Employee Self Service

How Effective Performance Management Can Improve Your Company’s Success

What is the per­for­mance man­age­ment? What are the advantages and impor­tance of per­for­mance man­age­ment? Learn about how per­for­mance man­age­ment improves lev­els of employ­ee engage­ment, employ­ee reten­tion and com­pa­ny pro­duc­tiv­i­ty when enhanc­ing your bot­tom line.

CEOs and influ­encers in busi­ness continuously inform the impor­tance of effec­tive per­for­mance man­age­ment — the act of involving an employ­ee to overview their work­place per­for­mance and devel­op­ment: the man­age­ment process com­bines data gath­ering through mon­i­tor­ing goal com­ple­tion, dis­cus­sions and feedback. By examining strengths and learn­ing from mis­takes and investigating poten­tial for devel­op­ment and growth, busi­ness­es can devel­op tal­ent, improve indi­vid­ual per­for­mance and minimize prob­lems But this is eas­i­er said than done.

There are various per­for­mance man­age­ment tools, and approach­es com­pa­nies can take to encourage, mon­i­tor and man­age employ­ees. Now, we’ll see why we should have employ­ee per­for­mance reviews at work.

The Goal of Any Good Per­for­mance Man­age­ment System

There are several diverse approach­es, tools and tech­niques involved in per­for­mance man­age­ment. No two per­for­mance man­age­ment sys­tems will look similar. Like com­pa­ny’s cul­ture, your per­for­mance man­age­ment sys­tem will be unique and particular to your val­ues, your goals and your pur­pose. However, every reasonable per­for­mance man­age­ment sys­tem searches to work to the improve­ment of the over­all organ­i­sa­tion­al per­for­mance, when sup­port­ing pro­duc­tiv­i­ty, performance and the well­be­ing of its employees. 

Each per­for­mance man­age­ment sys­tem should enable the achieve­ment of over­all goals and ambi­tions while align­ing them with employ­ee goals. This way, per­for­mance and busi­ness objec­tives assist employ­ee’s morale and wellness. 

Why should you have Per­for­mance Appraisals at Work?

Every organization wants its ranks filled with energetic, ambi­tious employ­ees who per­form their roles per­fect­ly and consistently exceed expec­ta­tions. The real­i­ty is human beings are flawed. Some days, we may be moti­vat­ed to per­form, while on oth­ers, we might overcome prob­lems and obsta­cles that impede our progress and productivity.

We need per­for­mance appraisals to present employ­ees they have sup­port, to offer train­ing and devel­op­ment and to deliv­er reward and recog­ni­tion. When per­formed continuously, per­for­mance reviews also enable com­pa­nies to pick up on seri­ous per­for­mance matters, mean­ing they can be set right, rather than esca­lat­ing into more hard problems.

Con­tin­u­ous Per­for­mance Man­age­ment vs Annu­al Appraisals

As men­tioned earlier, there is more than one way to reach per­for­mance man­age­ment. Cur­rent­ly, there are two techniques when it comes to assessing per­for­mance and man­ag­ing tal­ent progression:

  1. Regular per­for­mance man­age­ment
  2. Tra­di­tion­al annu­al appraisals

65% of com­pa­nies are still utilizing yearly appraisals over a con­tin­u­ous per­for­mance man­age­ment sys­tem. This tra­di­tion­al technique of annu­al per­for­mance reviews entails a time-con­­sum­ing for­mal review that takes place once or twice a year. Dur­ing this review, an employee’s per­for­mance over the last six to twelve months is examined, and future tar­gets or objec­tives are set. Even though they remain fair­ly preva­lent, annu­al per­for­mance appraisals are not an effec­tive per­for­mance man­age­ment process. Giv­en the exten­sive paper­work included and the for­mal, back­­wards-look­ing nature of the reviews, they are also pret­ty detest­ed by man­agers and employ­ees alike.

 Rapid per­for­mance man­age­ment includes reg­u­lar, year-round check-in meet­ings mixed with fre­quent real-time feed­back with the goal of improv­ing per­for­mance continuously. Agile per­for­mance man­age­ment has tak­en off in last years, as tech­nol­o­gy develops and our under­stand­ing of human psy­chol­o­gy and moti­va­tion improves. Besides that, busi­ness­es are recog­nising the issues inher­ent with annu­al appraisals and are keen to move to new techniques of man­ag­ing their talents. But what is the pur­pose of per­for­mance man­age­ment? What are the busi­ness advantages of the con­tin­u­ous per­for­mance man­age­ment cycle?

Employ­ees set SMARTer Objec­tives and organize their Per­son­al Devel­op­ment Plans.

Per­for­mance man­age­ment soft­ware allows the process of set­ting objec­tives a more effec­tive and collaborative approach. It lets employ­ees and man­agers to work togeth­er to agree on SMART objec­tives and make sure that they align with the company’s over­all goals. Employ­ees can add updates to their objec­tives so that they may keep track of their achievements.

Self-devel­op­ment plans can also be man­aged using per­for­mance man­age­ment soft­ware. Self-devel­op­ment is a dri­ving force for improved employ­ee engagement and. Great per­for­mance man­age­ment soft­ware inspires employ­ees to update their per­son­al devel­op­ment plans, which HR may report on to plan train­ing and devel­op­ment across the organization.

Man­agers can cap­ture Action Points from Check-Ins.

Paper notes tak­en dur­ing check-in meet­ings can eas­i­ly wind up filed away some­where out of sight or just mis­placed. By utilizing per­for­mance man­age­ment soft­ware with inte­grat­ed check-ins, man­agers can cap­ture key action points and notes online. These can be accessed by both the man­ag­er and the employ­ee so that they can view what was dis­cussed. 

Whole teams can gain Real-Time Feedback.

Per­for­mance man­age­ment soft­ware lets feed­back be giv­en instan­ta­neous­ly, right after an event has happened, a key ingre­di­ent of rapid per­for­mance man­age­ment. Feed­back can be giv­en by senior man­agers or co-work­ers, and a good sys­tem will enable that feed­back is struc­tured in a way which provides it is either pos­i­tive or con­struc­tive, max­imis­ing its impact. 

Develop col­lab­o­ra­tion amongst teams

Per­for­mance man­age­ment soft­ware is rapidly mod­el­ling itself on social media, inte­grat­ing user-friend­ly inter­faces to develop col­lab­o­ra­tion between teams. Contemporary per­for­mance man­age­ment soft­ware can be accessed from any tablet, smartphone or desktop.

Improve HR efficiency

Stor­ing, all of the company’s data about their employee’s per­for­mance on a cen­tralised, allows for faster, more accu­rate per­for­mance man­age­ment. HR can export per­for­mance information and down­load it into an excel spread­sheet, giv­ing them vis­i­bil­i­ty of how often check-ins are tak­ing place how objec­tives are pro­gress­ing across the organization.

Securely back up data.

Gone are the days of paper-based reports rammed into fil­ing cab­i­nets. Per­for­mance man­age­ment soft­ware enables data to be accessed 24⁄7 on the cloud. At kpi.com, we utilize the lat­est data encryp­tion tech­nolo­gies and we back­up data every sec­ond to make sure that com­pa­ny and employ­ee data is safe and secure.

Would you like to learn more about per­for­mance man­age­ment software?

 Take a look at kpi.com’s per­for­mance man­age­ment soft­ware to see how it can increase pro­duc­tiv­i­ty in your organ­i­sa­tion. Book a demo now with our team members.