Introduction to performance management
Performance management is an integral part of an organization’s management strategy. As organisations are getting modernised, streamlined to larger goals, the buzz in the corporate corridors is Performance Management Tools/Software!
Performance management software is designed to improve business performance by stimulating the productivity of employees. Quite simply put, performance management tool works as a cohesive model to ensure individual employees/teams are engaged and aligned to the larger organizational goals.
Strategic performance management system aligns the organization with its teams and employees by understanding and managing their performance within a set of planned goals, benchmarks and competency mapping.
A corporate management tool, it helps managers monitor and evaluate employees’ work, the goal being to create an environment where people can perform to the best of their abilities and produce the highest-quality work most efficiently and effectively.
Objectives and Key Results, generally known as OKR, are the basic tenets of strategic performance management. It helps build a clear and foreseeable performance path – for both the organisation and its employees.
It gives a 30,000-feet-high view of your organisation’s goals and tracks the progress, month on month, or quarter on quarter. Every individual’s achievements are aligned with the organisation’s success. Importantly, it maps your strategy till execution.
What is a performance goal definition?
Performance goal means a target level of performance expressed as a tangible, measurable objective, against which actual achievement can be compared, including a goal expressed as a quantitative standard, value, or rate.
How does performance management work?
Organisations face the single biggest challenge of measuring and tracking performance. We are stuck with excels that don’t provide any insight that would be useful for the business. We make presentations that provide no goal visibility.
The link between strategy and execution is vastly missing! There is a lack of alignment, no accountability and priority is completely or mostly missing.
The OKR system of performance management does the following:
- Creates Goal Alignment
Get a clear focus on the OKRs that matters to the business. Prioritize and align the team to the organization’s mission to boost productivity
- Increase Collaboration
Enables teams to communicate and collaborate, even remotely as the new-age hybrid model, with the objectives of the organization. Communicates on the wins and misses that empower teams in decision-making
- Increase Employee Performance
Creating focus and transparency to increase participation and trust, as a result, increase engagement and performance
An objective of a performance management system consists of the processes used to identify, encourage, measure, evaluate, improve, and reward employee performance at work and align it all with the organisation’s goal.
Why is performance management important?
Effective performance management is essential to businesses. Through both formal and informal processes, it helps them align their employees, resources, and systems to meet their strategic objectives.
1.A Peek into the Future
By examining and dealing with workplace performance steadily, leaders can see potential future problems. Early detection is the key to resolving the issue!
2.Helps Create Development and Training Strategies
With performance management software – the OKR tool – the organization could create specific training programmes to change an issue into an opportunity for improvement.
3.Provides Clarity in the Organization
Directly addresses the question of many employees who are unsure of their role, expectations and to who they report to. A lack of understanding leads to a lack of productivity. With clarity, comes increased productivity from employees.
4.Provides the Opportunity for Exchanging Feedback
Quite often, management speaks to employees about their performance, but employees do not get a chance to voice concerns or frustrations. Effective performance management provides an avenue through which both the employer and the employee exchange feedback. Employees often feel much more valued when they can voice their thoughts.
5.Increases Employee Retention
Performance management also encourages organizations to reward and recognize their employees. Lack of recognition is a big reason some employees leave a job and look for another. They want to be appreciated for their hard work. In addition to the clarity, the ability to share feedback, and the additional training when needed, rewards and recognition can play an important role in employee retention.
6.Boosts Employee Engagement
When there is a disconnect between management and employees, employees just go through the motions of the day, their position merely becomes a job. Performance management has the capability of engaging employees fully and making them feel invested in the company. This leads to job satisfaction and employee loyalty, all of which increase productivit