How to Implement an Effective Performance Management System

by Srikant Chellappa Apr 26,2020

The People Strategy Leaders Podcast

with Srikant Chellappa, CEO

Organisations constantly strive to standardise their administrative processes and tools to improve their overall efficiency. But are the organisations doing performance review right? Here are a few ways to find out!

Before evaluating your performance review practices, let’s have a quick understanding of what performance management actually is.

Defining Performance Management

Performance management is the process of establishing a motivating work culture in an organisation, where employees and managers constantly review themselves and work towards a common organisational goal.

What happens in an organisation that doesn’t have a performance management system? It fails to motivate its employees and leaves them directionless and disengaged. A system helps an organisation build a skilled and efficient workforce which increases its overall productivity.

Also read: Employee Check-Ins Are More Important For Remote Employees

Its significance

Let’s talk about how a properly managed performance management system can help an organisation. An effective system aims to improve performances at team, individual and overall organisational level. It also increases the productivity of your organisation by improving employee morale and creating loyalty.

But it is important to have the right tools to implement the system in the organisation without which the entire process turns into a burden.

Performance Management Best Practices

It is crucial for organisations to have an effective performance management system. But no matter how good the system is, its success depends on the managers who implement it.

  1. Strategise

The planning stage comes first. Here, you define individual goals & strategies clearly and communicate them organisation-wide so that your employees understand that meeting their individual goals contributes to the organisational goals.

Coordinate with your employees before setting up their individual goals and make sure that the goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).

Also Read: Employee Engagement: Know What It Looks Like

  1. Keep track

After you define the goals and strategies for your employees, you should constantly keep track of their improvements and take care of their developmental needs. Monitoring continually means providing ongoing feedback and consistently measuring employee performance.

It helps you check if the employees are meeting their goals as planned.

  1. Rate

Rating means evaluating employees based on their performance standards. Though this step is a part of monitoring and giving feedback, it is considered as a more formal way to evaluate employee performance. It also helps managers know who their best employees are.

Rating employees at regular intervals helps them improve themselves. It also helps managers look at and compare performances over time or across a set of employees.

  1. Appreciate

Effective managers understand the importance of rewarding employees who perform well. Employees feel empowered and motivated when their work is recognised.

This leads to increased productivity in the organisation. So reward the employees who meet your expectations or exceed your expectations.

  1. Upgrade

Keep upgrading the goals & strategies at regular intervals. If your employees feel that their existing goals seem unattainable or that they have a negative impact on the organisational work culture, then it is time to coordinate with your employees and change them.

If you wish to know how Engagedly can help you implement an effective performance management system in your organisation, just fill up the form below and give us a shout. We will organise a demo for you.

Engagedly is offering a suite of products part of its Remote Work Toolkit free to any organisation, until Sept 30th, 2020. 

The Coronavirus has affected the way we work today and for months to come. Unprecedented events require unprecedented measures. We at Engagedly believe it is our responsibility as socially conscious corporate citizens to help equip organisations with additional tools and resources during this time of crisis.

Get in touch with us to know more about the free remote working tool-kit. 

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Srikant Chellappa
CEO & Co-Founder of Engagedly

Srikant Chellappa is the Co-Founder and CEO at Engagedly and is a passionate entrepreneur and people leader. He is an author, producer/director of 6 feature films, a music album with his band Manchester Underground, and is the host of The People Strategy Leaders Podcast. He is currently working on his next book, Ikigai at the Workplace, which is slated for release in the fall of 2024.

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