How to Create a Performance Management
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Performance management is an enhanced version of a performance appraisal, which improves
the employee's performance on an ongoing basis through continuous learning, coaching and
reviews. This allows both the organization and the individual to take accountability for their
performance with shared responsibilities for improvement. It involves planning, coaching and
reviewing of the performance for common goals of the organization and the employee.
Establish a concrete set of expectations in the planning phase. Determine both the
individual and organizational goals and formulate an execution process to meet
the objectives. Focus on results to measure the performance.
Explain to the department or employee their role in executing the tasks. Mutually
agree upon the responsibilities and expectations. Explain the requirement of
active participation from the employee for managing and evaluating their
performance throughout the process. Review key areas that require extra
Communicate with the employee regularly during the coaching phase to evaluate
and recognize performance. Provide guidance wherever needed and
encouragement for motivation.
Identify barriers that require a change in strategies. Mutually determine the
corrective measures needed to handle the concerns. Reinforce the discussed
objectives and create opportunities for employee development.
Request the employee provide a self-evaluation report about their performance
and the effectiveness of the organization's coaching process. Encourage
suggestions to improve the performance management process. This feedback is
essential to emphasize to the employee their responsibility in improving overall
Develop a discussion plan based on the self-evaluation report provided by the
employee to create an effective review. Compare the performance results of the
department or individual against the established results for the performance cycle.
Provide the employee with a written copy of the review to identify areas of good
performance and areas that need improvement.
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