“Performance management” is the methodical organization of processes aimed at improving performance within an organization. It consists of a variety of practices around the continuous monitoring as well as subsequent actions taken to align organizational activities to desired business outcomes. Aligning performance management processes with company strategy and values isn’t always easy or obvious and relies on the effectiveness of performance management processes set in place.
Rather than focusing on record keeping or monitoring performance outcomes, performance management processes need to support and enable employees to do their best work. Good management is performance management, so managers should be empowered with the tools and know-how to provide systems of continuous performance management.
Moreover, with the explosion of new technology and the breakdown of traditional organizational hierarchies, team-based, agile, and adaptive performance management tools should be brought on board. Ideas like the OKR model (a framework for creating goals that are clear and lead to real measurable outcomes for both the individual and the business) greatly facilitate performance management. Last, but not least, in performance management, a careful selection and balance of what gets measured and why is of the essence.
Build your HR capabilities.
Close skill gaps and increase you or your team's earning potential — Start today by browsing our wide range of courses tailored for HR professionals around the world.Explore the Academy