What is Performance Management? *
Performance Management is a holistic, dynamic system of integrated processes that together foster high levels of organizational performance. A performance management system is designed based on the organization’s vision, mission and strategy. It is also based on available resources (time, money, people/skills), and the desired culture needed to support the strategy and to respond to change effectively.
The five steps in the performance management process: *
- Performance Planning – the collaborative, performance planning process between manager and employee to determine expectations, performance goals, individual roles, and job description/responsibilities based on the department’s goals, objectives and targets leading to the organization’s strategy.
- Performance Motivation – the collaborative process between manager and employee to discuss what motivates the employee and how both people can ensure at least some of those motivations are put into play.
- Employee Development – the collaborative process between manager and employee to determine areas of growth and how to close any performance gaps through on-the-job training, self-directed learning, internal/external classes, and/or coaching.
- Evaluating Employee Performance – the collaborative process between manager and employee to evaluate past performance progress and review performance plans for the future.
- Performance Recognition – the collaborative process between manager and team to design methods of informal and formal, high performance, recognition that is meaningful to employees; manager and team implement.
Diagram showing the many interrelated processes: *
US Dep’t of Commerce: Performance Management System Handbook