As a manager, you are dependent on your employees. When your employees work hard and achieve their objectives, you receive accolades. When they perform poorly, you are blamed. Put simply, your job performance is tied directly to theirs. How well your employees perform is, to a large extent, a function of the effort they expend. Your goal, therefore, is to motivate them to work hard and continually improve what they do.
One way managers do this is by using performance management programs. When you understand performance management, you should be in a better position to design and implement a performance management system that motivates your employees to display the necessary attitudes and behaviors at work to help your company achieve a competitive advantage.
The first purpose is administrative in nature because it directly affects a firm’s administrative decisions regarding its workforce. Firms use performance evaluations to make decisions regarding their employees’ salary adjustments, merit raises, and incentive rewards. For example, how do you know how much raise to give an employee? For many companies, this decision is based on the employee’s performance evaluation.
The second purpose of performance management is developmental in nature - using performance evaluation information to help employees improve their performance in order to add more value to the company. Thus, performance evaluations serve a vital role in terms of identifying employees’ training needs, for example. Even if employees are not performing at a satisfactory level, a developmental emphasis strives to find out if there are areas in which employees are able to improve their performance and then identify a course of action to help employees meet their potential.
A developmental approach may also involve disciplinary actions to signal to employees that current actions or behaviors may not be acceptable. A developmental approach can also be part of succession planning or just employee career development in general. When you understand how to use performance evaluations for different administrative and/or developmental purposes, you can start to think about how to better manage the performance of your employees.
Performance Management
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human resource managementhuman resourcehuman resourceshrhrmpeople managementmanagementmanagemanagersmanagermanaging peoplemanaging employeeshr leadershipperformance managementperformance appraisalsperformance evaluationshow to manage performanceprogressive disciplinepositive disciplineemployee disciplineperformance coaching