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An Overview of Performance Management

Performance management is the ongoing process of setting goals and objectives, observing performance, and giving and receiving ongoing coaching and feedback. It requires management to ensure employee activities and outputs are in alignment with organizational goals and consequently help the organization gain a competitive advantage. Performance management creates a link between employee performance and organizational goals and makes the employee’s contribution to the organization clear.

Also, motivation is an importance consideration in performance management. In order to get employees to perform, there needs to be motivation to engage in behaviors that lead to the completion tasks or execution other behaviors like communication and teamwork. This is a measurement of performance. Performance and productivity are strongly linked with the hope that modifying or improving performance can increase productivity.

In a sound performance management program, there are many principles that should be followed. Here are a few:

The first is strategic alignment. This means that a performance management system should be in alignment with organizational and departmental goals. This means that individual goals should contribute to one or both of these to the greatest extent possible.

Thoroughness and specificity are two other important characteristics. This states the entire workforce should be evaluated as should all major job functions and should be specific providing employees with detailed information and guidance regarding what is expected of them and how to meet these expectations.

A good system should be reliable and valid. Reliable in this context means that performance measures are consistent over time and are free from error, while valid measures are directly related to the job and do not include anything which is outside the control of the employee, or unrelated to performance. These are just a few on the characteristics of a good performance management system.

Employing a solid performance management program can provide many contributions. For example, employee motivation to perform can be increased as well as their self-esteem. Also, managers are able to gain better insights about their subordinates and employee self-awareness and development are enhanced.

Moreover, organizational goals are made clear and employee misconduct can be reduced. A good performance management system also helps to differentiate between good and poor performance, facilitate organizational change, increase retention, and enhance employee engagement.