These are the benefits of performance management

Performance management is (understandably) really controversial.

Many wonder if it’s even ethical or humane.

Let’s delve into what it means and if it’s a yay or nay.

What is performance management?

Performance management can be defined as the process of ensuring certain tasks and activities ar ecompleted in a reasonable timeframe. It can focus on the organization as a whole or on specific
employees.

The “rules” are usually set by senior leadership and can include feedback, coaching, and even rewards.

Is performance management ever effective?

At its best, performance management is based on a company’s values and can increase efficiency, productivity, and bottom lines. At its worst, employees can feel spied on and see the “rules” as
arbitrary and invasive.

Understanding your individual employees and their worldviews is everything. Do you have the kind of employees and employee relationships where performance management might do more good
than harm?

If the answer is yes, proceed.

There are many ways to make performance management less painful and more focused on growth and development as opposed to criticism and micromanagement.

How to do it

The next most important thing is your actual performance management system; is it easy to use and understand?

Using an integrated software as opposed to a simple spreadsheet-based recording system can not only help you be taken more seriously, but also deliver a much higher rate of return.

Companies should ask themselves this: “Does this system complement how our employees already work and their beliefs about the world?”

Every company needs to take their actual employees and unique rates of resistance into account.

When integrated into already-strong company culture, performance management can be a powerful tool to implement positive change.

(Possible) benefits

Done correctly, one of performance management’s benefits is to break down tasks into smaller, easier-to-digest steps.

Personalizing key stages of the employee lifecycle can enhance employee strengths, boost morale, reduce turnover rates, and improve overall performance.

There are also many financial benefits of performance management like:
● Growing your company’s sales and reducing its costs
● Making sure that company values and goals are unified and understood by everyone
● Keeping employees updated on strategic and operational changes
● Ending project overruns
And some possible motivational benefits:
● Incentive plans simply work
● Optimizing employee engagement means everyone can see how they’re contributing to the company’s success
● Transparency is a huge motivator
● Keeping employees growing professionally through professional development programs
Controversies and statistics
Here are some statistics about how today’s performance management systems are holding up
(which appears to be not great), according to TalentManagement360.com:
● 45% of HR leaders thought annual performance reviews did not accurately appraise
employees’ work
● Only 14% of organizations said they were happy with their performance management
systems
● 58% of organizations said their performance management systems were “C Grade or below”
● Only 23% of HR executives said their performance management process accurately reflected employee contributions
● Two-thirds of performance management systems misidentified high performers

The report continues to read, “What’s Wrong with Performance Management and Annual Reviews? The short answer to the above question is plenty. Few things in life produce more moans and groans in the workplace than the mind-numbing, fear-inducing ritual of annual performance reviews. In recent years, there have been calls for companies to free themselves from this burdensome practice.”

A possible solution? Shift the focus! Performance management should cater to employees and be easy to use. Leave the intimidation tactics out of it! Here are some things you may want to focus on:
● What are the employee’s goals and how do they align with the company’s values and
mission?
● What is the best personal development plan for this particular employee?
● How can we give regular and personalized feedback?

The conclusion?

It depends.