Reference:

https://www.opuskinetic.com/2020/07/understanding-the-aims-and-objectives-of-performance-management-systems/
The Role of Performance Management in the Company's Success

Performance management is an integral part of the business managing and measuring its productivity. In
its turn, the business development planning is much more powerful if it is an integral part of managing the
employees' performance. Moreover, managing the employees' performance should not be only a process
of documenting and delivering feedback, but a powerful tool for helping employees develop and achieve
their full potential. Only, in this case, employees can increase their value to their company and will be
able to help the company's success.

Practice the employee’s self-assessment.

A practice of the employee self-assessment can be used for the purpose to get your employee's
perspective in their productivity. This is a way to help your employees feel more engaged and give them a
voice in the business process. Getting the employee's perspective is an inestimable way to get more
information about his/her performance.

Solicit the multiple feedbacks.

Collecting feedback from anybody (managers, peers, subordinates) who works with the employee and
even from your customers will help you to avoid the manager’s bias and know your employee's
performance broader and more objective. It is especially helpful in the case of some conflict or tensions
present between the manager and employee and when managers don't work directly with their
subordinates. Feedback from multiple, credible sources makes it more objective.

Give employee goals a larger context.

Giving employee goals a bigger context helps your employees to understand why their work is important
and how their work contributes to the company's success. This allows employees to feel that their work
matters and increases employee performance.

Integrate development planning with managing employees' potential.

The development planning is much more powerful and effective when it is integrated with the
performance management process. Use the performance appraisal meetings to discuss your employee's
short- and long-term career aspirations, and to investigate opportunities for preparing the employee for
advancement within your company.
Implement pay for performance.
Employees should know the rewards and compensation for their productivity. Integrating the managing
of employee performance with compensation management allows employees to know that compensations
are fair.
The first step towards improving the company's existing performance processes is to understand what
main stages of the performance management cycle are and what basic elements necessary for effective
managing of employee’s efficiency.
CHARACTERSTICS
The following is a set of characteristics that is likely to allow a performance management system to be
successful.
1.Strategic congruence
The system should be congruent with the unit’s and organization’s strategy. In other words, individual
goals must be aligned with unit and organizational goals.
2. Thoroughness
The system should be thorough regarding four dimensions. All employees should be evaluated; all major
job responsibilities should be evaluated, the entire review period, and not just the few weeks/months
before the review, on positive aspects as well as those in need of improvement
3.Practicality
Systems that are too expensive, time-consuming, and will obviously not be effective. On the other hand,
good systems are available and easy to use (e.g., performance data are entered using user-friendly
software), and are acceptable to those who want to use them for decisions.
4.Meaningfulness
The system must be meaningful in several ways.
1st the standards and evaluations conducted for each job function must be considered important and
relevant.
2nd, performance assessment must emphasis only those functions under the control of the employee.
3rd, evaluations must take place at regular intervals and at appropriate moments.
4th, the system should provide for continuing skill development of evaluators.
5th, the results should be used for important personnel decisions.

