Performance management refers to the range of measures put into place to ensure proper progress towards the achievement of the business’s objectives.
The term “performance management” is used to describe the practices that drive performance, remuneration, promotions, training and development, terminations and disciplinary procedures as they pertain to organisations personnel.
For a business to effectively manage the performance of its team, it needs to:
- Have a structure designed to support high performance
- Have clear performance policies
- Foster an active performance improvement ethos
- Ensure that everyone knows and understands what is expected from them in respect of their job role and the team
- Regularly provide feedback and the opportunity to discuss work performance
- Have performance linked remuneration structures where appropriate
- Have systems for rewarding exceptional performance and loyalty
- Provide counselling for underperformance and/or behaviour which is out of alignment with organisational standards
- Provide a supportive and caring environment
There comes a time where a business needs to move from ad-hoc arrangements to a formal performance managed environment driven by systems. As the business grows, so these should be reviewed to keep in-line with developing requirements. The results of this exercise invariably provide a significant return on investment.