Performance Management

Performance Management is the communication between employee and manager about what needs to be done, how they did and what improvement could be made. We manage through developing desired competences and building human capital within organizations. It plays a key integrating role within an organization's human resource processes. Firstly, it provides a checking mechanism for resourcing policies and procedures (i.e. evaluating the quality of newly hired and also the underlying decision-making process). Secondly, it identify and promote desirable work behavior and monitors employee commitment and the relevance of their working behavior to business objectives. Thirdly, it provides a rationale for an organization's pay policies by linking rewards to measured performance.

Performance Management Cycle

1.    Performance Planning: Seting an Objectives

The objective should be central to the goals of the organization. Ensure that the objective aligned with the mission of the organization.

An objective is simply a statement of what is to done and should be stated in terms of results. A mnemonic aid to write objectives is SMART (Specific, Measurable, Attainable, Result-oriented, Time-limited).

Specific: An objective must be specific with a single key result. If more than one result is to be accomplished, more than one objective should be written. Just knowing what is to be accomplished is a big step toward achieving it.

Measurable: State the objective as a quantity. However, difficulty does not mean that they cannot be measured.

Attainable: An objective must be attainable with the resources that are available. It must be realistic.

Result-oriented: The successful completion of the objective should make a difference.

Time-limited: The objective should be traceable. Specific objectives enable time priorities to be set and time to be used on objectives that really matter.

To test for validity of SMART objectives, ask yourself the following questions.

S = Exactly what is my objective?

M = What would a good job look like?

A = Is my objective feasible?

R = Is my objective meaningful?

T = Is my objective traceable?

2.   Coaching The People.

The two greatest impediments to worthy performance are the lack of direction and the lack of feedback. For some reason managers don't always give their staff enough direction and feedback. It is become every manager’s responsibility to ensure that every people under his supervision can achieve the performance standards desired by giving them direction and feedback

3.   Performance Appraisal

In general, the performance appraisal means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. 

4.   Performance Counselling

The way to communicate to the employee if he is on target regarding a goal he is trying to achieve. The purpose is to reinforce or correct the employee’s behavior.

5.   Performance Rewarding

Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the company’s mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative.