Having a strategy for business growth is imperative to success.
And, creating SMART business goals are the best way to achieve those objectives.
However, goals and objectives are only as effective as the people who have responsibility for completing them.
Managing employee performance is how work gets done and goals are accomplished.
Creating a process and structure for managing performance can help organizations achieve business success.
We are all busy, and sometimes do not invest the time to develop a performance management structure, process, and training.
This lack of structure and training can result in a bad experience for all involved.
For the employees who may be given inconsistent and biased feedback, and for the managers who are forced to perform a duty that they are not trained or prepared to do.
A performance management structure is a framework used to manage performance.
This structure includes a process to manage performance as part of the business strategy and includes a top-down emphasis on accountability and performance.
As with most areas of business, performance management is only as good as senior management’s commitment to it.
It is the systematic approach to tracking, documenting, and communicating performance goals, expectations as well as closing the loop by providing employees feedback on how well they met expectations.
The ability for an organization to do this well has a direct effect on employees and can impact how the employee perceives the process, and ultimately the organization.
Training is important for both managers and employees.
Managers need to have a good understanding of the process of managing performance and the expectations for their part in documenting and communicating to employees on how well they are performing, i.e., employee goal achievement.
Training for employees is also important so that employees understand their responsibility in performing job duties and how they will be assessed during the performance appraisal process.
When managers don’t have a good understanding of the process, and the employees receive inconsistent messages about their performance, the system fails.
3 Reasons You Need to Manage Employee Performance
1. Employee Confusion
When employees don’t receive consistent messages about their performance they feel confused.
This is why managers should communicate performance expectations and collect data throughout the year by documenting performance behaviors.
This step removes all rater biases and keeps the communication open and objective.
2. Low Morale
Employee morale can be affected when employees can’t tie their performance to compensation rewards.
When employees become discouraged it impacts morale and can have an impact on the culture of the organization.
Happy employees make for a positive work environment.
3. Low Productivity
When employees experience low morale and feelings of being hopeless in their efforts, productivity will naturally decline.
This is concerning particularly when management doesn’t monitor performance and may not even realize the scope and business impact of discouraged and unproductive employees.
This is particularly important when it comes to cost control and overseeing budgetary expenses.
Paying salaries for unproductive workers is a sad waste of resources.
Finally, supervising and coaching employees can be challenging for anyone in a management role.
It is a time consuming, repetitive, and often a thankless job.
However, managers who are allowed to function within scopes of a strong performance management system can see the effects of employee development and growth which is one of the greatest rewards of being a manager!
Does your organization have a structured process to manage performance?