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Employee Performance Management - What Is It?

Employee Performance Management is a process for establishing a shared
understanding among the employees about the organizational objectives that need to be
achieved. Further, it is about aligning the objectives of the organization as outlined in the
strategic development plan with the agreed measures, skills, competency requirements,
and the delivery of results of the employees.

The emphasis of employee performance management is on improvement, learning and
development in order to achieve the overall business strategy and to create a high-
performance workforce.

Thus, it is a comprehensive system employed by the modern-day organizations to bring
about the kind of return expected from employees based on the overall organizational

How It Differs From Performance Appraisal?

Employee Performance Appraisal is a practice of classic organizations involving painful
process of judging past performance without measuring such against clear and agreed
objectives. To many staff, performance appraisal is a cumbersome ritual that is equated
with annual or periodical salary increase.

Meanwhile, employee performance management strictly follows the cycle of
performance planning, monitoring, performance management training and capability
building, employee performance evaluation and rewards and recognition.

Accordingly, performance appraisal is a part and parcel of the whole performance
management process. It shifts the focus away from just an annual event to an ongoing

The Performance Management Cycle

A good performance management process follows the tried and tested cycles:

1- Performance Planning. This involves the setting of a mutually acceptable performance
standard (Key Result Areas; Key Objectives; Key Performance Indicators of quality,
quantity and time) and drawing a clear road map to achieving it;

2- Monitoring and Capability-Building. This covers monitoring performance on a real-
time basis (or anything close to it) and matching it with what is expected to determine
gaps and needs for improvement. Interventions that range from coaching and counseling
by the direct superior to formal classroom or field training are provided;

3- Evaluating Performance. This involves evaluating inputs (before the fact or leading
indicators) and outputs (after the fact or lagging indicators), proper analysis and
adjustments so that correlations between both are established. An appropriate and reliable
management information system (MIS) is the main basis of an objective evaluation

4- Rewarding and Recognizing Good Performance. Granting of rewards and recognition
are immediate and direct. Setting correct performance standards enables one to identify
exemplary accomplishments and reward them appropriately. In this manner, the practice
of rewarding poor performance sadly happening too often in many traditional
organizations can be prevented.

The bottom line of the whole performance management process is not about keeping
score of staff performance, which is not worth anything without the other components.
This is about helping employees succeed and in the process helping the organization
succeed also, for what is an organization but a group of people working together to
achieve a common goal.

Though employee performance management requires considerable amount of investment
and should be effectively and efficiently done, its benefits goes far beyond achieving
peak performance and high workforce motivation. : Over 200 ebooks, templates, forms for
performance appraisal.

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