Performance management is a comprehensive and ongoing approach to managing people and performance. It involves initially advising the employee of the performance goals and expectations of the employer.

On-going Performance management involves the development and implementation of policies and procedures to ensure that employees perform their tasks so that they effectively meet the needs of their employer consistent with the goals and objectives of the company.

Performance management can be a very productive tool in the management of organisations and the effective application and development of human resources. It enables the business owner and managers to encourage the preferred behaviour from staff while also providing the opportunity and process to eliminate undesirable practices and commence down the discipline and dismissal process if required.

How effective a performance management system will depend on a number of key elements:

• The degree of objectivity associated with the system;
• The inherent fairness and equity associated with it;
• How it is implemented and used;
• How the results of the system will be used (development versus remuneration determination)

Emphasis should be placed on matters like goal setting, feedback, and outcome management.

The frequency of reviews vary depending upon the situation and the practices adopted by the business. There are no hard and fast rules on this. Common practice says a performance review should be carried out at least annually, however, if there are apparent issues with staff performance, more regular catch-ups will be needed.

The most effective systems are generally the simplest. This provides for clarity and agreement of understanding and also provides for effectiveness of implementation and management.

For in-depth system of employee performance management see our eBook here.

We can help you implement staff performance systems, for more information please call us on 0800 15 8000.