5. Identification of effective and ineffective performance

The performance management system should provide information allowing for the identification of
effective and ineffective performance. That is, the system should allow for distinguishing between
effective and ineffective behaviors and results, thereby also allowing for the identification of employees
displaying various levels of performance effectiveness.
6.Specificity
A good system should be specific, meaning that it should provide detailed and concrete guidance to
employees about what is expected of them and how they can meet these expectations.
7.Reliability
A good system should include measures of performance that are consistent and free of error. For example,
if two supervisors provided ratings of the same employee and performance dimensions, ratings would be
similar.
8.Validity
The measures of performance should also be valid. In this context, measures are relevant (i.e., include all
critical performance facets), are not deficient (i.e., do not leave any important aspects out), and are not
contaminated (i.e., do not include factors outside the control of the employee).
9. Inclusiveness
Good systems include input from multiple sources on an ongoing basis. First, the evaluation process must
represent the concerns of all the people who will be affected by the outcome. Consequently, employees
must participate in the process of creating the system by providing input regarding what behaviors and/or
results will be measured and how. Second, employee input about their performance should be gathered
from the employees themselves before the appraisal meeting.
10. Correct ability
The process of assigning ratings should minimize subjective aspects. However, it is virtually impossible
to create a completely objective system because human judgment is an important component of the
evaluation process.
11. Openness
Good systems have no secrets.
First, performance is evaluated frequently, and performance feedback is provided on an ongoing basis.
So, employees are continually informed of their performance.
Second, the appraisal meeting consists of a two-way communication process, where information is
exchanged and not just delivered from the supervisor to the employee.
Third, standards should be clear and communicated on an ongoing basis.
Finally, communications are factual, open and honest.
12.Standardization
Good systems are standardized. This means that performance is evaluated consistently across people and
time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually
managers, is a must.
13.Acceptability and fairness
A good system is acceptable to and perceived as fair by all participants. Perceptions of fairness are
subjective, and the only way to know whether a system is seen as fair is to ask the participants. 15.
Ethicality Good systems comply with ethical standards. This means that the supervisor suppresses her
personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance
dimensions for which she has sufficient information, while respecting the privacy of the employee.
7 Keys to Competency-Based Performance Management
by Joseph Jaynes | Apr 20, 2016
For high-performing organizations, a competency-based performance management system is an essential
part of an overall competency management plan. With a competency-based performance management
system in place, you can better motivate staff, align training with company goals, clearly define roles and
the skills needed to perform each job well, as well as optimize the hiring process. Here are seven key
components to optimizing your competency-based performance management plan.
1. Determine Goals
When it comes to performance management, determining goals should be step one. Having set goals at all
levels allows everyone involved to have something to strive toward, measure and be accountable for. By
 planning out specific goals and setting expectations, you will motivate employees to work effectively,
help management to communicate clearly and allow tasks to be completed in an efficient manner.
Whether you’re setting goals individually or at a team level, make sure they’re geared towards developing
the core competencies of the company and supporting your organization’s mission, vision and values.
2. Communication
One of the most important elements of a performance management plan is communication. By clearly
communicating what your plan is, what your goals are and why, you can get employees on board and
motivated to participate.
Why. Make sure the purpose is communicated clearly, and often. If employees don’t see the point, they
may not do their best to progress toward your goals.
What and When. It’s also important to set clear expectations. If you’re planning on setting deadlines for
individuals or teams to complete training or to give feedback, let staff know that you’re expecting them to
complete the activity at that time and it’s not just a suggestion.
How. Give staff clear steps toward any goals you have set. With a step-by-step guide, the process will be
as effortless and possible.
One great benefit of performance management is that the feedback gives HR better clarity when
recruiting, which saves time and resources. This is why it’s so important to clearly define each job.
3. Define Job Types
Great employees want to excel in their positions–and understand what is needed to move up. Make it
easier for them by outlining what skills are needed to perform to the best of their ability. By
understanding job responsibilities and expectations, employees can be more confident in their position, as
well as their future, within the company.
In addition to your current employees, it’s also important to plan for the subsequent workforce. With your
organization’s core competencies in mind, define what job types you would like to hire for in the future.
Complete the communication loop by speaking with HR about these decisions. This will help you hire the
most competent people to fulfill needs within your company.
4. Identify Skill Gaps
Once you agree upon and outline the skills needed for each job type, you can better understand where
skill gaps exist. Whether it’s through surveys, interviews, performance reviews, or coaching sessions,
learning what your employees need to know in order to perform well in their position is invaluable.
Additionally, by identifying skill gaps you can begin to see a clearer picture of where there may be job-
type holes in your workforce. There may be job types that you’ve never hired for previously that would
be the perfect addition to your team.
5. Coaching and Development
After you’re able to identify your skill gaps, the next step is to nurture staff and bring them up-to-speed.
Whether it’s by way of company-wide training days or simply management-to-team member weekly one-
on-ones, the best way to encourage continued learning is by setting up a coaching development program.
With a coaching and development plan, your organization can accomplish multiple goals: bridging skill
gaps, vetting employees for future positions and putting them on track for a planned career trajectory.
6. Monitor, Document and Give Assessments
Three key elements of all successful evaluation programs are monitoring, documenting and assessments.
 Monitoring continued learning activities, enables you to understand where to make changes,
