud based employee performance management system, customized online performance appraisal system, KPIs, feedback management, analytics reporting measures, and more. These tools help in designing a comprehensive and effective performance appraisal system.

However, every tool ultimately aims to contribute to a performance management process that has the following main components -

1. Planning the job description

Understanding the need for the job and defining a clear job role is of paramount importance in performance monitoring tools. Understanding the employer expectations in terms of performance makes it easier to not only define job role but to find the right resources for the job.

2. Deciding on performance reviews and performance appraisal criteria

Most organizations carry out performance appraisals twice a year, but it entirely depends on the job role and the organization’s expectations. Generally, twice a year appraisal model works across most industries as it allows a comprehensive online performance appraisal system, first by a self appraisal (filing the ratings as per their own performance review) followed by a performance appraisal done by the reporting manager at the end of the year. This is done to find the comparison, loopholes, and shortcomings both in the performance expectations of both the appraiser and employee.

3. Recruitment of the best man for the job

Often underestimated, the recruitment process constitutes to be a critical aspect of a comprehensive online performance management system and performance management software. Once a clear job role is defined, it is the duty of the HR to ensure that a candidate fit for the job role is hired. A good quality hiring significantly increases the chance of better job performance. Recruitment impacts all the stages of an employee lifecycle in the company starting from expectations, performance, job satisfaction, and retention.

4. Performance feedback and counselling, if required

Feedback is an extremely crucial aspect of performance evaluation system. Constructive feedback by an appraiser allows the employee to be aware of his level of contribution to the organisation. His expected outcomes are judged in a fair and transparent manner and areas of development are identified. Mentoring, guidance, constructive criticism further encourages him to push his boundaries and perform better.

5. Recompensing a good performance

Rewarding an employee for good performance is the best way to motivate. Performance reward may directly impact the self-esteem and morale of the employee. When performance monitoring tools are designed to efficiently recognize the performance of employees, it helps them to cope up with failures and satiates their need for recognition.

6. Initiating performance Enhancement Programs

This is the stage when the management decides fresh goals and corresponding deadlines, based on the employee’s yearly performance. In this stage, the areas of improvements are clearly communicated and the time frame is decided after mutual discussion between the appraiser and appraise to fulfil the expectations.

Importance of Employee Performance Management System Software:

Accurate forecast: In lieu of driving transformational decisions, one needs to have an accurate analysis of the workforce available which can be generated using an automated form of performance management tools.

Reduce time: Rather than manually bugging professionals and investing tonnes of money in getting involved in the tedious task of employee performance management software, it is better to pass on that burden to corporate performance appraisal system. Same as The list of top Time Management Software can help owners of small to medium sized businesses stay organized and up-to-date in managing their employee’s time.

Quality feedbacks from professionals: To ensure a consistent link between the business and people working for your business, it is very important to have inputs in form of feedback from the employees with reduced communication barriers which can be made available using such an employee performance appraisal system for any business.

Fill in the performance gaps: Accuracy in the performance management tools would benefit in understanding the gaps that one need to fill in for securing their goals or tasks giving them enormous learning and development opportunities helping them gain rewards.

Reward decisions: Reward is one thing that individual or team would look forward to in order to boost their momentum. Companies decide the incentives based on the continuous performance evaluation of employees which could be made easy with Employee Management Software for businesses.

Benefits of Performance Management System

  1. Sorts the issue of fewer job satisfaction of individual that is usually the result of incapable offline performance management software.
  2. Have one of your departments being free from preparing performance evaluation systems, accessing them and then analysing them.
  3. Enable the workforce to be constantly engaged in the task allotted to them and keep them attached to the business all the time with the help of an employee performance tool.
  4. Every individual or team will be able to understand their contribution to fulfilling the organization goals.
  5. Automation helps to gain consistency in performance.
  6. Manages cost by being cost efficient performance management tools till the life of your business.
  7. Performance management software for small business can help you gain competitive advantage.

What to keep in mind while buying Employee Performance Management Software

  1. Budget: The cash you would invest in buying a system must be kept in mind.
  2. Customization provided: The system that you purchase must allow you to make customizations according to your business needs.
  3. Standalone or suite: You must keep in mind the basic requirement for the system from which you would be able to decide if you want a complete top HR Software suite or just a part of it.
  4. Usability: One needs to be astute in pinning down the actual needs that they want from the particular online performance management system. That is when they can decide as to what purpose they want to be served by using such online performance appraisal system.

