Performance management process ensures that the goals and aspirations are met. It focuses on individual employee performance, performance of a process or activity, performance of a department and the performance of the organization as a whole. The process of managing performance in an organization is a continuous process and goes on so long as the organization exists and involves the following activities:
- Planning Performance
- Managing Performance
- Reviewing Performance
- Rewarding Performance
Planning is essential in any kind of management process, and performance management process is no exception. There is the need for management to state a management plan this plan can be made into a document and made available to managers and supervisors.
Objectives of the plan must be clearly stated in the plan document as well as why it is being introduced after which a management system is designed. The design is a direct derivative of the organization’s mission and visions and these are gradually broken down at each stage until it finally gets to the individual employee. Another way of doing the design is to start from the individual objectives and work them out to derive the organizational objectives. In setting performance management objectives, the SMART approach is most useful and is as follows:
- Time Related
Performance management process does not end at defining the plan, but the performance plan has to be managed. This involves taking action on the plan agreed on and may include ensuring that all employees understand the plan, providing support and adequate resources to personnel who are to help implement the plan and aligning organizational priorities and goals to the performance plan.
Managing performance also emphasizes that results are important than the processes that yield the results and requires that, each individual takes direct responsibility for their actions. For instance, emphasis should be on how much work is performed by an employee in a day than how many hours he spent in the office that day.
When managing performance process, it is crucial to conduct periodic reviews to ensure that the performance plan is being followed and that it is producing results. In most firms, performance review is done by appraisals, which is in the form of interviews with a superior. Appraisals are done annually and are mostly used for promotions and salary increment purposes. It is sometimes also used to measure how fast an employee is learning and developing on the job and to determine if he needs any additional training.
A good appraisal should take into consideration every aspect of the job; available as against required resources and do appropriate rating. One mistake that management make when performing appraisals is that they leave objectivity out and sometimes they let their personal problems with the person overshadow the appraisal. In a case like this, they can ask another manager to do the appraisal for that person.
Conducting performance appraisals is not enough in the performance management process. Hardwork and productivity must be rewarded. Rewards encourage employees to work harder as they know their efforts are appreciated. It also sets as an example to those who did not work so hard to do same so as to earn a reward. This reward can be in the form of financial, words of praise, promotion or recommendation for a training program, which is paid for by the company.
No serious organization can do without performance management process as it will determine the productivity of the company. The performance plan states what they wish to achieve then they work towards that.