Performance Management Processes – What You Need to Know

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

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

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

The aims of this second stage of the performance management process are to develop strategies for each objective of the initial stage. These include defining exactly what the processes or systems used are, the criteria used to measure these goals and their time scales, specifying the actions needed to achieve these objectives as well as their frequency and defining the resources required. A strategy is then drawn up from the group, reviewed by the senior manager and put into operation. Reviewing and approving the programs means more work can be done in time and the odds of achieving the set goals are improved.

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

The next stage in the performance management process sees the employees involved in achieving 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 some core areas that remain in place, and are the basis for the majority of other performance evaluations. These core areas are the basis for establishing pay structures, creating performance management policies, establishing goals and objectives and assessing employees. The employees must provide satisfactory information on performance, provide specific and accurate feedback on their own activities, attitudes and performance to supervisors, 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 phase of the performance management process involves the review of the frame and the general functioning of the workforce. The review ensures that the goals of the plan are being met, and that the measures of achievement are being determined and tracked. The review also reassures the workers that their work is contributing to the achievement of the company and that they are valued for their own work. The performance review provides an atmosphere of continuous process improvement where goals and objectives are always re-evaluated according to new demands. The sole way to ensure the success of the entire performance management process is to make sure that the organization is following a plan that has been thoroughly thought through and implemented to its fullest capacity.

Worker involvement in the performance management process is essential to its success. It encourages workers to be actively involved in the development of the strategies and to contribute to the success of the plan. 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.