Employee management effectiveness is one of the most important factors in achieving company success and its competitive advantage. Therefore, performance management is the continuous process of the planning, monitoring and reviewing employees’ work objectives and their overall contribution to the company.
The planning stage of the performance management cycle involves both the employees and managers. On this stage, the manager and employee agree what the employee must accomplish, to what standard (for example, the sales goals), and identify how results will be measured. They also negotiate about the competencies (such as product knowledge and customer focus) that are necessary for effectively accomplishing the company's performance and define the development and studying the employee needs to eliminate gaps in his/her competence.
So, the first stage of the performance management cycle is dedicated to identifying the employee’s job description and work plan and the company's goals and objectives, and strategic plan.
Employee performance and progress should be continuously monitored. "Continuous monitoring" doesn't mean watching every aspect of how the employee fulfills assigned tasks and activities. Managers should focus their attention on the achieved results, individual and team dynamics affecting the work environment.
So, in the second stage of the performance management cycle, the employee and manager track the employee’s development and performance. If it is necessary, the employee’s performance plan is corrected to meet the changed circumstances.
On the third stage of the performance management cycle, the employee’s accomplishments and standards that have been agreed at the first stage are analyzed by the manager and employee. They also consider what new the employee has studied and how his/her knowledge can be effectively used within the employee’s current position and in the future company's jobs. They come to terms about how well the employee performed during the last period and what he/she needs to consider for achieving the future work standards and goals. The manager conducts the evaluation of the employee’s performance, especially if decisions about the employee’s employment, compensation, or rewards must be made.
The next step of performance management is improving employee performance, and to do that effectively is possible only through understanding reasons why employees are not performing at the optimal level. It could be valid reasons, removal of which is a key for fixing the issue without employee replacements. Managers should keep an open mind to discuss concerns without jumping to conclusions. Clear direction about the responsibilities, job priorities, and expectations of employee achievement as well as keeping clear accountabilities in every activity are necessary.
The result of using an effective performance management system is a high performing company.
New computer technologies help companies to track, collect, analyze, evaluate, and, as a result, better understand their employees’ productivity. The resulting data of performance management can inform compensation, employee career trajectory, hiring decisions, company goals, performance reviews, and anything else that relates to human capital management.Want to use fast, easy, and productive performance management software, choose one that the best meets your company’s needs and requirements.
Individual employees performance goals should ideally align with organizational goals.
Using performance management software solution helps improving business and its results.