The process by which managers and employees work together to plan, monitor and review an employee’s work objective and overall contribution towards the organization is termed as employee management. Performance management is more than just a review meeting with your manager. It is a continuous process of setting goals and objectives, assessing progress and providing an on-going feedback in order to ensure that employees are meeting their career goals and objectives.
However, one must understand that performance management is quite a broad term and encompasses HR management part as well. The term performance management gained importance in the early-1980s when total quality management programs received utmost importance in order to achieve superior standards in quality performance. Tools such as job designing, leadership management, leadership development, training and reward system were given proper impetus along with traditional appraisal methods.
Actions comprising Performance Management
Very much recurring and constant in nature, performance management system comprises the following actions:
- Developing clear job descriptions and employee performance plans that include KRAs and performance indicators.
- Selection of the right candidates by implementing appropriate hiring strategies
- Negotiating requirements and performance standards for measuring outcome and overall productivity.
- Providing continuous coaching and the required feedback for better job performance.
- Holding quarterly performance development discussions
- Designing effective and rewarding compensation systems and also recognizing employees who perform excellently in their jobs.
- Performing exit interview in order to understand employee discontentment and work on them accordingly.
However, with the passage of time more and more organizations are changing the way performance review is conducted. Since effective talent management is increasingly becoming more difficult these days, effective performance management has a vital role to play in it.
Features of Performance Management
There are three important features of an effective performance management program.
- The first is the strong support by executives at all levels. Role modeling needs to begin right at the top and demonstrated by appraisals done on all members of the organization. This must be included as an important feature of strategic management processes of the organization.
- Another effective performance management strategy includes a proper goal setting process. When individuals are allowed to set goals, particularly those with rewards tied to them, they are motivated to perform much better.
- Pay package discussions also need to take place separately from feedback about performance and also discussions surrounding training and development.
Apart from the above-mentioned points, there are still more important aspects that one needs to look into in order to ensure proper performance management.
Performance management includes coaching employees to address concerns and issues related to performance so that there is a positive contribution towards the overall growth of the organization. Coaching implies providing direction and guidance and support as required on assigned tasks.
In this case, managers need to identify strengths and weaknesses of his employees and provide constructive feedback on areas of improvement and also what kind of opportunities the organization can offer the employee in future. The role of the coach is to demonstrate skills and to give employees proper feedback. On the other hand, good listening skills on the part of the coach is also essential. The strategic power on the part of the employer lies on asking the right questions.
Providing feedback involves giving a positive feedback about good performance. Ensure that you do this frequently and, of course, timely. Recognition for effective performance acts as a great motivator.
On the other hand, while advising on areas of improvement, make sure that you give feedback in a proper constructive way. As this will not only help the employee identify his weak points but also improve upon them greatly.
The Last Words
In the end, it can be said that performance management is a process by which a platform is set for employee accomplishments along with the organization’s mission and also ensure that both grow. By establishing a clear performance strategy, helps employees in understanding what exactly is expected out of them.
Finally it can be said that, performance management can be regarded as a pro-active system of managing employee performance. It is all about striking a proper balance between individual and organizational objectives.
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