Performance Management

Content:

• Introduction
• Performance Management Cycle
• Management Cycle Important Areas 
• S.M.A.R.T. Method
• Why Set Goals?
• Reference List

Image source: https://hr.uga.edu/Current_Employees/Managers/Manager_Performance_Management/

Introduction

Performance management is a continuous process of planning, monitoring, reviewing, and rewarding employee performance. It is a critical part of any organization's success, as it helps to ensure that employees are aligned with organizational goals and are performing at their best.

Image source:  https://www.valamis.com/hub/performance-management-cycle#what-is-pmc

What is the Performance Management Cycle? 

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Video source: https://www.youtube.com/watch?v=a9r0JeoXuek

Planning

The planning stage involves setting clear and measurable performance goals for employees. These goals should be aligned with the organization's overall goals and should be specific, measurable, achievable, relevant, and time-bound (SMART).

Monitoring

The monitoring stage involves tracking employee progress towards their goals and providing feedback on a regular basis. This feedback should be both positive and constructive, and it should help employees to identify areas where they need to improve.

Reviewing

The reviewing stage involves a formal assessment of employee performance at the end of a performance period. This review should be based on the goals that were set in the planning stage and the feedback that was provided during the monitoring stage.

Rewarding

The rewarding stage involves recognizing and rewarding employees for their achievements. This can be done through financial rewards, non-financial rewards, or a combination of both.

According to tech funnel, employees are 50% more likely to be engaged if they are rewarded for their efforts, and 68% of employees will put in more effort if they are recognized and acknowledged. (Noor Karkara is a writer)

Source:  https://blog.darwinbox.com/performance-management-benefits-challenges-advantages 

Why is the performance management cycle important in business?

By developing the performance management cycle plan an organization can maximize the output of their employees, ensure that organizational goals are being driven forward and concretely track the performance of each employee.

In following the performance management cycle model, an organization can also continually revisit its own structural goals, which allows for a quicker response to changing market forces. This flexibility means increased competitiveness.

Employees also benefit from the performance management cycle plan.

Through collaboration with and support from their management team, they see that they are a valued member of a team. Their skills are being developed and used in meaningful ways, and there is a reward for hard work.

All of those are factors in job satisfaction and will improve employee retention.

(By Author - Mr.Ivan Andreev - Senior Associate - ivan.andreev@valamis.com )

Setting Goals - S.M.A.R.T. Method

Specific

A SMART goal should be specific and clearly defined. What exactly do you want to achieve? The more specific your goal is, the easier it will be to track your progress and stay motivated.

Measurable

A SMART goal should be measurable so that you can track your progress and see how close you are to achieving it. This means having a clear metric or benchmark for success.

Achievable

A SMART goal should be achievable but challenging. It should be something that you can realistically achieve with the resources and skills that you have.

Relevant

A SMART goal should be relevant to your overall goals and objectives. Make sure that the goal is something that you really want to achieve and that it is aligned with your long-term plans.

Time-bound

A SMART goal should have a specific deadline or time frame. This will help you to stay on track and make sure that you are making progress towards your goal.

SMART goals were developed by George Doran, Arthur Miller and James Cunningham in their 1981 article “There’s a S.M.A.R.T. way to write management goals and objectives”.  (source: https://cce.bard.edu/files/Setting-Goals.pdf )

Why Set Goals?

Add value to the work that you are doing • help disseminate the workload more evenly • allow you to assess your progress along the way • help you figure out how to move forward if you encounter drawbacks • manage your time more effectively which can diminish burn out or needless work for you or your group • establish what you are trying to accomplish • clarify the definition of success • develop clear purpose which can help with recruitment of volunteers or community partners • inform budget development and, identification of resources • demonstrate that your organization is going to provide manageable tasks • help you work smarter not harder

(Source: https://cce.bard.edu/files/Setting-Goals.pdf )

Reference list:

• George Doran, Arthur Miller and James Cunningham in their 1981 article “There’s a S.M.A.R.T
• By Author - Mr.Ivan Andreev
• Noor Karkara,
  July 5, 2022 
   
• Supported done by Grammarly 

"The only real difference between one organization and another is the performance of its people"

Peter F. Druker

 Prepared by Janaka Bandaranayaka | Student E-Soft MBA