Performance Management

Performance management is a synchronized methodology that includes gathering tangible information regarding the work ethics, behavioral patterns, and skill sets of individual employees throughout an organization to create a business strategy that will incorporate teaching management proper communication techniques that will result in the execution of the various tasks necessary to achieve pre-determined corporate goals. The benefits are numerous and include encouraging the fair treatment of all employees based on performance, and providing a roadmap for the entire organization that is structured to foster growth and accomplishment to achieve goals within the company by providing benchmarks and standardized practices.


1. How Performance Management Can Positively Affect Behavior

Human resources departments throughout the world are often overwhelmed with employee issues regarding performance and behavior. Without the benefit of business performance management, these human resources departments are often left with the difficult task of acting as a mediator between management and employees.

With performance management tools and techniques in place, employees are individually and fully aware of the expectations of management regarding their performance. With each employee armed with a predetermined course of action and timeline that corresponds with the goals of their department and the organization as a whole, their working time is maximized, leaving little time or mindshare to focus on petty or insignificant issues.

With all employees "in the same boat," they will all be aware that their progress -or lack thereof - is being monitored and measured by way of a trusted and advanced scientific method. There will be no easy way to disguise their lack of performance, if they are not completing the tasks assigned or meeting the expectations of the company. Employees who are prone to slacking will have to step up to the plate - or risk losing their job. Alternatively, those employees who are exemplary performers can be easily recognized and considered for salary increases, promotions, or training opportunities.

2. Performance Management Provides Supervisors With Measurable Results

Being a manager or supervisor is not an easy task. Some staff members may have annoying habits that are in essence not harmful to the business, but annoying, nonetheless. Performance management tools and techniques enable supervisors to base their performance reviews on measurable results, not personality traits. This can help supervisors and human resources departments focus on capitalizing on the employee's business strengths, not weaknesses or annoying habits, as they are considered for various tasks and opportunities within the company. Often, annoying habits are the result of nervousness on the part of the employee, and knowing that the company is utilizing business performance management throughout the organization can alleviate fears of being treated unfairly and correct habits that stem from anxiety related to their job.

Business performance management can also help supervisors see exactly how their staff member's time is being spent. It is common for supervisors to mistake an employee who is "acting busy" as being a productive employee. With a performance management system in place, the employee's performance is accurately measured and can be analyzed to determine whether the individual is following guidelines to complete the tasks necessary to meet company expectations.

In addition, performance management makes it relatively simple for management to identify which steps in a business process may have caused difficulties for their employees. This enables supervisors to work with each employee to resolve the issues, if it is in regard to a particular issue with an individual who is viewed as an overall valuable employee, or justifiably dismiss them if they are not performing due to lack of dedication or skills required.

3. Aligning Company Procedures And Goals With Performance Management

Business performance management techniques combine the most effective flow of processes and procedures that will lead to the desired company goal. By clearly identifying and presenting the results needed to achieve individual and collaborative departmental goals, processes and procedures can be examined to ensure alignment with organizational goals.

One goal can consist of many different processes and procedures that are carried out from various locations and between several different departments. Performance management provides a customized business roadmap, and suggests the allocation of the most appropriate resources by department, location, and specific employee to serve as a guide towards achieving the results necessary to reach the intended goal in the most efficient way possible.

When goals and results are in complete alignment, business processes and procedures are strategically designed to meet or exceed company expectations. Without performance management, the focus tends to be on activities. With performance management in place, the focus is shifted to results. When the focus is on results, performance reviews carried out by both supervisors and human resources departments become a strategically streamlined process in accordance with company goals.

4. Performance Management Inspires Team Ethic

When it is understood that a performance management system works for the common good, just about everyone tends to work better together. Competition to reach similar individual goals, as per their individual assessments and common criteria for employees in the same department, will probably always exist to some extent. However, those companies that utilize business performance management tools and techniques have found that when organizational goals are shared with all employees, the majority understand the benefits of their individual successes as being shared with and by their internal business associates at all levels within the organization. If all members of a particular department reach a departmental goal because of each individual employee's contribution, everyone wins. By successfully achieving the desired results, as determined by the information provided by the performance management system, employees are bonded together by mutual appreciation.

Most employees will find it much easier to work individually, as well as within a team, when they are working towards a predetermined departmental, and ultimately company wide, predetermined goal. The mindset is result oriented, as opposed to activity oriented, and even a particularly mundane task appears temporary and manageable. Knowing that performance will be measured for effectiveness within the organization inspires employees to be more inclined to help each other, as well as perform to the best of their own individual capability.

5. Keeping Your Company Viable Long Term With Performance Management

Many companies, especially young organizations experiencing fast growth, can easily find themselves so busy reacting to unforeseen issues and changes within their industry and/or the organization itself, that they do not make the time to design and execute a strategic plan of action. Therefore, the desired results and the processes and procedures needed to achieve them are not met in the most effective manner, and often not even defined. Like a motor vehicle spiraling out of control, there is no real sense of direction, other than that which will accommodate day-to-day business needs. Essentially relying upon prior experience, education, and luck, unforeseen changes are an almost constant occurrence that subtract from the time and resources needed to create an effective plan of action. As opposed to achieving results that are aligned with specific goals, the company continues to operate based on a here and now mindset, as opposed to being focused on a defined path that will enable the entire organization to operate like a well oiled machine towards a common destination.

