Understanding Performance Management

Performance management often gets confused with a process known as micro-management. Performance management is the process of analyzing an employee's performance and then offering training and other necessary resources to improve performance. Micro-management is when a manager scrutinizes every decision an employee makes and requires an employee to submit all work to the manager before it is sent out to its designated recipient. With performance management, productive employees are rewarded and non-productive employees are identified and addressed. Performance management also helps to strengthen job descriptions and make the company's overall performance more efficient.

Planning and Setting Expectations

When it comes to planning and setting expectations in performance management, it is critically important to set goals that can be measured and evaluated. The manager works with the employee on establishing performance expectations, and then there is a set of metrics created that can make it easier for the manager to evaluate the employee's work. The manager must get the employee to understand how the employee's job adds value to the company and why quality work is essential to the success of the organization.

Monitoring Employee Performance

Once the employee expectations are in place, the manager must maintain a monitoring program to help track the employee's progress. The biggest mistake some managers make is they only monitor employee performance close to the annual evaluations. In performance management, the ongoing monitoring of employee work habits and productivity is an essential part of the company's success. If the manager detects any kind of unacceptable levels of performance from the employee, then those issues need to be addressed immediately.

Nurturing Performance

When a manager is utilizing ongoing performance evaluations, it becomes easier to determine what kind of resources an employee needs to succeed. The employee may require further classroom training, or a hands-on training course may be more appropriate. The manager must use all of the resources at their disposal to nurture the employee's performance and give that employee every possible chance to improve productivity and offer value to the company. It could be that the employee would excel in another position within the company. These are determinations the manager makes when nurturing performance.

?Developing a Performance Rating System

It is important to be able to rate an employee's performance because that is one of the primary ways to determine progress. Performance management is all about getting the most from employees and being certain that employees have the resources they need to bring value to the company. Managers must develop a performance rating system and then use that system to determine if an employee is developing properly, or if there is an issue with the employee's professional progress. The manager should also share performance ratings with the employee so that the employee can see their progress, or understand that there are challenges to be addressed. When the final rating for the year is revealed to the employee, it should be something that the employee understands and, in many ways, expects.

Reward Positive Results

Rewards can be in the form of raises, promotions, or other forms of recognition. A manager may decide to give an employee more responsibility as a reward for good work to show that the employee is managerial material. The rewards given must be in line with the departmental policies and they must also fit the performance. If a manager offers too much reward, then that could extinguish the motivation for the rewarded employee, who may feel that advancement in the company is easy, and it will also work to create disgruntled employees as well.