Performance Management is a process that ensures that a set of activities and outputs meets the goals set by the regulatory organization effectively and efficiently. The management of the performance can focus on the performance of an organization, a department, an employee, or even the processes in place to manage some particular tasks.
The standards of Performance Management are usually organized and also disseminated by the senior leadership at the organization and also by task owners. This can include specifying tasks and outcomes of the job, providing coaching and timely feedback, comparing employee’s actual performance and also the behavior with the desired performance and behavior, assigning rewards, etc.
Principles of Performance Management
The Principles of Performance Management are usually and most often used in the workplace. They can be applied wherever the people interact with their respective environment to produce the effects desired by them. Some examples of these places can be schools, churches, community meetings, sports teams, health settings, governmental agencies, social events, and even political events.
The managers of various organizations use performance Management to align the goals of the respective company with the goals of the teams and employees to increase efficiency and productivity and profitability. The guidelines of performance Management stipulates the activities and outcomes by which the employees and teams are evaluated during their performance appraisal.
To apply the principles of performance management, first, a commitment analysis is completed to create a mission statement for each and every job. The mission statement is a job definition in terms of product, customers, purpose, and scope. We use this analysis to determine the continuous key objectives and performance standards for every job position.
Following the commitment analysis comes the work analysis of a job in terms of the reporting structure and the description of the job. If the description of a job is not available, then a systems analysis is first completed to create a job description. This analysis is used by companies to determine the continuous critical objectives and performance standards for every job.
Two people, Werner Erhard and Michael C. Jensen and a few of their colleagues, developed a new approach for the improvement of performances in the organizations. The model these people created is used to stress how the constraints imposed by one’s worldview can impede cognitive abilities that would otherwise be available. Their work goes deep into the source of performance, which is not accessible by mere linear cause and effect analysis. They believe that the level of performance people achieve correlates with how the work situations occur to them. That language plays a central role in how situations occur to them, the performers. They also say that the substantial gains the performance are more probably to be achieved by management understanding how the employees understand the world and then implementing and encouraging changes which are useful and sensible to employees worldview.
Benefits of Performance Management
The Benefits of Performance Management are:
- Grow sales
- Reduce the cost of the organization
- Stop the project overruns
- Motivated workforce
- Improved management control.
The three Basic Stages of Performance Management are:
2. Corrective action
The Main Key Elements to Performance Management are:
1. Planning and Expectation Setting
3. Development and Improvement
4. Periodic Rating
5. Rewards and Compensation
6. Planning and Expectation Setting
A good Performance Management means that both Individual and Team Goals are aligned together and both work with the same goal in mind.