Organizational Performance Management

Organizational Performance Management


What do you think of when I say the term Performance Management? Is your first thought of Performance Appraisals or Performance Reviews? Well, Performance Management involves a whole lot more than an Appraisal, but, believe me, you are not alone in this misconception.


I’m Sheryl Wolowyk from myHRpro and in this human resource video I am going to take the mystery out of Performance Management. I’m going to explain 3 important parts of a Performance Management System.


Performance Management is a system set up in an organization which enables employees to perform their best according to their skill level and abilities. A performance management system can also be used for performance improvement. The main reason your organization should have a Performance Management System is because it will enable you to stay on-top of your employees’ performance.


By giving your staff regular feedback (critical, constructive and positive) you can make sure your employees always have the support and reminders they need to keep your company’s strategic objectives as their number one priority. You can also ensure performance improvement occurs on an ongoing basis by quickly identifying bad habits and turning them around. And by acknowledging good work you also position role models within your organization that colleagues can observe and learn from.


By having a constant dialogue with your employees, and an interest in improving their performance, you will find that their engagement and job satisfaction will increase, and you will have success with retaining employees.


All this together will contribute to the success of your organization and its bottom line results.


So now that you understand why a Performance Management System is important and how it can help with productivity and performance improvement let’s look at the 5 important parts of a good Performance Management System.


  1. The first step in developing a Performance Management System is to create job descriptions for each employee and hire well-qualified people based on these job descriptions. Using these job descriptions, you, your management team and employees can set specific goals around how their roles and responsibilities, outlined in their job descriptions, align with the strategic objectives of your organization. This helps employees understand how their day-to-day work contributes to the overall priorities of the organization. Furthermore, you and your staff can create performance plans that will describe exactly how an employee is going to attain their goals. Performance plans outline specific goals and objectives that will be accomplished in a defined period of time. These performance plans can also identify obstacles that may prevent the employee from reaching their goals, and then details can be outlined about how to overcome those obstacles. These goals and performance plans will help your employees understand why their roles and responsibilities are important to your organization, and will also improve the overall operations of your business processes. Employees can later be evaluated based on these initial goals and performance plans and their successes with accomplishing results. Corrective actions can also be planned for when performance improvement is necessary.
  2. The second part of Performance Management is to monitor and evaluate employee performance. Giving feedback and providing coaching and training are crucial to ensure employees stay engaged and focused in their roles as well as have an accurate perception of their level of performance. Additional sources should be used in order to keep a performance appraisal objective. Productivity reports (for examples, sales reports), feedback from colleagues (using a 360 or 720 assessments) and self-assessments can be used to help objectively evaluate how an employee is performing. It is also important to make sure that your supervisors and managers are adequately trained to observe, evaluate and influence performance improvement. This may include coaching, motivating, reprimanding and rewarding performance.Performance Management is an ongoing process of goal setting, performance planning, performance monitoring, evaluating, giving feedback, coaching and training. Make sure all the parts of the Performance Management System are supported and ensure there is an open line of communication between management and staff at all times. As this process occurs it will be necessary to manage your staff’s initial goals and help them set new and modified goals and performance plans based on missed deadlines and unanticipated obstacles. Also ensure supervisors and managers take the time to observe and acknowledge good performance. Providing positive reinforcement goes a long ways in ensuring ongoing performance improvement as well as increasing employee engagement and satisfaction.
  3. The third important part of a Performance Management System is to maintain detailed and consistent documentation. This documentation includes details of positive and negative events related to an employee’s performance. These events can include examples of tasks they do well. It can also include tasks they performed poorly and any consequences given or coaching that was required to improve performance. Keep a log book that will serve as a reminder to you when it comes time to sit down and do a performance appraisal, then you won’t have to scramble around and try to remember what happened throughout the year.


An actual Performance Appraisal is the meeting with the employee in which you summarize and discuss all the goals, performance plans, notes on the employee’s performance and any conversations and coaching that have occurred since the last performance appraisal period. This meeting will help prepare for the employee’s future with your organization and is often followed by a change in compensation. There should be a clear link between strong performance and rewards and these links should be consistent across your whole organization.


As you can see from these 3 parts of Performance Management, performance appraisals are only actually a small part of the process. Setting and modifying goals and performance plans; ensuring there is an ongoing process of monitoring and documenting information about performance and communicating with your employees; conducting assessments, performance appraisals and compensation reviews are all important features of a Performance Management System.


If these parts all seem too overwhelming, check out my other videos in this series because I break the parts down further to help you create a Performance Management System.


To see more human resources videos in this Performance Management series and to download templates for job descriptions, performance plans and performance appraisals or for more tips and helpful information please visit our website at