Performance management is a process that allows managers to evaluate the work of their employees and the support for business objectives. It consists of a five-step process that includes planning, training, monitoring, evaluation, and reward and recognition. The elements of performance management include performance evaluation, the use of key performance indicators (KPIs) and management panels, peer review, 360-degree feedback (several people help, from managers to subordinates), and the use of employee management software. The first step in the performance management process is planning.
Management must make the plan as detailed as possible, avoiding the use of ambiguous language. This step should be collaborative so that employees feel they are involved in setting objectives. Once the parameters of the work and the objectives for the future have been established, the next step in the performance management process begins. The training process is extremely important and should be done on a regular basis.
Meetings should be at least quarterly, although monthly meetings are ideal. These meetings should focus on solutions and training opportunities, rather than on punitive measures for mediocre performance. As the performance management process continues, management should review objectives to see if adjustments should be made, as well as pay attention to professional development opportunities for their employees. Management must monitor the performance of its employees on an ongoing basis. Without a rating scale, it can be difficult to recognize if employees are improving on their development plan.
In addition, with a rating scale that is communicated to employees, they know what their current position is and what is needed to move to the next level of performance. The fourth step in the performance management process is evaluation. This step involves reviewing the employee's overall performance, how well the process itself worked, and also includes the reward, which is an extremely important part of the overall process. At this stage, it's important for both management and employees to look at the previous year and see how well the performance management process worked. The last step in the performance management process is reward and recognition. Positively reinforce employees who are achieving their goals or working to achieve them.
Recognize them for their hard work and for striving to be better and better for the organization. This can be in the form of bonuses, thank you cards with symbolic gifts, public recognition, or through an employee rewards program. Remember that the performance management process is a cycle that must be used continuously for as long as a person works in your organization. Knowing which employees are excelling in their roles and achieving (or exceeding) goals, which employees need more support, is invaluable information.