Small Business

What Is Performance Management?

Performance Management

June 23rd, 2021   |   Updated on November 9th, 2021

Performance management is an integral task that comes under the human resource department of an organization. The Human resource department is responsible for managing company relationships with the employees. Performance management is one such role that is carried out by the Human resource department that is of utmost importance.

Performance management is subtly carried out by different methods and policies of a company. Therefore, some methods may not seem directly related to performance management, but it is a tactfully carried out plan that eventually contributes to the performance management solution of an organization.

Definition Of Performance Management

Performance management is a combination of processes that are carried out by the Human resource department to enhance the performance of every employee. Performance management is set to build up the skills of employees that are necessary for them to excel at their jobs.

Performance management does not aim at making an employee perfect for all jobs. Instead, it strives to make an employee capable of doing their job efficiently. This process is not limited to training. It is done to bring up the good in an employee that might be through a personal or professional approach.

Goals Of Performance Management

The goals of performance management are similar in all organizations. The HR department sets out some goals as a performance development plan in order to carry out the process in a more organized and planned way. The primary objectives of performance management are:

1. Between-Person Application

The goal is intended to evaluate and analyze the performance of the employees that leads to future consequences of compensations, firing, appraisals, training, development, etc. This goal is attained by regular analysis of employees. This is important for the growth of a company because good employees must be given promotions, and incapable employees must be relieved.

2. Within-Person Application

This goal is intended to evaluate the intra-person skills that are necessary for the job. An employee is assessed based on his/her performance and identified with skills that they lack. Then, the employees are sent for further training because they have the potential to grow and offer more to the organization.

3. Researches For A Global Approach In HR Management

The records and analysis of employees under performance management are used to enhance and modify the knowledge and skill up-gradation in the broader picture. The performance management goals give a clear picture of the company’s needs and the skill set that is vital for the employees. Thus, the companies, on a wider approach, enable training and skills up-gradation programs for the employees.

How Is Performance Management Done?

Performance management is done by analyzing employee records. But on what basis? There are certain criteria that are used to determine the performance of an employee that can lead to a good future for the organization. The criteria are:

1. Result-Oriented Approach

An employee is primarily judged and analyzed on the basis of their performance in the job and the number of positive results they bring in. Some employees are exceptionally good at their tasks and create a good impression among the appraisal board. According to the results an employee brings in, their performance is judged. Good results lead to training, promotions, and appreciation.

2. Behavioral Approach

The second and most important approach for performance management is made by analyzing the behavior of an employee towards work culture, the organizational rules, and the other employees. This is an essential approach that unveils the inner personality of a person. A person might be exceptionally good at their job but might be cultivating toxic cultures in the workforce by their behavior.