Key importance of Performance Management to an organization

Key importance of Performance Management to an organization - Bloomsford Associates

Performance Management

Performance management is a process by which Managers and the Managed work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization.

It is a means of getting better results by understanding and managing performance within an agreed framework of planned goals, standards and competency requirements

Performance management is a goal-oriented system to ensure that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization

Performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals

Performance Management System must be guided by the creation of a Performance Management Policy which drives its procedures and processes

First of all : POLICY must be in place

The Four Keys of Great Managers:

When selecting someone, they select for talent … not SIMPLY experience, intelligence or determination.
When setting expectations, they define the right outcomes … not the right steps.
When motivating someone, they focus on strengths … not on weaknesses. and
When developing someone, they help him find the right fit … not simply the next rung on the ladder.”

The role of HR in Performance Management Process is as follows

Participate in strategic planning.
Conduct job analysis.
Support performance management.
Design appraisal system.
Train and support managers.
Maintain documents.
Provide employee due process.
Ensure integrity of the system.
Ensure compliance with non discrimination laws.

Objectives of Performance Management:

Empowering, motivating and rewarding employees to do their best.
Focusing employee’s tasks on the right things and doing them right. Aligning everyone’s individual goals to the goals of the organisation.
Proactively managing and resourcing performance against agreed accountabilities and objectives.
The process and behaviours by which managers handle the performance of their people to deliver a high – achieving organisation.
Maximizing the potential of individuals and teams to benefit themselves and the organisation, focusing on achievement of their objectives

Performance is managed at the:-

corporate level
strategic business unit level and
Individual level

for 1 and 2 , a balanced Scorecard is used as a tool of Management

Balanced Scorecard:

The balanced scorecard (BSC) is a performance management tool used for translating an ORGANISATION’s vision into a set of performance indicators distributed among four(4) perspectives: financial, customer, internal business processes, and learning and growth.

The BSC is cascaded to individual levels in the form of Key Performance Indicators (KPIs) for simplicity and direction

A Key Performance Indicator (KPI) is a measurable value that demonstrates how effectively a company is achieving key business objectives.

Before you embark on the development of an effective performance management system,

The following must be in Place :

- Well designed jobs and written job descriptions

- Effective supervision

- Comprehensive employee orientation and training

- A positive and supportive work environment

The planning means setting performance objectives and goals for the team and individual to focus their efforts towards achieving organisational objectives

Goals setting must be SMART

S - Specific

M- Measurable

A- Achievable

R- Realistic

T- Timebound

e.g To fill the 24 vacancies in the talent pipelines using consulting firms and online resources before end of 2nd quarter

Performance Rating indicates the quality of:-

performance or competence achieved or displayed by an employee by selecting the level on a scale that most closely corresponds with the view of the assessor on how well the individual has been doing. Rating scales can be defined alphabetically i.e. (a,b,c,d,e.), or numerically (1,2,3,4,5). It should be categorized from the highest to the lowest (e.g. excellent, very good, good, satisfactory and unsatisfactory, etc.)

Performance dialogue between a supervisor and his subordinate is also encouraged in the spirit of fairness .

Considering a range of financial and nonfinancial rewards to attract and retain quality employeesthe Performance Management policy must spell out the aims and objectives of the process