Performance Management Defined
Simply put, performance management is a process to help managers and employees to know where they stand and what to focus on. Done right, performance management can lead individuals, leaders, and teams to higher levels of performance results and better alignment of behaviors with desired cultural values and team norms. Smart leaders pay attention to performance management warning signs.
Typically, performance management includes how to:
Performance Management Is Crucial to Business Success
An effective performance management system is critically important to individual and organizational continuous improvement. We believe effective performance management starts with ensuring that each employee understands how their job success and failure is fairly measured in terms of both behaviors and results in a way that aligns with the overall corporate strategy.
Be Clear on the Goals
A report from Gartner claims that less than 20% of HR leaders believe that performance management achieves its intended goals. It seems that many companies are asking the system to do too much and managers to do too little. The good news is that when performance management goals are clear, companies show a 14% higher employee engagement and a 24% boost in workforce performance.
Top Performance Management Warning Signs
So, if you are committed to an effective performance management process, what should you watch out for? Based upon data from when we assess organizational culture, here are the top performance management warning signs:
The Bottom Line
If you want to become a high performance organization, pay attention to the design of your performance management process and how it is being implemented. How you set and manage performance expectations can make the difference between workplace complacency and performing at your peak.
To learn more about performance management trends, download Performance Management Best Practices – The Top 5 Factors
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