Steps Involved in Successful and Effective Employee Performance Management
How else will a company know how their employees are performing if they don’t have a performance management system in place? Therefore, performance management is described as a process through which a company manages its employees to achieve its goals. A company should treat its employees as valuable assets that will help this company complete set tasks and functions. 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.
No doubt there is a lot of money and time spend in hiring and training a new workforce. When there is a transparent way of measuring and managing performance, employees get a better chance to decide to stick with the company or move to the next available opportunity. 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 various steps and measures contained on effective performance management to guide and evaluate employees. They include the planning, constant monitoring, regular development, review and rating and finally rewarding. When it comes to planning, an organization decides on the specific tasks that employees must accomplish within set deadlines. 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.
This phase is more about ensuring the employees are well trained and monitored on a regular basis to see how competent they are in 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.
The next step in effective performance management is review and rating. 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.