The challenge to recruit, train and retain employees are HRD’s job, performance management ,this time, is the manager’s task to monitor an employee’s performance and make sure he/she is working within norms and towards the company’s targets.
Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks.
The term performance management revolves around the general terms planning, monitoring, developing, rating and rewarding an employee wherein the company, the management and employee are engaged.
Lifted from hrcouncil.ca site, it is stated there that an effective performance management system will:
• Be job specific, covering a broad range of jobs in the organization
• Align with your organization’s strategic direction and culture
• Be practical and easy to understand and use
• Provide an accurate picture of each employee’s performance
• Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager
• Monitor and measure results (what) and behaviors (how)
• Include both positive feedback for a job well done and constructive feedback when improvement is needed
• Provide training and development opportunities for improving performance
• Ensure that employee work plans support the strategic direction of the organization
• Establish clear communication between managers and employees about what they are expected to accomplish
• Provide constructive and continuous feedback on performance
• Identify and recognize employee accomplishments
• Identify areas of poor performance and establish plans for improving performance
• Support staff in achieving their work and career goals by identifying training needs and development opportunities
• Support administrative decision-making about promotions, terminations, compensation and rewards
• Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious liability (an employer can be held liable for the acts or omissions by its employees during the course of employment)
Above is even the detailed version of how managing a performance should be, not just in individual level but in teams as well. Involving staff members in each element of reviewing performance will allow greater engagement and acceptance of the final performance review. Reviewing results at the end of the performance cycle should be focused on facts. Consideration should be given to how results were achieved, as well as what was achieved. Above all, Managers must be able to explain the overall performance rating they assign. They must have a clear understanding of what would have made the performance scores higher or lower. Involving the employee in this process actually boosts morale and would motivate them to perform well having been informed of the goal clearly and they’ll develop the sense of involvement and loyalty to the company and the company’s plans.