Everything you need to know about performance management!
Performance management is very relevant for the success of an organization, after all, it contributes to the identification of points of improvement, in addition to being able to collaborate in the development of actions that focus on improving the skills and behaviors expected of professionals in an organization. company.
Therefore, HR managers need to dedicate special attention to this area, as it is through it that it will be possible to improve the performance of employees, giving the organization important competitive advantages.
In this scenario, performance management is an important allied tool of people management, and should be used with the help of the company’s leadership , in order to align expectations and achieve the best results.
To help you better understand what performance management is and how it can contribute to the development of a company, we have prepared this article. Follow!
What is performance management?
Performance management, also known as performance management, involves setting objectives, passing on feedback to employees and documentation. The actions involve continuous feedback and communication between leaders and employees, in order to ensure compliance with the organization’s strategic objectives .
In this scenario, performance management can be applied both to all departments and to specific sectors and also employees. It can still be used to manage specific activities, however, all these actions must be aligned with the company’s mission and values.
Over time, and to meet the demands of organizations, performance management has been applied continuously, and not just as an annual process, as is often the case, for example, in performance evaluation .
In this way, it is possible to guarantee that the teams and, consequently, the organization as a whole, enjoy a satisfactory performance over time. Thus, it is possible to ensure that they manage to maintain a satisfactory performance to meet the demands of the company and also of the market.
How does performance management work?
Performance management will always work according to the needs of the company. Therefore, there are several components that can be inserted in the management process, always respecting the objective of evaluating the overall performance of the team and contributing to the professional and personal improvement of all those involved.
Performance management activities can also be used to manage strategies related to bonuses, promotions, dismissals, meeting training demands, salary increases, among other issues. Therefore, it is possible to understand that there are three steps that need to be performed in performance management.
The first is to make a daily observation of the behavior of employees, both individually and in groups. In this way, it is possible to identify habits, limitations and progress. In order for the behaviors to be aligned according to the organization’s expectations, it is still necessary to provide constant feedback .
It is still necessary to identify and consider emerging issues in order to keep motivation high, which helps to obtain better results.
It is also necessary to maintain periodic interviews related to performance evaluation, emphasizing the 360º feedback model. In this way, it is possible for the appraiser and appraised to review their attitudes and identify opportunities for improvement, establishing corrective actions, when necessary.
For a correct performance management, some issues still need to be incorporated for this management to be effective. The important thing here is to identify what, in fact, contributes to the development of people in your organization. This means that not all indicators need to be used, but it is advisable that they cover recruitment and selection activities in a broad way, which involves, for example, an effective job description, correct monitoring of selection stages and feedback to candidates.
In the day-to-day of functions, people management must be attentive to monitoring the performance of the team. This involves analyzing and adjusting activities, so that all tasks can be evaluated according to the company’s reality.
During the performance appraisal period, HR management becomes aware of the performance of each employee when observing their work, meeting them in meetings, and receiving reports, for example.
In this way, if it is necessary to make any changes to the work plan , it is not necessary to wait for the moment of evaluation, allowing both the leadership and the employee to monitor the work, making the activities more effective.
What is performance management for?
One of the main functions of performance management is to align employee expectations with those of the organization, which helps to enhance team performance. However, we have some goals to be achieved in performance management. Follow next!
Clarify what goals must be achieved by employees
Everyone, leaders and employees, need to be aware of the results expected and required by the organization, as well as being informed about the forms of evaluation. As a result, performance management metrics become more transparent, which is essential to gain team engagement and commitment, and achieve a high level of quality at work.
Stimulate the development of employees
One of the main reasons for investing in performance management is to enable a significant evolution of team members, in addition to improving the entire work environment.
This happens because, with actions taken, employees have the possibility to improve their hard and soft skills , that is, technical and behavioral skills, in addition to aligning them with the company’s objectives. It is worth remembering that the help of managers contributes to this result.
Therefore, it is important to pay attention to the measurements of results, as well as the deliveries made. With this, the indicators can be evaluated effectively, with broad engagement of the entire team.
Understand the required results
Performance management — which permeates the definition of objectives, documentation and the transfer of feedback — must be transmitted to employees clearly, as we have already mentioned. In this way, employees will be able to know how the company expects them to behave and what results must be presented, as well as what are the expectations about the work and evolution.
Thus, based on the documentation prepared, the direct leadership can organize, together with the professional in question, a performance improvement plan. This can be done in detail in order to provide more frequent feedback . This feature is, generally speaking, used when the employee has difficulties in progressing, and it avoids early dismissal.
