The performance management system is the key to organizational growth. Any organization cannot afford to neglect performance management. It is all about ensuring that your employees are satisfied, happy, engaged and working towards the organization’s goals. It is a continuous process where there is a two-sided communication between the employer and the employee. The objective is to achieve the organization’s goals in a defined period. It should top the priority list of every organization. This Tuesday, let us see why an organization should implement Performance Management System:

1. Make the team understand the importance of PMS:

Most of the employees are motivated and work beyond expectations. But the issue arises when it comes to those employees who are unaware of what is expected. So clear identification of roles and responsibilities along with the expected role competencies is the must. If the employees clearly know what the expectation is and what do they have to do for best performance, then it becomes convenient for the managers and the reporting authority to assess the performance. To ensure that employees are aligned with the organization’s goals, the goals should be subjective, measurable, attainable, relevant and timely. The goals should be realistic as well. Research shows that employees are highly motivated, when there is a 50% chance of achieving them.

2. Engage the team:

Only defining SMART goals is not enough, employee engagement is also needed. Your employees should be happy, motivated and engaged. It is important for every organization to understand their employee’s views, mindset and level of engagement. Employee engagement can be measured in several ways. Everyone knows happy people do more, and better work.

3. Develop leadership and coaching skills:

Every organization should take time and efforts to train the managers in the organization. A good manager would work on giving appropriate training and coaching to the team in order to give the best skills to the employees. Research suggests that if the managers and trained and effective then the organization does not have to invest a lot in the training of the team, as the managers would do it for their respective teams.

4. Value Adding:

The PMS should be simple, upfront, and should add value to every party involved in the performance management process. It should be value adding and the objective is to improve employee productivity and engagement.

5. Rewards and Recognition:

Employees need to be given due credit for their efforts in the organization. Research shows that the number one reason why people in America leave a job is that they do are not appreciated or rewarded or recognized for their efforts. So financial compensation plays a major role as well.

So the key objectives of any PMS should be as follows:

• PMS should be objective in performance measurement
• Provide continuous feedback to the employees for improvement
• Enable even and impartial objective based appraisal
• Promote rewards and recognition schemes
• Identify the training and development needs of the employees
• Determine the effectiveness of various programs

Thus, PMS should be an integrated part of any organization for the continual development and growth of the organization.

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Written & Compiled by Faber Mayuri