Performance Management:
“The biggest lie told by most corporations, and they tell it proudly, is that ‘people are our most important assets’. This is a total fabrication. They treat people like raw material. If you’re serious about treating people as an asset, you’re looking at a dramatic increase in investment in them.” Michael Hammer, coauthor of Reengineering the Corporation.
What is Performance Management?
The Performance Management system identifies, develops, and utilizes an organization’s human resources. A comprehensive Performance Management system includes competency models, leadership development, performance plans, goal setting, performance appraisals, recognition, and coaching.
The Performance Management system is the foundation for two complementary purposes:
Achieving Organizational Results: Accomplishing the organization’s overall mission and attaining key strategic goals and success factors Establishing Culture: Creating an organizational culture that respects employee contributions to organizational results and values employee growth and development A Performance Management system creates: Clarity of performance expectations for employees Opportunities for skill development Lines of communication between an employee and supervisor Understanding of how performance will be measured Leadership development assignments Alignment of individual goals with those of the organization Recognition for accomplishments Career direction Motivation to excel in performance Outcomes of Performance Management: Higher profits Better cash flow Increased sales growth Reduced turnover in workforce Greater market share
