Elements of Performance Management Success

When you are a business owner, your hope is for your staff to be on top of their skills. To ensure that your company will reach its highest potential. Performance management is a means to help you obtain this goal.  While there are many elements that go into performance management there  are five key areas that are fundamental to its success

  • Planning and goal setting
  • Management and employee involvement
  • Monitoring and feedback
  • Development and improvement
  • Reward and compensation

About Performance Management

Performance Management is defined as  an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. A good performance management system will help you align a team to business objectives while also supporting and developing staff and helping enhance their performance. It should ensure that systems, departments, teams and processes all work together to optimize business goals.

Performance management & Why it matters

Performance Management is very important when running your company. Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. Their are key elements within PM, below are the 8 essential elements of PM systems

  • Manager Reviews. Because the managers oversee various departments, it is crucial to understand their relationship with their employees.
  • Development and Improvement.
  • Succession Planning.
  • Performance Monitoring.
  • Goal Setting
  • Outcome Management.
  • Ongoing Feedback.

This all important if you want to conduct a business that will be successful as you cover all of you bases in performance management

All in the process

With all things come a process, even when developing a plan for performance management in your business. Below is a list of the process you should apply when going forward with your PM

  • Performance Management Process.
  • Planning Phase Overview.
  • Write S.M.A.R.T. Goals.
  • Set Performance Standards.
  • Define Behaviors.
  • Coaching Phase Overview.
  • Provide Feedback.
  • Give Effective Feedback.

No problems without solutions

Here are seven-steps for an effective problem-solving process.

  1. Identify the issues. Be clear about what the problem is.
  2. Understand everyone’s interests.
  3. List the possible solutions (options)
  4. Evaluate the options.
  5. Select an option or options.
  6. Document the agreement(s).
  7. Agree on contingencies, monitoring, and evaluation.

Performance Management Systems are designed to work for you not against you. A long as you apply all the different methods to your process it should work out to your advantage. Performance management offers three basic phases or stages for employee development: coaching, corrective action, and termination. The performance management cycle is a part of the performance management process or strategy, it is shorter and utilizes a continuous four-step procedure of planning, monitoring, reviewing and rewarding. Good performance management works on the assumption that regular feedback is the norm. Good performance management helps to motivate staff, check that employees are making a valuable contribution to the business, track and guide career development, spot poor performance and enable managers to support staff to improve.

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