5 Major Objectives Of Performance Management

You are probably here to gain insights into the objectives of performance management. Then you might know what performance management actually means.

To the uninitiated, performance management is simply described as:

A continuous process that seeks to identify, measure and develop workforce performance.

Chances are that your company performance is not as good as it should have been.

Also, your existing performance management system is doing nothing to elevate employee performance.

Does this mean that you should ditch your present system? Well, not quite so.

Instead of kicking your performance management system to the curb, just revamp it.

But do you know the first step in forming a performance management system that actually works? It is to understand the objectives behind it.

Objectives Of Performance Management System

Here are the 5 primary objectives of performance management systems:

1. Setting and defining goals to fulfill company objectives

Goal setting is the most lucrative way for initiating better performance among employees.

It has been constantly indicated that practical goal setting:

• Allows employees to focus on what's important.
• Aligning individual objectives with the business objectives.
• Optimizes employees' individual performance.
• Helps to identify the key result areas and work upon improving them.

A good performance management system will put goal setting as one of its main conditions.

As a manager, set goals that benefit both- employee performance and business performance.

2. Setting the right expectations for managers and employees

An efficient performance management system sets clear expectations from both managers and employees.

As a manager, you must place achievable expectations from your employee.

Don't expect a poor performer to give good results right away. Or a star performer to stay consistent every other week.

Similarly, holding managers to high expectations will only bring in poor management decisions.

To set expectations that'll actually bring in some results:

• Define the expectations of your employees in clear terms. Let employees know what your expectations are from them.
• Back up the reasoning behind the expectation. Explain how these expectations will help in fulfilling the business objectives.
• Document expectations. Don't let it be a word-by-mouth interaction. Have a specific spreadsheet or document about what to do and who handles it. Use a tool such as Airtable or pick one of the many Airtable alternatives that'd be a better fit for your business.

Once people know of their own roles, responsibilities, and accountabilities, they are more likely to be consistent and productive. This results in high performing teams that are capable of achieving the set goals and objectives. This is necessary for e.g., in IT project management to avoid delays and deliver projects on time

Moreover, it will facilitate better business performance. Furthermore, it will encourage the personal development of the employee.

3. Effective communication between individuals and teams

Changing workplace dynamics is bringing a cultural shift to today's workplace. Consequently, communication has played an essential part in it.

Good communication practices result in employees who are engaged and happy. It also ensures a smooth alignment of individual objectives with business objectives.

Team members must know their peers' goals, succession planning, and ideas—to work well together.

A team that lacks communication among its team members lacks the bonding needed in a high-performing team.

Some tips for building an active communication environment:

• Firstly team leaders or managers should take out the time to indulge in one-on-one interactions with the team members.
• Continuous feedback and coaching form a workforce with varied skills by encouraging career development. One way to do this is through performance appraisals or performance reviews.
• Additionally, conduct frequent team-building activities.
• Promote collaboration and communication as an essential part of your workplace culture.
• Also, use appropriate and helpful business communication tools.

4. Set performance standards

The most important objectives of performance management are to set performance standards.

Setting the right performance standards can help you build a better performance plan. It, in turn, makes for a smoother evaluation of employee performance.

Every job has specific performance standards that have to be met. Failure to accomplish the performance standards can mean the following things:

• A lack of effort on the employees' part.
• Usually having set more unrealistic standards for the said job.
• Meanwhile, not enough resources were available to complete the task.
• In particular, a failure of cooperation or collaboration from the team or manager.

Here's the thing.

You might never know what the reason for failure is without any performance management system.

A good performance management system can highlight what's lacking and what deserves credit.

The company's strengths and weaknesses will be more clear and hence easier to rectify.

5. Determining individual training and performance plans

Another vital objective of performance management systems is to identify the training and development needs of its workforce.

It promotes personal growth and advancement in the employees' careers by helping them acquire the desired knowledge and skills.

A successful performance plan offers personal growth opportunities for your people. Your people will be more confident and contribute better.

Here's how you can create an effective employee performance plan to foster career development:

• Firstly, ask your employees what skills, training, or course they require to do great work.
• Then create a training plan and budget.
• Additionally, decide how the new training skills be applied in revamping old methods.
• Lastly, set up some organizational objectives to apply these newfound skills.

Before You Go

An efficient performance management system can bring a lot to the table. Getting to know the objectives of performance management is a tiny but essential part of it.

The main objective of performance management is to enhance the:

• Achieving individual employee goals of employees along with organizational objectives.
• Also, enhance the skills and personal development of employees through the managers' help.
• Additionally, encourage work that helps in fulfilling business goals.

Do you have any other objectives of performance management that you want to share? Please drop us a mail and share your thoughts with us!

This article is written by Barasha Medhi who is a part of the marketing team at Vantage Circle. Barasha can be found either searching for interesting HR buzzwords to write about or looking at pictures of cozy Bel Air mansions. For any related queries, contact editor@vantagecircle.com.