Performance Management: what’s it? Whats the matter? the way to make? [Guide]
Performance management is known to be the continual process of identifying, measuring and developing people to enhance their performance. during this context, the analysis of goals and competences of employees within the corporate is administered . Performance management directly reflects on the productivity and satisfaction of employees and may be a cyclical strategy , which maintains the monitoring and control of the performance of teams over a period of your time .
Furthermore, it helps to see and develop a group of solutions to possible organizational problems. it’s worth emphasizing the importance of aligning with the team so as to not stray from the organization’s strategic objectives . Finally, learn during this article the concept of performance management, its objectives and its importance in companies, the way to roll in the hay in practice and far more. Good reading!
What Is Performance Management ?
The word “performance” is directly associated with the action, the results of that action and therefore the success of these results compared to a typical . In other words, the performance matches the worth creation potential, associated with a time-frame . The concept of performance management are often understood because the process that encompasses: planning, assessments, indicators, monitoring and implementation of performance improvements.
In this regard, performance management merges the management goals and management skills . With them, it’s possible to line goals to live performance and analyze individual and team behavior. And, the intention is that employees are ready to raise their potential and their abilities.
As it is continuous management, performance management monitoring takes place in real time. during this way, decisions are made with more information and agility. In addition, expectations are aligned and assessments are administered to watch , control and develop employees also .
Having a well-defined and active performance management strategy within the organization impacts from the recruitment process, career plan and even benefits and rewards management.
What Is The Aim Of Performance Management
There are several goals within performance management. one among them is that it helps to encourage improvements within the performance of execs in order that everyone brings good results. But doesn’t stop there.
Check Out Only The Most Objectives Of This Strategy:
Assist in deciding and personnel management;
Identify professionals with potential for roles of greater responsibility;
Establish criteria for training and development ;
Granting promotions or job relocations;
Measure achievement of strategic objectives.
In addition to all or any this, with this process it’s possible to supply support to the whole team and supply constructive feedback , training professionals consistent with their skills and measuring their results supported the goals achieved.
How Important Is Performance Management Within The Organization
Performance management is vital not just for the corporate and its employees to possess a high performance, also as all established strategic objectives are successfully achieved. So, performance management happens to enhance the performance of individuals and therefore the organization, individually and collectively.
This process also provides valuable information about potential internal issues and allows managers to form the required adjustments quickly and efficiently.
Another point is that performance management establishes methods to make sure high levels of motivation and employee satisfaction. Consequently, it drives performance improvements, helps retain talent and maintains the company’s position during a highly competitive market.
The Difference Between Appraisal And Performance Management
Performance management and performance appraisal are complementary, but not an equivalent thing. Because, the evaluation is that the last stage of the management cycle and is that the most analytical part, getting used to live the standard of results and therefore the behavior of employees.
This assessment is extremely important for the corporate , because it uses indicators to live performance and individual and collective skills more clearly, efficiently and objectively. Performance management, on the opposite hand, is that the whole, from the part that defines the strategy planning, execution, monitoring and even the implementation of improvements. And it happens continuously, when one cycle ends, then the opposite begins.
The Two Dimensions Of Performance
Generally, performance is split into two dimensions, namely:
Behaviors (means) need to do with the talents that employees have and the way they received their results. Here, competences, whether technical or behavioral, are analyzed.
The results (ends) need to do with what the worker delivers, it’s the part linked to their goals. during this dimension, the responsibility and quality of the tasks performed by all of the team is evaluated, including whether or not all goals were achieved.
Another way to raised understand the difference between behaviors and outcomes is to associate which outcomes are “what” the person accomplished. Behaviors are “how” the person achieved these results.
The BSC Within Performance Management
There are some ways to live and track performance, but the Balanced Scorecard (BSC) is one among the foremost popular tools for doing this. It establishes some characteristics and objectives that are intended to be evaluated and achieved.
The Four Perspectives Of The BSC Are:
Financial : net , income generation, value creation, return on investment;
Customers : product quality, innovation, reduction in production costs and delivery time;
Internal processes : NPS surveys, Market Share , engagement, Customer Success/Experience ;
Learning and development : development of objectives and measures to guide organizational learning and growth, capacity building and training.
In this way, performance management becomes more strategic and focused on raising the company’s results. Including the objectives, goals and plans to possess a simpler management in each period of the cycle of this process.