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What's the aim of performance management?

by , 05 March 2014
If you're a manager, chances are you're aware of the words 'performance management'. But do you know the real purpose of performance management? Read on to find out...

The purpose of performance management explained

The Human Resources Institute of New Zealand (HRINZ) says performance management is the term used to describe the process set by an organisation to ensure all employees are aware of the level of performance expected of them in that role. As well as any individual objectives they'll need to achieve overall organisational objectives.

In this article, we said: 'Performance management must be a vehicle to define performance and performance objectives. It must facilitate sustained or improved performance, as the case may be, and encourage the employee to perform his job successfully.'

We also highlighted that if your employee is already successful, then you must focus on how to motivate him even further to realise and use his full potential to carry out your company's' objectives. And if he's not performing you must determine how you're going to fix the problem.

Don't confuse managing poor performance with performance management in general.

The Labour Law for Managers Loose Leaf Service says managing poor performance is a process through which you provide an underperforming employee with guidance, training, evaluation, counselling and assistance in an attempt to improve his performance sufficiently.

Performance management on the other hand is a system that forms part of a continuous process of improving and evaluating performance.

You do this by defining performance goals, facilitating and encouraging performance and assessing performance of all employees. The management of poor performance forms a part of this.

These are the five steps of managing performance

  1. Tell your employee what his job is – the job description
  2. Give him the tools and training he needs
  3. Give him the opportunity to perform
  4. Follow a proper appraisal process
  5. Keep written records.

Knowing the aim of performance management will help you manage your employees effectively.

Get rid of your poor performer without landing at the CCMA!

You can't afford to have poor performers in your company. But you also can't afford to be taken to the cleaners at the CCMA for dismissing incorrectly!

Find out how you to LEGALLY get rid of poor performers here.

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