What is performance management?
Performance management is a continual communication process between a supervisor and an employee that occurs throughout the year to support the organization's strategic goals. Clarifying expectations, establishing objectives, identifying targets, providing feedback, and analyzing results are all components of the communication process.
Generally, performance management might be concerned with the performance of an organization, a department, a person, or the systems in place.
What are the 5 stages of performance management?
The performance management cycle can be established in five straightforward steps, enabling managers and employees to connect their efforts with the company's larger culture.
The first step of the performance management cycle is planning. A manager and an employee meet to analyze the individual's present job and performance, identify areas for development, and then establish clear and explicit performance objectives and set attainable goals.
The next step of the performance management cycle is to enhance an employee's current expertise and develop new skills, knowledge, talents, and potential. This is accomplished primarily through training, the assignment of tasks that introduce new skills or a high level of responsibility, the enhancement of work processes, and other means.
- Monitoring and performing
The third stage of the cycle is consistently monitoring the performance of employees and giving them continual feedback and the appropriate tools to help them achieve their goals.
The reviewing phase of the performance management cycle compares employee or group performance to the goals, criteria, and standards established during the planning phase. Various tools, such as 360-degree feedback, self-assessments, competency-based evaluation, etc., can be used.
If all objectives have been completed, the final stage of the cycle is to reward employees. By rewarding employees, managers recognize their contribution to the organization and create incentives to motivate and engage them further. There are numerous ways to recognize excellent achievement, including informal and official reward and recognition programs.
What are examples of performance management?
Examples of performance management processes or tools include key performance indicators (KPIs), performance appraisals, and management dashboards.