For an organization or business to achieve organizational success, there ought to be measures and metrics put in place to measure performance. Therefore, performance management is described as a process through which a company manages its employees to achieve its goals. As such, any serious company should learn to treat its workforce as valuable and indispensable assets that will help it achieve its success. Once these areas are improved, no doubt the organization will have hired the best employees and also be able to retain great talent and human resource with key knowledge of its business processes.
It is true most organizations today will spend so much time and money on hiring and training the best human resource. Even so, when measures are put in place, the employees will be in a better position to decide whether to stick to the company or look for greener pastures. It is imperative that companies learn to treat their employees as partners and ambassadors, failure to which employee turnout may be worrying. Treating employees as business partners provides an opportunity for growth and a motivated workforce willing to put in the extra effort.
Effective performance management is achieved through a couple of steps and effective measures put in place. They include the planning, constant monitoring, regular development, review and rating and finally 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. Monitoring and development go hand in hand in that the management is not only monitoring but also providing advice on how to complete the given tasks more efficiently and effectively.
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. Of equal importance to keep in mind here is that the review and rating process will be done periodically based on a company’s performance management system. The last phase is rewarding the employee which can be incentive based or monetary in nature. These may include merit pay increase, bonuses, gift cards, etc. In the end, the company seeks to create a highly motivated workforce.