PERFORMANCE MANAGEMENT

Performance management is a corporate management tool that assists managers in keeping track of and assessing workers' performance. The purpose of performance management is to foster an atmosphere where employees may work to their full potential and produce the highest-quality work most effectively and efficiently (Tardi.C,2022)

According to the Armstrong (2015) performance management is continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organization (Armstrong,2015)

The performance management cycle

Through a structured process of employee development, the performance management cycle is a model that enables management and employees to more effectively accomplish organizational goals. The performance management cycle is a shorter, continuous four-step process that uses planning, monitoring, reviewing, and rewarding as part of the performance management process or strategy. (Valamis,2023).

Performance management cycle (Source: Valamis,2023)

5 Main Elements of Managing Employee Performance

Although there are many elements to performance management, Rosser, J. (2022) identifies five crucial elements that are essential to its success.

1. Planning and goal setting

2. Managing and employee involvement

3. Monitoring and feedback

4. Development and improvement

5. Reward and compensation

Importance of Performance Management

According to the Danni (2023), Below are some of the reasons that ongoing performance management is so important to every organization.

1. It Provides a Look into the Future

By consistently monitoring and managing workplace performance, leaders can see potential future problems. Like with any type of issue, early detection is key. The earlier problems are confronted the less effect that they will likely have.

2. Helps Create Development and Training Strategies

As mentioned above, the earlier a problem is detected, the better. One of these problems could be that employees do not know how to perform certain processes correctly. If this continues, the organization might fall apart due to oversight. However, with performance management, this would probably be detected. The organization could then create training programs to change the issue into an opportunity for improvement.

3. Provides Clarity in the Organization

It is a common problem that many employees are unsure of what exactly their role entails, what is expected of them, and who they are to report to. Through performance management, the company can make all of this very clear.

4. Provides the Opportunity for Exchanging Feedback

A lack of communication in a relationship is grounds for trouble, and this includes working relationships. Quite often, management speaks to employees about their performance, but employees do not very often get a chance to voice concerns or frustrations. Effective performance management provides an avenue through which both the employer and the employee exchange feedback.

5. Increases Employee Retention

Performance management also encourages organizations to reward and recognize their employees. Lack of recognition is a big reason some employees leave a job and look for another.

6. Boosts Employee Engagement

Performance management, when it truly involves employees, will boost employee engagement. When there is a disconnect between management and employees, it is almost as though employees are just going through the motions of the day.

7. It encourages employee recognition and reward

Effective recognition and reward systems can only work in organizations where there is a visible and accurate process of discussions and performance feedback. With continuous performance management, the management can identify efforts and activities worthy of encouragement and reward. Consequently, this drives a development mindset among members of your team.

8. It helps in boosting employee productivity and engagement

One remarkable benefit of an engaged workforce is that they stay longer, actively contribute to the company, and deliver better results. Excellent performance management is a great tool for having an engaged workforce.

9. Helps to enforce goal setting and achievement

A good performance management system helps employees to understand the goals of the company and what they are expected to do to achieve these goals. This means they understand how their contributions affect the overall growth of the business.

10. It offers mentoring for increasing performance

The ultimate aim of performance management is to improve performance. It will help managers to devise ways through which they can increase performance while providing the opportunity to talk about career prospects and direction. In all, it will help the executive manager and/or HR manager to provide additional mentoring and training which will be useful in developing criteria for promotions.

Conclusion:

Successful performance management is crucial for every business. It helps companies align their systems, resources, and employees with strategic goals. Moreover, it helps managers to identify potential problems and allows them to know when they should make necessary changes to keep a business on track. Organizations that implement performance management successfully can cultivate a high degree of employee engagement.

 

References:

 Armstrong, M. (2006). Performance Management: Key Strategies and Practical Guidelines (3rd ed.). London, UK: Kogan Page Limited.

Dannie,W.(2023)Importance of Performance Management in an Organization.Techfunnel.[Online] Available at: https://www.techfunnel.com/hr-tech/importance-of-performance-management-in-an-organization/  (Accessed on April 2023)

Rosser,J.(2021) 5 Elements of Performance Management Success for any Aspiring Business. Success Steam.[Online] Available at: https://www.success-stream.co.uk/5-elements-performance-management-success-aspiring-business/ (Accessed on April 2023)

Tardi,C.(2022) Performance Management: Definition, How It Works, and Examples of Programs.Investopedia. [Online] Available at: https://www.investopedia.com/terms/p/performance-management.asp#:~:text=Performance%20management%20is%20a%20corporate,work%20most%20efficiently%20and%20effectively (Accessed on April 2023)

Valamis (2023) Performance Management Cycle. Valamis Available at: https://www.valamis.com/hub/performance-management-cycle   (Accessed on April 2023)