What are performance management strategies?
There are methods to help you apply your strategy throughout your organization to ensure that all your goals are being met.
Each company has a unique management strategy that is specific to its values, goals, and purpose. The idea is that if you communicate simple, realistic, and appropriate guidelines and expectations, you can better ensure that your employees will adopt and nurture your goals.
However, every good performance management system seeks to work towards the improvement of the overall organizational performance, while supporting performance, productivity and the wellbeing of its employees.
How are they successful?
Continuous performance management allows managers to see when employees go above and beyond. It helps them track progress against goals and personal development and make informed decisions about additional compensation, such as pay-rises or bonuses which is just as equally appreciated by workers as well as seen with Clear Reviews statistic from 2018 claiming that 83% of employees working in an environment with good reward and recognition structures say they are content in their position
It also helps develop a relationship between employee and company. If an employee is aware that their manager and the business cares about what they are doing and is dedicated to helping them do better and progress, their career their relationship and attitude towards the company itself improves tremendously.
How are they unsuccessful?
For such systems to work efficiently many factors come into play. These include but are not limited to goal setting
Goal setting needs to be just. Goals can’t be too easy, or employees won’t feel satisfied. This ties in with the study that most people enjoy a challenge. They want to be stretched and to develop new skills. Equally, however, goals that are too challenging can be demotivational. Employees will burn out trying to accomplish them, or they won’t try at all, believing them to be impossible. No performance management system will be successful if the people involved don’t invest in the process, or willing to make it succeed. If employees sense their managers are apathetic about the performance management system, they will mirror this attitude.
Traditionally, performance management has focused on data. It used to be the norm to use performance ratings. Unfortunately, there is a big problem with performance ratings. Studies have found them to be far from motivational and they have been shown to impact performance negatively.
It’s important to understand the nature of your organization’s management strategies and how well they are outlined to the employees before expecting big success or progress of any kind.
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Strom HRM provides easy to understand appraisal system for employees, Managers and HR team to understand and measure against the goal oriented KPI’s and performance trackers.