Supporting Good Practice in Performance and Reward Management
Performance management is the process of creating a work environment in which people are enabled to perform to the best of their abilities. Performance management begins when a job is defined and it ends when an employee leaves the organisation.
Performance management in organisations is used to achieve the following: • Drive Results • Build Capabilities
Drive Results
The performance management process drives the achievement and improvement of key business results through individual, group, and enterprise goal alignment. It is important to define goals and expectations which are clearly focused on key priorities, and well connected to the drivers of results.
Formal and informal processes are used for identifying and communicating performance expectations and goals and ensuring alignment across the organisation. Group performance goals and measures are developed at several levels in the organisation. This ensures the organisation is focused towards achieving its set goals.
Build Capability
The performance management process within an organisation helps to build capability by ensuring employees understand what they need to learn and how they need to learn it.
Employees are expected to be in a constant growth and learning mode, demonstrating organisation and role-specific competencies. These bundles of skills, behaviours and knowledge are critical to the organisation’s ability to execute its business strategy.
A Performance management system includes the following components:
Job Expectations & Goals
Every department in an organisation usually has different expectations for its employees based on the requirements for the positions in the department. When goals and expectations are clearly defined, employees have the greatest opportunity to advance in the company
Timely Reviews & Feedback
Performance management systems do not benefit a company unless a timely employee review and feedback system is implemented in the program. These
Performance management in organisations is used to achieve the following: • Drive Results • Build Capabilities
Drive Results
The performance management process drives the achievement and improvement of key business results through individual, group, and enterprise goal alignment. It is important to define goals and expectations which are clearly focused on key priorities, and well connected to the drivers of results.
Formal and informal processes are used for identifying and communicating performance expectations and goals and ensuring alignment across the organisation. Group performance goals and measures are developed at several levels in the organisation. This ensures the organisation is focused towards achieving its set goals.
Build Capability
The performance management process within an organisation helps to build capability by ensuring employees understand what they need to learn and how they need to learn it.
Employees are expected to be in a constant growth and learning mode, demonstrating organisation and role-specific competencies. These bundles of skills, behaviours and knowledge are critical to the organisation’s ability to execute its business strategy.
A Performance management system includes the following components:
Job Expectations & Goals
Every department in an organisation usually has different expectations for its employees based on the requirements for the positions in the department. When goals and expectations are clearly defined, employees have the greatest opportunity to advance in the company
Timely Reviews & Feedback
Performance management systems do not benefit a company unless a timely employee review and feedback system is implemented in the program. These
References: Malcolm Ryder (June, 2005) Strategic Factors in Managing Performance [online]. Available at: http://www.malcolmryder.com/archives/2005/06/strategic_facto.html [Accessed 28 January 2012] Naukrihub (n.d) Purpose of Performance Appraisal [online]