The primary reason to go for automated performance management tools whether that is built-in or SaaS is to bring in line an individual’s goal with organisational objectives. The expectation of an individual is well fulfilled by an automated system. Modern-day offices need a foolproof - automated Attendance Management Software for businesses that help them in measuring individual performance of employees and thus, in calculating overhead costs. Analysing an individual becomes much simpler through such enterprise performance management software.

Having an online performance management system software is now indispensable for organisations. It is the best and most proactive way of driving an enterprise towards achieving the desired objectives. A good performance management system creates a long-lasting positive impact on the organisational functioning, employee satisfaction, and retention.

What is a performance appraisal system?

A well-defined and systematic performance management system process is the key to a happy and engaged workforce. Traditional methods of performance appraisal often lead to ambiguity, chaos, and disruption in operational efficiency. Performance appraisal systems are the new buzzword in the current dynamic business scenario and many organizations across the globe have shifted to using automated software suites to manage the performance reviews of their workforce.

Performance management software basically automates the entire performance management process in organizations and also enhances productivity by aligning employee goals to the end corporate objectives. Performance management software systems are overseen by the organization’s HR department and greatly reduce a ton of paperwork, time, and effort spent on routine performance review activities. They automatically set employee goals with respect to manager’s expectations, communicate them in a streamlined manner, and track employee performance in periodic intervals.

Performance appraisal systems also provide regular and timely feedback to employees’ so that they can mold their performance in order to maximize goal achievement. There is no doubt that a performance management system is a powerful platform that can indeed go a long way in boosting up employee engagement, two-way communication, and overall effectiveness – so make sure you invest in a top-class performance appraisal system for your organization to witness a dramatic rise in your performance parameters!

What are the various methods that are employed by organizations for performance appraisal?

There are a number of diverse and sophisticated methods that organizations utilize for employee performance appraisal. It is important for companies to assess their requirements, carry out suitable research, and then take a careful decision about choosing a particular performance appraisal software as it can have a far-reaching impact on overall efficiency. Here are some common performance appraisal techniques which are implemented by organizations:

1. 360 Degree Feedback Appraisal – This is a popularly used performance appraisal method that involves collecting performance feedback from all the people that an employee interacts with during work activities – superiors, subordinates, peers, customers and external stakeholders. It gives a holistic and unified picture of a worker’s performance and eliminates bias or error. Generally, a well-designed questionnaire is used to gather information about the employee and it is compiled to give a complete feedback. However, since many evaluators are involved in measuring employee performance, 360-degree feedback can often turn out to be a time-consuming and lengthy affair.

This is a very helpful performance management system appraisal for startups and small-mid sized organizations, as it gives a detailed insight into the personality, attitude, and behaviour of employees. It is also highly accurate and fair, as the performance review is not affected by the bias of any one party – making it a great choice for any kind of organization!

2. Behaviourally Anchored Rating Scale (BARS) - This is an advanced performance (via performance management software) measurement method that is designed to utilize both quantitative as well as qualitative data for getting an accurate representation of an employee’s performance. It focuses on major behaviours that are essential for completing work tasks efficiently and properly. Each behaviour is assigned specific points on the rating scale which indicates whether the behaviour is exceptional, excellent, satisfactory or poor.

The behaviourally anchored rating scale is a fully individualized, equitable, and easy to use performance appraisal technique that is action-oriented so that employees’ can take steps to improve their behavioural competencies. The consistency, clear standards and objective rating make BARS very widely used as a performance management technique across organizations in various industries.

3. Management By Objectives - It is a central method of performance appraisal that is very effective as Management by Objectives (MBO) involves a process of mutual goal-setting by the manager and employee and uses these measures as the benchmark to assess performance(via performance management system). Employees remain highly motivated to perform as well as they have themselves played a part in establishing their objectives through a two-way dialogue.

One key reason that results in better productivity through MBO is that it strikes the right balance between organizational and personal goals - making sure both are achieved in the best possible way. Despite its wide global application, Management by Objectives still suffers from certain drawbacks. It is very time-consuming and at times there a lack of clarity between managers and employees which lead to confusion and inefficiency.

4. Forced Choice Method – The forced choice method is widely used as a performance management system technique where the evaluator has to make a definite choice about the employee. A list of statements describing characteristics such as reliability or dependability is given and the rater needs to choose specific responses such as ‘yes’ or ‘no’, so as to get a clear picture about employee performance.

