Purpose of Performance Management

The organization with the high performance corporate culture has to take care about the performance of employees. It has to provide the entire organization with global and unified goals. HR develops the performance management to increase productivity. The system helps to distribute the strategic goals through the company. The performance management has a positive impact on motivation of employees and identifies key talents and key gaps in the organization.

Business Performance Management and Performance of Employees

The modern organization building the sustainable competitive advantage cannot exist without the performance management. The business performance is not just about measuring processes; it is about measuring and monitoring employees, as well. The business performance management is a modern and extremely complex approach to manage the high performing organization.

The business performance management is based on selecting the most strategic goals and bringing the complex system to measure key performance indicators in chosen areas. The top managers do not focus on the daily operational management of the company; they focus on the strategic agenda of the organization. The top management discovers quickly the missing information about the performance and opinions of employees.

The business performance management is a set of managerial processes, and it spreads common goals of the organization and utilizes the monitoring tools for the performance of the business. The goal-setting process for employees is a powerful HR tool to accompany the business performance management.

Performance Management and Goal Setting Process

The goal-setting process has to be tightly connected with the business performance management. The goal-setting process makes sure, that each employee has goals in the organization. The process makes sure, that all goals are connected with the strategic agenda of the organization.

The goal-setting process is the excellent tool for the top management to spread vision and navigate employees. The employees are creative, and they can work unique solutions for the goals given to them.

The strategic agenda has to be a living agenda of the organization. The goals given to employees can make the agenda happen. The top management does not have to worry about the translation of the strategic agenda into daily activities. Managers and employees make the translation. The conflicts can be escalated, and the top management has to take the right decision to give the agenda the right way.

The top management has to focus on leadership and education of the line management. Top managers have to speak and explain the strategic agenda. They have to set expectations. They have to show the living examples in the organization.

Managers are smart, and they will set goals the right way. Top managers have to make a final check of selected samples of goals through the organization. They can be sure, that managers and employees will follow the strategic agenda.

Performance Management and Motivation

The employees are motivated when they see their real contribution to the results of the organization. Everyone wants to be connected with the successful projects. Everyone wants to be rewarded for successes. The performance management has a strong impact on motivation of employees.

The goal-setting process makes the link between the strategic agenda and goals visible. Employees can obtain a direct feedback from the manager about the results.

The efficient performance management makes employees interested in the company results. Employees are focused on the development of the entire organization. They want to know more about the sources of cash-flow in the company; they work on the daily improvements.

The performance appraisal is an essential feedback provided to employees; employees can think about the next challenging job in the company. The performance management supports the interest of employees.