Components of performance management

Performance management is an ongoing process that cannot be pinned down to a single day.

A few components of performance management are:

Continuous communication

You must have direct communication with your subordinates to check up on them. An effective performance management system in your organization comes from continuous communication. It's good to know what your direct reports are doing and help them if they feel stuck.

Goal setting

Planning is a pivotal part of performance management. Your employees are motivated if they have complex goals driving them to upskill and stay alert. These goals are not restricted to individuals; they may also work better if you have departmental goals. A performance management system without goals does not contribute to organizational success.

One popular methodology to set goals is SMART.

• Specific - Clear and focused
  
• Measurable - Trackable with numbers or criteria
  
• Achievable - Realistic and possible to attain
  
• Relevant - Aligned with broader objectives
  
• Time-bound - Set within a deadline
  

Reviewing performance

Managers provide feedback to their employees on an annual or quarterly basis. The employees self-evaluate themselves and the report is sent to managers. A new aspect of performance review is 360-degree feedback. Here, the employees rate their managers and help them improve. Rating one’s manager is complicated, but once it’s adapted, overall team productivity spikes.

Assessing at-par performance

When your employees perform good, you can reward them to boost their confidence. Similarly, when employees’ performance is sub-par, you can train them and ensure they overcome bottlenecks, if any.

Feedback

Once the manager has evaluated their employees, they give ratings like ‘good performance’ or ‘needs improvement.’ By giving them rating, managers ensure the employees are well-informed about their performance and take remediation measures. As per studies, employees who receive regular feedback to improve their performance are more driven to meet organizational success.


To manage performance better, follow these best practices:

Performance management best practices

Your HR managers can use these performance management best practices to aid employees in sharpening their skills:

1. Define a blueprint for assessing performance: Identify a performance management framework that fits your goals. E.g., implement a 360-degree review to assess personal development and management by objectives (MBO) to evaluate your superiors.
   
2. Create an optimistic aura: Instead of leaving employees with negative feedback, foster an environment of learning. Your employees must be encouraged to speak in necessity and maintain goodwill and empathy.
   
3. Upskill managers: Managers are instrumental in performance management. Their feedback can influence the overall performance and morale of employees.
   
   Managers can be taught effective communication techniques, emotional intelligence, and coaching strategies. Transforming your managers from an evaluative role to a developmental role can boost your team’s morale.
   
   
4. Be consistent: Drive short internal meetings to maintain an employee connection. So that when annual or quarterly feedback is given, employees can digest the feedback.
   
   A pivotal tool is needed that sees through all this and spikes employees' performance.