Love them or hate them, performance reviews are a vital part of an organisation’s HR and personnel processes. Most managers do their best to never have to do their performance reviews because they feel that they simply do not work as they are supposed to. Most Employees dread performance review time, for fear of criticism or worse, thinking they have done well only to be told otherwise. The process can be negative, deflating and one-sided if done incorrectly. Here’s a list of value that performance management can add to your company, if done correctly.
Company objectives vs employee performance
Some companies function purely on a goal orientated, performance managed incentive scheme as their modus operandi. Companies based on sales quota’s will highly incentivise good performance and sales figures with performance program’s. For these types of organisations, this is par for the course. Other companies however have no structured process of aligning employees work goals to the production and work goals of the organisation. Companies without a work flow pointing in the same direction as the vision and mission of the company, may find their employees waywardly and hap-hazardly striving to meet their own goals, or worse, striving to meet no goals what so ever. In which case, what tool would a company have to monitor the performance of its employees and decide who gets promoted, transferred or terminated / retrenched? Having a formal performance review process will enable Employers to identify the under and over achievers, and to react accordingly.
Teams and Individuals
Employee consultation and feed-back highlights good performance and averts poor performance for groups and individuals alike. Teams working towards the same outcome have more chance of obtaining that outcome than those who simply wing it from day to day. Training and development helps identify any skills gaps which then can be address to bolster the confidence of the employee and benefit the company through the updating of technical and intra-personal skills within the organisation. Performance management, if done correctly results in all being measured using the same measuring stick, avoiding personal bias and discrimination or unfair treatment of individuals. By doing so, the workplace not only becomes a more equitable environment but one wherein rewards are allocated based on performance rather than personal opinion.
Performance Management is an on-going process rather than just a once-off annual event. Constant and continual feed-back, consultation, input and education will focus your employees and help keep them focused and motivated, rather than a yearly “dumping session” where the employee can feel high-jacked and let down by their supervisors, managers and team members. Something like this is hard to come back from whereas if performance is managed in an on-going fashion, mistakes and issues can be resolved constructively and in time, avoiding on-going issues and discontent amongst your staff and in the workplace.