A wise man once said ‘inspect what you expect.’ Over time, management and employees alike get caught up in their daily work routine and lose sight of organizational goals and perspectives. With the pressures of work and business constantly growing, organizations are now expected to become twice as effective and competent in the execution of business strategies, while also doing more with less in order to stay afloat or even rise above the competition.
In the midst of all of this, things could get very tough and awry, hence the need for performance management and monitoring. According to Aileen MacMillan a Performance Management Research/Analyst, the primary reason to make sure performance management processes are functioning properly is to tighten the link between strategic business objectives and day-to-day actions. Other reasons why performance monitoring is important within any organizational set-up include:
- It strengthens organizational goals: Sometimes, employees need to be reminded what it is they are working towards. Since individual performance drives organizational performance, it is important to ensure everyone understands the organization’s vision and goals, how their work fits in to the organization, and how they contribute to the accomplishment of these set objectives. Doing this increases engagement and improves bottom line delivery.
- Gives employees a clear cut grasp of their job requirements: Employees want to feel successful, to do well at their job and feel they are making a valuable input. In order to make sure this happens, employees need a clear understanding of individual goals and how they fit into the larger whole. When employees and supervisors have a clear understanding of their specific job duties, any ambiguities in the workplace are eliminated and each individual is held accountable for their own duties and responsibilities.
- Promotes performance feedback: A performance management system promotes interaction and feedback between management and employees. Regular feedback facilitates better communication in the workplace and helps the management and employees alike to identify their strengths and weaknesses. It also allows for opportunities to hear and exchange views and opinions away from the normal pressures of work.
- Helps for better future planning: Performance monitoring can help the management spot ways in which to improve performance and provides the opportunity to discuss the company’s direction and prospects. Clear outlook, consistent individual analysis, and company-wide employee appraisals help ascertain corporate proficiencies and skill gaps. With this valuable data in hand, companies can identify training and development plans.
- Motivation of employees and reward for outstanding performances: Regularly monitoring progress against performance goals and objectives also affords the opportunity to distinguish and reward employees for performance and remarkable effort, thus promoting job satisfaction and productivity. It can also be a motivational tool, fostering employees to not only feel more satisfied, but to go beyond the expected.
Performance management is about improving performance and an organization that does not accurately put into operation and support a performance management system may not experience all of the possible perks of improved communication and workforce development. The benefits to be accrued from implementing one is not only enjoyed by the company, but the management and employees as well.