Performance Management in The Workplace: Why it is Important and How to Do It
Performance management is the process of setting objectives for employees, measuring progress towards those goals, and providing feedback to optimize employee performance. In the workplace, it is a way to ensure that employees are meeting the expectations of their role and contributing to the overall success of the organization. When done effectively, performance management can help improve employee satisfaction and motivation, increase productivity, and reduce turnover. It can also provide valuable data that can be used to make decisions about raises, promotions, and other forms of recognition. Poor performance management can lead to employee frustration and resentment, ultimately resulting in unwanted turnover.
Here are 5 effective performance management steps with common pitfalls to avoid.
Effective Performance Management:
Communicate
How to Win: Set and communicate expectations clearly. Managers and employees should work together to define expectations for the employee's role, responsibilities, and performance.
How to Lose: Lack of communication. Managers may fail to communicate expectations clearly to employees, leading to confusion and frustration.
Set Goals
How to Win: Specific, measurable, achievable, relevant, and time-bound (SMART) goals should be set for each employee. These goals should align with the overall organizational goals and strategies.
How to Lose: Setting unrealistic goals. Goals that are too difficult or unrealistic can demotivate employees.
Provide Feedback
How to Win: Regular feedback should be provided to employees on their progress toward their goals. Feedback should be constructive, specific, and timely.
How to Lose: Inconsistent feedback. Managers may provide inconsistent feedback to employees, leading to confusion and frustration.
Performance Evaluations
How to Win: Formal reviews of employee performance should be conducted regularly. These reviews should be based on the goals and expectations set earlier.
How to Lose: Infrequent performance evaluations. Infrequent performance evaluations can lead to a lack of understanding of employee performance.
Individual Development Plan
How to Win: Based on the results of performance evaluations, individual development plans should be created to help employees improve their skills and performance.
How to Lose: Failure to address poor performance. Managers may fail to address poor performance, leading to the perception that poor performance is acceptable.
Contact the Stonehill team today to learn more about how to develop a strategy tailored to your organization’s specific needs, implement an optimized performance management program, and accelerate organizational growth.
