Running an organization is replete with challenges. There’s staying focused, developing talent, keeping your team in line, and ultimately satisfying your customers. The whole point of the business is to be profitable and hit its goals as best as possible. One of the best routes to accomplishing that is by working with employees to develop their talents and help them do the best they can at your company. That’s where the performance management process is coming to aid managers with employee development. Performance management is a process rather than a simple one-time event. Instead of the old traditional evaluations and performance reviews, performance management focuses on a more well-rounded part of the employee experience. Performance management works best with an entire team—and that’s one of the most important things to remember when managing your team. In this article, we’ve put together a quick guide to everything you need to know about Performance Management in the modern day at your organization. Check it out below.
What Is Performance Management?
Performance management is a process that helps managers and employees track, measure, and improve employee productivity. That’s pretty much all there is to it! In practice, it might mean setting goals, giving them regular feedback, assessing them, and finding ways to help them perform at high levels. Performance management systems are vital in this regard because they help support employees and put them on track toward the same goal. Performance management tools are positively associated with organizational performance and help your team get results that matter in real-time.
How It Works
Proper performance management involves planning, monitoring, reviewing and rewarding employee performance regularly. It needs to be timely and ensure employees are meeting the organization’s standards and objectives. Improper performance management can adversely affect things such as employee productivity, morale and turnover. Whether it’s regular conversations, 360-degree feedback, or using a comprehensive management system to manage performance, performance management works by developing employee potential and helping them achieve both their and the company’s goals. Managers must work with employees on a one by one basis to continuously manage their performance and ensure their meeting company expectations. Otherwise, the process won’t be effective and can result in problems down the line.
How It Impacts Employees
When employees are managed effectively, they’ll be productive, satisfied, and have high morale. They’ll also be more likely to stick around at the company for a long time instead of leaving at the first opportunity. When they’re poorly managed, that can lead to frustration and bigger problems. High turnover rates, unhappy staff, and low morale are often caused by poor performance management and bad leadership. That’s why it’s so integral to get your performance management right. A detailed performance management process can help develop, train, and improve relationships with employees while keeping them engaged at the organization, and meeting company goals.
How It Impacts The Organization
Employees leave companies all the time for a number of reasons. Sometimes it’s for financial reasons, problems at the office, or a lack of growth at their current workplace. Occasionally, it’s due to poor leadership and direction, which can be caused by a lack of performance management. The goal of performance management is to increase employee productivity and align their efforts with your organizational goals. Well-managed employees are more likely to achieve their objectives. Poorly managed employees not only don’t hit their goals and can actively hurt the organization and might end up leaving relatively quickly. That’s why Performance Management is integral to helping the organization do as well as possible. By monitoring, developing, and holding your employees accountable, you can ensure high-quality performance across the entire team by utilizing a simple performance management process.
Getting It Right
Getting performance management right at your organization can be tough, even for the most seasoned of managers. Many companies are starting to ditch the traditional performance management procedures entirely in favor of continuous Performance Management processes. That’s a good thing for employees because traditional reviews tend to make employees perform poorly and sap their morale quickly. Not having a consistent performance management process in place can lead to inconsistency in how employees are evaluated and rewarded. It can also lead to improper corrective action being taken or no corrective action being taken at all when employees do something wrong. This can have a negative impact on employee productivity and morale. The best way to ensure consistent and accurate performance management is through continuous coaching, corrective action, planning with SMART goals and monitoring/reviewing progress against those goals. By doing so, you can effectively create an environment where employees know the expectations and can meet or even exceed them. Getting performance management right is critical to your employee’s success, so be sure to implement your program and understand how it will impact everyone at the organization throughout its usage.