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Business

Updated on: Wednesday, October 27, 2021, 05:38 PM IST

Importance of Performance Management in empowering workforce

There exist numerous performance management processes, tools and approaches that companies can adopt to motivate, monitor and manage employees. /Representative image |

There exist numerous performance management processes, tools and approaches that companies can adopt to motivate, monitor and manage employees. /Representative image |

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Every business leader in the industry understands the crucial role that effective performance management plays in empowering the workforce. Operating a firm requires one to track their employees’ development because, undoubtedly, they are the key to every successful business. Without monitoring and tracking their performance at regular intervals, how would one be acquainted with what and how they are doing? Performance management facilitates tracking achievement against objectives and also provides insights to leaders for evaluation.

Inspecting victories, learning from botches, and analyzing the potential for development as well as improvement, organizations can foster ability, upgrade individual performance and manage challenges. But this is actually demanding. There exist numerous performance management processes, tools and approaches that companies can adopt to motivate, monitor and manage employees. An effective performance management system requires commitment and dedication from the HR professionals, managers as well as employees.

Let’s further explore the importance of performance management in empowering the workforce.

Positive work environment: When individuals are tackling their responsibilities viably, undoubtedly the team spirit in the workplace gets a lift. The working professionals who aren’t persuaded to take care of business as required can pull down a whole division. Performance management ensures a happy and productive workplace. It develops a positive work environment by recognizing high-performing workers and groups. High-performing workplaces additionally draw in quality candidates in the recruiting process in light of the fact that the workplace feels invigorated and that it’s pursuing objectives.

Measure employee progress: Analyzing employees’ performance at regular intervals assists leaders and supervisors with reliable and credible information about their progress. Setting objectives helps clearly calling out the expectations and regular updates keeps the energy in the workplace high. Leaders determine goals and cascade the same in the organization so that the vision of the company is met. This goal setting process forms the basis for monitoring the progress and development of the workers, or the need for support when performance lacks is streamlined and recognized a lot quicker, thereby lending a seamless process to the organization. Recognizing and rewarding high-performing workers frequently inspires them to surpass their historic achievements. It’s one thing to have highly energetic and motivated teams but those teams working with actionable insights and direction can challenge each other positively and develop a culture of meritocracy that helps the whole organization.

Exchange of feedback: The significance of feedback in performance management is right up there. The working professionals need feedback about how they have been working. Organizations that manage the feedback process well ensure effective supervision. Regular feedback will enable supervisors to understand challenges and mentor individuals. Besides, employees ought to have the chance to give their opinion about the processes. This is one of the crucial ways, organization cycles can advance and turn out to be more streamlined.

Enable work planning: A good performance management includes and covers work plans as a process that sits seamlessly between goals setting and appraisal cycle. The method adopted in the journey of goal management towards achievement is most important and if employees had the option to organize themselves and showcase how they intend to work towards achievement of goals, there would be higher scope of creativity and innovation. Since all objectives are aligned via performance management, a worker’s everyday work upholds the organization’s main goal. This encourages year-round focus around key business results, ultimately driving profit. Moreover, working professionals are bound to feel more loyal when they witness the effect their work has in the journey of the company on the whole.

Merit-based assessment: Performance assessment cycle in an organization is that time of the year, when employees receive feedback on their performance. An annual assessment without more frequent periodic assessments may not be effective. Employees would benefit immensely if the performance management system facilitates regular check-ins between the supervisor and individual. Such check-ins could help the supervisor with the opportunity to understand progress, method and also challenges that the individual faces. Monthly or quarterly updates on the sub goals could give the required analytics. Timely interventions and support could ensure better output and productivity. A well managed merit linked assessment and pay process will make the organization agile and rid the workplace of politics.

(Yugandhar Penubolu is Founder and CEO, Winzard)

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Published on: Wednesday, October 27, 2021, 05:38 PM IST
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