Impact of Performance Management

 

Performance Management

Performance management is a one of method of helps to managers monitor and evaluate employees' work. It can be create an environment where people can perform to the best of their abilities to produce the highest-quality work most efficiently and effectively.

​How does it’s helpful for  workplace

This is a good tool for management to measuring employ`s goals and objectives. Because they can use performance management tools to adjust workflow, introduce new courses , personal development planing and make other decisions that will help employees achieve their objectives. In turn, this helps the company reach its goals and perform optimally.

Key benefits of continuous performance management:

1. Creates more Engaging work environment

A continuous performance management system provides an open forum for managers and employees to interact, share, and discuss their roles regularly.

2. Recognizes Employee Productivity

Happy employees are more productive and work harder if their performance were being recognized. Regular feedback and reviews are important in keeping employee morale high. A continuous performance management system provides the perfect platform for formal recognition of performance.

3. Increases Employee Retention

Understanding what motivates an employee and formally recognizing their efforts can help management decide the best way to reward their performance. This, in turn, will help retain employees.

 4. Drives Employee Engagement

Keeping track of employee performance helps in identifying whether it needs improvement. Continuous performance management helps create a good rapport between employees and their managers, allowing for a continuous cycle of improvement.

5. Facilitates Goals setting- the SMART way

A continuous performance management system can help modify and update goals according to the performance of the employee, team, and organization. The system adapts to the changing business environment, and ensures that the goals are dynamic and evolving – this is very important to actualizing the very essence of continuous performance management.

An effective performance management system helps define an employee’s SMART goals within the workplace, eliminating any ambiguity or confusion regarding goal setting.

However, a well-designed performance management process can be rewarding for both the employee as well as the manager.

Disadvantages of Performance Management

1. Time Consuming

It is recommended that managers spend about an hour per employee writing performance appraisals. And, depending on the number of people being evaluated, the process can take hours to write the department’s performance appraisals – but also hours meeting with staff to review the written material.

A very time-consuming, and tedious task.

2. Discouragement

The performance appraisal process needs to be one of encouragement, positive reinforcement, and a celebration of a year’s worth of accomplishments. If the performance appraisal process is not a pleasant experience, it has the potential to discourage staff. It is critical that managers document not only issues that need to be corrected, but also the positive things an employee does throughout the course of a year, and both good and bad should be discussed during a PA.

For instance, encourage employees by sharing observations of successful project completion, positive teamwork, or professional developmental milestones.

3. Inconsistent Message

We all struggle to remember things when we get busy.

It is those times when we remember the bad and forget to acknowledge the great things employees do every day that sends an inconsistent message to employees. Make a habit of documenting employee observations (both positive and negative) when it is fresh. Keep these notes as a source of information as you share feedback with employees. This document of observations will provide you with the necessary feedback to review with the employee at performance appraisal time – to both correct behaviors and celebrate success. Keep notes and accurate records of employee behavior, to send a consistent message to the employee.

4. Biases

It is difficult to keep biases out of the performance appraisal process. It requires a very structured, objective process, as well as a mature manager to remain unbiased.  Be aware of this and take the time to learn about common rater (bias) errors. Performance appraisal rater errors are common for managers who assess performance.

 

 

 

Stages of performance management cycle

Basic elements of processing performance management

• Company’s mission and goals:-how to employees contribute for company’s achievements

•       Transparent communication and collaboration

•      Employee recognition

•       Honest and regular feedback and reviews

•       Employee development 

 

 Conclusion

A good manager takes pride in watching an employee grow and develop professionally. Organizations should take a global look at their performance management system and have very objective goals that are tied to strategic initiatives and the performance management process. Successful organizations have learned the secret to this. And while not always perfect, striving to constantly improve the process can be one of the best ways to help organizations achieve their Mission.

 

References

PROFIT.CO (2020)Performance Management (online). Available at https://www.profit.co/blog/performance-management/5-benefits-of-continuous-performance-management/ Accessed on 28th April 2021

 

 

Patricia (2019) Advantages and Disadvantages of performance (online). Available at https://smartchurchmanagement.com/advantages-and-disadvantages-of-performance-management/ Accessed on 28th April 2021