The following are the main concerns of performance management −
Performance management is concerned with outputs (the achievement of results) and outcomes (the impact made on performance). But it is also concerned with the processes required to achieve these results (competencies) and the inputs in terms of capabilities (knowledge, skill and competence) expected from the teams and individuals involved.
Performance management is concerned with planning ahead to achieve success in future. This means defining expectations expressed as objectives and in business plans.
If you can’t measure it, you can’t manage it. Performance management is concerned with the measurement of results and with reviewing progress towards achieving objectives as a basis for action.
Concern with continuous improvement is based on the belief that continuously striving to reach higher standards in every part of the organization will provide a series of incremental gains that will build superior performance.
This means clarifying what organizational, team and individual effectiveness look like and taking steps to ensure that those defined levels of effectiveness are achieved. Establishing a culture in which managers, individuals and groups take responsibility for the continuous improvement of business processes and of their own skills, competencies and contribution.
Performance management is concerned with creating a culture in which organizational and individual learning and development is a continuous process. It provides means for the integration of learning and work so that everyone learns from the successes and challenges inherent in their day-to-day activities.
Performance management is concerned with communication. This is done by creating a climate in which a continuing dialogue between managers and the members of their teams takes place to define expectations and share information on the organization’s mission, values and objectives. It establishes mutual understanding of what is to be achieved and a framework for managing and developing people to ensure that it will be achieved.
Performance management is concerned with satisfying the needs and expectations of all the organization’s stakeholders, management, employees, customers, suppliers and the general public. In particular, employees are treated as partners in the enterprise whose interests are respected, whose opinions are sought and listened to, and who are encouraged to contribute to the formulation of objectives and plans for their team and for themselves.
Four ethical principles that should govern the operation of the performance management process. These are −