Performance Management During Organisational Change

Organisational change—such as restructuring, mergers, digital transformation, leadership transitions, or rapid growth—can significantly disrupt performance expectations. During such periods, traditional performance management approaches often become ineffective or even counterproductive.

This article explains how organisations can adapt performance management practices during change, ensuring continuity, fairness, and employee engagement.

Why Performance Management Needs Adjustment During Change

During change, employees may face:

• Shifting roles and responsibilities

• Unclear priorities and reporting lines

• Increased workload and uncertainty

• Anxiety about job security or future relevance

If performance systems remain rigid, they can:

• Demotivate employees

• Create perceptions of unfair evaluation

• Increase attrition and disengagement

Performance management must therefore become flexible, transparent, and supportive.

Key Principles for Managing Performance During Change

1. Revisit Performance Expectations

• Review goals and KPIs affected by change

• Pause or redefine outdated targets

• Focus on achievable, transition-aligned outcomes

Expectations should reflect the current reality, not the pre-change state.

2. Prioritise Communication and Clarity

• Clearly explain what success looks like during transition

• Communicate changes in priorities frequently

• Address ambiguity proactively

Clarity reduces anxiety and improves focus.

3. Shift Emphasis from Outcomes to Effort and Adaptability

• Recognise learning, collaboration, and adaptability

• Value problem-solving during uncertainty

• Avoid overemphasis on short-term results

This encourages employees to engage constructively with change.

4. Increase Frequency of Performance Conversations

• Conduct more frequent check-ins

• Use informal feedback rather than formal reviews

• Encourage two-way dialogue

Regular conversations help identify challenges early.

5. Train Managers to Lead Through Change

• Equip managers with coaching and communication skills

• Help them handle resistance and emotional responses

• Encourage empathy and consistency

Managers play a critical role in maintaining performance momentum.

Sample View: Performance Management During Change

Common Mistakes to Avoid

• Continuing with outdated KPIs

• Conducting performance reviews without context

• Penalising employees for change-related disruptions

• Ignoring emotional and behavioural impacts

Avoiding these pitfalls protects trust and credibility.

Role of HR During Change

HR should:

• Redesign performance frameworks temporarily or permanently

• Guide managers on fair evaluation during transition

• Ensure documentation reflects revised expectations

• Monitor morale, engagement, and performance signals

HR acts as a stabilising force during uncertainty.

Key Takeaway

Performance management during organisational change must prioritise clarity, adaptability, empathy, and communication. When done well, it helps employees stay focused, engaged, and productive—even in times of disruption.

Conclusion--

Effective labour law compliance depends on how well HR operations, payroll, and business processes work together. When compliance is embedded into everyday workflows, organisations reduce risk, improve accuracy, and build sustainable governance systems. HR teams that prioritise integration over isolation are better positioned to manage compliance confidently and consistently.