 Diligent documentation will make it easier to make data-backed decisions moving forward, and
 Assessments allow you and others to better understand what is working and what needs to be changed.
While some feel that conventional, annual assessments are tiresome, anxiety-inducing and many times,
fruitless, it’s still important to have some kind of progress touchpoint in order to set up your workforce
for success. Move away from monthly or annual evaluations and toward a process of continuous coaching
and improvement. With actionable, constructive criticism, you can position your workforce to perform to
the best of their ability.
For some organizations, creating a unique performance management system is in order. Depending on
your organization, a performance management program may mean you’ll have frequent face-to-face
 evaluations or it could mean virtually zero. The more organized and planned out your program is, the less
face time will be required. We’re experts at mapping out successful competency-based performance
management plans. For more information on developing a customized performance management plan,
contact us.
With the data you gather through defining job types, evaluating skill gaps and the results of continued
learning activities, you can put together the evaluation program that works for your company.
7. Revise and Recognize
With feedback from management and staff, it’s important to regularly revise your performance
management plan. Be sure to:
 Tie all activities back to reaching company goals and company core competencies,
 Listen to management and staff feedback and make changes to the plan accordingly,
 Motivate staff by putting an emphasis on career trajectory,
 Give recognition and reward your workforce.
8. (BONUS) Stay Organized with Performance Management Software
The most comprehensive performance management plan in the world won’t be effective if everyone
involved doesn’t have adequate access, can’t easily give feedback, and data can’t be collected and viewed
by leadership. In order to keep everything organized across the organization, performance management
software is a must.
While creating a competency-based performance management plan can sometimes feel like a balancing
act, performance management software can help keep you organized and on track to meet your goals. Not
only does performance management software help to identify, analyze and manage skills gaps within your
workforce, it provides an overview of progress, an opportunity to compare continued learning techniques
and the ability for leadership to analyze a large amount of data in a comprehensive way.
7 Risks Of Poorly Implemented Performance Management
Programs
George KettnerAugust 9, 2017
Performance management programs can provide considerable benefits to government organizations;
help them align and track measurable goals, create ongoing feedback loops for coaching, and boost
engagement through recognition.
However, poorly implemented performance management programs can lead to detrimental organizational
outcomes. Read on to explore seven high-impact dangers of poorly implemented performance
management programs.
Lack of Employee Engagement
Poor performance management programs can quickly erode employee engagement. For instance, when a
performance plan is unclear, employees are unsure how their everyday work contributes to the agency’s
mission. There’s no sense of growth or progress—essential ingredients for developing engaged and high-
performing employees. Also, if employees see the program as unfair, they are likely to feel uninspired
about their future at the agency, experience lower motivation, perform at lower levels, or leave the job
altogether.
When you have talented employees, it’s up to the managers to find areas in which they can improve.
Options for development include expanding their gifted personnel’s skill set and providing  training and
support. Talented employees want feedback and it’s the manager’s job to deliver. If they don’t, the
agency’s best people will grow complacent and disengaged.
Biased Performance Ratings
Varying and unfair performance standards and ratings can arise under a fragmented performance
management system. While most biases present in performance management are unintentional, managers
are more disposed to give biased reviews in the absence of objective performance data and assessment
metrics.
The introduction of human biases, such as personal values, ideas or relationships could also lead to unfair
treatment. Unfortunately, the employee and manager might not recognize actual performance problems in
this situation, leaving issues undiscussed as they continue to affect the organization.
Low Employee Self-Esteem
Performance management systems that lack structure are more reactive than proactive, meaning that
employees will typically only hear from managers when they’ve done something wrong—a common
practice that takes a toll on staff confidence. Also, if an employee feels that they are evaluated unfairly,
they may lose self-esteem, which is a crucial element to success.
Low self-esteem could create resentment towards management and even the organization as a whole.
Showing appreciation, approval and attention to employees with a healthy mix of constructive and
positive feedback will make them feel confident in their job and motivate them to perform at even higher
levels.
Wasted Time and Money
A poorly implemented performance management program puts a strain on managers. The average
manager spends 210 hours a year on performance review activities, usually during an annual feedback
cycle. The large amount of time and energy spent on performance management is magnified if the
performance management program is not providing the benefits that come from a well-implemented
program. Unless managers check in with employees regularly, a single conversation at the end of the year
may prove useless. Ongoing performance management is time- and cost-efficient, and it produces optimal
results.
Damaged Relationships
Manager-employee relationships are also at risk under weak performance management systems.
Employees subject to ineffective systems and performance review practices are likely to feel upset,
demoralized, and demotivated. This can lead to personal relationships that are damaged, sometimes
permanently.
Increased Legal Risks
Giving negative evaluations with no data or proof to back them up can increase litigation risks. If an
employee feels as though they’ve been evaluated unfairly they could seek costly legal action against the
agency.
Unclear Reward Systems
Due to poor communication, employees may not understand the link between their behaviors and results,
and how those translate into performance ratings. Likewise, employees may not comprehend how their
ratings translate turn into rewards. The absence of clear links makes it unlikely employees will be
motivated to perform at a high level. A poorly-implemented performance management program could
cost your agency in many ways. It will not only fail to build progress toward the agency mission, but it
could actually have a detrimental effect on the employees’ motivation, relationships, time and energy!
Don’t miss out on the rewards of an effective federal HR management system. A well-implemented
program improves the performance of individuals, teams and the agency as a whole.