Performance management is a quickly maturing business discipline. Managing employees’ performance can increase an organization’s competitiveness and maximize its productivity. Not only that, it can also increase morale and create stronger teams and propel top performers onto successful careers. Indeed, it is basically a system of different processes within your company that can effectively reach your business goals. All stakeholders in an organization stand to gain from the implementation of a performance management system.
Through the performance management system may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits.
Direct financial gain,
Reduce costs in the organization
Aligns the organization directly behind the CEO's goals
Decreases time it takes to create strategic or operational changes by communicating the changes through a new goal.
Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals
Create transparency in achievement of goals
High confidence in bonus payment process
Professional development programs are better aligned directly to achieving business level goals
Working towards common goals- Individual performance drives organizational performance. It is important to ensure everyone understands this agency’s vision and goals, how their work fits in to the organization.
Improved management control
Flexible, responsive to management needs
Displays data relationships
Simplifies communication of strategic goals scenario planning
Provides well documented and communicated process documentation
Process of an Effective Performance Appraisal
First step in an effective performance appraisal process. Simply stated, performance planning is setting guidelines and clarifying expectations for the employee.
Employee knows expectations, how can he be expected to perform up to your standards. how can successfully appraise employee’s performance
Ongoing process. As the employee completes job assignments or works toward goals, the supervisor leads and directs these efforts by providing feedback and additional direction or clarification, if necessary.
Occurs just prior to the formal performance review. At this time, the employee’s supervisor gathers the documentation generated throughout the review period.
This documentation includes positive feedback, such as a “job well done” letter from a customer or notes from ongoing performance discussions, to name a few.
A formal process of reviewing performance with the employee.
Employee and supervisor meet to review and discuss the formalized assessment
Begin the process again by setting goals and standards for the next year.
How they will make the most of process? Engaged in
a clear company mission know the common