Performance Management

Performance Management Definition:

Performance management as one of the human resources management functions referred to the continuous process to identify, measure, and develop the performance of individuals, and to ensure to align their performance with the strategic objectives adopted by the organization.

This definition includes concepts related to performance and how to achieve its measurement by linking this measurement process with the strategic goals in the organization. Furthermore, the importance of the performance as a success factor for the business made the organization arrange to ensure its measure through appropriate management. Hence, the performance management has been emerged as on the organization strives to enhance its success factors.

What are the benefits of performance management?

A well-designed performance management program offers benefits for employees, managers, and the organization at large. In particular, performance management:

• Creates opportunities for 360-degree feedback.
• Clarifies each employee’s role.
• Identifies employee needs and addresses potential problems.
• Encourages employees to set goals and celebrate achievements.
• Supports employee training and development.
• Increases employee retention and satisfaction.

Performance Management Process:

1. Performance Planning Stage
2. Periodic Review Stage
3. Evaluation Stage
4. Ratio Adjustment and Balancing Stage
5. Reward and Recognition Stage