IndexCurrent View of Performance ManagementFactors Affecting Organizations TodayImplication of These Factors on Performance ManagementInfluential Research and Its Impact on Performance ManagementEmerging Trends in Performance ManagementConclusionPerformance Management (PM) aims to maintain, monitor and improve employee performance in line with an organization's objectives. Today, organizations face an enormous challenge in an ever-changing world to define, stimulate and manage employee performance. French, concludes that companies must redesign their performance management structures to survive, let alone grow, in today's competitive business environment. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay This essay will address the future of performance management by examining the current view on performance management, the factors that influence organizational decisions, the implications of these dynamics for performance management and research bodies that shape performance management of the future. We will cover emerging trends in performance management practices and conclude whether a new approach is needed or whether a fundamental rethink is needed. Current View of Performance Management Managers and staff in recent years view performance management as demotivating, overly subjective and unhelpful. Performance management regimes don't have much effect on employee performance, but they go a long way towards undermining it, as employees have difficulty managing appraisals and struggle to make sense of performance feedback. Over the past fifteen years, many organizations have evolved and, above all, the recent outbreak of the COVID-19 pandemic has made performance management practices increasingly evident. Employees in public sector organizations such as Wolverhampton City Council are daily taking on greater responsibility in their interactions with business partners and customers in a way that performance management in the industrial age could not identify. According to Ewenstein et al., these performance management strategies are obsolete, but most organizations still adopt employee rating generation and use it as a compensation decision-making tool. Public sector organizations are unable to grow and serve service users excellently because performance management practices are more bureaucratic, rigid and inflexible. Factors Impacting Organizations Today Mercer's global performance management survey of 1,154 HR leaders revealed that only 2% of organizations believe their current performance management practices deliver exceptional value. 71% of employees agree that their organization's approach to performance management needs a revamp. The question is: what is wrong with these practices and how can it be changed. For example, imagine an organization like this (WCC) where managers and employees are challenged when it comes to measuring performance. Some of the factors affecting performance management, as suggested, are: macroeconomic environment; globalisation; increased competition. The first three factors revolve around the business environment, this environment today requires companies to constantly anticipate changes based on innovation, business model disruption and technology. advancement. For example, the global COVID -19 pandemic hasforced employees and managers to work in globally dispersed teams, this change in working model automatically presents a challenge. The competitive nature of today's business environment has pushed organizations to constantly innovate to survive or grow. To access the right talent, you need to make continuous changes and corrections: pace; collaboration; workforce. The last three focus on the workforce and processes within the organization. The pace at which demands must be met today is nowhere near that of the industrial age, and collaboration between different organizations is much greater than ever. Today's workforce is fundamentally different from when performance management was introduced in the industrial age. Melnyk et al., suggested that employees are motivated by a sense of achievement and commitment; millennials are always looking for more coaching and feedback to make a bigger impact. Implication of these factors on performance management Goal Setting Latham and Locke concluded that people who set specific and difficult goals perform better than those who set easy and general goals. Locke proposed five basic principles for goal setting: clarity, commitment, challenge, feedback, and task complexity. From this work it can be deduced that there should be a thorough review of organizational goal setting and how it aligns with these employee core principles. Traditional annual goal setting and review is simply not in tune with modern service delivery. Setting goals individually with employees may not be appropriate when they are collaborating on goals together. Source of Feedback Managers have typically been the source of feedback for employees, in an environment where employees are geographically dispersed, the manager in this case may not be a reliable source of feedback. In more technical roles such as engineering, colleagues may have a better view of their colleagues' skills and abilities than managers. Modell advocates for organizations to consider feedback from other sources. The traditional performance management process did not handle input from multiple sources well. Frequency of Feedback The traditional process of providing feedback annually does not help retain and motivate top performers. Bottling up feedback until the end of the year means that information vital to ensuring the progress and success of service delivery will be lost. The shift from periodic review to continuous feedback will help the organization achieve greater performance impact. Language and Labeling Ewenstein et al., argued that employees do not want their performance to be managed by anyone, the term performance management is not fit for purpose in the modern world. same day service delivery. Organizations need to evaluate this term, what it means and its impact on employees. The process of labeling employees through a rating process will mean that those who do not belong to the highest category will lose interest in the system. Influential research and its impact on performance management Neuroscience Over the past decade, neuroscience has contributed to the understanding of how to motivate and manage employees. Dr. David Rock's research on the brain and performance management concludes that the brain calculates whether it is in a threat or reward state. Many elements of current performance management create a state of threat, which shuts down the center