Employee management effectiveness is one of the most important factors in achieving company success and competitive advantage. Skilled staff is the lifeblood of every company; therefore, organizations spend a lot of funds on finding and attracting talented employees. But, it is not enough; companies need to continuously develop the talents of their workers. In another case, effort and money spent on hiring are useless. To avoid this situation, organizations need to measure and manage their employees’ performance. The final result of this management depends on the technologies they use. Performance management includes continuous processes of planning, monitoring, and reviewing the work objectives of the staff and their overall contribution to the company's success. Nowadays, more and more popular become software performance management systems that help companies to monitor and optimize workforce efficacy at both collective and individual levels.
Planning is the first stage of the performance management cycle. The process of creating a performance management plan involves both managers and employees as they determine what job and how it has to be done. At this stage, managers and employees accord and agree about what every employee must accomplish, at what norm (for instance, produced goods or sales goals), and identify how to measure results. Superiors and employees also conduct negotiations about competencies (such as product knowledge, quality customer service, result orientation, and others) that are necessary for accomplishing the company's performance effectively and determine the study and development employees need to eliminate gaps in their competence. Thus, in the first stage of the performance management cycle, organizations identify their employees’ job descriptions and work plans, indicate company goals, and specify objectives and strategic plans
Employee performance and qualification progress should be continuously monitored. "Continuous monitoring" doesn't mean supervising every step of the work process and every aspect of an employee's fulfilling assigned to his tasks and activities. Supervisors and managers should focus on the obtained results, and team and individual dynamics that affect the work environment. Thereby, in the second stage of the performance management cycle, managers and employees keep track of the development and performance of every worker. If it is required, the performance plan of each employee is corrected with the purpose of meeting the changed circumstances.
The third stage of the performance management cycle is reviewing, namely, reviewing employees’ accomplishments and standards which have been concerned in the first stage and are analyzed by supervisors/managers and employees. It is also considered what new every employee has studied and how their knowledge can be efficiently used within their current positions and the future company's projects and tasks.
Managers and employees come to terms with how well each employee has performed during the last determined period and what is required to consider by the worker for achieving the future work standards and company's goals. Managers conduct the evaluation of the staff performance, particularly if decisions about the employee’s employment, compensation, or rewards must be made.
The fourth step of performance management is employee performance improvement. To do that effectively is able to be done only through comprehension reasons why the company's staff are not performing at the optimal level. It could be justified reasons, eliminating which is a key to fixing issues without the employee replacements. Managers and supervisors should keep an open mind to discuss troubles without jumping to conclusions. Clear direction and instruction about the worker responsibilities, job priorities, expectations of employee achievements, and keeping clear accountabilities in every activity are necessary.
The last stage of performance management is measurement. Performance measurement is a process of collecting data necessary for performance measures. All organizations (small businesses, middle-size companies, and huge corporations) perform performance measurements to some extent. Even though many companies are focusing on financial measures primarily, there is a huge difference between companies in terms of what performance measures are used for them. The revolution in performance measurement has changed the priority of performance measurement features. Today, one of the main questions for companies is matching and leveling performance measures with the company's strategy, business structure, and corporate culture. The next important tasks are choosing the right types and number of measures, the balance between dignity and costs of introducing chosen measures, and deploying those measures, so results are used and acted.
The result of the use of an effective performance management system is a high-performing company.
A practice of employee self-assessment can be used for the purpose to get your employee's perspective on their productivity. This is a way to help your employees feel more engaged and give them a voice in the business process. Getting the employee's perspective is an inestimable way to get more information about his/her performance.
Collecting feedback from anybody (managers, peers, subordinates) who works with the employee and even from your customers will help you to avoid the manager’s bias and know your employee's performance broader and more objective. It is especially helpful in the case of some conflict or tensions present between the manager and employee and when managers don't work directly with their subordinates. Feedback from multiple, credible sources makes it more objective.
Give your employee goals a bigger context; that will help your staff to understand why their work has great significance and how their work facilitates the company's success. This allows employees to feel that their work matters and increases employee performance.
Development planning is much more powerful and effective when it is integrated with the performance management process. Use the performance appraisal meetings to discuss your employee's short and long-term career aspirations, and to investigate opportunities for preparing the employee for advancement within your company.
Employees need to know what rewards and compensations they will have for their skills and productivity. Integration between the managing of employee performance and compensation management allows employees to know that compensations are equitable.
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