Performance Management > toward a successful business
How to effectively achieve corporate business objectives and ensure successful business management? The measures that can be implemented at the organization level are numerous. These include performance management, an increasingly popular practice for ensuring that a company's productivity is increased.
But what is it all about? What is performance management and what are its purposes? Also, how is this practice implemented within the company?
Let's discover together the secrets of performance management, which has now become a must for achieving business success!
What is performance management? > Definition.
The term Performance Management refers to the communicative process that takes place between the employee and his or her supervisor and involves the evaluation of his or her performance.
Performance management is a process of exchanging information between managers and employees in order to arrive at a definition of the quality of their performance in the light of the company's predetermined discoveries. It is a process of analyzing performance in order to check whether individual behaviors are in accordance with corporate objectives.
II Project Management is thus configured as the set of methodologies and processes developed to measure the degree of alignment between the company's strategic objectives and the performance of employees, as well as the set of criteria and techniques for evaluating the performance of the workers themselves.
Performance Management System
So, to define the performance management process we also refer to the Performance Management System, or performance management system, which is the network of techniques, procedures and criteria applied to promote the evaluation and implementation of employee performance.
The purpose of the Performance Management System is to set goals and make manifest the competencies expected by the company from each individual employee.
What is the purpose of performance management? > Purpose
Performance Management is used to promote the personal development of the employee in order to ensure, through his or her growth, the development of the business itself.
Performance Management is a process based on the principle of investing in the company's human capital to foster the growth of economic capital.
In fact, performance management pursues the goal of operating continuous improvement in the performance of the human resources employed in a company, because it is based on the belief that the growth of the business itself is primarily guaranteed by the quality of employees' performance.
So, performance management systems are procedures aimed at implementing employee performance, based on the belief that employee performance is the basis on which a decisive increase in business turnover can be carried out.
In this view, personal growth of employees and economic growth of the business are two closely related concepts.
The benefits brought by the application of performance management are obvious: let's see them together.
Performance management...
→ Creates greater motivation among employees
😊 Performance Management, when properly applied, creates a motivational increase among employees.
Communication with the supervisor results in a growth opportunity for the employee. In fact, the point of performance management is that the employee must be able to emerge from the confrontation with his supervisor enriched in terms of motivation and sharing in the company's values. He must feel incentivized to improve and spurred to exhibit his best professional qualities.
→ Allows retention of talent
👑 Human resource development can have a positive impact in terms of retaining talented human resources within the corporate landscape.
In fact, if an employee feels humanly regarded and appreciated, he will be more motivated not to leave the company. Not only that, he or she will also be inclined to be more actively engaged so that the business of which he or she is a part succeeds.
In fact, there is evidence that an increase in an employee's degree of personal satisfaction increases his degree of involvement for the company's cause.
→ Promotes increased earnings
💰 Only a motivated employee can result in an effective increase in a company's earnings.
In fact, an employee who is satisfied with his or her role within the business, not only from an employment point of view, but also from a human point of view, is an employee who can easily provide quality professional services. And it is these that ultimately make the difference in defining the effectiveness of a business.
In fact, it is precisely to quality professional performance that an increase in business turnover is linked. Noted is that satisfied workers are employees who are inclined to provide added value to the company and to devote themselves with special zeal and creativity to the achievement of company goals.
Performance Management > How to implement it optimally
→ Promote internal communication within the company.
Developing a good internal communication plan is essential to ensuring a good performance management strategy.
In fact, communication within the company must be constant, fluid, dynamic, clear, easy, and consistent.
Evaluation interview.
Between supervisor and employee, internal communication often takes the form of an appraisal interview. In it attention is given to feedback regarding the employee's performance but, unlike traditional evaluation systems, this time the focus is not on the past but on the future.
This means that the employee is evaluated not so much on what he or she has done up to the time of the interview, but with respect to what he or she will be able to do in the future. In this way, the employee's potential and abilities are highlighted, not so much how much of them he has or has not yet shown.
Important: Performance management should be based on objective judgments, that is, based on clear and shared KPIs. In this type of evaluation, there is no room for subjectivity on the part of the evaluator.
Feedback is aimed at promoting merit and the possibility of filling any gaps in the employee in a constructive way, not of his or her deprecation. The goal is to foster professional growth, not regression.
→ Developing employee competencies.
So, performance management aims to incentivize the employee's personal progress in order to foster the overall progress of the company.
As we have already mentioned, the focus is on enhancing the human resources at hand. In fact, employees are led, through the process of performance management, to develop their skills with a view to increasing company productivity.
In this sense, it is necessary to be very clear about each employee's own tasks and skills and in what direction his or her work should go. Indeed, it will be in this direction that professional growth must take place. The latter will have to be based on an implementation of both the technical skills needed to do the job and the soft skills, which are increasingly important in determining a quality work environment.
In this case, competency mapping, which is a tool used in management circles to be able to assess the savoir-faire and savoir-être of each human resource, can be used.
Mapping the competencies of each employee can help in understanding in what areas it is necessary to work on increasing the performance of one's employees in order to achieve company goals.
Performance management: application in practice > guidelines
Now that we have clarified what the benefits of implementing a performance management strategy are, let's look at how to develop one in such a way that it is successful.
→ Set goals to be achieved
The first step toward successful performance management is to set business goals to be achieved.
In fact, in order to increase an employee's performance, it is necessary to understand what purpose he or she is employing his or her skills toward. Only in this way, in fact, will it be possible to have a clear and precise overview of exactly what skills should be implemented.
→ Define the type of performance that is expected.
Closely related to setting business goals is defining the type of performance that is expected of the employee.
Both for the supervisor and, more importantly, for the employee, it is important, in fact, to understand what is expected of him or her, that is, what job performance is deemed to be the winning one in order to achieve the set goals.
Knowledge of expected performance can be crucial for the employee, as it will enable him to calibrate his skills and attitudes according to what is expected of him.
→ Operate constant monitoring of results
For performance management to be effective, interviews, then feedback, must be frequent, that is, conducted on a regular basis. In fact, the evaluation operation must be carried out consistently in order to bring satisfactory results.
In fact, the monitoring, evaluation and growth process must be ongoing, not result in a one-time experience.
→ Evaluation of performance, not of the person
Especially with regard to the expression of criticism, but in general in any kind of evaluation, it should be made clear that feedback should not be given with reference to the person in question, but to his or her professional performance.
This is very important! In fact, an evaluation in the work environment never defines the quality of a person and should never be a value judgment of that person.
Instead, feedback is aimed at judging the method of work or attitude toward the profession.
☝☝ In the evaluation process, no employee should feel challenged as a person, but should, if anything, receive notes on how to improve his or her approach to the profession performed.
The measures aimed at implementing a good performance management strategy can be various and varied, however, it is good to keep in mind the points described in this article. They, in fact, constitute the cornerstones, not to say the sine qua non of good performance management performance.
Do you have any advice or personal experience you would like to share with us? Please feel free to do so by leaving a comment in the appropriate section!
Article translated from Italian