Performance management and organizational strategy

Another point that also needs to be highlighted is the correlation between performance management and the execution of the company’s strategy. That is, in a large number of companies, the results produced by employees are evaluated by means of goals that are unfolded from the strategic objectives of the organization.

Therefore, these goals are nothing more than an unfolding of the mission, vision, values and short and medium term planning. This tends to contribute to the achievement of the company’s strategy.

In addition, even if the targets have not been broken down, depending on the company’s business, it is possible to measure objective numbers , such as quality. In this case, it is possible to measure the percentage of defects in a production line. It is also possible to measure the company’s productivity or even its cost. Thus, in all these cases, regardless of whether or not you have clear and defined goals, it is possible to measure results that are in line with the company’s strategy.

The organizational culture in performance management

The performance management can also be used to ensure that employees act in accordance with the organizational culture. As well as with the precepts defined as important by the company. Therefore, this can materialize in measuring employee behaviors . Making sure that they are aligned with the behaviors established by the organization’s culture. Therefore, one can think of creating performance management so that the employee improves their behaviors, which will reinforce the company’s values and contribute to a more productive organizational environment, with more aligned and satisfied people.

The dimensions of performance management

To be able to differentiate results from behaviors , think that results are “what” and that behaviors are “how”. In other words, “how” employees will produce “what”. Note that they will be guided by the behaviors to achieve the results that the company expects of them.

Therefore, the two dimensions of performance play a crucial role. Well, they will end up serving as a kind of backbone for the performance management cycle.

In this way, we can say that the performance management cycle begins with the definition of performance expectation between the employee, the manager and the company, and ends with an assessment of that performance. This spins like a circle. As soon as the performance management cycle ends, it immediately starts again with a new cycle and a new definition of expectations. And so on.

Performance expectation – the beginning of the cycle

As we said earlier, performance expectations are the beginning of any performance management cycle. Therefore, it is necessary to define it in common agreement between the employee, the manager and the organization.

These expectations will be represented and communicated in various ways between these three agents, one of the most important documents for defining expectations being the job description.

This document needs to be able to outline the mission of the position that an employee is occupying or intends to occupy. As well as the main responsibilities that are associated with this position. In addition, the main indicators that will measure success in the job also need to be well outlined . In addition to the skills, knowledge and skills that are required for this.

Despite being underestimated by most organizations, the job description, when used well, is a very clear and objective source of defining expectations. It is also possible to set expectations by creating and communicating what deliveries are expected for a given position. Based on the company’s strategy, we can reach goals for each employee.

Still, we have to look at the issue of behaviors, which may derive from the values ​​of the corporation’s organizational culture . Although in most cases the expected behavior can be common for all employees in a company, there are situations where they can be specific to each position.

But, the truth is that if the employee knows what behavior is expected of him, he will certainly work more in line with the company’s expectations. And it will make better use of skills in the performance management cycle.

Performance evaluation – the outcome of the cycle

As we have seen, the process must begin with defining and communicating performance expectations and must end with a performance appraisal .

This assessment aims to measure employee performance as well as provide inputs for them to develop. Or even improve your performance in the next cycle.

Therefore, this evaluation will consist of a series of questionnaires that should have questions that need to be answered by one or more evaluators regarding an individual. For that, it is necessary to create an evaluation scale that needs to have three major aspects to be defined. The first aspect, therefore, will be the number of options on the scale. This can vary from 4 options or even 5 options.

Once this is done, it is necessary to define the labels of the options that should be chosen, which can be numeric labels or else defined in concepts such as “much below expectations”, “below expectations”, “within expectations”, “above expectations” and “much higher than expected”.

Some companies may use relative scales where the appraiser can evaluate a given employee in a relative way to something. This can be relative to what is expected from the position or even from peers.

Finally, evaluations can be done in several ways, and the manager can evaluate his subordinates as well, everyone can evaluate themselves, which makes the process more complete and also fairer .

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