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What is an effective performance management system?

Published: Sunday 21st February 2021

Boss showing a good job congratulating an employee at office

A major aspect of working in Human Resources (HR) is regulating performance management. Building a space where you and your employees can produce excellent work and perform to the best of your abilities is no easy job. However, with the right strategies, you can make it work. Effective performance management is about leadership, teamwork, interpersonal relationships, and constructive feedback.

Also known as performance appraisal, good performance management ensures that an organization is working at its best and providing optimal services. In time, it leads to an organization’s growth and success. 

Here are some ways to establish an effective performance management process.

 1. Define Company Goals and Performance Objectives

Your employees cannot meet your expectations if they are not clearly outlined. It happens that sometimes you are not very clear when making company goals and objectives. Moreover, most of the employees do not come forward to ask their doubts when they are confused or not clear about something. Such pitfalls can be cleared if you communicate regularly. You can choose to define company goals by using goal-tracking software. Later, you can send out emails distributing a flyer, holding meetings, and achieving all these things in turn. Once these goals are laid out, you need to reiterate them time and again so that employees have a reference. Another thing you can do is to hold meetings and check in on progress.

2. Utilize Performance Management Software

You may even want to consider using performance management software. If you already use one and it is not saving you any time and has low employee engagement, you will need to upgrade it. It can really streamline your performance management strategies. A good performance management software offers both traditional reviews and 360s and is employee friendly. Furthermore, it will provide an easy-to-use dashboard interface and allow for quick and actionable reporting. The tool will help both you and your employees stay on top of things and make sure your business is running smoothly and efficiently.

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3. Offer Frequent Performance Feedback

While communicating company and individual goals is an essential step for any business, communication alone cannot take your company to new heights. Your manager will also need to check-in employees and teams regularly to understand the whole process and even provide feedback. Good performance feedback will reinforce strong skill sets and positive behaviors and also help employees build a clear path for improvement. Such type of feedback is necessary and cannot wait till HR starts the annual review cycle. Instead, feedback should be given in real-time and integrated into the company culture. Timely performance feedback is a great way to affirm your employees and their work. Performance software would help you collect frequent feedback. If not, free tools like survey monkey, Google forms, or even a basic email request will help you get pretty far.

4. Use Peer Reviews

Another way to facilitate effective performance management is to use peer reviews. They are particularly useful as they allow coworkers to praise their teammates, highlight the positive aspects of their performance, and understand improvement areas. This helps employees work together, assess where they can improve themselves, and build better communication. A manager or HR can overlook this process. It must be ensured that no peer reviews, claims, concerns, and praises go unnoticed.

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5. Preemptive Management and Recognition

 One way to ensure results in the workplace is to implement preemptive management and rewards. This means that your employees will always know what is expected of them. This will remove any scope of guesswork and the need for consequences at work. Furthermore, it ensures that everyone starts on the same page. Rewards or incentives are a great way to boost employee morale. Similarly, having a robust “HR Toolbox” will help managers catch slipping employees early and provide appropriate feedback.

 When you hold these meetings, be sure to have a clear idea of what you want to cover. Some objectives should include: 

  •   Follow up on peer reviews!
  •   Discuss praises and areas that need work with the team!
  •   Make plans for the next phase of projects!
  •   Discuss company data: revenue, customer involvement, marketing, and campaign success, etc.
  •   Recognize team members and incentivize them for meeting their goals and objectives!

 These five strategies may seem simple but can work wonders when implemented into your company’s day-to-day life. An organization should be about the people involved. Making the most of their abilities, encouraging them, and recognizing where they shine, you can create the right work environment for success.

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