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Learning the Right Performance Management for your Organization

When you hear the term performance management, you might think it is the same with the annual performance review process, but it is actually different and it involves much more than that.

Michael Armstrong, in his Handbook of Performance Management, defined it as the following:

​“Performance management is the continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organisation, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills, and abilities of people.”

It is truly the art of extracting the most from your employees. It is a series of processes – not a one-time event – that assist employees in learning the skills they need and measuring their performance against company expectations, thereby fostering both employee and company growth. Aligning your business with your goals and objectives takes some effort, but with performance management, you can do so in the simplest way possible. One of the approaches is to improve performance by identifying gaps and setting improvement goals. This includes developing a clear strategy for achieving goals and tracking data against such goals over time.

While it is true that performance management can support an organization in aligning employee performance with its goals and objectives, many organizations continue to struggle with it. According to the Society for Human Resource Management (SHRM), the following issues are frequently associated with performance management:

1. Lack of top management support – The failure of senior management to inform managers and supervisors means that they will either fail to commit the time or will simply fill out the forms without engaging in important discussions with their employees.

2. Perception of the process as time-consuming "busywork" – Managers who are unfamiliar with the process and do not understand its importance to the organization's performance will view it as a waste of time or "busywork."

3. Failure to communicate clear and specific goals and expectations – In order to save time and avoid miscommunication, managers must clearly communicate their expectations for performance goals. Follow-up communications can also be used to remind employees of their agreed-upon goals and progress.

4. Lack of consistency – Within an organization, inconsistency in perceptions of managers as "tough" and/or "easy" may result in different interpretations of the organization's performance rating scale. To avoid inconsistencies, it is important that managers be trained using rating systems.

Problems happen for many reasons, including human error, an isolated incident, or a misunderstanding about something. It is possible that there is a lack of knowledge within the company, or that everyone is taking advantage of a policy. Whatever it is, we want to take the time to figure out where these problems are coming from.

Whether your company is large or small, efficiency and effectiveness are essential in all of your daily activities. Implementing systems is neither easy nor glamorous, but it is unquestionably a necessary step toward achieving your objectives. It is essential to know the basic elements such as goal setting, transparent communication and collaboration, employee recognition, honest feedback and reviews, and employee development. Being aware of these can assist you in achieving effective performance management.

In every organization, recognition and reward for employees is often an important element in creating a high-performance workplace as well as motivating workers to engage in better performance. The factors that go into workplace performance evaluation are numerous and can range from how frequently a company conducts performance evaluations to how much effective feedback a person receives.

Performance Management is one of the most important aspects of today's companies. In fact, research shows that organizations who put their “focus on continuous performance management have better business results.”. This is because they take the time and make the effort to conduct performance reviews and assessments. Employees in organizations like these are encouraged to think about their goals on a regular basis. Enabling an organization to plan for future success and measure the effectiveness of its workforce through this helps establish accountability and consistency. If the process is well-determined, knowing what to do and when to do it would be uncomplicated.


Managing Employee Performance. (n.d.). Society for Human Resource Management. Retrieved April 3, 2022, from samples/toolkits/pages/managingemployeeperformance.aspx

The Importance of Performance Management. (2022, May 4). FourVision.,high%20standard%20for%20your%20organization.


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