Performance management includes activities which ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee or even the processes to build a product or service, as well as many other areas. Managers and employees should work together to plan, monitor and review an employee's work objectives and overall contribution to the team. The fundamental goal of performance management is to promote and improve employee effectiveness. it is a continuous process where managers and employees work together to plan, monitor and review an employee's work objectives or goals and his or her overall contribution to the organisation.
An effective performance management system will:
- Be specific, covering a broad range of jobs in the organization.
- align with your organization's strategic direction and culture.
- Be practical and easy to understand and use.
- Provide an accurate picture of each employee's performance.
- Include a collaborative process for setting goals and reviewing performance based on. two-way communication between the employee and the manager.
- Monitor and measure results and behaviours
- Include both positive feedback for a job well done and constructive feedback when improvement is needed.
- provide training and development opportunities for improving performance.
- Ensure that employees work plans support the strategic direction of the organization
- Establish clear communication between managers and employees about what they are expected to accomplish.
- Provide constructive and continuous feedback on performance.
- Support employees in achieving their work and career goals by identifying training needs and development opportunities.
To effectively establish a performance management process it is necessary to establish a buy in from all the parties involved (employees, managers, board members, etc). The Performance management process involves much more than just assigning ratings. It is a continuous cycle that involves: Planning (work in advance so that expectations and goals can be set), Monitoring(progress and performance continually), Developing (Employee’s ability to perform through training and work assignments) , rating (periodically to summarize performance) and rewarding (good performance).