What is performance management? Find out all about it

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What is performance management? Find out all about it

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You’ve certainly heard of Performance Management. This very common practice in large companies helps to direct internal actions.

Although it has some complexities, it is an important strategy that must be considered, regardless of the size and sector of the organization.

In this post, we will explain better what is performance management, what advantages it presents and the challenges that must be overcome to achieve good results.

If you are focused on the growth of your organization, this content is indispensable. Follow us!

What is performance management?

THE Performance Management seeks to align the performance of employees with the goals to be achieved by the company.

Through it, it is possible to have a global view of the objectives and resources that the corporation currently has.

The focus of performance management is on improved results through learning and the individual development.

For this to happen, HR and managers use several tools to identify the talents and promote the evolution of the teams, in search of a more complete set of competencies.

What is the difference between performance evaluation and management?

While performance management seeks to identify the talents and managing them so that they can be better used in pursuit of a company objective, performance evaluation is somewhat more restricted.

We can say that the evaluation is one of the tools of performance management.

It aims to analyze the performance of employees, allowing the visualization and use of this data for management.

While the assessment quantifies and qualifies the results presented by the employee or team, performance management takes advantage of this information and seeks alternatives to make better use of these aspects or to develop the weakest points and achieve the company's goals.

What are the benefits of performance management?

THE Performance Management it brings a series of advantages, since it directs operations and provides guidance for decision-making and internal changes.

For the company, it is a tool that allows the best possible use of human capital.

Through management, it is possible to understand what employees are able to offer, in addition to planning training and new hires that really cover the gaps and bring the necessary skills.

In addition, with the Performance Management HR is able to direct everyone's work, maintaining the company's relevance within the market and ensuring competitiveness.

For employees, this is a good opportunity to grow professionally.

By receiving guidance on which points to improve, these employees are able to develop. Thus, they become more complete and relevant professionals.

In many companies, performance management involves the formation of hybrid teams, which allow employees to perform various activities in addition to those determined for their role.

This mobility breaks the feeling of routine and increases the motivation. Performance management gives professionals the chance to reevaluate their choices and even take a career turn to something that gives them more pleasure and personal satisfaction.

What are the challenges of performance management?

Despite being a growth strategy, performance management presents some challenges that need to be overcome by Human Resources so you can bring the expected results. We highlight the main ones:

Problems with performance management planning

The management system and the tools adopted must be in accordance with the particular needs of each company.

For this adaptation, an internal consultation with the teams that will deal with these tools.

HR needs to constantly evaluate and reassess these systems in order to identify whether they remain useful or should be modified.

Changes in the scenario

THE Performance Management is based on the goals established for the period.

However, the dynamics of the market can change in a few days, with competition getting an explosion among customers thanks to a good campaign, for example.

When these changes occur, it is necessary to reassess goals and strategies corporate.

If transformations occur frequently, it is difficult for the company to follow these processes and adapt its performance management with ease.

HR can try to be proactive or carry out planning that allows for small adjustments over the period.

It is also interesting to review the goals every six months, in order to adjust the performance management.

Failure to choose metrics

For performance management to really work, it’s important to choose the metrics that portray the important points for the company.

These indices change from one organization to another.

Using a model that worked for another corporation or failing to take into account what your business needs will guide your performance management into a useless path.

The company manages to avoid this by making a deep internal analysis, which takes into account the needs of the market and the particular differentials it presents.

Thus, you will understand which metrics best correspond to the points that must be worked on for an excellent service.

Evaluations with large time intervals

THE Performance Management takes into account the improvement of employees so that it works. This improvement is achieved after the feedback, in which the manager passes the performance results and indicates which points can be worked on.

When assessments occur over a very long time, these feedbacks are lost halfway. It is difficult to pass a return of something that occurred 5 months ago, for example.

To solve the problem, HR must establish a calendar with feedbacks at predetermined but constant periods.

If possible, it is interesting that the manager holds occasional meetings to solve one or the other problem. Thus, the employee has the chance to correct the fault automatically.

Now that you know what it is Performance Management and how it can help your company, start thinking about how you will structure it according to the needs and ambitions of your business.

Doing this planning will help to optimize all the work of your teams!

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