Performance management system: what is it and how to apply it in the company?

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Performance management system: what is it and how to apply it in the company?

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Companies are increasingly looking to improve their results, increase profits and make their employees produce efficiently. One of the strategies for this is the implementation of a system of Performance Management, which helps to focus efforts.

Through this system, it is possible to value and use the skills of employees, achieving results that can even exceed the goals.

To understand more about the performance management system, follow this post.

What is a performance management system?

The performance management system is a strategy implemented by HR with the objective of developing and making the most of the team's talents in support of the company's objectives.

The system encompasses a series of actions aimed at managing people, with continuity, efficiency and purpose.

When there are implementations of activities aimed at managing people in isolation, we cannot classify them as a system.

How important is a performance management system?

Companies gain great advantages from managing their talents.

Careful performance management allows you to understand and leverage your employees' skills.

With this, it is possible to increase productivity and find which tasks fit with the skills of employees, increasing engagement. In addition Performance Management facilitates decision making.

However, for it to work, this management must be well structured. The activities related to performance evaluation must follow an order, towards the objectives and following the results.

This system takes into account the responses collected and the diagnosis of problems, with the necessary corrections.

What are the essentials of a good performance management system?

O performance management system it must be functional and constant, so that it can generate significant changes.

For it to work, the company must fully understand how these assessments work and work with tools able to support these activities.

Understanding the dynamics of performance management ensures the quality of the process and facilitates access to improvements arising from this strategy.

For this, three components interact to condition employees' performance:

  • capacity (development);
  • environment (opportunity);
  • effort (motivation).

The main element of the performance management system is the performance evaluation, which can be performed in several ways:

individual performance evaluation

More traditionally, individual performance assessment tracks the development of each individual employee, taking into account their weaknesses and strengths.

Within this evaluation model, the employee's growth is valued, making it possible for him to have a much more complete performance.

It takes into account not only technical skills, but also behavioral that can affect the quality of your work.

Group performance evaluation

This type of assessment is less common, but it can also be successfully applied.

In these cases, the team performance it is evaluated according to the results presented in a given project or its impact on the company.

This model also takes into account the positive and negative points of the team, but it is not so efficient when it comes to the development of professionals.

Qualitative Assessments

Qualitative assessments focus on individual goals and objectives, and take into account the quality of the work performed, also in comparison with the objectives defined by the company.

Quantitative Assessments

Quantitative assessments take into account the technical and behavioral skills of professionals.

These skills are measured to make it possible to monitor the development of these employees.

The implementation of performance management system it requires planning and clear communication within the company.

Make a calendar with each step to be performed and set indicators that will help measure the results.

Using the assessments correctly, maintaining transparency, tracking the effects and promoting corrective actions, the performance management system will bring the expected results.

What are the strengths of performance management?

The implementation of performance management system brings a number of benefits to the organization. We can highlight:

Help in recognizing professionals

Performance evaluations should be used to develop a professional recognition plan.

Your results can influence promotions or bonus payouts in return for excellent results.

This recognition can be made to the entire team or to employees who performed above average, in particular.

Clarify team objectives

Performance appraisals are an excellent source of feedback. When assessments are done correctly, they make room for employees to make suggestions and point out mistakes.

With this, the organization can collect data that will help improve employer branding, attracting talent even more empowered.

In addition, these assessments provide insights that improve the relationship between employees and managers, improving the organizational climate.

Check the efficiency of training

Through the results of the Performance Management, it is possible to check if the trainings are bringing the expected return.

Through this observation, managers can propose additional courses or change the focus of these initiatives.

With this, it is possible to structure more effective strategies, which are really able to fill the gaps and provide the competencies that the organization needs to develop.

Identify negative behaviors

A negative attitude of employees and teams can contaminate the rest of the professionals.

Performance management helps identify harmful behaviors for organizational climate or for productivity.

With this information, the company can act on two fronts. One of them is the adoption of strategies that solve internal problems and improve the work environment.

The second way to solve this is to search tools that develop this professional individually.

Often, a change in position or an understanding of the issues can resolve these negative behaviors, increasing the satisfaction.

As an extreme measure, it is possible to provide the professional dismissal, but it is worth remembering that this process has great impacts.

With the implementation of a performance management system in the company, you will certainly get more interesting numbers, a leap in productivity and quality, but without burdening employees. On the contrary, they will be more engaged and aware of its importance.

Does your company already use any performance management methods? Do you know any strategies that might be useful? Leave your comment in the post with your impressions and share your knowledge with us!


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