10 Steps To Great Performance Management

Performance management is important and is a process that helps to effectively manage both individuals and teams in an organization. It promotes a shared understanding of what is being sought and why it is being sought, so that everyone has clear goals and aims and has bought in to these aims.

1. The first step to great performance management is considering how it is deployed across the organization. As a discipline it can be deployed across the company, across a function or across key processes – whilst it could be argued that it works most effectively across the entire organization avoiding a scatter gun approach and taking time to consider in what areas and how it will be deployed will pay dividends later.

2. Performance management can be extremely effective in an integrated approach. It can help unify and join together different departments and teams, as well as individuals, so it should not be seen as simply about the workforce or about the production staff.

3. In order to be effective there needs to be a desire and capability to improve which has reliance on change management. If there is no development of both teams and individuals, then there is no real capacity for performance to increase.

4. In order to improve performance it is also important to manage behaviour. This means that staff need to be encouraged to act and behave in a way that fosters better performance.

5. The whole process of performance management should be viewed as something that never starts, nor does it end. It is instead a continuous cycle that will never end, but rather will continue forever.

6. Training and learning is important to ensuring that performance is managed appropriately. Without training and learning, there is little incentive for staff to develop and therefore performance will not be improved.

7. To ascertain training needs and to encourage a culture whereby people feel that they want to grow and develop, employee development or performance reviews are important. These need to be undertaken on a top-down basis, with everyone participating in the process. No one should be too grand for an employee review process.

8. In order to manage performance, there has to be clear goals and performance aims that are set down, understood and agreed by staff and management. The employee review can then see whether or not these aims have been met. These targets need to be achievable, but also really seek to improve performance.

9. The targets that are set down also need to be measurable. They should not be nebulous or something that cannot be ascertained. It is vital that they can be measured or else there is a danger that the targets become much less respected and they are manipulated by staff to their own ends.

10. 360 degree feedback can create be the foundation of performance management. Creating a culture of effective communication can be difficult but when carried out correctly it helps staff feel more valued and part of the process.

Performance management can impact efficiency, competiveness and profits. As such its value is critical, simply because if one organization fails to use a strategic performance management policy, another will adopt it and use it to enhance their performance.

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