One major advantage of the forced choice method is the absence of any kind of personal bias due to the precise and unambiguous nature of the statements. However, on the downside, sometimes statements may be wrongly framed leading to incorrect evaluation of employees’, which will surely hamper their morale and engagement levels. Forced choice method, when used correctly is a great way to accurately rate the performance of employees’ in an unbiased, fair, and accurate manner!

5. Critical Incidents Technique - The critical incidents technique is an innovative method of performance appraisal that relies on gathering data on employee behaviour that has direct significance in meeting important organizational objectives. Basically, through the critical incidents technique, the manager of an employee keeps a record of any important work activities which either lead to the attainment or disrupt the achievement of company objectives. The evaluator may keep a digital or written journal that is updated regularly, so as to have a complete record of an employees’ performance help of performance management software or performance management system.

Critical incidents technique is a very useful method of performance appraisal as it helps the employee grow and enhance performance by evaluating their activities throughout the year. However, the method is also prone to individual bias of the manager which may lead to inaccurate reporting.

6. Rating Scale - This is a super effective performance management method that will be greatly helpful for startups and small businesses that are scaling up and are trying to diversify in the business arena. Rating scales are process-based and this method involves fixing pre-determined goals/objectives that workers are expected to meet. Employees are then rated by their direct supervisors or superior managers, and a cumulative total score is assigned to them on the basis of their rating.

This method is very similar to the grading system that is used by academic institutions but is far more structured and systematic in corporate organizations. Staff can be evaluated for a number of diverse skills and competencies such as decision-making abilities, teamwork, communication skills, knowledge, precision, etc. It is definitely a holistic appraisal method that can be used to rate a number of employees in a cost-effective manner.

7. Human Asset Accounting Method - This dynamic method of appraisal measures the performance of employees in terms of costs and contributions to the firm. The human capital is linked directly to the revenue that they generate for the organization through the number of customers, sales figures, or profitability numbers. It is a fair and objective process, as employees are directly evaluated on the basis of their contribution towards increasing the bottom line results of the organization.

Human asset accounting method sometimes fails to evaluate the soft and personal skills of the workforce, and can also hamper the morale levels of employees by treating them as mere profit-making engines. If implemented well and with proper training for the staff, the human asset accounting method can be a perfect way to manage performance in a fair and structured way.

8. Assessment Centers - Organizations across the world have now accepted assessment centers are an accurate method of performance tracking with the Performance Management System or Performance management software. Assessment centers are used to measure the technical competence of an individual and evaluate the suitability of candidates for managerial positions.

The main objective of this method is to test workers in social scenarios through a number of simulation exercises, business games, role-playing incidents, and group discussions. This gives the evaluator a clear insight into the overall personality, behavioral traits, qualities, and skills of an employee – it is the perfect way to gain a holistic picture of an employee’s capability. Participants also receive immediate feedback from their raters, which propels them to enhance performance and work on their weak areas.

9. Essay Method – An affordable, flexible, and effective method of appraising employees, the essay method is commonly used by a number of firms, especially startups to evaluate their workforce. It involves the written record of positive and negative reactions elicited by the employee during the work activities of the organization. The essay focuses on the various strengths, weaknesses, behaviors, and attitudes of the employee during performing of essential work duties.

The essay method has some minor disadvantages also which impact its accuracy and effectiveness. It is subject to personal bias, a time-consuming affair, and complicated to execute at times. If conducted in a fair and controlled manner, the essay method can be successful in giving an all-inclusive view of an employee’s performance.

10. Paired Comparison Method - This is a very useful appraisal method in which each employee and job is rated against another employee and job, to get information about skill, knowledge, and efficiency. These direct comparisons are computed to get a total score of each employee which can be evaluated by comparing to the mean score or standard deviation.

This technique is mostly applicable when the tasks are expressively different from one another and when a relative measurement is sufficient to provide performance information. The paired comparison technique is definitely a well-structured, objective, and efficient method of computing employee performance that can enhance any organization’s performance management system processes.

Performance management software is an essential tool for any organization and needs to be handled in an effective way to boost human productivity. Managers need to take care and make an informed decision about selecting the right performance appraisal method, as it is a sure shot way to escalate efficiency and output in the workplace!

Performance Management Software Related Articles

Performance Management software in


  · Mumbai
  · Ahmedabad
  · Bangalore
  · Chennai
  · Kolkata
  · Delhi
  · Pune
  · Hyderabad
  · Gurgaon
  · Patna
  · Jaipur
  · Lucknow

Performance Management software in following industries