What Is Performance Management?
Performance management is a corporate management tool that helps managers monitor and evaluate employees’ work. Performance management’s goal is to create an environment where people can perform to the best of their abilities and produce the highest-quality work most efficiently and effectively.
Although performance-management software packages exist, templates are generally customized for a specific company. Effective performance-management programs, however, contain certain universal elements, such as:
- Aligning employees’ activities with the company’s mission and goals. Employees should understand how their goals contribute to the company’s overall achievements.
- Developing specific job-performance outcomes. What goods or services does my job produce? What effect should my work have on the company? How should I interact with clients, colleagues, and supervisors? What procedures does my job entail?
- Creating measurable performance-based expectations. Employees should give input into how success is measured. Expectations include results—the goods and services an employee produces; actions—the processes an employee uses to make a product or perform a service; and behaviors—the demeanor and values an employee demonstrates at work.
- Defining job-development plans. Supervisors and employees together should define a job’s duties. Employees should have a say in what types of new things they learn and how they can use their knowledge to the company’s benefit.
- Meeting regularly. Instead of waiting for an annual apprisal managers and employees should engage actively year-round to evaluate progress.