Effective organisational performance management is about much more than conducting yearly reviews. It’s a continual process that enables managers and employees to work together to improve individual and company-wide outcomes.
According to learning and development experts GP Strategies Ltd, to get performance management right you should focus on establishing organisational goals, monitoring progress and adapting your strategy in order to meet these goals more efficiently and effectively. A good strategy incorporates a range of elements, including reviews of appraisal practices, the development of performance rating metrics and reward systems, the creation of organisational performance plans and the establishment of coaching and mentoring programmes.
Here are just a few of the reasons why it pays off to put careful thought into organisational performance management.
Unlocking the full potential of your personnel
Good performance management helps you to unlock the full potential of your most valuable asset as a company – your employees. It enables you to identify key training needs and ensure your workers have access to development programmes that help them to build on their knowledge and skills on an ongoing basis. In turn, this can mean your business is better equipped to deal with the challenges it faces now and in the future.
Keeping hold of your top talent
A strong performance management strategy can also play a key role in helping you to retain your most talented members of staff. It empowers employees by giving them greater control over their own progress and can, therefore, increase worker satisfaction and engagement. When people are supported to achieve their personal objectives and they feel part of a dynamic, well-structured team that offers opportunities for advancement, they are much more likely to stay put rather than looking for new roles with different employers.
Aligning organisational and individual strategic goals
Another benefit of effective organisational performance management is the fact that it ensures personnel know exactly what’s expected of them and can see how their hard work contributes to the overall success of the business. It also means they can have confidence that their efforts and talents will be recognised and suitably rewarded. By aligning organisational and individual strategic goals like this, it encourages colleagues to pull together and work effectively, focusing on the activities that provide the greatest value to the company.
Given the clear benefits that effective organisational performance management brings, and the resultant positive impact it can have on your bottom line, it’s essential that you get this element of running your business right.