Work culture today is defined by many strategies and principles. There are several theories that seek to analyse and address common situations that are faced by teams across an array of industries around the globe. However, it is implementation that makes all the difference to the performance of an organization. Performance Management is a tool that is effective in supervising performance, evaluating and correcting implementation of policies and enhancing overall operation.
Performance Management can be defined as a process that analyses and checks the performance of an employee, department or even systems involved in the organization. It is the process by which leaders align their resources – be it in terms of people or systems with an objective of achieving a set goal. It is a collaborative process that requires effort from leaders and their subordinates alike. Considering its irreplaceable role in the efficient working of an organization, here’s why performance management is regarded by many as crucial in any organizational setup.
Why is it crucial?
- Participative leadership
This system of management requires leaders to participate in the growth of their team members. A leader is required to not just direct his team members, but also asses the strengths and weaknesses of each. A participative leader understands the personal goals of his subordinates and creates an action plan to align these goals with those of the team and the organization. Participative leadership is regarded by many as a great way to motivate employees.
- Clear goals, processes and systems
Performance Management is a process that is undertaken on a regular basis. As such, goals, processes and performances are assessed with a view on their individual contribution to the achievement of a common goal. As a result, there is much clarity on team goals, the action plan for performance and the goals that are expected to be conquered. With greater clarity comes better understanding and improved performance.
- Improved Communication
One of the most critical aspects that can make or break an organization is communication. Performance Management requires the employee and manager to discuss and debate on a regular basis. Changing conditions, priorities and personal ambitions can have an impact on performance and regular communication can help derive a common ground and action plan. Further, with improvised communication there is better understanding and co-ordination among team members, besides much needed clarity and a common purpose that is understood by all. Achievements are acknowledged and concerns are addressed. Constructive communication reduces stress, builds motivation and contributes to a committed and improved performance.
- Continual Appraisal system
Typically, every organization has an appraisal system that is undertaken once a year. Performance management is akin to an appraisal but is undertaken as and when necessary and as many times a year as required. In fact, the annual appraisal is an integral part of Performance Management. This is very beneficial from both the employee and the organisation’s point of view. The process of performance management is applicable to the smallest of teams and the shortest of processes. Continual reviews seek not only to assess the relevance of the subject, but also to change according to altering conditions, policies and priorities. It ensure maximum efficiency and performance among employees, teams, systems and processes alike.
Many studies have shown that Annual Appraisals in an impersonal and formal manner are far less effective than a personal and regular system of Performance Management. It is imperative to note here, that performance management is an inclusive and open-ended process that respects the views and goals of both the organization and its employees. We, at Le Paraguas understand the significance of intricate processes that make up Performance Management. Our experienced panel is adept at identifying and training leaders in various aspects of Performance Management. Our programs are designed to meet individual needs and requirements, just as is Performance Management.