Performance Management: What Is This Methodology And How Does It Affect Work?
The more complex an organization becomes, the more control we must have over all the processes that take place in it.
Performance management is a key concept for large companies Through this article we will discover why, and we will delve into all the characteristics of this phenomenon to know everything about it.
What is performance management and why is it necessary?
Performance management is the methodology applied by companies to ensure that the objectives set are achieved in the most efficient way possible That is, it is about ensuring that performance, both at a global level (of the company in general), as well as at a departmental level (of each section that makes up the company) and even individually (of each employee themselves) is the most appropriate.
The key to performance management is communication, which must occur constantly between workers and managers, and should be used to clearly establish various terms. First of all, the objectives that are intended to be achieved must be clear. Once the goals have been defined, each member of the company must gradually receive feedback about their performance, so that we provide them with the information they need to adjust it.
Finally, and continuing with a communication process that should not be interrupted, superiors must check the results that have been obtained and transmit them to their team, so that they can check if their work has borne the fruits they expected or, on the contrary, is necessary. make modifications to procedures to achieve the following goals established in the company.
An effective performance management process can come at a cost in time and other resources for the company. But everything you will save from that moment and the efficiency it will generate makes it undoubtedly a truly worthwhile investment. To verify this, we are going to better understand the most important advantages of this methodology.
Advantages of its application to organizations
Performance management comes with several benefits. Here we are going to see some of the most important ones.
One of the characteristics of performance management is that tries to align the efforts of all workers in the same direction , which is the common objectives of the company. Furthermore, in this way, each of them will know the importance of their specific task in achieving the global goals.
2. Certainty
Performance management also eliminates uncertainty, because provides each team member with clear information about the actions they must develop to achieve the results that the company is looking for. In this way we avoid the frustration that a person faces when not knowing how to act to achieve the objectives that have been asked of them. This will result in better performance.
3. Efficiency
Once each worker knows where their efforts are directed, and what exactly the tasks they have to perform to achieve them, another very useful phenomenon occurs for the company: all work behavior that is not directed towards the objectives is eliminated and therefore efficiency is increased at all levels of the procedures.
4. Anticipation
Maintaining fluid and constant communication gives performance management another characteristic, which is that incidents and obstacles can be identified as soon as they appear, and even anticipate them, and adapt the tasks of affected people so that they can cope and thus return to the path that will lead them to achieve the company’s global goals.
5. Continuous process
Performance management changes the most common trend in companies of carrying out an evaluation only once a year that assesses how the person’s performance has been and whether they have achieved the set objectives or not. Instead, it is a continuous process, in which information flows bidirectionally throughout time. That’s why, If a specific evaluation is made, it will simply be necessary to recapitulate what has been talked about throughout the season since communication has not been interrupted.
The phases of performance management
We already know what performance management consists of and what are the main advantages that this methodology brings with it. Now we are going to know what is the standard way to apply it in an organization. To do this we must delve into the three phases that make up the bulk of this system.
The first phase of this cycle will be planning. In this initial moment, The company must agree with its workers what performance expectations they are going to set, and which can later be measured according to the formula of results plus the actions or behaviors carried out by the individual. The results can be evaluated according to the established objectives, and the behaviors will be verified using the performance dimensions scale.
These performance expectations must be recorded in writing, so that both parties can check and verify them in any of their aspects as many times as necessary. It is the way to have a solid foundation on which to establish checks in the future. Furthermore, this way every worker will know what is expected of him and his task, knowing what he must achieve. Thus, when he achieves those objectives, his job satisfaction will also increase, because he will know that he has achieved what was expected of him.
This performance expectations scale, used in performance management, It also proves useful when reviewed by new employees of the company , since it helps them quickly orient themselves and know what expectations the organization has for them and how they should work to satisfy them. This procedure generates a communication relationship between employees and managers that results in a very positive work environment.
2. Adjustment
Although the objectives have been set in the first phase of performance management, this does not mean that they are immutable, and it is not necessary to wait a whole year to be able to make modifications and thus adapt to a more realistic perspective for any changes that have taken place. . On the contrary, This methodology is dynamic and allows these objectives to be adjusted in any of the meetings that occur, if it is considered that there are reasons for it
In the second phase, the adjustment phase, we will verify the performance of the workers to be able to give them feedback and thus have a basis on which to make the changes we mentioned, if necessary. The advantage of this feedback is that it works immediately, and allows the operator to adjust his or her behavior to get closer to the goals they had set.
This feedback does not have to be a lengthy report that is delivered in a ceremonious manner , but they can simply be some instructions that are mentioned to the worker on a day-to-day basis, reorienting him so that he can take the path that allows him to reach the established goal in the most efficient way possible. These contributions, in the appropriate assertive tone, can provide an important motivational boost for team members, who will feel valued and empowered.
3. Review
The third and final phase of performance management would be the review of the system and the objectives that had been set, and verify the success that our methodology has had Continuing in the line of constant communication between manager and subordinate, the first would communicate to the second how their performance has been (which, as we saw in the first phase, can be verified according to a standardized system) and thus, together, they will be able to establish the conclusions. relevant.
Another point that will be evaluated is the satisfaction of the worker himself, so he will be able to take the leading role and freely communicate what aspects of his tasks and work environment seem to him to be improved, in order to make modifications for the next cycle of performance management. . Likewise, it will be assessed what could be the next guidelines to take into account to measure the worker’s performance in the future.
In short, not only is the cycle that we had started in the first phase closed, but at the same time we are preparing the ground to start another sequence again, because it is a system that never stops, but rather feeds itself to continue. being able to constantly improve in each iteration.
