Performance Management
Two purposes of performance management and their relationship to business objectives:
Performance management drives employee behaviour to align with business goals and objectives. This alignment happens because job responsibilities and expectations are clear, resulting in increased individual and group productivity; and also better information is available to use for promotion decisions.
Having a Performance management system in place will serve the following purposes;
• Employee decision-making - Appraisal information is used as a basis for pay increases, promotions, transfers etc.
• Employee development - Appraisal information is used to guide training, job experiences, mentoring and other developmental activities.
Three components of performance management systems:
There are several components of a successful performance management system. An effective performance management system is not a one-size-fits-all approach but will generally include the following components:
Plan: Setting clear objectives and goals and establish performance standards.
Monitor: Identifying key performance indicators and conducting accurate and regular performance appraisals/ reviews and rewarding performance effectively.
Review: Regular and honest feedback through performance planning conversations and career development initiatives.
The Relationship between motivation and performance management
On a basic level people are motivated towards desired outcome such as congratulations from the manager for a job well done or to avoid an undesired outcome such as an argument with the boss about targets not been hit.
There are extrinsic and intrinsic factors to how we as individuals channel our motivational energy.
Getting people to ‘opt in’ as oppose to ‘opt out’ is an important part of communication in business.
The ideas of Abraham Maslow have had considerable influence on management thinking