Performance management system ensures that the targets appropriate for their positions and abilities are given to the employees and that they are evaluated and followed in an objective and fair manner.
What is performance management?
A performance management system is a system that ensures the continuous and sustainable use and follow-up of the data to be obtained through performance evaluation systems in the work processes of the employees and the planning of actions in this direction. PSP is a tool used to manage and monitor applications, services, and infrastructure.
Why is performance management done?
Due to their structure, companies constantly try to achieve certain goals. Employees who will help companies achieve these goals work together by organizing together, each fulfilling their own duties and responsibilities. In order for different businesses to come together and form a whole, it is essential to determine the working system and success criteria correctly. The Performance management System is based on the fact that people do business in a way that supports each other’s goals. Gradually controlling each employee’s contribution to small teams, small teams to large teams, and finally to the company’s main goals supports the company in achieving its big goals. For this reason, companies perform performance management systems. PSP is used to identify and diagnose performance issues, identify bottlenecks, and track performance over time.
What are the stages of the performance management system?
As each company’s way of doing business and the dynamics of the industry it is in will be different, the steps of performance management may differ. There may be companies that set specific periods for performance management. But with a general approach, it would not be wrong to say that performance management should take place on an annual basis (periods). Performance management system basically consists of the following processes;
· Planning; It is the goal-setting process that takes place between the manager and the employee at the beginning of the period. In this process, targets and performance criteria are determined in parallel with the strategic goals of the company.
· Measuring; Planned performance criteria are measured.
· Interview; An interim meeting is organized in the middle of the determined evaluation period. Here, the progress toward the end-of-term target is evaluated. Positive actions are appreciated, if any, mistakes are analyzed and feedback is given. It is discussed what needs to be done to reach the end-of-term goals.
· Evaluation; At the end of the period, the results of the data determined in the first stage are taken and evaluated. It is graded and scored in line with its compliance with the targets determined at the beginning. (it doesn’t necessarily have to be between 1-10 or 1-5. Verbal evaluation matrices such as “great, could be better, not bad” can also be created).
· Using the results; Evaluation results are expected to be a resource on issues such as remuneration, promotion, education, and career.
Performance evaluation is valid for the above processes, mostly planning, evaluation, and use of results. Performance evaluation processes can be constructed in many different ways.
Why is Performance Management Important?
Due to its structure, companies always try to achieve certain goals. Employees who help companies achieve these goals work together by organizing them with their own obligations and responsibilities. In order for different companies to come together and form the whole, it is essential to determine the working system and success criteria correctly.
Performance management is based on the fact that people do business to support each other’s goals. Gradually controlling the contribution of each employee to the small team, from small teams to large teams, and ultimately to the core goals of the company, helps the company achieve its main goals. For this reason, companies apply performance management.
Looking at the company’s resources, there are buildings, machinery, finance, and employees. Here are the employees who add value to all elements and fulfill these duties. Human resources play an important role in the success of the company. It is important to hire employees with the right resources and they need to add value to the organization with high performance.
In this respect, a performance management system enables the company to achieve its goals. In order to manage this process effectively, sustainable and accurate communication must be established between managers and employees. Co-created business plans ensure that each team achieves its goals with overall success. Motivated and engaged employees know that they are part of a team, regardless of their role and seniority, and they work with the awareness that they contribute to their overall goals.
Conclusion
Overall, the performance management system is an important tool for organizations to ensure that their employees are performing at their best and contributing to the overall success of the organization. It helps to ensure that employees receive feedback on their performance and are rewarded for their achievements. It also helps to create a culture of continuous improvement and encourages employees to strive for excellence.
