Proper Performance Management Schemes Can Help Improve Company Results

August 27, 2011 by  Filed under: Management 

Performance management is one of the most important issues any company has to deal with, so it is surprising to find many organisations do not have a proper programme in place.

While most businesses monitor the performance of certain divisions closely – with the sales function being the one that is most often the subject of scrutiny – many employers find it difficult to carry out assessments of workers in other departments, as they have few statistics available to base judgements on.

However, failing to review how well people in all parts of a company do their job and to provide them with the right training and incentive schemes to improve can be a costly mistake.

While performance management differs from organisation to organisation, the Chartered Institute of Personnel and Development defines it as the “holistic process bringing together many of the elements that make up the successful practice of people management including, in particular, learning and development”.

Or to put it more simply, performance management is about using the skills and experience of your staff to their maximum level in order to improve the company’s financial results.

To achieve this you need to think carefully about a range of subjects, including how to assess employee performance, staff motivation, targets, incentives and training.

The cornerstone of your plan is likely to be regular appraisals and feedback sessions with staff members. But this requires a bit of effort to be worthwhile, as all too often issues raised in a one-to-one meeting between a worker and their line manager are then forgotten until the next annual assessment – an approach that can cause more problems than it solves.

Instead, the person carrying out the appraisal should prepare by looking at any available performance data and taking soundings from a range of the staff member’s co-workers, including both their managers and people who report to them. This information can then be used as the basis for the discussion, which should feature plenty of opportunities for input from the employee.

The meeting should also be used to draw up a plan for the following few months, featuring performance targets, training and, where appropriate, an incentive scheme. Giving staff the opportunity to earn rewards is one of the simplest ways to motivate them, as well as providing them with something to work towards and reminding them that their efforts are valued.

Putting so much effort into a performance management programme may at first glance seem over the top, but ensuring everybody is doing their job to their maximum ability is one of the best ways of improving productivity, customer service and profits.

Performance management is a key business tool for staff motivation and improving results. Contact Love2Reward to find out how incentive schemes can help your performance management programme.

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