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. The most important things in implementing performance management are structured process and management commitment. Structured process includes setting the goal, behavior, and development. Setting the goal is important because without having a goal, we don't know what we are doing. We do something just to do it not to achieve something. Goal setting sounds easy but the truth is not. The common goals usually company have are reputation, high income, guest love, etc. The company needs to prepare the department Key Performance Objective (KPO).
Key Performance Objective is important to track and measure company success. This is needed in order to achieve both improved performance and important business outcomes. The company needs to ensure that the goals aligned with company's strategy. Set the Set SMART goals and measurement standard. SMART stands for Specific, Measurable, Achievable, Relevant, Time Bound
- Specific: Be sure to focus on specific issues, behaviors, and actions
- Measurable: Put a measurement system in place. If you can't measure something, you can't manage it
- Achievable: Be sure to set the goal that you know is attainable and achievable. Setting too low on targeting = not challenging
- Relevant: The goal must be relevant to their job or the organization's success
- Time bound: There must be a timeline associated with goals in order to follow up.
The next one is behavior. This is also very important. Living our behaviors enables us to grow and develop the culture needed to be successful. Last is development. Development is crucial to deliver the ambition. It needs the employee to perform their best and develop the capabilities needed to be succeeded. Personal development includes key job responsibility, career appreciation, and leadership competencies. The second thing is management commitment.
There are 3 things that should be considered are job satisfaction through employee engagement, empower management with discretion to recognize performance, and share room to grow opportunities (internal promotion and external promotion). To be effective and produce a result for your business, performance management must be a year-round process with no end.