Performance Management: Process that Focuses on Employee Performance

4 Min Read
Performance Management: Process that Focuses on Employee Performance

Performance management has taken over from performance appraisals in more recent years. It is more of a continual process rather than a dreaded appraisal interview once every year. The process aims to improve employee and organisation performance.

Performance can improve when individuals do good work that’s in line with company objectives. You can help your employees do good work by letting them know what is expected of them, providing helpful feedback and vital resources.

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What is Performance Management?

The performance management process is about focusing on maintaining and improving employee performance with business goals and objectives. Communication-based process centred on two-way discussion in which both a formal and informal approach regular discussions between employee and management.

Working collaboratively to assess and monitor employees objectives, long term performance goals, and job evolution and trajectory for the future. Identifying how they are contributing to the business overall, with regular encouraging feedback and how both parties feel progress is in line with objectives and plans moving forward.

It is not a single activity, but a group of processes.

What is the purpose of performance management?

Performance management is important in business because it helps to ensure that performance standards are met or exceeded. This, in turn, ensures the ability of a business to meet its performance objectives and goals. 

The core purpose is to maintain and improve employee performance in line with business goals and objectives.

Gives a way for both parties to track progress and attempt to maximise this value that each employee contribute to the business as a whole.

Employees need to know what is expected of them and have a way to measure

 defining and reviewing objectives

Performance Management Techniques

Various techniques have been developed. However, they all include the following common features:

  • Performance monitoring
  • Progress checks
  • Setting expectations
  • Providing incentives
  • Continued professional development (CPD)

5 Elements for Success

For the process to be successful, it requires the following fundamental elements:

  • Planning and setting goals – crucial component
  • Involvement of management and employees
  • Monitoring and feedback
  • Development and improvement
  • Reward and compensation

Performance Management Checklist

Checklists also have an essential role to play in the development of a performance management process. A checklist comes in very handy, for example, if you want to launch a new process.

Key components of the checklist would include:

Work out how you’re going to introduce the process and make sure everyone involved is aware of what will happen and when. This allows managers and employees ample time to prepare.

Never presume that your employees know what you expect from them. Make sure you use clear and concise language to avoid any miscommunication. Let people know that you’ll be looking at their last achievements and any areas they can improve. Specific goals and objectives will also be up for discussion.

It’s important to prepare for the unexpected, as reviews don’t always go according to plan. You may have to discuss some difficult topics and deal with different points of view. Offer ways to overcome issues and improve performance. Talk about any goals you might have for them and allow them to set their own.

Continual training
You can enhance employees’ work experience by providing training opportunities. It might be relating to new processes or functions or in preparation for professional advancement in your organisation.

Checklists can also help employees and managers before a performance appraisal, as well as during and after as well.

Managers Performance Management Checklist

Use a checklist to make sure you know what you’ve got to do before, during, and after an appraisal. Points in the checklist might include:

Mangers Performance Management Checklist

Feedback Sessions

Schedule these with the employee and give them time to prepare.

Set Expectations

Clarity is critical in the review process.

Create Goals and Objectives

Review past goals and outline those you have for the future.

Collect Previous Feedback

A review of past feedback is important, rather than relying on your memory.

Listen to Feedback

The review process is not a one-way street. Allow employees to share their feedback about your performance too.

Make Long Term Plans

It’s good for employees to discuss where they see themselves in a couple of years.

Leave Room for Opinions and Thoughts

Employees should be allowed to express their own.

Be Prepared to Take the Hardline

Sometimes, you might find you and your employee have entirely different ideas. It’s best to be prepared for such an eventuality.

Frequently asked questions
Looking for more info? Here are some things we're commonly asked
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