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Aug 12th

Performance management is simply defined as a system that ensures goals are consistently being met.  Effective performance management optimizes results by aligning a company’s goals and objectives with the goals and objectives of individual employees.  A company with a strong performance management system operates more effectively and more efficiently.  What is the key?  The key is that performance management systems are no longer just an Annual Performance Appraisal but instead a strategy anchored with ongoing communication and support that includes:

  • Setting Expectations
  • Keeping Performance On-target
  • Realigning Performance
  • Appraising Performance

Setting Expectations is step one in any performance management system.  Managers and supervisors need to set expectations before they can hold employees accountable.  Setting expectations is not a onetime action, but instead should happen throughout the employee’s time with the company.  Managers should set expectations from the beginning by providing employees with a job description that clearly outlines the responsibilities of the position.  Managers should also set measurable goals and frequently communicate progress and opportunities for growth to the employee.  Setting expectations upfront ensures that both company and employee goals are aligned.  Establishing and reevaluating expectations is an ongoing process, especially in a fast-paced workforce where goals and objectives often evolve over time.

Keeping Performance On-target is easier said than done.  To keep performance on-target, a manager must be able to recognize when a team or an employee is operating effectively and when an employee or team is not operating effectively.  This requires management to set goals that are measurable and monitor the status of meeting those goals on an ongoing basis.  This may also involve establishing an employee development plan that sets out goals and objectives and includes regular follow-up to evaluate progress along the way.

When an employee is not meeting expectations, management must consider Realigning Performance immediately. This will increase the likelihood of retaining an employee by correcting performance and not allowing it to disintegrate over time.

Employees are more receptive and become more engaged when this coaching and realignment is part of their daily environment.  When performance is not on-target, management must first identify why it is deficient.  Were they unsuccessful in setting expectations?  Do they need to do this again?  Does the employee lack the skills necessary to meet the job responsibilities? Would additional training be effective in closing the gap?  Many companies find that training is an effective way to keep performance on-target as well as realign performance.  As a partner with Oasis Outsourcing, your employees have the ability to take advantage of a robust eLearning system that offers a wealth of learning opportunities.  eLearning is available to employees via the Oasis website 24/7.

Appraising Performance often involves a system of performance reviews.  Typically, the most effective way to run performance reviews is to have a formalized system of performance evaluation.  Performance reviews traditionally occur after an employee meets the first 90 days of employment and then on an annual basis. The initial 90-day review provides both the manager and employee feedback on progress, opportunities, and challenges.

Annual performance reviews provide an opportunity to formally review the employee’s overall performance for the year.  Since your performance management system is ongoing, the goal in the annual appraisal is to guide the employee into the future.

Often, self-evaluations are also part of this formalized system; this is a great way to see if management and the employee’s evaluation of performance are aligned.

Performance management systems are not a linear process, but instead a process that provides ongoing communication and regular feedback throughout the employee’s term of employment.  Performance appraisals are always more effective when they involve a dialogue between employees and managers.

The Oasis Outsourcing Human Resources Team is available to discuss and consult on setting up a Performance Management System for your organization, as well as to provide training on Management, Performance Management, Progressive Discipline, and Performance Evaluations.  Contact us by phone at 888.818.9797 to learn how we can help.

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