The Performance Management Process

Performance management is ‘a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved’[1].

Performance management should be:

• Strategic – it is about broad issues and longer-term goals
• Integrated – it should link various aspects of the business, people management, as individuals and teams.

It should incorporate:

• Performance improvement – throughout the organisation, for individual, team and organisational effectiveness
• Development – unless there is continuous development of individuals and teams, performance will not improve
• Managing behaviour – ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.

Performance management helps managers to manage effectively by ensuring the people or teams they are responsible for:

• know and understand what is expected of them
• have the skills and ability to deliver on these expectations
• are supported by the organisation to develop the capacity to meet these expectations and are given feedback on their performance
• have the opportunity to discuss and contribute to individual and team aims and objectives.

Performance management is a process not an event and operates on a continuous cycle therefore requires a structure to support it. However, there must be a reasonable degree of flexibility to allow people freedom to operate.

Ideally corporate strategic goals provide the starting point for business and departmental goals, followed by agreement on performance and development, leading to the drawing up of plans between individuals and managers, with continuous monitoring and feedback supported by formal reviews.

Performance Management Cycle