Traditional vs Continuous Performance Management Models

Performance management practices in organisations have evolved over time. Traditionally, performance management focused on annual appraisals, ratings, and evaluation of past performance. Modern practices, however, emphasise continuous performance management, where feedback, coaching, and goal tracking occur throughout the year.

Understanding the differences helps HR professionals select and implement the approach best suited for their organisation’s culture and business needs.

Traditional Performance Management

Key Features:

• Annual performance reviews with a formal rating system

• Feedback delivered once or twice a year

• Goal setting at the start of the year

• Focus primarily on evaluating past performance

• Limited coaching or development integration

Advantages:

• Simple and structured

• Easy to administer in large organisations

Limitations:

• Delayed feedback can reduce effectiveness

• Limited employee engagement

• Potential for rating bias and disputes

Continuous Performance Management

Key Features:

• Frequent check-ins, monthly or quarterly reviews

• Real-time feedback and coaching

• Dynamic goal setting, adaptable to changing business priorities

• Focus on both performance outcomes and employee development

Advantages:

• Timely recognition and correction

• Higher employee engagement

• Integration with development and career planning

Limitations:

• Requires manager capability and training

• More administrative attention to track conversations and progress

Light Checklist: Choosing the Right Approach

☐ Organisation size and structure considered
☐ HR and managers trained for the chosen model
☐ Feedback culture is supported
☐ Goals are adaptable and regularly reviewed
☐ Development and coaching integrated
☐ Monitoring and governance mechanisms in place

Sample HTML Table: Comparing Traditional vs Continuous Performance Management

Closing Note

Choosing between traditional and continuous performance management depends on organisational needs, culture, and capability. Many Indian organisations are gradually shifting to continuous models to enhance engagement, development, and productivity while retaining structured review elements.