Performance management is the process of creating a supportive work environment that enables employees to achieve organizational goals through their work. It aims to ensure employees and teams know what is expected of them and are supported by coaching and feedback to help them meet their goals. Additionally, it is a way to identify any needed learning requirements and resources they need to develop.
Managers play a crucial role in ensuring that employees are aligned with organizational goals, receive regular coaching and feedback, and have the necessary resources to succeed.
Why Performance Management Is Important
Performance management is continual, forward-facing and developmentally focused. Ongoing performance management presents benefits such as:
- Achievement of organizational goals and individual job goals
- Improved employee engagement and motivation
- Improved talent retention
- Greater transparency by enabling broader conversations
Role of the Manager
Most employees want to be successful contributors. They want to know what is expected of them and how to achieve them most effectively. As a manager, your job is to:
- Clearly communicate expectations
- Provide employees with the tools, training and information they need to succeed
- Offer regular and timely feedback
- Recognize successes and achievements
- Provide support and opportunities for improvement
Quality performance management doesn’t just help the employee. It can make your job as a manager easier and help you build a high-functioning and productive team.
Elements of Performance Management
These elements all fall under the umbrella of performance management. While displayed in a list here, they should not be viewed as sequential or separate. The elements support and enhance each other.
- Setting Expectations
- Communication
- Feedback
- Coaching
- Recognition
- Performance Improvement Process, when needed
Key Takeaways
Performance management:
- Helps people perform to the best of their abilities in alignment with the performance expectations.
- Views individuals in the context of the broader workplace system and encourages their input in many ways.
- Focuses on accountability and transparency and fosters a clear understanding of expectations.
- Provides ongoing coaching and feedback to employees.