Performance Management - Definition
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What is Performance Management?
Performance management is a tool used in corporate management for evaluating and monitoring the performance of employees in an organization.
The main objective of performance management is to motivate employees to perform in the most effective and efficient manner.
The performance management approach enables both management and employees to identify and understand the organizational objectives and performance standards set for employees.
Also, it helps in creating an alignment between employees performance and the organizations vision and mission.
Back to: Management & Organizational Behavior
Performance Management Program
Effective performance management programs have the following attributes in common:
- Creating a link between employees tasks and the missions and objectives of the organization. Employees should know the relation between their objectives and the organizational overall goals.
- Formulating particular results based on job performance. For instance, what results does an employees job position produce? What is the impact of employees activities on the organization? What should be the communication strategy for workers, supervisors, etc.?
- Setting standards that are possible to attain. Employees should share their views on measuring success, or setting performance expectations. Expectations include results, signifying the final goods and services the employees should deliver; actions signifying the process that employees should follow in order to produce a product or render a service; and behaviors signifying the values that employees should exhibit during work.
- Making plans revolving around job development. Both employees and managers should contribute in enlisting the duties of a job. Employees should also be given the authority to tell what new skills they want to learn, and how they plan to use them in favor of the company.
- Conducting regular meetings. Rather than awaiting appraisal on a yearly basis, employees and managerial team should meet on a regular basis to assess performance.