Performance management is the continuous process of planning, monitoring, evaluation of set objectives with an aim of aligning day-to-day operations with the overall company goals and objectives. For organizations to effectively manage performance, a robust performance management framework that is supported by policy.
Performance management is a forward-looking solution that consists of distinct steps that enable the employer to make objective decisions based on performance outcomes. These steps are as follows:
I. Planning and objective setting: This phase involves laying down goals and objectives and communicating them to an employee so as to ensure that they are informed of what is expected of them by their employer.
II. Monitoring: In this stage, the employee HR and supervisors monitor the performance in comparison with the goals and objectives set. This should be done on a daily, weekly and monthly basis so as to ensure that remedial action is taken in good time.
III. Development and improvement: The supervisors use information obtained from the monitoring phase above to identify areas that require improvement and development. Training and coaching programs are put in place to address the gaps or improve the strengths of individual employees so as to enhance their productivity.
IV. Rating and appraisal: Periodic rating and performance appraisal is done using the Key Performance Indicators (KPI) previously outlined to the employees within a specific period as guided by the organization’s policy.
V. Rewarding: This phase involves providing both monetary and non-monetary incentives (e.g. promotion and recognition) to best performing employees so as to boost their morale in operations.
The importance of the performance management process cannot be over-emphasized as it is an avenue for management and employees to discuss a way forward for the organization by discussing the achievement of individual goals which translates to achievement of organizational goals.
