Effective performance management of an organization's employees helps companies to achieve their goals effectively and to bring out the full potential of employees. To improve employee performance, the performance management process consists of setting goals, evaluating performance and designating incentives.
Main objectives of Performance Management
In addition to the continuous improvement of employee performance, the goal of Performance Management is to enable companies to remain competitive and grow sustainably. But it is not only the performance of individual employees that plays an important role here, but also that of the workforce that makes up departments, as teamcentric methodologies are being adopted. This will require that corporate strategy be combined with operational planning, processes and cost control. In this way, efficiency increases and time management improves, with the objective of evolving with a more efficient business model.
Steps to achieve a 10 in Performance Management strategy
Stage of analysis
As in any process where the implementation of a strategy is to be carried out, the current state of the company must be defined and the objectives to be achieved must be planned.
Objectives for the entire staff of the company.These objectives can be determined to be of different types. They can be agreed upon once a year or at shorter intervals. Ideally, the objectives should also be defined according to the well-known SMART method:
Performance evaluation is not the same as Performance Management, but they go hand in hand. It is done at regular intervals and there are three ways to carry it out. The first way is the horizontal one by co-workers. Evaluations where monthly meetings are organized to present feedback and improvements, the second from superiors to employees and, finally, 360-degree feedback by multiple evaluators. The best results are obtained in this evaluation. It is a 360-degree feedback formed by superiors and the rest of the colleagues, who analyze the performance of the evaluated individuals. At the end, the results are shared with the HR department to implement improvements in the development of the workforce.
To ensure a high degree of involvement of each employee, we must analyze, design and optimize the results obtained and find out where there are failures.
It may be the case that the performance of our employees is not being successful, so we can implement systems to control and try to amortize the objectives that are established.
Incentives are a good tool to enhance motivation and performance. In this way we provide value in the direction we want to take the tasks to be performed by the staff and working for the development of the worker's activity is promising. These incentives can be retributive or immaterial, such as recognitions and favorable working conditions.