Basic Elements for Effective Performance Management

1. BASIC ELEMENTS FOR EFFECTIVE PERFORMANCE MANAGEMENT Performance management system has become a big party in a business enterprise. Here is what you need you to know for it to work for your business. Performance management systems have become a really important part of a business enterprise and have helped a lot of businesses to keep track of their progress and employees. Performance appraisal is not only good for your business but has a lot of impact on your employee’s capabili�es and their personal growth. Businesses with a proper performance management system have a higher chance of survival than businesses that depend on age-old methods of performance tracking. To implement a proper performance management system at your business, you need to make sure that all the basic elements of a performance management system are fulfilled. These elements may not sound as big of a deal individually but together they make a compound and stable system for a management system. Let us look at some of the most basic elements of a performance management system that need to be fulfilled. Goal Setting One of the very first steps of implemen�ng a performance management system is to set up a goal or standard which is used to gauge the performance of the employee or manager. Having a SMART goal for business and individual employees is one of the most important steps of performance management. A SMART goal signifies a Specific, Measurable, A�ainable, Realis�c, and Time-bound goal that will help keep your employee mo�vated and concerned. Having a smart goal for your business will allow you to have a standard for performance appraisal and help you keep track of your employee’s performance along with keeping them mo�vated and interested in their works. Collaborative system Another important element of a performance management system, that makes it stand out amongst all the previous management systems, is that it is based on a rather collabora�ve system rather than a hierarchical system. Meaning that managers are to involve employees in all the decision-making processes concerning their work-life and should get in contact with the employees directly. This not only makes it easier for the managers to keep track of individual progress but also helps in direct-learning as the employees are able to get direct informa�on from their managers and are able to grow as individuals as well as workers. Collabora�on also allows employees to have a sense of worth towards their works and makes them mo�vated to work harder and treat it as personal goals. Feedback Feedback is one of the most important elements of a performance appraisal system and is one of the factors that make the system work. Feedback refers to comments regarding the work done by a certain individual. Feedback can be both, posi�ve or construc�ve. Posi�ve feedback is a great way to encourage your employees to work harder and put in more effort into their work as public recogni�on is a great mo�vator. This is why it is said that posi�ve feedback should always be delivered in public to allow your employee a sense of accomplishment and incite a sense of posi�ve compe��on amongst the employees to get recogni�on. Whereas, construc�ve cri�cism helps your employee do their job in a more effec�ve and efficient way. Although it is just as important as posi�ve feedback, construc�ve feedback can some�mes be taken in a harsh way and should always be administered in private where any misunderstanding is cleared out without making it spread. Improvement For a lot of people, jobs aren’t just a means to spend their day in a produc�ve fashion. People work in order to get a sense of purpose and achievement and to grow as an individual. Allowing your employees to grow up as individuals by development campaigns and training campaigns. This allows your employees to add a li�le flair to their dull lives. Rewards and Compensation The idea of posi�ve reinforcement has always been a huge part of business performance appraisal. Allowing your employees to be rewarded with good performance is always a be�er way to go about it rather than punishing them for doing a bad job. Some possible rewards for in such cases would be. A salary increase A yearly one-off bonus Shares in the company Seats on the board Extra holiday �me Promo�on Increased recogni�on amongst peers (877) 624-7226 eleapsoftware.com info@eleapsoftware.com 1300 South Fourth Street, Suite 350, Louisville, KY 40208, United States