Key Success Factors to Better Appraisals in Performance Management Systems

Walking the Tightrope of Performance Management Software Systems

by Rod Dunne on September 9, 2011

in Creative, Human Side

You can use a performance management system when you want to appraise your employees in terms of training/development as well as organizational improvement. After all, it is only through measurement that you can establish trends & highlight problem areas.

There are a few steps you can take when you need to create a business performance management plan for your company. Everything from the types of performance evaluation methods used write down to your choice of performance review phrases needs to be carefully considered.

Just What Is A Performance Management System Anyway?

In this ever-changing world of business, an entrepreneur/business owner needs to put in place measures that will make his or her business remain ahead of the competitors. This can be realized by either offering quality products and services or having an effective customer care service.

For this reason, it is an imperative for you to introduce performance management systems, along with time management tools, in businesses to ensure that the employees meet set goals.

First and foremost, this is a system that comprises of input components, processes and the output. The input components are your employee’s work potential and set targets, at the processing stage each employee’s potential is put to work. The output is the organization’s productivity in terms of customer’s satisfaction and volume of work the employees contribute to the success of the business.

Your management team must work together with employees and supervisors in order to accomplish the set performance goals. The role of supervisors in the process of developing a fully functional performance management system is:

  • To enhance good communication skills in business so that every employee properly understands what is required of him or her
  • He or she must also set realistic performance targets and goals
  • He or She must actively supervise the entire process
  • He or She must train and motivate the entire team after a certain duration using the performance feedback
I’ve written before about how the choice of employee engagement questions in surveys can be a key factor in any of the feedback management receive. Providing open ended questions allows staff to highlight performance ideas they might have and where they themselves see the bottlenecks. It’s up to management to take him board feedback you receive, whether through surveys/formal channels/informal e-mails, and act upon them appropriately as part of your overall performance system.

Strategy, Improvement & Productivity for DummiesOperating your business performance management system

You need to create a performance management process that will improve the appraisal methods for your company that will help you determine your best employees.

For instance, you should start the performance management process by defining the general work system. This means you have to state each job’s purpose, duties and responsibilities as well as its priorities and goals. This is often the role of your enterprise level project management office team. However, human resources personnel will also contribute to providing consistent job definitions and specifications.

You also need to plan to have employee input with discussions and feedback from employee peers and customers. If you have employees that fall below expectations, you should set a plan in place that will coach them so that they can improve.

With this in mind, you should plan for your performance management system to include room for development & adequate training. You need to know how your employees are performing according to any criteria you set and consider where there is room to further develop.

However, when you implement these measures for business performance management, you need to make sure you are in a setting in which you and your employees are comfortable so that you can discuss how to further develop professional performance.

This isn’t a once off either. Don’t forget the follow-up!

Another important part of your performance management system is an effective follow up.

  • You want to make sure the measures you have taken the time to create are working.
  • You can take feedback again from peers and customers and compare them to earlier feedback comments.
  • You can also meet again with employees to find out how they are responding to the system.

Performance management software/systems can encourage and discourage in equal amounts so be careful
These are only a few ways in which you can make sure you have productive employees.  Many larger firms also make effective use of performance management tools & software to streamline this process. This becomes essential within larger teams. Performance management software also facilitates 360 degree performance  evaluations. The following are some advantages of using such software.

4 Advantages of Using Performance Management Software

One of the best indicators of employee growth and progress within an organization is the performance appraisal. Used correctly, it can be an excellent aid for management in making talent reviews, monitoring employee transition and planning talent development.

But for mid- and large-sized companies, managing information about several hundred employees can be difficult and keeping track of performers can be a challenge, particularly where documentation is involved. A good way to handle this is by using performance management software.

Talent management software is designed as a management solution for storing, tracking and assessing talents within an organization. But it has more advantages than that, something that companies, management and human resources personnel will find useful. Some of its benefits include:

(i) Easy tracking and identification of top performers

Performance management tools are designed to electronically identify the best performers within a company. The tracking system is automated, so comparing performances within a department is easy. The system can also allow for a straightforward and fair assessment of each individual member of the organization to prepare them for talent development.

Aside from that, performance management software (and in particular statistical process management & control) can also be used to supplement an in-house rewards system that can identify employees for advancements such as promotions and awards.

(ii) Encourage transparency and build a sense of accountability

With an employee performance management system in place, it will be easier to view employee progress, strengths and weaknesses in a more objective manner. This will help improve communications between managers and their subordinates and pave the way for a more open discussion of what both parties can do to improve further.

When the role of each employee is better understood, it is also easier to paint a clearer picture about who is responsible for what tasks and why.

(iii) Discover potential in Your teams

Other than identifying individuals who are non-performers, an employee performance management system can also be used to find those who are under-utilized based on their qualifications, progress and the job that they do.

(iv) Encourage & foster productivity

Based on the results of a performance appraisal, managers and their subordinates can work together to come up with measurable goals that are relevant and appropriate for their specific roles.

Author Rod Dunne...

Blog owner and sole writer Rod DunneI am the owner and sole writer on This is my personal blog detailing troubleshooting tips for small businesses. Posts are based upon 2 decades in consultancy & innovation management within startups/maturing companies.

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