Importance of Measuring & Managing Employee Performance

 

 


Figure 1: Skill test (Source: (Phuckett, 2021)

 

Measuring employee performance helps calibrate those goals by providing insight into where someone is doing well and could be stretched and areas that are not strength yet. Employees' ability, competency and productivity should be measured against their peers regularly. Based on performance feedback, self-reflection, business needs, employees should set their own goals. By identifying areas where an employee may be trailing his colleagues, a personal development plan can be put in place. This employee performance management is about helping a company achieves its mission and goals by consistently working with staff to improve their and the company’s effectiveness through:

  • Setting goals and clear expectations.
  • Providing continual feedback and support to employees regarding their goal-related performance.
  • Training programs that help employees improve their skills and enhance performance.
  • Rating employee performance more often to ensure expectations are met.
  • Recognizing and rewarding performance that meets or exceeds expectations and tying compensation and career advancement to predefined achievement metrics.

 Every organizations have a process and way to measuring employee performance. On the contrary, they are considering a continuous feedback model with more frequent check-ins on performance, goals and development. Below showing five ways that measuring performance is essential.

 

1). Enables employee growth & development.

2). Create goal alignment & company growth.

3). Better understand your company performance.

4). Know who to build your culture around.

5). Create a fair culture of recognition.

 

Performance Management Drives Business Growth

To truly understand what drives your company’s success, it’s critical to measure the true driver: your employees. They are the face of your organization, the ones who produce your product and/or serve your customers. 

An organization’s value is created through the effective implementation of a focused strategy. Management must:

  • Develop measures that drive and track employee progress.
  • Set appropriate goals.
  • Measure and monitor employee performance.

 Performance management lets you deliver more efficient processes and more focused management data to drive employee engagement and performance. Implementing performance management is one of the best ways to invest in your company’s talent. When employees share your wider business goals and are given the tools they need to develop the skills to reach those goals, your organization wins by achieving broad alignment and job satisfaction. The process is simple to put into action:

  • Set realistic goals.
  • Work with employees to define expectations.
  • Give employees the tools they need to achieve their goals.
  • Regularly review employee performance and take corrective action when necessary.
  • Facilitate communication and offer feedback, praise and acknowledgment of successful goal achievement.
  • Structure rewards and promotions that are aligned with targeted goals.

Measurement should be done consistently to ensure that your performance management program stays on target. Results should be carefully monitored to spot trends and compare results.

 Conclusion:

Measuring employee performance is essential to the success of an organization. Companies can look deeply into their organizations and uncover inefficiencies that exist, as well as what's working, that are positioning themselves for great success. When management and employees work together towards common goals, the chances increase that the organization will achieve new levels of innovation, growth, and profitability.

 

 References:

 

Fernandez, P., 2017. RMI Resource Management, Inc. [Online] Available at: https://rmi-solutions.com/measuring-managing-employee-performance-drives-business-growth/ [Accessed 10 December 2021].

Phuckett, J., 2021. https://technologyadvice.com/blog/human-resources/importance-of-performance-management/. [Online] Available at: https://technologyadvice.com/blog/human-resources/importance-of-performance-management/ [Accessed 10 December 2021].

Smyth, D., 2021. CHRON. [Online] Available at: https://work.chron.com/importance-measuring-managing-employee-performance-28231.html [Accessed 10 December 2021].

Wilken, H., 2021. Culture Amp. [Online] Available at: https://www.cultureamp.com/blog/reasons-measure-employee-performance [Accessed 10 December 2021].

Comments

  1. Damitha WeerasingheDecember 13, 2021 at 9:57 AM

    Interesting... Employee performance evaluation is a key to success for any kind of teams.. not only evaluating.. giving continues feedback on their performance lead the teams to success..

    ReplyDelete
  2. Sewwandi ThalahitiyagalaDecember 13, 2021 at 11:39 PM

    There are a num­ber of per­for­mance man­age­ment process­es, tools and approach­es com­pa­nies can take to inspire, mon­i­tor and man­age employ­ees. An effec­tive per­for­mance man­age­ment sys­tem requires com­mit­ment and ded­i­ca­tion from the human resources depart­ment and man­agers and employ­ees. Interesting

    ReplyDelete
  3. HiranDecember 14, 2021 at 4:45 AM

    Valuable topic.
    Measurement of work performance is one of the most important constituents of modern leadership and business management. It is important to measure and manage employee performance since it gives businesses the ability to properly gauge worker efficiency. Furthermore, it helps in identifying productive workers and determining how best to improve the overall productivity of the workplace (Koopmans et al., 2014).

    ReplyDelete
  4. Sanjaya BandaranayakeDecember 14, 2021 at 5:43 AM

    Employee performance is ultimately resulting the productivity and growth of the organisation. Yes it is important to measure and manage employee performance. Good blog

    ReplyDelete
  5. ARSHAD MBADecember 14, 2021 at 9:00 AM

    To analyse the Growth in any department MPP is key and how do the HRM approach is vital.

    ReplyDelete
  6. PrabathDecember 14, 2021 at 7:43 PM

    Performance management and review is a vital management tool that has significant influence over careers and work lives. It links organizational strategy to individual work efforts, Good article and Thanks for shearing

    ReplyDelete
  7. Fahim MBA- Batch-23- 2021December 16, 2021 at 4:32 PM

    Performance management it’s a important factor in an organization company has the goals the same way every individual also their carriers if in a organization. If Performance not measured we can find a engagement pattern in the organization it’s important

    ReplyDelete
  8. Imashi DayaratnaDecember 17, 2021 at 7:15 PM

    Effective performance measurement helps companies identify their strengths and weaknesses, top high performers, areas for improvement, and helps set benchmarks with historical data.

    ReplyDelete
  9. amila MBA HR blogsDecember 18, 2021 at 1:19 AM

    thanks for the shearing related HR post it is really important for the improve the company values. this article really good for all

    ReplyDelete
  10. Suranga SampathDecember 19, 2021 at 2:12 AM

    It's very important company to identify performance

    ReplyDelete

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