In this article, we will cover what performance management is and how it differs from performance evaluation. We will also anticipate some challenges that can be faced when adopting this form of management and present systems capable of facilitating the work of HR at the time of practice.
What Is Performance Management?
Performance management is a process that integrates strategy, learning, skills and quantitative and qualitative indicators. Therefore, the tools that make up this form of management are highly targeted. It involves aligning the organization’s objectives with the performance management and development of employees, as well as delivering results. This is a cyclical and continuous process.
In it, expectations between employees and leaders must be defined and aligned , who must know what they expect from each other. It is also necessary that the work is constantly monitored and evaluated. In addition, performance management also has a formal assessment stage of activities, so that individual or group actions and improvements can be designed for the development of employees and the company. Therefore, performance management is a process that seeks to establish a shared understanding of what must be achieved in the business.
What Is The Goal Of Performance Management?
This management mode aims to improve performance through learning, always with the objective of achieving the company’s global business strategy. For this reason, performance management integrates a multiplicity of elements that simultaneously contribute to the effectiveness of teams in companies, such as performance evaluations and IDPs . So, this is a systematic process that can be used to get team members to reach their goals, improve their efficiency and get better results at the same time that the company achieves its goals.
How To Do Performance Management?
To put performance management into practice, it is necessary to know the organization, the business model, goals, mission, vision and values very well and have the planning competence well developed. As we mentioned earlier, performance management happens in cycles. The length of each stage of the cycle may depend on the company’s organizational culture .
But in general, the shorter the cycles, the better. Therefore, the more constant the employees’ formal evaluations and feedbacks . However, feedbacks need not be restricted to the evaluation stage. You, as HR, can and should encourage a culture of feedback even during the follow-up phase. The following steps are part of these cycles: alignment of expectations, monitoring, performance evaluation and development actions.
Performance Management Cycle:
Alignment Of Expectations
The first step towards effective performance management is the alignment of expectations between managers and employees. After all, how will everyone know what to do if they are not clear about their role?
At this point, you need to be as thorough as possible. Managers must explain what they expect and how the results will be measured, as well as being open to questions from employees. Employees must be sincere about their availability and take advantage of this step so that they have no doubts about organizational objectives, what their role is and the strategy to achieve them. A good start for this alignment is the job description. However, it is not enough. For, in general it deals with the duties of the position. At this stage, the closer your team’s leadership is, the more likely it will be to succeed.
The monitoring phase occupies the longest time in the cycle. During this period, the leaders assist the employee, make sure that everything is going as planned and that the activities make sense both for the company’s objectives and for the employee. HR needs to foster a culture of feedback so that members do not wait for the end of the performance cycle to learn how to improve their performance.
Thus, the issue of informal feedback from peers and leadership is constant and continuous. This practice is important for constant development and for everyone to feel secure in their tasks. When positive, feedback also acts as recognition for a job well done. In this sense, feedback contributes to employee motivation and engagement.
At that moment, this monitoring was carried out, which was carried out with the employee and all the work developed so far. Here, a performance indicator for each employee, team or company is defined numerically. It is possible to evaluate each person according to their technical, behavioral or potential skills.
The scale used and the type of assessment – 360, 180, 90 degrees, among others – is decided by HR, taking into account culture and organizational objectives. This stage generates data and analyzes responsible for supporting various performance management decision making.
One of the analyzes that can be performed from the monitoring and formalized by the performance evaluation is the planning of individual or collective development actions. They must understand the organizational objectives in order to improve the performance of the employee or team in the next cycle.
An example of an individual development action is the IDPs. They must take into account what the employee needs to develop to help the company achieve its goals.