Performance management: what is this methodology and how does it affect work?

Let's see what performance management is and how it is used to achieve the best performance in companies.

The more complex an organization becomes, the more control we must have over all the processes that take place in it.

Performance management is a key concept for large companies.. Through this article we will discover why, and we will deepen in all the characteristics of this phenomenon to know everything about it.

What is performance management and why is it necessary?

Performance management is the methodology applied by companies to achieve the objectives set in the most efficient way possible.. In other words, it is a matter of ensuring that performance, both at the global level (of the company in general), as well as departmental (of each section that makes up the company) and even individual (of each employee himself) is the most appropriate.

The key to performance management is communication, which must take place on a constant basis between employees and managers, and must be used to clearly establish a number of terms. First, it must be clear what goals are to be achieved. Once the goals have been defined, each member of the company must gradually receive feedback on his or her performance, so that we provide him or her with the information he or she needs to adjust his or her performance.

Finally, and continuing with a communication process that should not be interrupted, the superiors have to check the results that have been obtained and transmit them to their team, so that they can check if their work has borne the fruits they expected or on the contrary it is necessary to make modifications in the procedures to be able to achieve the next goals that are established in the company.

An effective performance management process may cost the company some time and other resources. But everything you will save from that moment on and the efficiency it will generate makes it a truly worthwhile investment. To prove it, let's learn more about the most important advantages of this methodology.

Advantages of its application to organizations.

Performance management brings several advantages. Here are some of the most important ones.

1. Align efforts

One of the characteristics of performance management is that it tries to align the efforts of all workers in the same direction. align the efforts of all workers in the same direction, which is the company's common goals.The company's common objectives. Moreover, in this way, each of them will know the importance of his or her specific task in achieving the overall goals.

2. Certainty

Performance management also eliminates uncertainty, because it it provides each team member with clear information about the actions he or she must take to achieve the results the company is seeking. the company is looking for. In this way we avoid the frustration of not knowing how to act in order to achieve the objectives that have been asked of them. This will result in better performance.

3. Efficiency

Once each employee knows where his or her efforts are directed, and exactly what tasks he or she has to perform to achieve them, another very useful phenomenon for the company occurs: all work behavior that is not directed towards the objectives is eliminated, and therefore efficiency is increased for everyone.Therefore, efficiency is increased at all levels of the procedures.

4. Anticipation

By maintaining fluid and constant communication, performance management has another feature: it is possible to identify incidents and obstacles as soon as they appear, and even to anticipate them, and to adapt the tasks of the people concerned in a timely manner. and even anticipate them, and adapt the tasks of the people concerned so that they can overcome them and get back on track. and thus get back on track to achieve the company's overall goals.

5. Continuous process

Performance management changes the more usual trend in companies of only carrying out an evaluation once a year to assess the person's performance and whether or not he or she has achieved the objectives set. Instead, it is a continuous process, in which information flows bidirectionally all the time. That is why, If a specific evaluation is made, it will simply be necessary to recapitulate what has been discussed throughout the season, as communication has not been interrupted.The communication has not been interrupted.

The phases of performance management

We already know what performance management consists of and what the main advantages of this methodology are. Now let's find out what is the standard way to apply it in an organization. To do so, we must delve into the three phases that make up the bulk of this system.

1. The plan

The first phase of this cycle is the planning phase. At this initial stage, the company must agree with its employees on the performance expectations to be set, which can then be measured according to the formula of results plus actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions or actions. The results can then be measured according to the formula of results plus the actions or behaviors carried out by the individual. The results can be evaluated according to the objectives set, and the behaviors can be checked using the performance dimension scale.

These performance expectations must be put in writing, so that both parties can check and verify any aspect of them as often as necessary. This is the way to have a solid base on which to establish checks in the future. In addition, every worker will know what is expected of him and his task, knowing what he must achieve. Thus, when he achieves these objectives, his job satisfaction will also increase, because he will know that he has achieved what was expected of him.

This scale of performance expectations, used in performance management, also proves useful when reviewed in the context of performance management, also proves useful when it is reviewed by new employees in the company.It helps them to quickly orient themselves and learn what the organization's expectations of them are and how they should work to meet them. This procedure generates a rapport between employees and managers that results in a very positive working environment.

2. Adjustment

Although the objectives have been set in the first phase of performance management, this does not mean that they are immutable, and it is not necessary to wait a whole year to be able to make modifications to adapt to a more realistic perspective due to any changes that have taken place. On the contrary, this methodology is dynamic and allows these objectives to be adjusted at any of the meetings that take place, if there is reason to do so..

In the second phase, the adjustment phase, we will be verifying the performance of the workers in order to give them feedback and thus have a basis on which to make the changes we mentioned, if necessary. The advantage of this feedback is that it works immediately, and allows the operator to adjust his behavior to get closer to the goals he has set for himself.

This feedback does not have to be a long report to be delivered in a ceremonious mannerIt can simply be some indications that are mentioned to the employee on a day-to-day basis, reorienting him/her to take the path that allows him/her to reach the established goal in the most efficient way possible. These contributions, in the right assertive tone, can be an important motivational boost for team members, who will feel valued and empowered.

3. Review

The third and last phase of performance management would be the review of the system and the objectives that had been set, and to verify the success of our methodology.. Continuing along the line of constant communication between manager and subordinate, the former would communicate to the latter how his performance has been (which, as we saw in the first phase, can be checked according to a standardized system) and thus, together, they will be able to establish the relevant conclusions.

Another point that will be evaluated is the employee's own satisfaction, so that he/she can take the leading role and freely communicate which aspects of his/her tasks and work environment can be improved, with a view to making modifications for the next performance management cycle. Likewise, we will assess what could be the next guidelines to be taken into account to measure the employee's performance in the future.

In short, not only the cycle that we had started in the first phase is closed, but at the same time we are preparing the ground to start again another sequence, because it is a system that never stops, but feeds back to constantly improve in each iteration.

Bibliographical references:

• Armstrong, M., Baron, A. (2005). Managing performance: performance management in action. Chartered Institute of Personnel and Development.
• Gruman, J.A., Saks, A.M.. (2011). Performance management and employee engagement. Human resource management review.
• Lebas, M.J. (1995). Performance measurement and performance management. International journal of production economics. Elsevier.
• Otley, D. (1999). Performance management: a framework for management control systems research. Management accounting research. Elsevier.
• Van Dooren, W., Bouckaert, G., Halligan, J. (2015). Performance management in the public sector. Routledge.