2. Table of Content
What is Performance Management?
Performance Management Goals
Performance Management Cycle
Benefits of Performance Management
Issues With Performance Management
The New Performance Management Policy
Key features of effective performance management software
Conclusion
3. Introduction
Performance Management is a key process in any organization
and should assist the management and staff to focus on the key
issues and business objectives to ensure sustainability.
Traditionally, performance management has been a forward-
looking solution based entirely on hindsight. But organizational
culture is evolving to one of continuous feedback powered by
technology, where managers can foresee problems based on
current employee performance and initiate any form of course
correction to bring the employee back on track.
4. What is Performance Management?
Performance Management is…
an ongoing process where supervisors and
employees work together to plan, monitor, and
review an employee’s work objectives, goals, and
professional development.
comprised of frequent informal conversations
including coaching, feedback and support to
employees about their work, needs and
accomplishments related to the duties and
expectations of their positions.
6. The Performance Management
Cycle
1. Planning
This stage entails setting employees’ goals and communicating these
goals with them. While these goals should be disclosed in the job
description to attract quality candidates, they should be
communicated once again when the candidate becomes a new hire.
Depending on the performance management process in your
organization, you may want to assign a percentage to each of these
goals to be able to evaluate their achievement.
7. The Performance Management
Cycle…
2. Monitoring
In this phase, managers are required to monitor the employees
performance on the goal. This is where continuous performance
management comes into the picture. With the right performance
management software, you can track your teams performance in
real-time and modify and correct course whenever required.
8. The Performance Management
Cycle…
3. Developing
This phase includes using the data obtained during the monitoring
phase to improve the performance of employees. It may require
suggesting refresher courses, providing an assignment that helps
them improve their knowledge and performance on the job, or
altering the course of employee development to enhance
performance or sustain excellence.
9. The Performance Management
Cycle…
4. Rating
Each employees performance must be rated periodically and then at the time
of the performance appraisal. Ratings are essential to identify the state of
employee performance and implement changes accordingly. Both peers and
managers can provide these ratings for 360-degree feedback.
5. Rewarding
Recognizing and rewarding good performance is essential to the performance
management process, as well as an important part of employee engagement.
You can do this with a simple thank you, social recognition, or a full-scale
employee rewards program that regularly recognizes and rewards excellent
performance in the organization.
10. Benefits of Performance Management
Integration
Open Communication
Improved Performance
Training and Development
Clarity of Standards/Requirements
Placement of Individuals
Increased Objectivity
Equitable Remuneration
Objective Promotability
Structured Career Planning
12. The Performance Management Policy
The goal setting, mid-point, and summary evaluation
conversations must be documented.
Supervisors must conduct at least four performance
management activities with employees:
Expectations
and goal-
setting
conversations
Informal
conversations
Mid-point
conversation
Summary
evaluation
13. Key features of effective
performance management
software
Customization: It should be customizable to suit your organizations
industry and performance management strategy.
Transparency: It should be able to eliminate the confusion that both
managers and their teams experience in the process of
performance management.
Objectivity: It should be able to offer objective metrics on which
managers can base their performance evaluation.
Frequency: It should allow for real-time, instant feedback and
periodic employee ratings.
14. Conclusion
Effective management of individual and team performance is a
crucial and central requirement to ensure stakeholder requirements,
organizational strategy and business goals are attained.
This requires accurate data regarding performance levels of
business units, teams and individuals, and therefore the need for a
standardized and formal performance management system.
When completed, the appraisal becomes part of the employee’s personnel record, and it is from these documents that many employment decisions are made. An employee’s compensation level and opportunities for training or job promotion are often made based on performance appraisal ratings, as are organizationwide decisions on retrenchment and layoffs. As a result, it is imperative that performance management activities are nondiscriminatory and that all employees receive a fair process with equal opportunity within the organization.
Information in employee files can be skewed by untrained managers who make errors or inadvertently distort information. It is important that managers are trained in performance appraisal and that the HR department monitors activities to ensure that performance appraisal documents are consistent across departments. For example, if one manager is especially harsh in ratings and employees in that department are rated low and another manager is especially lenient and gives staff high ratings, the result is inaccurate appraisal documents that don’t reflect employee performance, giving an unfair advantage to staff whose appraisals are written by the lenient manager.
It is important to have a grievance procedure in place for employees who may not agree with their appraisal ratings. Due process is vital. Employees need an unbiased ear where their issues can be heard and addressed objectively.