What is Performance Management?
Performance management is perhaps the least liked and least understood aspects of HR management. Most employees and managers dread the ritual of performance review, and it often does little to enhance or improve organizational productivity and operational effectiveness. Usually the performance plan reflects what has to be done by an employee, but says little about how the employee performed his work. In an entirely goals-based system, an employee can achieve established goals (e.g., sales, revenue, profitability targets), but in the process alienate the people they work with. A competency based performance management program provides both “the what” (goals) and “the how” (actions or competencies) of the tasks to be performed. It permits better sharing of performance expectations between supervisor and employee, and improves the link between the organization’s goals and the employee’s part in achieving them. Performance Management Defined
Performance Management is a process for establishing a shared understanding about what is to be achieved as well as how it is to be achieved. It is an approach to managing people that increases the probability of achieving success.
Performance management is an ongoing process
It is not just a set of forms, an annual ritual or check box process to meet corporate reporting requirements; and, it is not just the system that feeds into an employee recognition or bonus scheme. It is about everyday actions that employees need to display to improve performance. To be effective it must dynamic and operate in real-time, allowing employees to continually adjust and improve their performance, as required.
Establishing a shared understanding of what is to be achieved and how it is to be achieved
It is about establishing a shared understanding of what is to be achieved and how it is to be achieved. Managers and employees need to have a common understanding about what success looks like for the employee, which in turn is linked to the organization’s core strategy and business goals.
An approach to managing people
It is about individuals and teams working together to support each other and achieve shared goals, and about a shared responsibility between superiors and employees. Superiors must effectively manage those for whom they are accountable, for example through coaching and motivating, and assist them in achieving their goals. Employees are responsible for their goals and achieving their work to the standards required.
Increases the probability of success
Performance Management is a continuous process that delivers clarity, support, feedback and recognition. The goal is to achieve success in the workplace for individuals and the organization in which they work.
By integrating these key principles into your performance management process, your company will be well on the road to achieving greater productivity, better performance and improved supervisor – employee communications!
Linking Performance Management to Corporate Strategy
To be effective, the performance management process must be firmly linked to and rooted in the organization’s core strategy and business goals. Strategy involves the formulation of the organization’s mission, goals, objectives and action plans for achievement. Every employee must share in this. The key is to clearly articulate each employee’s goals, objectives and competency requirements in a way that will facilitate the successful achievement of the organization’s strategy.
In performance management, strategic and business goals should be cascaded throughout the organization. Employees should be able to see a direct link between what they must achieve and the organization’s vision, strategy and goals. These should be reflected in each employee’s performance plan as well as in the competencies needed for success.
To ensure that there is complete coverage of all of the important strategic...
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