The traditional annual appraisal has evolved into a much more strategic and integrated process, presently known as performance management. It aims at enriching jobs, increasing accountability and giving employees autonomy, thus developing high-performance teams and individuals. This in turn improves organisational performance and builds successful organisations.
The performance management process focuses on observed behaviours and concrete results, based on previously established smart objectives. The objectives are mutually decided at the beginning of the performance year and serve as a standard of performance for evaluation. It is a cycle of planning, implementing, reviewing and evaluating.
Benefits of a performance management process:
- Organisational improvement through developing each individual employee
- To establish each employee’s strengths and weaknesses and develop a strategic plan that will enable the company to utilise these skills in the best way possible
- To enhance the commitment, motivation and loyalty of each employee as the company is seen to actively care about the welfare and needs of each employee
- To establish aligned company and individual goals in order to ensure all parties are working towards a shared vision/objective
- To improve/change the leadership style and culture of the company
- To improve communication, trust, rapport, loyalty between all parties
- To pinpoint where the company needs to develop and improve
When implementing a performance management process, we first suggest that you consider the questions below:
- What is the company’s overall goals and key result areas?
- Where is the business now and where do I want it to be?
- What are the company’s core values?
When you have a clear understanding of these areas, you can begin to set individual goals by aligning them with the company goals. Considering the competencies and capabilities required for each individual role is also key. Consultation and mutual agreement between employee and employer are vital. The review process itself must be participative and open, target-based and development based. A well laid-out performance review form will assist with the review process and will be used as a continuous and live document throughout the year.
Boyd HR will guide you with designing a tailored performance management system for your organisation, which focuses on bringing your employees and your organisation to a high performing level.
If you would like to learn more about a performance management system and how it could benefit your organisation, call Boyd HR on 074 912 3150.