How Can Performance Management Help HR?

An efficient performance management process empowers HR to better understand how its team operates. Once this is understood, HR can develop goals and processes that address and improve these operations.

More specifically, performance management can enhance and encourage the following for HR teams: 

  • Employee and organizational objectives
  • The skills and personal development of employees 
  • Work that aids in fulfilling short- and long-term business goals



1. Set and Define Goals

Setting SMART goals is the best way to improve performance among employees. Effective goal-setting can:

    • Empower employees to focus on what’s important

    • Align individual objectives with business objectives

    • Optimize individual performance

    • Help identify key result areas and areas of improvement 

Efficient performance management techniques like 1:1 meetings are built and sustained on effective goal-setting. Managers should set goals that benefit both employee and business performance.


2. Set Expectations

A good performance management process will set clear expectations from both a manager and an employee perspective. As a manager, it’s crucial to set manageable expectations for your employees. 

To set expectations that will actually bring results: 

  • Define: Employees should know exactly what's expected of them in their day-to-day and week-to-week performance 

  • Provide Reasoning: Explain how your expectations will help employees fulfill the team's or company's business objectives

  • Document Expectations: Develop documentation that tracks these conversations, which can promote growth and indicate areas of improvement

Simply put, setting expectations facilitates better business performance. Furthermore, it will encourage the personal development of the employee.


3. Promote Effective Communication

Communication should be an essential focus when implementing or revamping your performance management processes. A company with a good culture of communication results in employees who are more engaged and have an alignment of personal objectives with business objectives.

Management tips to build a pro-communication environment include:

  • Managers taking time to indulge in one-to-one interactions with employees 
  • Providing continuous feedback and coaching to build a workforce with varied skills 
  • Conducting frequent team-building activities
  • Promoting collaboration and communication as part of your culture

4. Set Standards

The most important objective of performance management is to set standards. Each organization should have a plan for evaluating employee performance.

Failure to accomplish the performance standards could mean:

  • Lack of employee effort 
  • Insufficient resources to complete tasks
  • Failure to cooperate or collaborate between the team or manager and employee

Effective performance management techniques highlight what’s lacking and what deserves credit. The strengths and weaknesses of your company will become more evident and hence, easier to improve. 

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