Compare each individual’s performance
When it comes to performance management, it is common to use numerical classifications to compare the performance of each professional. These classifications are based on specific criteria, and these are not always able to correspond to reality.
Therefore, in an ideal scenario, it is recommended to use other analysis methods, and these may include observation, gathering relevant data and constant monitoring. Thus, one of the differentials of performance management is that it also considers the organizational culture , making it easier to implement an adequate evaluation. In this way, it is possible that the performance of each employee is better perceived.
What is the importance of performance management for the company?
The importance of performance management for an organization is that it directly impacts the company’s growth. Thus, the more efficient the performance of the professionals who integrate it, the higher the chances of success.
In increasingly competitive markets, in which professionals are encouraged to improve their behavior, activities and techniques, the chances that more and more people are committed to making good deliveries are increased.
In this scenario, performance management is responsible for aligning the needs and expectations of employees with the objectives proposed by the company. Therefore, performance management mutually integrates the desire to progressively improve the company’s actions.
In this scenario, the higher the understanding of what the company expects from its professionals, the more people will understand what needs to be improved to meet the goals. On the other hand, companies that invest in the development of their talents win more motivated professionals who are also engaged in their day-to-day functions.
The rule here is that the actions need to be in constant evolution, and also be a two-way street, that is, be good for the company and also for the employee, who will have in his personal and professional development the best tools to improve the your skills.
What are the benefits of performance management?
Companies that implement performance management become more competitive in the market, as they start to enjoy a series of advantages, namely:
- better use of human capital;
- more assertive hiring;
- punctual and targeted training planning ;
- reduction of turnover rates, also known as turnover.
- more productive employees;
- increased employee satisfaction and motivation ;
- cost reduction with selection processes.
In addition, the company’s employer brand is high, as people who are part of the organization and their stakeholders start to recommend the company as a good company to work for.
How to apply performance management?
The first step in applying performance management is to understand that it works in stages. The first is to understand how it can contribute to the development of the organization and what are the expected results with this people management strategy.
It is also necessary to bear in mind that this is a continuous process and, as such, it must be reviewed and improved, taking into account the moment of the company. With that in mind, see below how to apply performance management in your company!
Map the processes
Bearing in mind the concepts and importance of performance management for the organization, it is necessary to direct the entire process and, for that, you will need to map all the company’s people management procedures, in addition to defining how they will be applied. .
It is essential that each step is very clear to the responsible HR team, as well as to the leaders of the areas, who will be important multipliers of information involving performance management.
In order for performance management actions to be, in fact, effective, it is necessary to gain employee engagement. This process should start by informing everyone about the monitoring of the development of activities and how they will be applied throughout the company.
This makes it easier to gain their involvement, and also activate the availability of professionals, as they will understand that they will have the opportunity to improve their own performance.
In order for the actions to obtain the expected result, it is necessary to initiate performance management activities by leadership. This is because, in addition to being strategic people, they are also employees, and must be included in performance management activities.
The performance evaluation is one of the great allies to identify the points of improvement in the company, at the same time that they are responsible for promoting important changes in the performance and behavior of the employees.
With the performance evaluation, each employee can answer questions that are directly related to the activities carried out in their departments, and can also reveal their perceptions in relation to the company. Thus, by investigating the answers obtained, added to the skills, competencies and potential of each professional, it is possible to direct HR activities towards more strategic actions for the company.
Use of indicators
In addition to performance evaluation, there are still other indicators that can be used to measure individual and team performance, such as organizational climate, productivity, staff turnover rate and delivery efficiency.
It is worth remembering, once again, that the performance indicators must be thought out according to the moment and the reality of each company, in order to reflect opportunities for improvement as faithfully as possible.
Planning and implementation of actions
With the results of the performance evaluation in hand, you will have the necessary information to make strategic decisions for the development of the professionals that make up the company. These actions can be carried out through lectures, workshops, training, courses, among others.
For the actions to be effective, it is important to plan how, when and who will carry out and monitor the activities. It is worth emphasizing that, going beyond professional improvement, the objective of performance management is to ensure that the proposed actions for people development are fully aligned with the company’s organizational goals.
Training of employees
The most efficient way to raise the results of a work team is through training. With it, it is possible to raise the standard and quality of employee deliveries in the exercise of their functions.
Thus, with training aligned with the needs of employees and consistent with organizational objectives, workers will be able to add skills and abilities to become better and more competitive professionals, both acquiring new knowledge and improving existing ones.