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A Guide To Performance Management
Nowadays, a great significance is being given to Performance
Management, as companies incorporate them in their effective
management strategies. However, a lot of people find this
process a complicated one, mostly because of the many options
that it offers - on the organization, a specific
department/branch, a product or service, and on employees, among
others.
In order to minimize this confusion, the items below will give
you a general idea of what Performance Management is all about
as well as the activities that are involved in this process.
What is Performance Management?
Performance management is a process that provides both the
manager and the employee (the person being supervised) the
chance to determine the shared goals that relates to the overall
goals of the company by looking into employee performance.
Why is it important?
Performance Management establishes an outline for employees and
their performance managers to assess and to come to an agreement
on certain concerns and aims that are in accordance with the
overall structure of the company. This enables both parties to
have clear objectives that would help them in their work and in
their professional growth.
Who conducts Performance Management?
Performance Management is carried out by those who oversee the
performance of other people - work/team leaders, supervisors,
managers, directors, or department chairs.
What are the processes involved?
Below are the phases of the Performance Management process:
1. Planning
This phase of Performance Management process includes
establishing job descriptions and identifying the employee's
essential functions as well as defining the strategic plan/s of
the department or the company as a whole.
Job Description
A job description is used to advertise a vacant position, which
typically specifies the following:
- The specific functions, tasks, and responsibilities of the
position - The amount of time needed to act upon each function -
The qualifications needed (skills, knowledge and abilities) to
perform the job - The physical and mental requirements of the
position - Salary range for the position - To whom the position
reports
Job descriptions should be disclosed to the employee as soon as
he or she is hired. Note, however, that job descriptions are
listed using words that make it difficult to measure the
employee's performance. They are in contrast with competencies,
which list the skills needed in performing such tasks and are
described using terms that can be measured.
Strategic Plan
In effect, a strategic plan tells you three things:
- Where the company is heading in the coming year/s. - How the
company is going to get there. - How the company will know if it
is already there or not.
Included in a strategic plan are the following:
Mission statement - the primary reason why your department (or
company) exists.
Goals - associated with the mission statement, they determine
the results that will advance said statement/s.
Strategic initiatives - specifies definite steps that must be
taken to accomplish each goal. It is a dynamic process, usually
examined during periods such as one or two
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years.
2. Developing
This phase of Performance Management process includes developing
performance standards, which offers a scale that describes how a
specific job should be performed in order to meet (or exceed)
expectations. They are explained to newly hired employees and
are later used to evaluate work performance.
Performance standards are generally outlined with the help of
the employees who actually perform the tasks or functions. There
are a number of advantages with this approach:
- The standards will be suitable to the requirements of the job
- The standards will be applicable to actual work conditions -
The standards will be easily understood by the employee (and
performance manager as well) - The standards will be
acknowledged (and received) by the employee and the performance
manager
Standards of performance are usually in the form of ratings (1
to 5, A to E) that are used by performance managers to rate the
employee's actual level of performance.
3. Monitoring
This phase of the Performance Management process includes
monitoring employee's work performances and giving feedback
about them.
As the basis of feedback, observations should be verifiable:
they should involve noticeable and work-related facts, events,
behaviors, actions, statements, and results. Feedback of this
type is called behavioral feedback, and they help employees
improve and/or sustain good performance by precisely identifying
the areas that the employee needs to improve without judging his
or her character or motives.
4. Rating
This phase includes conducting performance evaluations. This is
the critical aspect of the Performance Management process,
especially because it is important for performance managers to
arrive at an unbiased assessment.
A performance appraisal form has the following features:
- Employee information - Performance standards - Rating scale -
Signatures - Employee performance development recommendations -
Employee comments - Employee's Self-appraisal
Why conduct performance appraisals? It provides an opportunity
to improve performance in the future not only for employees, but
for managers as well. Performance appraisals enable managers to
acquire information from employees that will help them make
employee's jobs more productive.
5. Development Planning
This phase of the Performance Management process includes
establishing plans for improved employee performance and
development goals. This advances the overall goal of the company
and at the same time increases the quality of work by employees
by:
- Encouraging constant learning and professional growth. -
Helping employees maintain the level of performance that meets
(and exceeds) expectations. - Improving job - or career-related
skills and experience.
In closing, Performance Management is a process that, when
executed fairly and effectively, can improve the quality of the
company's workforce, raise standards, increase job satisfaction,
and develop professionalism and expertise that would benefit not
only the employees but the entire organization as well.
About the author:
For more great performance management info and advice check out:
http://www.performance-mngt.com
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