Performance Management Processes – What You Need to Know

The performance management process is an interactive communication based procedure whereby management and employees work together to design, measure and evaluate the individual s accomplishments, short term goals, career path and general contribution to the enterprise. Performance management also involves providing feedback and empowering employees to understand their performances so that they can aspire to higher levels. Additionally, it encourages performance and develops individual attitudes towards work which then motivates individual workers to work optimally.

The performance management process begins at recruitment and ends at performance management plan planning phase. This is the stage when the company determines its future requirements and what its future personnel needs will be. Including expectations for skill sets, abilities, knowledge and development needs, resources and functions. All of these are determined by the HR strategic aims of the business and these are usually set out in a strategy or brief plan. Once these objectives have been defined, the next phase of the method kicks in and this is where plans are designed to achieve these aims. This preparation stage can sometimes take weeks, and at other times, a few weeks.

The main objectives for this phase of the performance management process would be to establish short and long term targets, set up plans with measurable goals and develop strategies for appraisal at every stage of the procedure. The first aim is to set performance criteria, to make certain that these are consistently achieved at every stage of the cycle. Aims to be set to include the achievement of designated levels (as an example, customer satisfaction), attaining pre-defined targets (like the number of sales each month), achieving a particular target (such as the amount of new accounts opened) and finally the achievement of a specific level of performance or quality.

The aims of the second phase of the performance management process are to develop plans for each objective of the first stage. These include defining what the processes or systems used are, the standards used to measure these goals and their time scales, specifying the actions needed to achieve these objectives and their frequency and defining the resources required. A plan is then drawn up from the group, reviewed by the senior manager and set into operation. Reviewing and approving the programs means more work could be done in time and the odds of attaining the set goals are increased.

At this point in the performance management process the managers are expected to be accountable for taking action against any failure of the programs. Failure to do this leads to sanctions, which can include demotions or penalties. For managers this can indicate a major headache, as they have been brought into the work solely for the purpose of achieving the set goals and getting trophies. The punishment for supervisors here may not be so heavy, but the fact remains they are now accountable for the performance of the employees and can face disciplinary action if they’re not able to accomplish the goals set. If this situation arises then it’s likely that the manager has made a wrong choice, as the goals weren’t ones that he set out to achieve.

The next stage in the performance management process sees the employees involved in attaining the set targets or targets. The criteria used for rating employees have changed over time, from raw scorecards in the beginning to complex numerical metrics today. However, there are a few core areas that remain in place, and are the basis for the majority of other performance tests. These core areas are the basis for establishing pay structures, creating performance management policies, setting aims and objectives and assessing employees. The workers must provide satisfactory information on functionality, provide specific and accurate feedback on their own actions, attitudes and performance to managers, who in turn can use this information to establish a framework for establishing pay structures and determining goals and objectives.

The final and most important stage of the performance management process includes the review of the frame and the general functioning of the workforce. The review ensures that the objectives of the plan are being met, and that the measures of success are being determined and monitored. The review also reassures the workers that their work is contributing to the success of the business and they are valued for their own work. The performance review provides an atmosphere of continuous process improvement where targets and objectives are always re-evaluated according to new requirements. The sole way to ensure the success of the whole performance management process is to make certain that the organization is following a plan that has been thoroughly thought through and executed to its fullest capacity.

Worker involvement in the performance management process is essential to its success. It encourages workers to be actively engaged in the development of the plans and to contribute to the success of the strategy. The more the employee contributes, the more he or she knows about the aims of the organization and the more he or she can play a role to fulfill them. Employee involvement in the process develops a sense of ownership for the group and works towards providing a cohesive and positive support system for the employees.