Performance Management

Performance management is an integrated approach to helping an organisation to achieve its aims and objectives by monitoring and improving the performance of individuals, departments and the organisation as a whole.

A performance management system uses agreed targets and objectives to enable managers to measure and review performance, giving a clear indication as to whether the activities undertaken by individuals are contributing to the achievement of organisational goals.

Current levels of performance are not always what the organisation and its employees would like them to be. Individuals can work to narrow this gap by becoming more productive, developing their skills, or becoming better informed; organisations can improve processes, systems and procedures. To be effective, performance review must be conducted in the context of the organisation's overall strategic plan, with the aim of generating the momentum required to achieve corporate goals.

Performance Management Best Practices

Performance management best practices involve:

  • Understanding current practice
  • Identifying future or intended practice
  • Recognising the processes and driving forces which will improve performance
  • Agreeing targets and objectives to meet organisational goals
  • Using tools, techniques, support from managers and colleagues and training and development activities to develop capabilities and achieve the desired progress
  • Measuring and monitoring changes, improvements and progress towards goals
  • Reviewing progress, renewing goals and moving on.

Process Management Process Checklist

At the organisational level

1. Align objectives with organisational strategy
2. Set standards, criteria, indicators
3. Choose evaluation methods
4. Assess the suitability of quality/customer care programmes
5. Build performance appraisals into the business planning cycle
6. Ensure clear communication
7. Monitor and review

At the individual level

1. Identify where you are
2. Identify where you want/need to be
3. Agree objectives and indicators
4. Make use of relevant tools and techniques
5. Test and trial
6. Evaluate performance
7. Carry out performance appraisals

Download the full checklist:  pdf-icon Performance Management


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