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Performance Management

Ismael D. Tabije

February 19, 2007

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Performance management is a set of systematic processes that help businesses discover efficient use of their business units, financial, human and material resources.

Performance management’s focus is on creating methodical and predictable ways to improve business results, or performance, across organizations. It aids organizations in achieving their strategic goals.

Performance management processes constitute:

(1) planning—deliberation of what to do and setting expectations;
(2) monitoring—continually checking on performance;
(3) developing—improving the capacity to perform;
(4) rating—periodically scaling performance in a summary fashion; and
(5) rewarding—compensating good performance.

The first process, planning, means structuring mindset on how performance should be channeled to achieve objectives considering the goals of the organization. By involving the employees in this process, there would be an increased comprehension on the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done.

Employee performance plans should include establishment of elements and standards to be used for regulatory performance appraisals. It should be versatile, making adjustments in program objectives and work requirements easy.

The second process in performance management is monitoring. It pertains to the consistent assessment of performance and providing ongoing remarks to employees and work groups while they are progressing in attaining organizational goals. Employees’ evaluation enables the supervisor to see if employees are meeting predetermined standards, to make revisions to problematic standards.

Developing, the third process can be defined as increasing the capacity to perform. This can be staged through trainings, seminars, and assigning projects that would introduce new skills or higher levels of responsibility, and improve work processes or methods. These developmental activities pave way to encourage good performance, strengthen job-related skills and competencies, and help employees keep up with changes in the workplace, such as the introduction of new technology.

From time to time, organizations find it useful to summarize employee performance. This requires the fourth process of performance management, rating. This enables comparison among a set of employees or individual conduct or productivity over a period of appraisal. The rating of record has a bearing on various other personnel actions, such as granting within-grade pay increases, and promoting or determining additional retention service credit in a reduction in force.

In a productive organization, rewards are used frequently and profitably. Rewarding, the fifth process of performance management comprises this. It means acknowledging employees’ contributions to the agency’s mission as an individual or a team player through granting of awards, merits, benefits or bonuses. A basic principle of effective management is that all conduct is influenced by its consequences. This applies, whether the deed is positive or negative.

All five components or processes triumphantly result to a natural and effective performance management. Each key process should be executed in such a way that there exists coordination and support from these processes, to the supervisors, and to the subordinates. Practicing this should include setting goals; planning work routinely; measuring progress toward those goals and giving and accepting feedbacks to and from employees. High standards should be set but taking care to develop the skills required to reach goals and acknowledging productive deeds should never be disregarded.

Copyright 2007 Ismael D. Tabije

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