For an organization or business to achieve organizational success, there ought to be measures and metrics put in place to measure performance. The process through which a company measures and manages the employees to achieve set organizational goals is known as employee performance management. A company should treat its employees as valuable assets that will help this company complete set tasks and functions. Through performance management, an organization can improve not only an employee’s goodwill but also company culture.
An organization may spend a lot of money and time on hiring and training new members of staff. Through effective performance management systems, the employees can decide on whether or not they need to stay with this company for several years. Any organization that is serious about achieving its bottom line should treat its members of staff as valuable business ambassadors and partners. By treating employees right, they will be more willing to work extra hard to achieve their set goals and targets so they can have their performance recognized and appreciated.
There are several measures and steps involved in ensuring effective and successful performance management in an organization. These measures cover planning, monitoring, continuous development, reviewing and rating as well as rewarding. An organization needs to plan and decide on the tasks that each employee need to accomplish within the stipulated period. It is also in the planning phase that a company decides on the salaries or compensation of the employees. Monitoring is the second phase of effective performance management.
Monitoring phase is about training and supervision to see how an employee is implementing their skills and what they have been trained on. Of importance to note here is that monitoring and development will merge here because the employee’s skills are developed and fine-tuned by the day for perfection.
Last but not least we have the rating and review phase after monitoring and development has been accomplished. This is where an organization allows the employee to know more about its rating system as they rate their performance as per their productivity. Review and rating are done on a periodic basis based on an organization’s performance management system. The last phase is rewarding the employee which can be incentive based or monetary in nature. There are organizations that will offer monetary compensations such as bonuses, pay increase on merit, gift cards, while others will extend incentive-based rewards. When all is said and done, an organization seeks to have a motivated workforce that will help it achieve its goals and bottom line.