Performance Management is more than just an annual review. It encompasses the entire process of employee performance evaluation and feedback, and includes goal setting and coaching. Performance management can focus on the performance of an organization, a department, an employee, or the processes used to manage particular tasks. Done effectively, it also includes the creation of development plans to address current performance issues and maximizing future performance and career pathing – “Feedback is the breakfast of Champions – Ken Blanchard”.
An effective performance management system is of fundamental importance to an organization’s ability to implement its strategic objectives. And yet, all too often, performance management systems fail to deliver the expected benefits.
Performance Management, when administered correctly has the following benefits:
Direct financial gain
• Grows sales;
• Reduces costs in the organisation &
• Aligns the organisation directly behind the strategic goals.
• Optimises incentive plans to specify goals for over achievement, not just business as usual;
• Improves employee engagement because everyone understands how they are directly contributing to the organisations high level goals;
• Creates transparency in achievement of goals;
• Creates high confidence in bonus payment processes &
• Professional development programs are better aligned directly to achieving business level goals.
Improved management control
• Flexible, responsive to management needs;
• Simplifies communication of strategic goals &
• Provides well documented and communicated process documentation.