Employee performance management: Understanding how organisations manage and measure employee performance.

Lesson 22/33 | Study Time: Min


Employee performance management: Understanding how organisations manage and measure employee performance.

Did You Know? 🤔

Effective performance management is not just about conducting an annual review. It's a continuous process that involves various activities such as setting clear expectations, providing regular feedback, and developing employees' skills. Let's dive into how organisations manage and measure employee performance.

Performance Appraisal: The Evaluation Process 📝

Performance appraisal is a systematic evaluation of an employee's job performance and productivity in relation to certain pre-established criteria and organisational objectives. Different methods and techniques are used by organisations to evaluate employee performance.

Example: 

- Performance Reviews: Regular meetings between a manager and an employee to discuss the employee's performance, goals, and plans for future development.

- 360-Degree Feedback: A method where feedback about an employee's performance is gathered from all around: peers, subordinates, supervisors, and even from the employee themselves.

- Goal Setting: Setting clear, measurable, and achievable goals for employees to strive for.


Performance Feedback: The Power of Constructive Criticism 🗣️

Feedback is a crucial part of the performance management process. Constructive feedback helps employees understand what they are doing well, where they need to improve, and how they can do so. It's important to provide feedback regularly, not just during formal performance reviews.

Example: 

A manager might provide feedback like, "I've noticed you've been meeting your sales targets consistently, which is great. However, I think there's room for improvement in your customer service skills. Let's work on that together."


Performance Improvement Plans: A Lifeline for Struggling Employees 🆘

Sometimes, despite regular feedback and support, an employee may not meet the expected performance standards. In such cases, organisations may implement a Performance Improvement Plan (PIP). A PIP is a formal document outlining the employee's performance issues, what improvement is expected, and the timeline for achieving this improvement.

Example: 

A PIP might state, "Over the next 30 days, we expect you to reduce your error rate in data entry from 5% to less than 1%. We will provide you with additional training and weekly check-ins to support you in achieving this goal."


Remember, the goal of performance management is not just to identify poor performance, but to help employees improve, develop their skills, and ultimately, contribute to the organisation's success.


1: Managing and measuring employee performance.


Setting Performance Goals 🎯

Did you know that setting clear and measurable performance goals is the first step in managing and measuring employee performance? These goals should align with the organisation's objectives and provide a roadmap for employees to follow.

For example, a performance goal for a sales representative might be:

Increase sales by 10% over the next quarter.


Regular Performance Reviews 📝

Ever wondered how organisations keep track of their employees' progress? Regular performance reviews are the answer. These reviews provide an opportunity for managers and employees to discuss progress towards goals, identify areas for improvement, and provide constructive feedback.

An example of a performance review comment might be:

You have consistently met your sales targets over the past quarter. However, there is room for improvement in your client relationship management.


Performance Metrics 📊

How do we measure success? In the realm of HR, key performance indicators (KPIs) and metrics are used to measure employee performance and track progress towards goals. These metrics can include things like sales figures, customer satisfaction scores, or the number of completed projects.

For instance, a performance metric for a customer service representative might be:

Maintain a customer satisfaction score of 90% or above.


Gaining Cooperation from Employees 🤝

How do organisations ensure they have the full cooperation of their employees? It's all about communication, respect, and mutual understanding. By clearly communicating expectations, respecting employees' input, and understanding their needs and aspirations, organisations can foster a cooperative and productive work environment.

For example, a manager might gain cooperation from their team by saying:

I value your input and want to understand your perspective. Let's work together to achieve our team goals.


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Class Sessions

1- Introduction 2- Types of Businesses and Ownership: Understand the different types of businesses and their ownership structures. 3- Stakeholders: Identify the various stakeholders that influence the purpose of organizations. 4- Organizational Structure: Understand how businesses are organized. 5- Business Targets: Describe the different types of targets that businesses aim to achieve. 6- Achieving Business Targets: Identify the strategies and methods businesses can use to achieve their targets. 7- Factors Affecting Businesses: Identify the legal, political, and social factors that can impact businesses. 8- Impact of Political, Legal, and Social Factors: Describe how political, legal, and social factors can affect businesses. 9- Introduction 10- Human resource management: Understanding the process of selecting employees and the importance of employability and personal and communication skills. 11- Managing physical and technological resources: Recognizing the importance of physical and technological resources in employee selection. 12- Accessing different sources of finance: Identifying various sources of finance available for organizations. 13- Understanding financial statements:Understanding the importance of financial statements in evaluating the financial health of an organization. 14- Introduction 15- Importance of marketing in an organisation: Understand the significance of marketing in a business and how it contributes to its success. 16- Marketing research and planning: Learn about the process of conducting marketing research and using it to develop an effective marketing plan. 17- Targeting customer groups: Understand the concept of targeting specific customer groups and the reasons behind it. 18- Developing a coherent marketing mix: Learn how to create a well-rounded marketing mix for a new product or service. 19- Introduction 20- Human resources planning in organisations: Understanding the factors involved in planning for human resources in an organisation. 21- Employee motivation in organisations: Understanding how organisations motivate their employees. 22- Employee performance management: Understanding how organisations manage and measure employee performance. 23- Employee cooperation in organisations: Understanding how organisations gain cooperation from their employees. 24- Introduction 25- Types of Business Information: Understanding how organizations use different types of business information to fulfill their purpose. 26- Effective Presentation of Business Information: Knowing how to present business information effectively. 27- Limitations of Business Information: Understanding the limitations in relation to the use of business information in an organization. 28- Communication Methods for Business Information: Knowing how to communicate business information using appropriate methods. 29- Introduction 30- Health and safety legislation and regulations: Understand how health and safety legislation and regulations affect a business working environment. 31- Requirements for a healthy and safe workplace: Know the requirements for healthy, safe productive working conditions. 32- Role and responsibilities of key personnel: Understand the role and responsibilities of key personnel in ensuring health and safety in the workplace. 33- Risk assessment: Be able to assess and manage risk.
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