All companies differ in their business goals and requirements, and in their definitions and measures of success. Isn’t it therefore a little odd that most still use the same conventional approach to plan and monitor the performance of their employees and the company as a whole?
The seemingly ubiquitous annual ratings-based staff appraisals and quarterly company performance analyses are often relied upon simply because they are the methods most familiar to everyone and the easiest to implement by HR and Managers. But ease does not necessarily imply effectiveness especially when businesses are operating in a completely changed environment.
The primary job of a performance management system (PMS) must be to enable an organization to achieve its goals consistently in line with its objectives. In addition, as a tool it should enable the organization to set targets that are derived from and linked to the corporate objectives and monitor performance levels and employee development activities in a structured way. And like any live system, it should highlight and allow performance issues to be addressed in good time and with a clear purpose. When implemented well, it should drive employee engagement with the company, leading to improved performance of both employees and company.
Download our guide to learn more about the benefits and scale up opportunities for Start-ups with a well defined Performance Management System.