The basics of performance management is this. Performance is the true test of survival in the marketplace. High-performing employees contribute superior performance, giving your organization its main competitive advantage. You may have a world-class system in place to create those superior performers, but it’s only as good as the management and organizational objectives behind it.
Ask yourself: Are you so focused on revenue generation or another particular aspect of the business that you forget to nurture your best ambassadors – your employees?
A system for sustainable growth
It’s important for any organization to have systems in place to identify, recognize, reward, and retain their top performers in order to achieve sustainable growth. An effective performance management system should encourage collaboration, teamwork and communication to identify:
- Job performance standards and measures
- Job behaviors required in accomplishing specific job tasks and meeting job responsibilities
- Competencies demonstrated by average and superior performers in key jobs
Results equal rewards
The results of the performance management data you collect can be used for decisions concerning rewards, bonuses and other employee incentives. For example, competency and job behavior data are typically used for decisions about development. So, if an employee is appraised as lacking group leadership skills, they might be asked to attend a course in order to further develop this skill. And… skill-based compensation systems explicitly tie rewards to skills developed. That spells ‘Motivation’!
Invest in your best
Effective performance appraisals essentially turn on the proper use of each type of data given the system objectives and what degree of control employees have over their performance. Having a solid performance management system in place is truly an investment in the people who help drive revenue for your business – and their extra effort can differentiate good organizations from great ones. This is the primary component of the basics of performance management.
To learn more on how we can help, please visit our website.