Performance Management

The usage of integrated software’s rather than spreadsheet based recording systems proves to deliver better and significant returns on investment when calculating employee performance. These results can be derived through a range of direct as well as indirect sales benefits along with operational efficiency benefits. These results also help in unlocking the dormant prospective in each employee’s work day, that is the time that each employee spends in the office, not doing their assigned work/job. Such benefits include the following:
“(Direct) Financial gains:

• Reduction in costs

• Growth in sales

• Discontinuing project overruns

• Decreasing the time it takes to construct operational or strategic changes, by communicating the changes via a set of goals & objectives.

• Supports the organization to directly follow the CEO’s aim/purpose.

Motivating Workforce

• High confidence in bonus payment process

• Improving employee engagement because everyone understands how they directly contribute to organizations high level aims and objectives

• Creates transparency in the achievement of goals

• Professional development programs work better when aligned directly with achieving business level goals

• Optimizing incentive plans to particular goals for over achievement and not just standard business.

Improving Management Control

•    Helps comply with legislative requirements

•    Simplifies communication of strategic goals through scenario planning

•    Provides well documented and communicated process documentation

•    Displays data relationships

•    Flexible and responsive to management needs”

Performance Management for the Development in Organizations

When talking about organizational development or (OD), performance can be considered as “Actual Results vs. Desired Results.” Any inconsistency where Actual is seen less than Desired might represent the performance improvement zone; however it is easier to understand if performance management and performance improvement are thought of as a cycle. This presumption is explained in the following points:

•    Performance Planning: This is the point where the goals and objectives are recognized

•    Performance Coaching: This is where a manager intervenes, to give feedback and amend performance

•   Performance appraisal: This is where individual performances are formally documented and the feedback is delivered.

[adsense1]A performance problem is any gap that is between the Actual Results and the Desired Results whereas performance improvement is any effort that is targeted at closing the gap between Desired Result & Actual Result. However other organization development definitions are somewhat dissimilar; the Government Office of Personal Management (US) signify that, “Performance Management consists of a system or process whereby: Work is planned and expectations are set, Performance of work is monitored, Staff ability to perform is developed and enhanced, Performance is rated or measured and the ratings summarized and Top performance is rewarded.”

Performance Management & Employee Feedback

The purpose of performance management is basically to improve quality of work, but it also involves giving feedback to employees; however this feedback is given on a much more consistent basis than that of the annual review (performance appraisal). However the ability of an employee in meeting goals or their failure in meeting goals can be monitored on a monthly basis rather than on annual basis. This process gives the employee’s an opportunity to receive compliments and fair rewards on a regular basis or to make any changes in behavior soon enough, in any case it is not up to par.

It also happens that employees tend to feel that end of the year reviews/performance appraisals consist of criticisms of the work done in the past year, which was not candidly discussed with the employee’s. Employees are considered to benefit more from consistent models of performance management assessments as these give people time to take in hand any issues and change them.

[linkunit]On the other hand, “employees must also be given ways to grow and develop in their field. This means giving opportunities to work on harder projects, pairing less-skilled employees with expert employees, and offering team models where employees can direct and make decisions. Greater responsibility and opportunities to advance in one’s field are essential to maintaining happy and productive employees.” Rewards are a big component in performance management. However, the greatest rewards are in the monetary form that could be either in salary raises or even bonuses when the employee’s perform well. Also employees who are considered qualified to work in a higher level of their work field should also be placed in such positions, that are higher in rank and have a greater share of responsibility, with an increase in the share of pay of-course.

Organizations should make sure while conducting a performance management process that they focus as much on the positive performances as they do on the negative ones. The rewards announced for positive performances should be tangible; otherwise the organization runs the risk of being known as a “negative action” organization only.