This means the integration of employee development with results based assessment. It encompasses performance appraisal, objective setting for individuals and departments, appropriate training programmes and performance related pay. Performance management emphasis development and the initiation of self-managed learning plans as well as the integration of individual and corporate objectives.
Performance management is a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.
Performance is a record of outcomes achieved. Performance management is a means of getting better results from the organization, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements.
It is a process of establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way that increases the probability that it will be achieved in the short and longer term.
Performance management is a broad process that requires managers to define, facilitate and encourage performance by providing timely feedback and constantly focusing everyone’s attention on the ultimate objectives.
- It translates corporate goals into individual, team, department and divisional goals
- It helps to clarify corporate goals
- It is a continuous and evolutionary process in which performances improves over time
- It relies on consensus and cooperation rather than control or coercion
- It encourages self-management of individual performance
- It requires management style that is open and honest and encourages two-way communication between superiors and subordinates
- It requires continuous feedback
- Feed back loops enable the experience and knowledge gained on the job and individuals to modify corporate objectives
- It measures and assess all performance against jointly agreed goals
- It should apply to all staff; and it is not primarily concerned with linking performance to financial rewards.
Concerns of Performance
- Performance management is concerned with performance improvement in order to achieve organizational, team and individual effectiveness
- Performance management is concerned with employee development. Performance improvement is not achievable unless there are effectiveness process of continuous development
- Performance management is concerned with satisfying the needs and expectations of all the organizations stakes holders –owners, management, employees, customers, suppliers and the general public
- Performance management is concerned with communication and involvement. It may contribute to the development of a high-involvement organization by getting teams and individuals to participate in defining their objectives and the means to achieve them.
- Improve organizational effectiveness
- Motivate employees
- Improve training and development.
- Set objectives and targets of work
- Provide feedback on performance.
- Change the organizational culture.
At a general level, the broad process of performance management requires managers to do three things well:
- Define performance
- Facilitate performance
- Encourage performance.
Ensure that individual employees or teams know what is expected of them, and that they stay focused on effective performance. The manager does this by staying focused to goals, measures and assessment (performance appraisal).
Managers must facilitate performance – eliminate roadblocks to successful performance, provide adequate resources to get a job done right and on time, and pay careful attention to selecting employees. Obstacles that can inhibit performance include; poorly-maintained equipment, delays in receiving supplies, inefficient design of work spaces and ineffective work methods
To encourage, especially repeated good performance, it is important to do the following well; a) provide a sufficient amount of rewards that employees really value, b) in a timely and c) fair manner.
Performance management is concerned with improving individual and team performance. Performance management is a continuous self-renewing cycle. Its main activities are:-
- Role definition – in which the key result areas and competence requirements are agreed. The role definition provides the framework for P.M. It sets out: –
- The purpose of the role, which summarizes its overall aim-what the job holder, is expected to do.
- The key result areas or principal accountabilities – which define the main output areas of the role.
- The key competencies, which indicate what the role holder has to be able to do and the behaviour, required performing the role effectively. They provide the basis for drawing up personal development plans.
- The performance agreement / contract – this defines expectations (what is to be achieved, how will performance be measured, the competencies needed to deliver the required results. This is the performance planning stage.