Performance management is a process by which managers and employees work together to plan, monitor, and review an employee’s work objectives and overall contribution to the organization, including its operational and strategic performance.
More than just an annual performance review, performance management is the process of setting objectives, continuously assessing progress, and providing on-going coaching, feedback and support to ensure that employees are meeting their performance objectives and professional development goals.
Performance management is often based on a combination of goals, objectives, and competencies that an organization has developed for each position and/or level. Competencies are usually aligned with organizational values, and include knowledge, skills, abilities, and attributes.
Examples of competencies include:
While establishing a performance management policy and procedure is not a legal requirement, human rights legislation requires employers to treat employees equitably and fairly, without discrimination. A well-designed, documented, and implemented performance management policy and process can serve to ensure and demonstrate objective and fair decision-making regarding compensation, promotion, disciplinary action, and termination.
An effective performance management system should:
As organizations are adapting to new opportunities and pressures for remote and/or hybrid work, it’s important to remember that what worked in the past, when teams mainly worked together, may not work in the new reality.
A few guidelines to consider when creating or updating your performance management policy and process are:
Human resources software companies provide a range of tools that could be useful when conducting performance management in a remote or hybrid environment, such as instant praise for work well done delivered through messaging apps, nudges, or fully online performance management modules.
