Smart Performance Management: Transitioning from Past Assessment to Future Prediction

Traditional performance management systems are often criticized for being reactive, focusing primarily on historical data that cannot be altered. In the era of Industry 5.0 and digital transformation, organizations are shifting toward Smart Performance Management (SPM). This article explores the transition from retrospective evaluation to predictive analytics. By leveraging Artificial Intelligence (AI) and Machine Learning (ML), SPM enables organizations to identify potential performance gaps, predict employee turnover, and optimize talent development before issues arise. The study concludes that this transition enhances organizational agility and employee engagement through proactive intervention.