In order to maintain success, businesses must make the most of their most valuable asset—their talent. When employees feel appreciated, encouraged, and supported, they work at their best, which is what the performance management function strives to do. Its three primary components—measuring and enhancing results, cultivating talent, and rewarding performance—when combined, can propel your company to new heights. Performance management can also contribute to engagement at a time when 82% of workers desire to feel more valued as individuals.
While our earlier articles talk more about the aspects of OKR and feedback, we would like to share a few insights into the objectives of performance management. Firstly, one needs to be aware of what performance management actually means.
What is Performance Management
Performance management is simply described as: “A continuous process that seeks to identify, measure, and develop the performance of the workforce periodically”
It is a process that an organization uses to assess the performance of its employees. This can include things like performance reviews, 360-degree feedback, or goal-setting and tracking systems. The purpose is to identify areas of strength and areas for improvement in order to help employees grow and develop and to ensure that they are meeting the expectations of the organization.
There is a fair chance that the organizational performance report has not met the expected level. Also, the existing performance management system is not enough to evaluate employee performance.
Instead of pushing your performance management system to the edge, a touch of redesign will bring great results.
The first step in establishing a high-performance management system that actually works is to understand the objectives behind it.
We also should pen down clear and concise objectives of a Performance Management System
Objectives of Performance Management
- Setting and defining goals to fulfill organizational objectives
- Setting the right expectations for each employee – managers and employees
- Setting Performance Standards and metrics to measure
- Establishing effective communication channels between managers and subordinate
- Determining training plan.
- Review the process periodically.
1. Setting and defining goals to fulfill organizational objectives
Goal setting is the most profitable way for initiating better performance among employees. It has been constantly demonstrated that effective goal setting
- allows employees to focus on what’s important.
- aligns individual objectives to the business objectives.
- optimizes employees’ individual performance.
- helps to identify the Key Results and work upon delivering them.
An efficient performance management system will ensure that goal setting is one of its integral requirements. As an employee/manager, one should set goals that benefit both- employee performance and business performance.
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