2. What is Performance Management?
Performance management is the process of continuous
feedback and communication between managers and
their employees to ensure the achievement of the
strategic objectives of the organization.
Performance management (PM) includes activities that
ensure that goals are consistently being met in an
effective and efficient manner. Performance management
focuses on the performance of an organization, a
department, employee, or even the processes to build a
product or service or any other areas in an organization.
3. Performance Management
Process or Cycle
The performance management
process or cycle is a series
of five key steps.
These steps are imperative,
regardless of how often you
reviewemployeeperformance
4. 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.
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.
5. 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.
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.
6. Why Performance Management Cycle
is Important In an Organisation ?????
By adapting this cycle the organisation can maximize
the output of their employees.
The Organisation can be more competitive by
following this cycle.
Employees skills are developed and used in
meaningful ways.
It helps in employee retention by increasing job
satisfaction.
7. Benefits of Performance Management Cycle
When you have clear standards and defined roles; then it makes it easier for trainers to conduct training and focus
on non-performing areas. Open Communication
The hiring becomes simpler and easier because the employees and candidates know what the management expects
from them; and the HR department could accurately select the right fit for the role Training and Development
It makes the company develop and revise the goals; so that it responds quickly to the market trends, and keeps up
with the changing environment. Placement of Individuals
Clear roles, responsibilities, and required expectations put the employees on the right track from the start Equitable
Remuneration
When employees see that the company is investing in their growth and productivity, it amplifies their performance
and retention rateStructured Career Planning
The consistent coaching, feedback, and engagement between employees and managers improve the skill, expertise,
and coaching of managers
Well-skilled employees of today create better leaders for tomorrow.Skilled employees, clear goals and objectives, and
engagement increase the productivity of the organization
8. 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.
