Performance Management - Introduction

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed.

It ends when an employee leaves your organization.

Performance management defines your interaction with an employee at every step of the way in between these major life cycle occurrences. Performance management makes every interaction opportunity with an employee into a learning occasion. 

Performance management is not an annual appraisal meeting. It is not preparing for that appraisal meeting nor is it a self-evaluation. It's not a form nor is it a measuring tool although many organizations may use tools and forms to track goals and improvements, they are not the process of performance management.

Components of a Performance Management System

The performance management system may contain all of these components, but it is the overall system that matters, not the individual components.

A performance management system includes the following actions.

• Develop clear job descriptions using an employee recruitment plan that identifies the selection team.

• Recruit potential employees and select the most qualified to participate in interviews onsite.
• Conduct interviews to narrow down your pool of candidates.
• Hold multiple additional meetings, as needed, to get to know your candidates' strengths, weaknesses, and abilities to contribute what you need.
• Select appropriate people using a comprehensive employee selection process to identify the most qualified candidate who has the best cultural fit and job fit that you need.

• Offer your selected candidate the job and negotiate the terms and conditions of employment including salary, benefits, paid time off, and other organizational perks.
• Welcome the new employee to your organization.
• Provide effective new employee orientation, assign a mentor, and integrate your new employee into the organization and its culture.
• Negotiate requirements and accomplishment-based performance standards, outcomes, and measures between the employee and his or her new manager.
• Provide ongoing education and training as needed.
• Provide on-going coaching and feedback.
• Conduct quarterly performance development planning discussions.
• Design effective compensation and recognition systems that reward people for their ongoing contributions.
• Provide promotional/career development opportunities including lateral moves, transfers, and job shadowing for staff.
• Assist with exit interviews to understand WHY valued employees leave the organization.