What Is Performance Management

What is performance management? It is the communication process between employee and supervisor (manager or entrepreneur) aimed at ensuring that the activities to be carried out are respected and the organisation is much more effective. It is therefore a question of defining what are the goals to be achieved, giving or receiving feedback to improve and improve oneself, analysing the results to understand where we can intervene to meet company needs.

If you want to apply performance management in your company you will have to follow only 3 steps:

 Plan and define the performance management to have in order to analyse the expectations and determine the results. Once the line to follow has been established, it is shared with the employee, motivated to do more;

Observe the team’s work, giving feedback and updating on the activities carried out so as to have a clear picture and to be able to intervene promptly where necessary;

Evaluate the performances, that is to sum up and see what the results are achieved in order to establish other objectives and new performances to monitor

Benefits Of Performance Management

  • The benefits of performance management are different. Let’s see them in detail:
  •  Increase in sales with a reduction in costs in the organisation;
  • Optimization of timing to adopt winning strategies;
  • Alignment of the team with the objectives of the CEO;
  • Greater involvement of employees because everyone will feel part of the team and will aim to achieve the established objectives;
  • Maximum transparency and trust in the productivity bonus payment process;
  • Professional growth with development programs aimed at achieving company objectives;
  • Monitoring of data and simplification of the planning of strategic objectives;
  • More flexibility of the team in responding to management needs
  • Organizational development
  • When it comes to performance management, we must ultimately consider a cycle, or what is called organizational development:
  •  Performances are planned according to company objectives;
  • The manager intervenes to give feedback and regulate the flow of services;
  • Individual performance is evaluated

How to find your leadership style

There is not only one way to run the company but finding your leadership style will allow you to grow your management skills and support your team. How to understand which is the right one? It depends on the vision you have:

 You can be an authoritarian leader if you do not take into account the opinion of others, you only think about your learning and you only rely on your point of view;

You can have democratic leadership if you encourage team spirit, collaboration, accept opinions different from yours, and share decision-making responsibilities;

You can assume the attitudes of a delegation leader if you tend to leave full decision-making freedom to others;

You can be a visionary leader, that is, a guide for the other team members, who are inspired by your doing and thinking. In short, for them, you are almost comparable to an idol

What Are The Stages Of The Performance Management ycle?

The first phase of the performance management cycle is the “Planning” phase. Planning should include the following elements:

 Agree on SMART goals

A personal development plan

Actions to be taken in the coming months

A review of the employee’s job requirements, with an update of the role profile as needed.

Historically, organizations performed this planning phase once a year. However, as the business environment becomes more agile and fast-moving, many organizations are adapting their processes to create “short-term” goals every three months. The organization’s goals and values ​​should be incorporated into performance planning to ensure that individual performance is aligned with the overall strategy of the organization. Specifically, each SMART goal should contribute to the achievement of one or more of the organization’s goals.


Organizations have placed a lot of emphasis on the “Review” section of the performance management cycle, typically because a performance appraisal is required in order to be rewarded. However, we have always advised that the “Act” and “Track” phases are the most important. These are the stages where performance is delivered and results are achieved. Individuals should be encouraged to take regular time to work on their goals and personal development plans. Likewise, managers should check their employees regularly. They must provide feedback and use frequent and effective coaching skills to help their team members overcome challenges and identify learning and improvement opportunities. If this is left until the end of the year, it is too late: the goals and development goals can only be partially achieved.

What Does The New Continuous Performance Management Cycle Look Like?

This continuous performance management philosophy has been adopted by leading organisations such as Microsoft, Deloitte, Adobe and General Electric since 2015. All of these domestic brands have abandoned traditional once-a-year performance reviews in favour of regular “check-ins” and frequent feedback (even in real time).

These regular performance discussions are typically focused on the development and the future. They offer team members the chance to explore what went well and how to replicate success again, any challenges they are facing and how they can be overcome, and agree on the steps that both the individual and the manager need to take to develop the individual further improve their performance. Such check-ins are also a wonderful way to address employee development, while also offering Simple, automated  assessments

Organizations need to be able to perform assessments exactly the way they want. Customize the evaluation process with the timelines and processes that best suit your needs. While self-assessments help employees understand their work better, reviews from multiple assessors collect feedback from the people they actively collaborate with. This helps to reduce any indirect favoritism on the part of managers and to conduct fairer and more meaningful assessments. training opportunities and regularly reinforcing expectations.


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