Employee Performance Management-Concepts and Guide

Sometimes, employees can’t help but wonder why they’re doing what they’re doing at work. Where’s all their hard work going? What do they get out of it? Keep in mind that employees serve as the fundamental asset of every business. Without them, failure may be on its way. Because of this, HR management must be careful with the importance of managing employee performance.


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Employee Performance Management-Concepts and Guide

Performance management helps in setting a goal for employees to achieve. With digital transformation and the enhancement of human resource technology, it has been relatively efficient for HR to manage and plan the workforce. But first, let’s define what performance management is by reading through.

What Is Performance Management?

To simply put it into words, performance management is the ongoing communication between the heads of the company and the rest of the employees. This is in support of the recruitment and training and development process that takes in action throughout the year. Performance management is the process that includes determining goals, setting an action plan, evaluating results, and assessing or reviewing the performance. By taking all the detailed procedures, the HR management oversees the current operation in the workforce.

Employee Performance Management Cycle

The employee management cycle involves different stages that target business success and competitive demands. These are the five phases that you should consider:


What is the goal that your organization needs to achieve? The lack of a better plan is not unusual for every business challenge. That’s the reality about it. So, don’t jump into the conclusion right away; part of every beginning is the planning. In employee management, it means determining the aspects that achieve the organization’s goals. This includes fixing the objectives for every individual or the company as a whole. Enabling this mainly affects how the employees help in running towards business developments.


How can the employee develop their skills? Employee relations maintains the work ethics and motivation that every individual share in the work setting. Humans are not robots that will follow what you demand. So, every organization needs to provide constant monitoring and feedback in managing issues related to daily operations. Capitalize on your employees’ strengths. But if you think performances are not developing, then ongoing is an absolute necessity.


How can employee engagement help in bettering performances? Developing engagement helps in a long-lasting relationship. The more involvement in the workforce, the more it will yield better results. While the list of goals determines what the future holds, developing an engagement creates encouragement. In return, it motivates the employees to provide hard work and commitment. Therefore, it’s essential to define the role of competencies. After all, this serves as a judgment on how many potential employees must give.


Are the employees performing well? Reviewing is a vital approach to determining what is lacking and what needs to be maintained. As the demands of labor in every business are high, evaluating how the employees are doing is essential. Prepare a checklist that details the action plan. Review the course of action that employees did in accomplishing the set goals. Don’t settle for anything less, but build transparency to realign efforts towards your conclusion.


What are the fruits of the employees’ labor? Part of the initiation of increasing the motivation and dedication of the labor workers is by rewarding them with money or benefits. It should be in the company policies. Therefore, it should also be mandatory. Human resource professionals must be active in recognizing the effort that yields monthly or annually. Proper compensation means the acknowledgment of effort that helps in achieving the organization’s goals.

Benefits of Performance Management

According to the article published by the Strategic Human Resource Management, there is a total of 95% dissatisfaction rate in an organization’s management system. Don’t let this happen to you. Remember, effective performance management assists in bringing out the potential of every aspect of the organization. If you need a better understanding, let’s learn more about the various benefits it gives.

Sets Goal

Being ambitious towards running your business is acceptable. But don’t forget to set an objective that directs you towards achieving success. Part of the HR planning is to set goals mainly to encourage employees. Preparing a list outlines the time frames, determines accurate measures and rate performances. Not only does goal setting attract more sales, but it also focuses on orienting goal-oriented aspects for your employees.

Enhances Communication

Bad communication sets boundaries. Perhaps, that’s an evident challenging factor to take note of. While performance management establishes your goals, it overcomes the limitations as well. It builds connection and engagement between the employer and employee relationship. More so, it creates a mutual understanding. Eventually, this closes the gap to operate productively and efficiently.

Improves Management Control

One of the objectives of performance management is to set clear instructions to every organizational department—failure to do so highers the chance of inconvenience in operation. So, to minimize the pitfall, initiate, and take the lead. This includes setting a reporting guideline and mandating protocols. Compliance with these aspects will keep them in control of productivity and efficiency.

Saves Time and Consistency

All too often, conflicts happen. As this could potentially lengthen the operation, setting the right performance management ensures to resolve a dispute. By communication and controlling, it rewards an efficient and consistent service. Moreso, it won’t compromise the production process of the organization.

Improves Productivity

Production is substantial in daily operations. The higher the demand, the higher the effort needed. As communication and management control is part of the critical factors of performance management, it will result in the improvement of employee productivity. More often than not, the increase in productivity acknowledges the potential of the employee. Because of this, incentives, benefits, and promotions are bound to be initiated.

Provides annual Performance Review

Ensuring that the employees maintain or improve their performance, employee management prioritizes survey, and evaluation to realign specific actions. Constructive feedback is substantial in improving an individual’s strengths and capabilities. More than highlighting the mistakes, it is best to provide constant performance reviews. Moreso, a performance management detail the roles and responsibilities that the employee must comply with, enabling them to perform what is expected from them.

It is, indeed, daunting to run a business without the HR experts. As they ensure that protocols and guidelines are followed in the workforce, they are also professionals that help in managing employee performance. As the higher authorities have the right to demand, it’s also necessary to reevaluate your employees’ situation. Remember, motivating them can enhance productivity. Communicate, monitor, and evaluate them. Not only will this remove boundaries, but it helps in achieving success as well.