An organization cannot just hire an employee and expect them to work without any flaws. Initially your employees would need guidance and supervision to understand what the organization expects from them, as they can perform better. Having an effective performance management program increases the productivity of the company, helps identify top performers and motivate them to work harder. Having a perfect performance management program can also ensure their objectives and goals coordinate with hiring and employee development plan.

Performance management is an ongoing event, and not just an annual task. Therefore, the companies need to realize this to reap the benefits of performance management program.

Below are the 4 steps to build an effective performance management program . Check it out.

To begin with, define your employees’ competencies and behaviors according to the role that they will play in your organization. This gives them a clear picture of what is expected of them. Make sure that the job skills, responsibilities and qualities that define success for each employee are included in the competencies. Initiate the first step of performance management program as soon as the employee is hired, and re-visit them annually.

Companies will get immediate performance improvements by doing this as the employees know what their higher authorities expect of them.

Performance review is an essential part of an effective performance management program. Therefore, decide as to how often the managers will deliver performance reviews to their team/employees. Annual performance review is mostly practiced annually, but continuous or frequent reviews would give the managers an opportunity to address the employees’ negative behavior or oversight before it affects their productivity. Well, frequent reviews is time consuming and difficult for the managers and the HR’s which is why they agree to supplement the usual performance reviews with the online talent and performance appraisal management tools.

Along with this, communicating what an employee did well or not so well over a quick conversation or an email can have a lasting impact.

Hold your managers accountable for making the assessments once the schedule of how often the performance review has to be conducted is set up. Managers need to evaluate their team during the assessment. They can use any sort of rating system to assess employees for their KPI’s.

Note: Managers need to be honest at the time of employee assessment. If employees are performing well, then they deserve to hear that. And if they are doing a bad job, then that should be pointed out and what they need to do to correct it should also be told. The manager should also be able to tell them the exact reason behind the rating they give to every employee.

During the employee review meeting, the employees should also be given a chance to acknowledge to the feedback he receives. The data generated at the time of performance review should be incorporated into the human resource planning. The HR should consider it while revising the employee compensation, in setting up employee training programs, while defining long term succession plans and to identify candidates who deserve a fast track career growth.

By following these steps, the organization can not only have an effective performance management program, but they can also have an opportunity to improve their business.

Find out the Solutions for top 50 Problems people face with Performance Appraisal based on Dr. John Sullivan's blog at

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