Performance Management

Do more with less in order to remain competitive.

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Why does a business need an intense focus on performance management?

Business pressures are ever-increasing and organizations are now required to become even more effective and efficient, execute better on business strategy, and do more with less in order to remain competitive.

Forward thinking companies are taking steps to successfully implement innovative solutions that ensure processes deliver real results and improve performance.

Properly constructed appraisals should represent a summary of an ongoing, year-round dialogue. Focusing only on an annual appraisal form leads to misunderstanding and under appreciation of the benefits of performance management.

An effective performance management process enables managers to evaluate and measure individual performance and optimize productivity by:

  • Aligning individual employee’s day-to-day actions with strategic business objectives
  • Providing visibility and clarifying accountability related to performance expectations
  • Documenting individual performance to support compensation and career planning decisions
  • Establishing focus for skill development and learning activity choices
  • Creating documentation for legal purposes, to support decisions and reduce disputes

Many of the practices that support performance also positively impact job satisfaction, employee retention and loyalty. Recommended practices include:

  • Delivering regular relevant job feedback
  • Setting and communicating clear performance expectations
  • Linking performance to compensation clearly
  • Identifying organizational career paths for employees
  • Evaluating performance and delivering incentives in a fair and consistent manner
  • Providing appropriate learning and development opportunities
  • Recognizing and rewarding top performers

Consequences of a Poorly Structured Process

What is the impact of a poorly structured performance management process?

If individual goals are not aligned with business strategy, then time and resources are wasted. Low employee engagement levels may mean that individuals are not performing at their best.

Inconsistent evaluation criteria and rewards can lead to mistrust, lower productivity and higher attrition. If top performers see no differentiation in performance ratings, opportunities and compensation from underperformers, morale can suffer.

Lack of documentation, visibility, and accountability can negatively affect stakeholders who are demanding more and more transparency. If accurate performance information is unavailable or difficult to access, training and development decisions along with project assignment decisions may not be made in the company’s or the individual’s best interests.

An annual process will not adequately alert managers to problems in a timely manner.

Last, but not least, a lack of proper documentation related to performance may result in legal issues.

Recours Four Kenya Consultants Limited offers performance management to organizations and this service can be outsourced to us.