Business performance management tools and techniques provide a systems based approach to operating and managing an organization that monitors, measures, and analyzes individual, departmental, and organizational motivation, activity, and results. Without this precise information, actions are the result of an imbalance of information. For example, reducing staff may temporarily increase profits, but it may also result in reduced levels of customer service and productivity, thereby resulting in a long-term loss of profit.

6. Performance Management Encourages Employee Trust In Management

Business performance management includes the distribution of information pertaining to individual, departmental, and organizational goals. This sharing of information enables all employees to know that they are all a part of a greater plan that is based upon results that will achieve mutual successes.

Without performance management in place, there is too much room for unfounded complaints and issues to fester. Employees may be able to successfully convince others of management bias, based upon allegations pertaining to processes or procedures that are not clearly defined, monitored, or measured. Without this tangible information, both supervisors and employees may make false accusations that they may or may not truly believe.

With performance management in place, resources and commitments are clearly specified, result oriented, and aligned with predetermined organizational goals. Processes and procedures are carefully monitored, and both employee and supervisory assignments and performance reviews are based upon predefined individual and departmental results aligned with a specific organizational goal.
A company that incorporates a business performance management methodology also has specific, analytical information upon which management can make comparisons and examine results.

With all parties understanding their roles within the organization, as they pertain to the combined efforts and results that are instilled to promote the overall success of that organization, they are all in control of their own destinies to essentially the same degree. This level playing field fosters trust between employees and management and between management and employees.

7. Performance Management Provides Company Direction

The levels of business performance management are indepth and complex, yet they almost seamlessly integrate to provide direction throughout the organization. By using performance management techniques to streamline companywide processes and procedures that are tied to the results necessary to achieve expected goals, every department and employee has a specific direction to follow on the business roadmap. Because individual employee progress and results, as well as departmental progress and results, are reviewed on a regular basis, if something is not working along the way for the common good, it can be changed and a more effective pathway can be designed. Seeing what works and what doesn't quickly and clearly helps resolve minor issues that could otherwise go unseen and not obvious until there are widespread issues that can cost a company much time and money. Performance management prevents small issues from exploding into problems of much larger proportions.

Measuring and monitoring performance closely is also the best way to find out what does work - and works well - consistently. Performance on an employee, departmental, and company level is seen as an ongoing process, as opposed to an irregular event. Whether an individual employee's particular position in the company is to serve external or internal customers, their direct actions contribute to their individual and departmental performance. The mindset is on focusing on the needs of the customers because that is a primary goal for all companies and their departments in order to make a profit and encourage both new and repeat business.

8. Performance Management Puts The Good And Quiet Front And Center

Some employees are inherently gifted with charisma and charm. As delightful as those characteristics sound, the qualities can be used in a positive or a negative way. Without business performance management, some of these gifted employees may choose to use them only to "talk the talk and walk the walk," or in other words, to use their charms to put more effort into deceiving management and co-workers into thinking they are working hard and in the company's best interest, as opposed to actually doing so. Without performance management and the measurable results it provides, some of these types of employees may actually charm their way into salary increases and promotions they truly do not deserve. Human resources departments have no substantial frame of reference to make any type of fair determination, if an issue such as this were brought to their department.

In contrast, with performance management woven throughout the entire organization, those employees who may not have the personality traits that draw positive attention from others may quietly be some of the company's top performers in their position. Performance reviews are continual and frequent and based upon the employee's level of success at following the directions, completing the tasks, and achieving the desired result as determined by the performance management process. Analyzing the results achieved and progress made by each employee enables supervisors and human resources departments to clearly distinguish dedicated and productive employees from the ones that may not be so loyal or profitable for the company. Exemplary employees can then be considered for additional training opportunities, awards, promotions, and salary increases based on their consistent work ethic, productivity levels, and their potential to contribute towards essential corporate goals.

9. Create Positive Working Relationships With Performance Management

Most employees, all of whom have different types of personalities, have value to offer the company for which they work, but knowing how to make the best use of their individual inherent behaviors, patterns, and skills will determine the success of the employee and their contribution to the success of the entire organization. All employees have a tendency to grow, thrive, and produce required results better when surrounded by authority figures who approach them in such a way that they feel at ease and comfortable. They also tend to learn new ways to do things when they are presented in the way that they can best understand based upon their individual personality traits. Performance management helps managers and business owners determine the best way to interact and approach each individual employee, each of whom possesses unique patterns of behavior and learning. With performance management tools and techniques, company directors can learn how to approach and react to an individual employee's fundamental personality traits and will encourage a positive working relationship based on mutual respect.
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