Performance management is a systematic process by which the organization involves its employees
(individually or as members of teams) in improving organizational efficiency, in relation to the organization’s
mission and goals. Performance management includes:
Planning work and defining expectations
Continuous monitoring of performance
Developing the capacity needed for performance
Periodic evaluation of performance
Rewarding good performance.
If the organization wants to be effective, it must plan. Planning means establishing expectations and goals related
to a certain individual or work group. The plan therefore determines what must be done in order to achieve
organizational goals. It is of great importance to involve employees in the planning process, because in this way
they can understand the goals of the organization, better understand the purpose of what they have to do, and
understand why it is important that they do something in a certain way. Within the framework of performance
planning, it is necessary to define elements and standards with the help of which the realization of the planned will
be evaluated. These elements and standards should be measurable, understandable, verifiable, fair and
achievable. The performance plan should be adaptable in the sense that it can be adapted to changed
organizational goals and work requirements.
The process of carrying out a business process must be continuously monitored. Good monitoring means
consistently measuring performance and informing individuals and teams of their progress toward achieving
goals. The monitoring process should be carried out in cooperation with employees, where its performance is
always compared with the elements and standards set during performance planning. Constant monitoring brings
the possibility of checking how well employees meet the defined standards and enables the change of unrealistic
or problematic standards. The biggest advantage of constant monitoring is the ability to react quickly. In the case
of a detected error, one can react immediately, and one does not have to wait for the end of the process in order
to detect the error through subsequent analysis.
An effective organization should assess AND record employee development. Employee development means
increasing performance opportunities through training, learning new skills, giving greater authority and improving
work processes. Providing training and learning encourages employees to perform better, strengthens job
attachment and helps employees cope with changes in the workplace, such as the introduction of new
technology. The implementation of performance management makes it possible to discover the development
needs of employees. During the planning and monitoring of the performance of the work, defects in performance
become evident and can be unambiguously determined. Areas that can be improved are also visible. Most
importantly, through performance management it is possible to determine the actions that help employees to be
successful and beyond.
From time to time, it is useful for an organization to summarize employee performance. This can be helpful in
tracking performance and comparing the performance of different employees. It is useful for an organization to
know who its best people are. The evaluation of the employee's performance is based on the work performed
over a certain period, in accordance with the goals and standards defined in the plan.
Rewarding is an important segment in achieving the efficiency of an organization. Rewarding is recognition of
employees (individuals or groups of people) for their commitment. It is a thank you for their contribution in
achieving the organization’s mission. The basic principle of effective management is that all behaviours are
controlled with their consequences. Consequences can be formal and informal as well as positive and negative.
Good performance should be recognized without waiting for nomination for a formal award. Rewarding should be
a natural part of everyday work. Many activities that reward good performance (such as a simple thank you) do
not require specific, formal procedures or authority approval. Rewards take a wide range of forms such as money,
days off and many non-monetary forms. Performance management must accurately define the forms of rewarding
as well as the rules of what is rewarded.
Finally, let's repeat what is essential for effective performance management. Managers and employees must
constantly learn skills that fulfil the mission and set goals of the organization. It is necessary to plan well what
you want to do. Employees should be given the conditions to meet the set goals. Performance should be
monitored. Progress towards the set goals should be measured in order to spot errors and to improve the
performance of business processes. In the end, employees must be rewarded for their achievements in order
to be motivated for work. All elements of performance management work together and support each other to
make performance management effective and efficient.