Performance management is a process in which organizations measure and improve business results in their companies-
Performance can be monitored on the organization level, on the level od departments and teams, and in the individual level.
Performance management implies these 4 elements:
1. Common understanding of the organizational goals
2. Clear expectations on how individuals can contribute
3. Employees have the skills and knowledge to realize the expectations
4. Individuals are committed to organizational goals.
The goals is to recognize positive and negative trends of human activity in the organization, find and implement solutions in order to increase the individual and organizational efficiency and efficacy.
Performance management is in the interest of the organization if they want to:
• strengthen the employee understanding in the way their work impacts the realization of the organizational goals
• increase employee engagement and positively influence their motivation
• recognize and reward accordingly employees who put more efforts and have better performance
• encourage development of skills, knowledge and attitudesof employees
• develop self-leading and self-correcting organization through encouraging open team conversations with a feedback and focus on improvement
• impact long-term professional and personal development of employees, their strengthen feeling of contribution, increased retention, and in all, lowering the costs of fluctuation.