What you need in an effective performance management system?

Posted by April Parks, M.S. Conflict Management

Oct 3, 2014 9:00:00 AM

Performance ManagmentA company could use older methods of performance reviews, but a reliable software program is a good place to start. Performance management systems like that of TEDS, Inc., offers companies several tools to ensure that both employees and mangers are equipped with the tools they need to grow professionally and to excel in their particular market in the most efficient way possible. 

Performance software should have the functions to set goals for both manager and employee in alignment with the company's goals. This is vital to the performance review function itself as it is what sets the standard for performance. Knowing what the end goal is will allow mangers and employees to work as a team to achieve those goals in the most dynamic way. According to Dr. Edwin Locke and Dr. Gary Latham, who have spent several years researching the value of goal setting in the workplace, "there is an inseparable link between goal setting and workplace performance." 

When a goal is more precise and an employee must work diligently to achieve that goal, research shows that they are more motivated and determined to be successful. This in turn increases employee performance undoubtedly.

Performance software should have a way to share feedback, praise, and recognition. These are also vital to the motivation level of employees. When they feel their work is appreciated, employees will work that much harder to stay on track.

The software should house the knowledge to create a development plan. 

            Here is where employee A currently is; here is where employee A wants/needs to be;

            and here is how we: the company, its leaders, management, and employees, will work

            as a team to grow and develop professionally.

The last thing that is important in performance management software is its ability to promote collaboration, teamwork, and constant communication between its users. A silo mentality within the organization is not profitable or helpful to reaching any goal. Be sure that any performance management software your organization chooses is user friendly and works to tear down existing silos to create a communicative and collaborative environment.

With all that being said though, software can only be as good as the people behind it: its users. This is where people power comes into play. Managers and leaders are a component of the performance system. They are the drivers of the system because they set expectations and communication plans. They are there to encourage employees and challenge them to go further than they did yesterday.

This is the most vital function in a performance review system and it cannot be overlooked. Software can only do so much, so it's up to managers to boost employee motivation and foster an environment keen on learning and development and achieving goals together.

In a survey of 22 global companies, Gallup researchers found that of those employees that said their performance management system was "very good," 70% also said that their managers were "the best!" For those that said their system was "poor," 85% said that their managers were "below average."

This shows there is a direct correlation between having a good performance system and great management. In order for employees to see value in performance reviews and the system in which your company uses, management and leadership must be the driving force behind the team.

So in addition to a user friendly interface and a reliable software, your company needs to place value on the human side of things too. Management is what will make or break an employee's experience in the workplace. It's as simple as that!

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Topics: Performance Management