PERFORMANCE MANAGEMENT—WHY IT MATTERS AND HOW DO WE GO ABOUT?

by Rey Subing

As business pressures increase, there is an urgent need for employees to become more effective and efficient. The heat is on to be more productive; it’s all about doing more with less in order to remain competitive.

So how can performance management aid in the achievement of this objective? And why should Human Resource professionals bother with performance management in the first place?

Here are three key benefits that performance management can provide:

1. Clarity on performance expectations

Communicating job expectations clearly is the first step to creating alignment and understanding on the specific job duties. Through the elimination of ambiguity, balanced and clear performance plans can be created and adhered to. Setting and thereafter communicating clear performance expectations can facilitate the achievement of the expected results facilitated, improving the quality and timeliness of the job. Performance expectations must be:

  • Clear, specific, and understandable
  • Reasonable and attainable
  • Measurable, observable or verifiable, and results oriented
  • Communicated in a timely fashion
  • Foster continual improvement in productivity

 

2. Ensures performance improvement Aside from delivering regular and relevant job feedback, performance management can ease the identification of ways in which employee performance can be improved and provides the opportunity to discuss the career paths of employees. It is a platform for the planning and setting of objectives to further develop performance through appropriate learning and development interventions to establish a focus for skill development and learning activity choices.

 

3.  Alignment with strategic business objectives

Setting visible departmental goals across the organisation allows for support alignment with the business’s strategic objectives. The process typically begins with managers setting goals that support the general business strategy for their department. When people are aware of how they can positively impact the business, it reduces conflict, ensures there is no overlap and allows members of different departments to see where they can support each other.

As many of the practices that support performance can also positively impact job satisfaction on individual employee, this will in turn enhance employee retention and loyalty within the organisation.

Recommended performance management practices include:

  • Evaluating performance and delivering incentives in a fair and consistent manner
  • Aligning individual employee's day-to-day actions with strategic business objectives
  • Providing appropriate learning and development opportunities
  • Recognising and rewarding top performers

Furthermore, the way in which managers communicate with employees during the performance appraisal or evaluation is critical for both the success of the employee and the manager as a leader.

As nobody wants to be misrepresented or misunderstood during the performance discussion, it is of utmost importance to handle the situation with a sense of focus and awareness. In fact, how an employee might respond is triggered by the manager’s approach in the delivery of feedback. If the manager comes across as being negative or critical in the case of poor performance, it sets the tone for a defensive employee. This particular approach is likely to be perceived negatively, paving the way for an awkward conversation. Such situations must be avoided during the performance management process.

Performance management is done to increase performance. By steadily enhancing performance management to boost employee engagement and productivity, it will help both employees and managers to become better stewards of the organisation.

Contact us for a FREE consultation on how to ensure effective performance management for your organisation!