Performance management is the
systematic process by which an organization involves its employees, as
individuals and members of a group, in improving organizational
effectiveness through the accomplishment of the organization's mission and
The overall objective of performance
management is to ensure that the organization and all of its
sub-systems, (departments, teams, employees, processes), are working
in support of the results desired by the organization.
Individually employee accountability is an outcome of
effective performance management.
Performance management begins by
developing a clear understanding of the organizational drivers, such as mission, vision, values, culture, strategies,
measurements, objectives and competencies.
Outcomes of an effective performance
management system typically include things like higher
customer/client satisfaction, higher employee satisfaction, lower
turnover, increased accountability, greater financial success and
the ultimate accomplishment of the organization's mission and
realization of the vision.
Performance management practices are
implemented at three levels within the organization; at the
individual level, the department/group/team level and throughout the organization.
effective organizations, managers and employees practice good performance management
as an integral part of their job responsibilities, effectively executing each key component.
Objectives, aligned with desired organizational outcomes, are set
and work is planned routinely. Progress toward those objectives is
measured and employees get feedback. High, yet realistic, standards are set, but
care is also taken to develop the skills needed to reach them.
Formal and informal rewards are used to recognize the behaviors
and results that accomplish the mission. All five component
processes working together and supporting each other achieve
natural, effective performance management and ultimately
achieve the desired business outcomes you seek.
We help you evaluate the effectiveness
of your current performance management practices to identify the
strengths and weaknesses. We work with you to develop plans that
build on the strengths and correct the weaknesses. Areas of focus
» Gaining clarity on Mission, Vision
» Measurement systems and objective
» Performance planning, counseling and
» Employee development planning
» Establishing effective
» Refining business strategy
» Alignment of workforce practices
with achieving business objectives
» Creating a culture consistent with
achieving desired outcomes
an effective organization, planning takes place at all levels. Planning
means setting performance expectations and objectives for the
organization as a whole, for departments/groups/teams within the
for individuals to channel their efforts toward achieving organizational
objectives. Getting employees involved in the planning process will
help them understand the goals of the organization, what needs to be
done, why it needs to be done and how it should be done.
The planning process begins with the
organization's strategic plan and includes organization wide
strategies, measurements and objectives. The strategic plan is
driven by a clear understanding of the organization's mission,
vision and values in the context of the external business
environment and the internal realities.
The requirements for planning employees' performance
include establishing the elements and standards of their performance
appraisal plans. Performance elements and standards should be
measurable, understandable, verifiable, equitable and achievable.
Through critical elements, employees are held accountable as
individuals for work assignments or responsibilities. Employee
performance plans should be flexible so that they can be adjusted
for changing objectives and work requirements. When used
effectively, these plans can be beneficial working documents that
are discussed often: not merely paperwork that is filed in a
drawer and seen only when ratings of record are required.
an effective organization, assignments and projects are
monitored continually. Monitoring well means consistently measuring
performance and providing ongoing feedback to employees and work
groups on their progress toward reaching their established
conducting progress reviews with employees where their performance
is compared against their objectives. Ongoing monitoring
provides the opportunity to check how well employees are meeting
predetermined standards and to make changes to unrealistic or
By monitoring continually, unacceptable
performance can be identified at any time during the appraisal
period. Assistance can then be provided to address such performance rather
than waiting until the end of the period when summary rating levels are
an effective organization, employee developmental needs are
evaluated and addressed. Developing in this instance means
increasing the capacity to perform through training, giving
assignments that introduce new skills or higher levels of
responsibility, improving work processes or other methods.
Providing employees with training and developmental opportunities
encourages good performance, strengthens job-related skills and
competencies and helps employees keep up with changes in the
workplace, such as the introduction of new technology.
Carrying out the processes of performance management provides an
excellent opportunity to identify developmental needs. During
planning and monitoring of work, deficiencies in performance become
evident and can be addressed. Areas for improving good performance
also stand out and action can be taken to help successful employees
improve even further.
time to time, organizations find it useful to summarize employee
performance. This can be helpful for looking at and comparing
performance over time or among various employees. Organizations need
to know who are their best performers .
Within the context of formal performance appraisal requirements,
rating means evaluating employee or group performance against the
elements and standards in an employee's performance plan and
assigning a summary rating of record. The rating of record is
assigned according to procedures included in the organization's
appraisal program. It is based on work performed during an entire
appraisal period. The rating of record has a bearing on various
other personnel actions, such as granting merit pay increases
and determining qualifications for advancement.
an effective organization, rewards are used well. Rewarding means
recognizing employees, individually and as members of groups, for
their performance and acknowledging their contributions to the
organization's mission. Rewards can be either monetary or
non-monetary. All behavior is controlled by its consequences. Those consequences
can and should be both formal and informal and both positive and
Good performance is recognized without waiting for nominations for
formal awards to be solicited. Recognition is an ongoing, normal
part of day-to-day experience. A lot of the actions that reward good
performance — like saying "Thank you" — don't require a specific
authority. Other forms of recognition such as
cash, time off, and many non-monetary items are often part of an
organization's formal recognition program
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