Abstract:
Advanced technologies have changed the way people and processes work across the globe. A global survey conducted by Accenture in early 2021revealed that corporate leaders accelerated their investment in core and emerging technologies to create a corporate environment boundaryless and adaptable and aligns human performance and the processes strategically (Accenture, 2021). It urges the need to reconsider the effectiveness of organizational performance management systems in measuring employee performance towards strategic directions. Traditional performance management systems rooted in old management models for specialization and optimizing discrete work tasks seem no longer productive in evaluating employee performance in the digital era. Reinventing a performance management system requires approaches that are nimble, real-time and personalized-something at the fingertips of the parties involved in performance evaluation and focused on fueling future performance rather than in the past.
Performance management refers to a continuous process of measuring and developing the performance of employees and workgroups in a way that is consistent with the strategic goals of the organisation (DeNisi & Murphy, 2017; Aguinis, 2021). Managing employee performance has been paramount to improving the firm performance, although we cannot visibly notice the effect in numbers in routine work. In the digital age, performance management systems are required to be more transparent and flexible to fit along with artificial intelligence (Al) and social technologies that enable employees to set their performance goals and adjust them during the year with the changing business needs and external requirements. Traditional year-end performance evaluation
appears to be a 'broken" and "incongruent" approach than ever in the digital world of work. Modern performance management systems have evolved to curate performqnce data and offer timely feedback to employees. This makes firms much more sensible for talent-dependent businesses and uses real-time performance information for decision-making.
