Employee Performance Management

Performance management can be used to examine every aspect of an organization. For-profit and not-for-profit organizations both can benefit from a well designed performance management plan. Traditionally, however, performance plans were focused on just employees. For good reason to, employees are the face of, and inner workings of a successful venture.

Employee performance management is a vital ingredient to performance management plans. Employee performance management is a process companies can use to ensure goals are turned into results. This is achieved by translating strategic goals into results--amount of product sold, produced, or a project completion time line.

For example, a company wants to increase revenues by 20 percent in the coming quarter. Employees may see this goal but don't have a clear understanding of how they can help achieve this goal. A performance management plan will translate the company's goal to a per employee basis. Now each employee has a clear understanding of what needs to be accomplished to meet the company's goal.

Steps to Employee Performance Management

The first step is to set performance measures. As noted above, these are based on the company's strategic goals. A company should then clearly state desired results. This eliminates any confusion the employee may have of what is expected from him. Prioritize goals and duties, especially if a position has more than one responsibility. Ensure that the desired results contribute to the company's overall goal. Finally, document the performance plan itself and periodic performance notes and reviews in an employee file. A well designed and documented employee performance plan will make certain that each employee is contributing to the company's success.