What Is The Difference Between Performance Management And Performance Evaluation?


Performance management should not be confused with performance evaluation. Performance evaluation is a tool that can be used in performance management.The importance of evaluation lies in its objectivity, being a numerical indicator that represents the performance of the employee or team. From this number and what it represents, it is more possible to draw clearer goals and development plans.

This data extracted from the assessment can show a macro view of the organization, enabling a comparison of performance between sectors or even between competitors.

What Are The Challenges Of Performance Management?

Now that you have a better understanding of what performance management is and how to put it into practice, we will also present some of the challenges in implementing this form of management. Knowing these challenges ahead of time, we hope that you are already prepared to overcome them if you encounter them.

Lack Of Integration And Inadequate Design

This is one of the biggest challenges that can come your way. The lack of integration between strategic planning, human resources and organizational culture hinders the flow of information and makes performance management a less effective process. In order not to take that risk, performance management systems cannot be a simple copy of another company.

Intensive consultation with the various stakeholders and users of the system is necessary for it to work. For example, think that your company is a startup in the insurance business and you want to implement performance management. With that in mind, you studied the subject and found that you need a performance appraisal. Aiming for success, you base your evaluation on another company, which today is very successful. However, this other company is traditional, hierarchical and in the field of information technology.

Her assessment will focus on completely different technical and behavioral skills that your company needs to focus on. After all, while you are a startup, it is much more hierarchical. While you sell insurance, it sells software. It should be noted that the behaviors and knowledge expected from employees of your company and that of another company are different.

Finally, performance management needs to be seen as an ongoing process and not an activity carried out seasonally. The project should include tools to reward good performance and deal with poor execution. Be sure to access our free spreadsheet to help you ensure the efficiency of your performance management. In it, you can choose the most important competencies for your company’s success.

Rapid Business Advancement

Many companies conduct performance appraisals based on the goals established at the beginning of the year. However, we know that in today’s world, market dynamics can change in seconds. Assuming that your organization has a set of static goals, when a new competitor emerges, those goals may not be the best or they may not be more strategic to guide you towards the best results.

In dynamic industries like software, for example, not regularly reviewing your goals means taking the risk of missing out on great opportunities. And as the pace of business continues to accelerate, this problem could get even worse. If the organization’s goals become more flexible, each employee’s goals need to keep pace. Having half your workforce swimming in the opposite direction is enough to hinder the course of your operations.

For example: we know that the turnover rate directly impacts dismissal expenses and costs with selection processes. Therefore, it is necessary to act quickly in the face of this scenario. If one of the company’s objectives is to reduce expenses and that of HR, in turn, is to reduce the turnover rate, the goals of employees must be aligned with these needs.

Organize Your Large Employee Training

Training a large group of works takes contriving, coordination and focus. There are several improve principles to consider. The first is your deadline. In what time frame do you have to have your employees civilized? Second are you working on a roll out of product, or are you under the time constraints of an upcoming major event? Third what employees should be on your priority training list?

These employees would include directors who will assist in administering and implementation, induces that may be assigned to working or driving heavy system paraphernalium such as fork raisings, aerial raisings, trailers, dozers, loaders, and or computer controlled diagnostic rig, and key admin and training courses personal that are responsible for reporting statistical information, and provisioning administrative and training courses assistance and troubleshooting while the training is underway.


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