Performance management is a strategy that aims to manage the performance of employees, monitoring and providing conditions for better results. This performance must be aligned with corporate objectives, guiding employees to the company’s goals.
Such an approach considers the immersion of employees in the organizational culture, a closer relationship between teams and management and the individual development of professionals. All these aspects make up the formation of cohesive and engaged teams, capable of taking the organization to other levels.
Why does this practice make a difference in organizations?
We can observe, in many corporations, individualized work among employees, without a feeling of unity and effort towards a goal. This work ethic means that goals are often not achieved, leading the company to stagnation.
Competent Human Resources departments know that it is necessary to promote performance management system, a practice that leads to much more satisfactory performance.
These processes, in addition to promoting the knowledge necessary for employees to deliver a better product or service, also work on engagement. This is because, upon realizing that the organization cares about its growth, professionals tend to work with more enthusiasm and involvement, “wearing the shirt” of the company.
Several aspects can be improved with the implementation of performance management in the company. We can highlight:
- improved customer service;
- increase in qualification, through targeted training;
- process innovation;
- greater cohesion between teams;
- more efficient and inspiring leadership.
How to carry out this management?
The application of performance management requires structured planning, which traces a clear path between the activities and the objectives that it intends to achieve. Understand, below, which aspects should be worked on.
Do performance reviews
Try to understand how the employees are performing, through evaluations that show the performance of each one, what should be improved and the positive points. With this practice, HR has a clearer view of the skills of its employees and is able to work towards their development.
The training will enable employees, helping them to grow professionally and develop the most flawed points in their work. The company can propose internal or external training, identifying what should be worked on based on performance evaluations and what is necessary to achieve the company’s goals.
These trainings can be applied to develop technical aspects, such as knowledge of tools, or even emotional aspects, such as interpersonal skills for leadership.
For performance management to truly deliver results, employees and leadership must be involved and understand why it is being done.
Hold alignment meetings, explain how management will be carried out and what its objectives are and show employees how this practice can also help in their professional development.
With active participation, it is possible to carry out an efficient performance management that brings good results.
Promote ongoing follow-up
Performance management is a constant process, which should not be applied only on a one-off basis. For it to have a positive effect, it must be applied and measured continuously.
Always monitor the results and think of new strategies to solve new issues that arise. The trend is that this practice will become more and more well-improved over time, and only updates will be necessary.
After all these definitions, it’s time to understand the role of a performance management system in this process.
What is a performance management system?
Providing the development of your team members is essential to ensure good results. After all, it is the employees who effectively get their hands dirty and lead the business to success. However, training and goal tracking are not enough to guarantee a good team performance. That’s where performance management comes in.
Many companies believe that they perform performance management when they implement isolated and punctual actions to evaluate teams . However, to have concrete results, there must be a system with continuity and effectiveness.
The performance management system consists of software capable of identifying the quality of the work performed by the team in real time. In addition to measuring the efficiency of employees, these systems are complete, generating data of various types, including the engagement of a team at work.
Therefore, they work in the search for improvements in the quality of the results generated, allowing the evaluation, monitoring, correction and improvement of conduct and procedures performed by employees. It is a continuous and flexible process, focused on innovation.
How important is a performance management system?
The performance management system is extremely important for the future of the business. In an increasingly competitive market, your company needs to stand out from competitors by offering products or services of impeccable quality to customers.
In addition, the entire internal organization of the company and the bureaucracies related to it must work perfectly. Only then will you create a market differential and work towards business growth and success.
All of this can be achieved through a performance management system. It allows you to monitor results and diagnose problems, correcting them before they interfere with the quality of the product or service offered to customers.
In addition, using this system, you can monitor the results of qualifications and training offered to employees. That’s because you follow the metrics in real time, having access to very important data to identify improvements from the investments made.
Therefore, the performance management system can be the greatest ally of the quality sector of your business, in addition to improving the planning of the people management area.
How to implement a performance management system?
Faced with so many benefits, the need to implement this type of tool in the company is clear. However, to adopt it, it is important that you follow some basic steps.
Understand the dynamics of employee performance
First, to make a system that works and that generates changes in the behavior of employees, it is necessary to look for methods capable of promoting a fair and flexible evaluation. In this way, your organization, as an evaluator, must understand in depth how the dynamics of people’s performance within companies works.
There are, in this dynamic, three components interacting in a way that condition the performance of employees. Are they:
- capacity (development);
- environment (opportunity);
- effort (motivation).
How to do performance management? Evaluating them! Therefore, you must create methodologies focused on each of them and integrate them into the evaluation system.
Provide development opportunities
It is also up to the organization to offer opportunities for the employee to develop and grow. Thus, you need to invest in strategies in this aspect, and they should also be the objective of the evaluation implemented through the management system.
These assessments will not only help you when setting up a consistent career plan, but also serve as a parameter for improvement and training programs.
Your evaluation system must be continuous and coherent. Thus, it is possible to work with accessible indicators that demonstrate what you are looking to investigate.
Understand well what the company expects from employees and focus on these aspects. You can invest in a list of organizational competencies, as well as essential skills for each of your company’s roles.
In addition, it is possible to assess the organizational environment, company climate, leadership and team motivation. With these skills and job characteristics in hand, you will be able to implement an efficient appraisal system in your company.
Remember that only by measuring the most important aspects of management, it is possible to identify problems and propose improvements.
Performance management work requires ongoing leadership attention. Giving annual feedback based on the latest results will totally discourage the team and is a waste of the investment made to carry out this work.
Constantly follow up, give short, accurate and recurring feedback, detect variations in indicators (both negative and positive) and observe changes in behavior and how they impacted productivity.
With this monitoring, the management system will work as a general framework and will provide the necessary information for new strategies to be applied and results achieved.