Even though peer feedback plays a critical role in ensuring effective performance management, it does not necessarily have to be focused solely on deciding employee compensation. If managed properly, it can result in improved employee performance, better goal setting, more accurate training gap identification and successful career planning for the employees and organization.
Developing an efficient performance management process keeping the above tips in mind can help startups set clear direction, build greater commitment and higher levels of performance from employees.
One of the most important things for managers to remember while delivering negative feedback to employees is to reaffirm their confidence in them. The managers should never cast any doubt on the commitment of the employee to his or her job and to the organization. They should then move the discussion in a direction so as to get a positive outcome despite the negative feedback.
In the near future, organizations should see a big data approach to performance appraisals. It would increase efficiency, reduce bias and the cycle time