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Evaluating business performance management

In order to better evaluate business performance management, you will want to consider purchasing a performance management system.

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. A performance management system should include the following capabilities:


- Develop clear job descriptions.
- An appropriate selection process should be used to select the most qualified people.
- Effective orientation, education, and training should be provided.
- Quarterly performance development discussions should be conducted.
- Effective compensation and recognition systems that reward people for their contributions need to be developed.
- Provide promotional/career opportunities for staff.
- Assist with exit interviews to understand the reasons why valued employees are leaving the organization.

Another part of the performance management process is diagnosing problems. To diagnose and help solve performance issues there are several key questions you and the employee will want to answer.

1. Does the employee know and understand exactly what you want him to do? Does he know the goals and the outcomes expected?
2. Does the employee have the competence to perform the tasks assigned? Does the employee have confidence in his ability to perform these tasks?
3. Does the employee practice an effective work method? Is the employee efficient and productive?
4. Does the employee have a clear understanding about what constitutes success in your company?
5. Does the employee feel valued and recognized for the work he is contributing to the company? Does he feel fairly compensated for his contribution?

Understanding these issues in performance management enables a manager to help an employee to succeed and further advance in the company. Performance management is one of the best tools to encourage and motivate employees.

A performance development process meeting may help to solve work related issues before they become a problem. Conducting performance development process meetings will enable you to review employee's progress and discuss accomplishments and set future goals. This process will also allow you to communicate to your employees how much you appreciate their contributions to the company.

Here are some recommendations to help ensure a successful performance development process meeting:

- Establish a comfortable, private setting to conduct the meeting. Chat a few minutes to establish a rapport with the employee.
- Discuss openly the objective of the meeting, give the employee the opportunity to discuss achievements and progress accomplished.
- Suggest ways in which the employee might further develop his performance.
- Examine and discuss future job responsibilities. Make sure the employee understands and is clear on what is expected, especially if the employee's job tasks/responsibilities will be changing.
- If the employee's performance is satisfactory, agree on a personal and professional development plan that will help him grow professionally.
- If the performance is less than satisfactory, develop a written performance improvement plan, discuss with the employee methods to improve performance.
- Address any work related issues or problems the employee may be having. Remind the employee of the consequences connected with continued poor performance.
- Mutually sign the performance development planning document to indicate the employee's future goals and work performance.
- The meeting should be conducted in a positive and supportive manner. At the end of the meeting you should express confidence that the employee can accomplish the goals discussed and express to the employee your availability for support and assistance if needed.
- Set a time for a follow up meeting. Setting an actual date is recommended.

For performance development process meetings to be effective, you should always follow up at the designated time. Keep commitments agreed upon during the meeting. Forward appropriate documentation to the human resources office and keep a copy of the plan for easy access and referral.


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