What is Performance Management?

Every big organization runs Performance Management. But are you able to explain to employees a simple thing - “What is Performance Management?” Try to think about it, because the answer is not simple in many companies.

The HR Professionals tend to provide answers like these:

1. The Performance Management helps to improve the performance of the company by monitoring and evaluating the performance of individual employees.
2. The Performance Management helps the employees and the company to reach better performance.
3. The Performance Management helps employees to develop their competencies and skills.

But in reality? There are companies, where the Performance Management is used as a tool for the distribution of bonuses. It is sad, but the managers and employees agree to the rules of the game and the bonuses get distributed. This is a picture of the Performance Management in eyes of many employees. Because their main feeling is a bonus payment after the performance evaluation.

The correct answers for the question “What is Performance Management?” should be:

1. The Performance Management /mainly Goal Setting/ sets a frame for the year and it shows to the employee the main milestones during the year.
2. The Performance Management helps to identify development needs and to increase the value of the individual employee for the company.
3. The Performance Management helps the organization to identify gaps in the overall company performance and to prepare development plans to improve.
4. The Performance Management provides the employee with a strictly structured feedback at least once a year.

But honestly - can you provide honestly with these answers to the question “What is Performance Management?” in your own organization? The Performance Management is a very powerful HR Tool for managers, but they are usually very inexperienced in the usage of the whole concept.

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