Performance management ensures that goals are being met in an efficient manner. Performance management focuses on the performance of a business, department or employee.
Performance management can also apply to the systems in place in a business or organisation.
Employee performance management promotes a shared understanding of what is to be achieved within a business. It is designed to improve learning and development to achieve a higher performance workforce.
By implementing a performance management regime your business can benefit in many ways. For example;
- Financial Gain
- Motivated Workforce
- Management Control
- Improved Communication
- Employee Learning and Development
Regular performance management improves employee engagement because everyone understands how their roles are contributing to the businesses goals. Performance management plans require both managers and employees to commit to a development plan. This encourages personal development within employees and makes them feel like they are an important part of the business. It also opens up the lines of communication between employees and managers as they discuss objectives and changing priorities more frequently. It encourages employees to work towards specific objectives that are relevant.
When a well-defined performance management system is in place, both employees and managers are more confident due to the existence of guidelines that clearly articulate what is being assessed and how. Employees are assessed on obtaining goals that have been previously identified and agreed upon. Managers also have a better understanding of how to assess their employee’s performances as they have a set criteria to use as a basis.
By administering frequent reviews, goals can be modified to suit changing business conditions, increasing the chances that the businesses objectives are relevant. Areas of low performance receive more attention and problems can be addressed more quickly.