Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. It is an indispensable device in an organization’s toolbox. With focused and disciplined communication driving performance management, the process feeds the momentum of an organization. Through individual goal achievement, a company’s growth and success objectives are achieved in parallel with employee goals.

Human Resources should definitely play a role in managing an organization’s performance management process, but the tone of the practice should be set from the top. Successful performance management ensures employees are familiar with the operating and strategic targets of an organization throughout the year.

Establishing  a performance management system that’s mutually beneficial to employees and the organization doesn’t have to be a stressful ordeal. It just takes commitment from everyone involved. The following foundation will help create an effective performance management process:

•    Generate a means for customary 1x1 discussions between employees and their supervisors. A 1x1 should cover status updates, coaching and feedback regarding not only the employee’s performance but the organization’s objectives. Build that strategic partnership!

•    Match individual employee work efforts with the organization’s mission and objectives. Ensure the employee understands their role within the organization, and how the responsibilities of the role link to the organizational and departmental goals.

•    Set clear expectations about results that must be achieved and methods or approaches needed to achieve them. Establish a clear path for success.

•    Utilize specific measures to help the employee focus their efforts. Having objectives and standards will help provide a solid rationale for eliminating inefficiencies.

•    Explain career development opportunities. Provide details regarding how the employee’s current position supports present growth potential, and detail additional opportunities he/she should explore.

With the proper procedures in place, the annual “formal” appraisal should simply be an opportunity to summarize the conversations you and your employee have had throughout the review cycle. An employee’s performance should be viewed as an ongoing process driven by regularly focused and disciplined communication throughout the year!