Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed and ends when an employee leaves your organization.
A performance management system includes the following actions:
• Develop clear job descriptions.
• Select appropriate people with an appropriate selection process.
• Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.
• Provide effective orientation, education, and training.
• Provide ongoing coaching and feedback.
• Conduct quarterly performance development discussions.
• Design effective compensation and recognition systems that reward people for their contributions.
• Provide promotional/career development opportunities for staff.
• Assist with exit interviews to understand WHY valued employees leave the organization.
There are many methods to measure, evaluate, review, and increase the performance of employees.
Not delving deeply into theories, here are some simple facts as per my opinion that you can plan:
1. To start with, each employee in the organization must have well-defined job descriptions, goals, and KRAs on which they have to perform their best work.
2. Performance is measured on daily/weekly/monthly/quarterly/yearly records as per the HR's strategy. And these records, observations of reporting managers, and development of an individual form the basis of PMS.
3. PMS is conducted on a yearly/half-yearly basis or any other cycle that the company follows.
4. In PMS, both the employee and his manager review and evaluate the performance of that employee based on various parameters (or goals to be more generic).
5. Ratings are given as per the employee's performance, key achievements, initiatives, motivation, work development, training effectiveness, responsiveness, etc.
6. Performance management aims not only at measuring performance but also has broader aspects such as:
• Measuring overall job satisfaction of the employee.
• His relationship with manager and peers.
• Effects and development of the trainings he has undergone.
• Future growth and learning for the reviewed person.
• His key achievements and good initiatives that create success for him and the team/project.
• Identifying best/poor performers of the organization.
• And lots more factors.
7. Hikes in salary, performance bonuses, promotions, etc., are mainly outcomes of the Performance Management System.
To know more information regarding PMS, appraisal forms, and other matrices, you can go through the attached documents from citehr only.
Best Regards,
Arti