What is the process of Employee Performance Management?

Employee Performance Management is a holistic process of people management, where the primary objective is to establish a culture wherein individuals and groups take responsibility in meeting the organizational goals by utilizing their skill set. In simple words, employee performance management is establishing a shared understanding about what is to be achieved and how it has to be achieved.

The Employee Performance Management Process Model basically has 4 steps.

  • Performance Planning : Performance planning is the first step of Employee Performance Management Process where performance expectations and goals for employees to channel their efforts to meet organizational objectives. Performance planning should clarify the expectations and standards for the job. It should set performance and development goals which show what will employee strive to achieve and what knowledge/skills will the employee work to develop or enhance. 
  • Monitoring Employee Performance: During this process, employee performance is monitored and evaluated. This is done to increase the effectiveness of the organization. Monitoring also includes day-to-day coaching and feedback, where the performance of the employee is discussed on a regular basis. Performance feedback about the employees and successes and areas that need  improvement.
  • Regular Performance Check: The progress or the process should be checked regularly to identify successes and improvement areas in meeting the expectations and standards, achieving performance and development goals .
  • Formal performance review: Employee feedback is reviewed annually and the performance outcomes and development results are documented. A plan is designed for the coming year.

A good performance management process or the system works towards the improvement of the overall organizational performance by managing the performances of teams and individual employees to ensure the achievement of the of the overall organizational ambitions and goals.

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