Performance Management: Definition and Differences Between Performance Evaluation
If you ask two questions about improving people in an organization, the answer is performance management and performance evaluation. Some people equate performance management with performance evaluation. In fact, the two things are very different.
Performance management is different from performance appraisal. Performance management is dynamic and continuous, but performance appraisal is valid only for a certain period of time.
Performance management is more responsible for holding the company's key to gaining a competitive edge, while performance appraisal focuses on providing feedback to employees to improve performance outcomes.
Performance Management Definition
Performance Management is a process that managers carry out with their employees to ensure that they work optimally in line with the company's strategy and goals.
According to Armstrong, performance management, or performance management, describes and understands performance within a clear framework in terms of standards, goals, and requirements or the ability to achieve the best results for groups, individuals, and organizations. organization to achieve. Mutually agreed upon.
Performance management is carried out continuously to ensure the company continues to improve. Performance management plays an equally important role for employees and the company.
For employees, performance management means that companies recognize their work. For business, employee performance can be improved through performance management, which further supports the company's progress.
Why performance management is important
The quality of a company's performance is influenced by the performance or performance of the employees involved. Therefore, companies need to manage employee performance to remain stable. There are several other reasons why performance management is so important in business.
Finding Performance Issues
Good performance management helps you find performance issues as early as possible. Recent performance results are reviewed against defined performance goals to indicate whether progress is progressing as planned. In these cases, managers and Human Resources usually help solve the problem or simply find out why the problem occurs.
Assisting Human Resources in Recruiting and Implementing Training
In addition to identifying performance issues, another important aspect of performance management is supporting Human Resources responsibilities. In fact, employee performance management is one of the missions of the Human Resource Department. However, if one of them runs smoothly, then other human resource development operations such as recruitment and training will also run smoothly. This is because recruitment and training designs are based on performance management.
Making Employees Feel Valued
Part of performance management is to provide feedback to employees after an evaluation of work. Employees feel happy and appreciated when the company provides feedback and opinions on performance trends. In this way, employees can also continue to grow independently to achieve the company's goals. Employees also feel more comfortable being part of the company. Explore
Featured Employees
Excellent Employees are those who have perseverance and quality of work. To find out which employees are reaping these benefits, companies can use the data to improve overall employee performance. This makes it clear which employees are doing well and which are not. Selected employees usually receive additional bonuses or are promoted to a specific position.
Performance Management Objectives
From the above explanation why performance management is so important in an organization, it can be concluded that performance management aims to maintain the smoothness and stability of performance at both the employee and managerial levels.
Performance management has several important objectives. That is:
Set Performance Goals That Align with Business Goals
Each organization has its own business goals. Performance goals should align with overall business goals. To ensure and realize it, performance management plays a key role, allowing the company to achieve its goals in accordance with its vision and mission.
Setting Performance Expectations Between Employees and Managers
The next goal of performance management is to create performance expectations. There should be clear expectations between the employee and the company to avoid misunderstandings in the workplace. This misconception hinders and hinders the process of clear performance.
Optimizing Team Communication
In addition to performance expectations, another goal is to optimize team communication. If performance management is on track, employees and top management or employees can work together because they understand each other's expectations. In addition, smooth communication is established and performance progress can be completed faster.
Setting Performance Standards
Every employee has standards to help the company maintain business continuity. The most important goal of performance management is to set performance standards. By setting the right performance criteria, Human Resources can create better performance plans and better employee performance review targets.
Developing a Staff Training Program Another important goal of a performance management system is to identify employee training and development needs. The results of this identification will be used to develop staff training programs. Staff training programs encourage the personal growth and career development of our employees. As a result, employee performance may be better than before.
Performance Management Development Stage
Because its existence is very important for the development of business and the performance of the company. The Human Resource Department should develop the best possible performance management.
Understanding organizational goals
Organizational goals may change as the industry evolves. This is an interesting point for the Human Resource Department, since the company's goals affect the established business strategy. The Human Resource Department can then create a plan to support business development.
Designing Strategic Performance Management
Performance management strategies are aligned with long-term business goals. This plan includes employee performance expectations, an evaluation system, and sanctions if work goals are not achieved.
Plan Implementation
After the plan is completed, it is ready to be implemented. During the execution phase, plans may change due to various unforeseen events, such as delayed grace periods, confusion, and conflicts between employees.
Observation or Observation
As described above, plans may differ from reality. Therefore, strict monitoring or supervision is necessary during the implementation of the plan. If something goes wrong, Human Resource Departments and managers can quickly reduce risk or return the process to its original purpose.
Evaluation
Evaluation is usually carried out after the end of the business period. This assessment is necessary to see how the performance progresses relative to the company's goals and what happened during the period. Accurate evaluation is expected to solve future performance problems.
What is the difference between performance management and performance appraisal
So how to distinguish between performance management and performance appraisal? Here are some aspects that distinguish performance management from performance evaluation:
1. THE CONCEPT OF LEADERSHIP
Performance appraisal focuses on standards by evaluating performance and providing direct feedback to employees to improve, maintain and improve work performance. Performance management is designed for integration to ensure that employee performance actually contributes to the goals and objectives of the organization or business.
2. Duration Time
A performance review is a periodic or periodic review, such as every three months, every four months, every six months, or annually, depending on the policy of the organization in question. Performance management, on the other hand, is dynamic and sustainable in a company that is responsible for its employees.
3. Purpose
The purpose of performance appraisal is to encourage employee performance, develop talents and skills, promote and enhance a positive company culture, and encourage employee success.
Performance management, on the other hand, aims to evaluate the performance of employees in order to improve and improve their performance in the future.
4. Employee Engagement
In performance evaluation, the evaluation process is carried out by a manager or supervisor with little or no employee involvement.
On the other hand, performance management staff should have the opportunity to provide feedback on the company's goals, maintain, monitor, improve and improve individual performance, develop improvement and development plans, and consult with managers regularly. I can do it.
5. ORGANIZATIONAL OR CORPORATE STRATEGY
Performance evaluation focuses only on results, regardless of organizational or corporate strategy. Organizational and corporate strategy is closely related to performance evaluation.
Conclusion
From the discussion above, we conclude that performance management has a clear vision, direction and goals, is closely related to the company's strategy, and follows a positive corporate culture to improve attitudes, behaviors and values.
If you are part of a team that practices performance management, you should pay attention to your employees. Employees should pay attention to what needs to be improved, whether it needs coaching, needs to be improved, and other things related to improving human resources.
Hope this helps.