Why performance management is important
Performance management is the compass which guides the management to take informed decisions.
It reinforces the correct behaviours, showcases the stellar employees and what they are doing well and highlights areas for further development with the ultimate goal to have a sustainable business.
Without it, the company cannot function simply because it doesn’t set targets, measure the outputs and take corrective actions to achieve these targets.
Can performance management add value to a business?
Performance management certainly adds value to a business because it ensures that the expected deliverables meet the company goals in an effective and efficient manner consistently; and even more: it allows employees to know what to do to overachieve their goals and get rewarded for that.
Are performance management systems effective?
Performance management systems can be effective if they are carefully designed to address the organisational needs. I have seen millions of euros spent on extremely expensive and complicated systems, which were not fit for purpose and didn’t take the company’s size and internal demographics into consideration.
What makes performance management systems effective is not only the system itself but how it is integrated with the company’s values and overall human resources management processes around it.
Before establishing a performance management system, think of the following:
- Which are our company values and which behaviours are endorsed by our company based on these?
- How do we hire people based on our values?
- Are the performance goals and criteria clear enough to all employees and managers?
- Are there performance management conversations going on?
- Are managers trained to have these conversations?
- How does the company handle high achievers?
- How does the company handle underperformers?
- Do managers reinforce the expected behaviours by their actual actions?
Which performance management system should my organisation implement?
Before you decide on any performance management system, think of the current situation of the company and what need this system should address. Estimate the current situation; don’t try to imagine what will happen in 5 years and commit your company to a complicated, expensive and hard to maintain system. You need to keep your operational costs low while having a tool which is user friendly, efficient and cost effective.
Implementation of Workday Core module & Performance Management
Calor (Energy, 180 employees)
Implementation of SAP/HR Core module, payroll & Performance Management
Intracom Telecom (Telecommunications, 2000 employees)
What clients say about my work
I have worked with Marina for 18 years. During our collaboration, Marina was instrumental in the development of the human resources department and helped me to implement a very ambitious growth plan for our group of companies; we grew from one Greek company to a multinational company with 19 subsidiaries in EMEA. She has led all the major HR projects and has treated each one of them with extreme professionalism. She has always been able to bring exceptional results within tight budgets and deadlines, being an inspiring leader. She is an asset to every company.
Group HR Director, Intracom Telecom Group of companies