What Is Performance Management?

Performance management is a tool or a system based on a continuous process that comprises stages and cycles of development, measurement and correction of processes, competencies, quantitative and qualitative indicators, in order to align team performance with business objectives.

In general terms, adopting this system is quite advantageous, since people are an important pillar in organizations and this management improves the performance of the company as a whole, allowing the correction of flaws that compromise the results, in addition to increasing the appreciation and satisfaction of employees.

What Are The Main Goals Of Performance Management?

Performance management in companies is usually under the responsibility of the human resources area , but it also encompasses executives, decision-makers and managers , as they are all key pieces to seek and implement improvements.

As a sector, HR needs to understand this activity as an integral part of the company’s global strategic Performance management, as the main objective is to enhance business performance through individual and team performances at all levels. However, the importance of adopting this system of actions is also linked to other objectives.

When managing, one of the goals is to know, measure and have control over what is happening within the company, from daily activities to the top of the operation, collecting data that allow decision-making to be based.

In addition, the objective is to develop teams so that there are not only skilled people contributing to business results, but also more satisfied , engaged, assertive employees, recognized for their successes and supported to overcome their mistakes.

Benefits Of Effective Performance Management

Better alignment between teams and company goals

Increased productivity and better results

Greater clarity about expectations about employees

Development of skills to better fit with the organizational culture

More assertive selection processes

More accurate and efficient people management

Subsidies for decision-making and development of agile action plans

Anticipation of problems

Strengthening a culture of feedback and continuous improvement

Deep understanding of the performance of each individual/team

Stronger and clearer communication between management and the workforce

Increases motivation of human capital through the recognition of actions of excellence and advantages of complying with organizational guidelines.

The Difference Between Performance Management And Performance Appraisal

Many people tend to confuse management with performance evaluation; although both are related, they are not the same thing. While the first is a broad program carried out within the scope of team management , the second is just a step or tool that integrates the scope of this larger process.

Management involves setting goals, monitoring, developing talents and skills , proposing and executing improvements, while evaluation is a part of that. Performance evaluation is an operational action that measures and analyzes data on technical and behavioral competencies according to established indicators. It is this work that allows us to understand who is or is not meeting the aligned expectations and the reason for each scenario, aiming at improvements.

How To Implement Effective Performance Management

A successful performance management strategy is an ongoing process that provides managers with multiple opportunities to correct and reward team members.It is essential that the creation of a performance management program is based on a solid knowledge of the organization, its business model , objectives, processes , values, culture and planning skills.

All this should serve the design of a personalized system, because simply applying what is done in other organizations disregards specifics that may be important. Furthermore, the methodology, metrics and assessments that work for one company do not necessarily work for others.

Dimensions Of Performance Management

Results ( Outcomes ) : refer to what is produced by the employee

Behaviors : refer to how the results were produced Stages of performance management cycles

Definition Of Expectations And Alignment : everyone needs to be clear about their role within the organization, what the expectations and goals are, how to measure results and be open to questions raised by the teams.

Monitoring : in this phase, the monitoring of what is being done begins, the leaders support the teams in following up on what was agreed and planned, creating opportunities for informal feedback from all parties. This will allow you to fix bugs and make adjustments quickly.

Performance Evaluation : at this point, the data collected during the monitoring allows us to quantify and qualify the skills and performance of each person and team. Whether self-assessment will be carried out, the 360º model or other types will vary depending on the company’s culture.

Decision Making Regarding Corrections, Development Plans, Rewards : at this stage, it is defined whether there is a need for training, rethinking the functions of each position, tasks, who should be promoted, developed, fired, changed roles, etc.
It is essential that the cycles are as short as possible, for example, every three or six months, so that there is a real possibility of changing course in the face of failures and opportunities.

Essential Tools To Integrate Your Management Program

Check out a simple list of 5 useful tools for efficient performance management. There are certainly many other tools and what will define the choices is the profile of the business and the team.

 People Analytics

This method brings together technology and HR to collect, organize and analyze data about the behavior of people in an organization. From this tool it is possible to obtain strategic insights , more precision and automation of various processes.

Balanced Scorecard

It is a methodology that focuses on the evaluation, monitoring and optimization of four dimensions of business performance , which must be controlled together and in a balanced way.

These Are The Four Perspectives:

financial
from clients
of learning and knowledge
of internal processes

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