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Performance

Management:

quo vadis?

Everything you wanted to
know about Performance
Management but were too
shy to ask.

ave you ever considered the impact that as assisting decision-making in terms of salaries
Performance Management (PM) could (and other means of recognition), recruitment and
have on your company? Just have a look retention strategies, and promotions. Consider it as a
at some of the stats from a recent 21st tool to assist you with your budget.
HCentury survey:
• Companies that have adhered to the provision 2. PM as a developmental function
of regular employee feedback have 15% lower The next function of PM is its developmental
turnover rates than companies that offer no contributions. PM, being an ongoing process,
feedback; allows for employees to continually learn and
• Feedback has been correlated to 43% of highly grow. How? By pointing out employees’ strengths
engaged employees; and weaknesses. Becoming conscious of one’s’
• 9% greater profitability is achieved when weaknesses, one can deliberately work on them to
managers receive feedback pertaining to their turn them into strengths. Additionally, when feedback
strengths; occurs soon after the implemented action, it leads
• 70% of employees admit they would work to greater corrective action and learning. Where an
harder if their efforts were recognised; and employee is lacking, management can determine
• Almost 80% of employees have stated that as per the PM system, where training is key or
recognition motivates them. otherwise where a promotion is fitting.

What is the hype about Performance 3. PM as a strategic function
The third function of PM is a strategic one. By setting
Management? Why do we use it? goals in line with organisational strategies as well as
Generally, PM serves the purpose of assisting the with the aim of self-development, employee’s goal
organisation in reaching its goals and objectives. achievement will have a beneficial effect on both
Its main aim is to improve the quality and speed of parties. Firstly, the employee aims to reach goals for
employee output and aligning employee activities two purposes – the recognition that comes as well
with the objectives of the organisation. It can thus as the self-fulfilment and growth they achieve. In
be seen as a strategic initiative for an organisation return, the organisation benefits as its employees are
to prosper by enhancing the competencies of its achieving for the company, and developing, leaving
contributing agents. the organisation to benefit even further from the
PM has three purposes overall: administrative; continual growth. Thus, there is a continuous cyclical
strategic and developmental. These can be effect of individual growth and organisational growth.
summarised as follows: Evidently, PM can bring a lot to the table in
terms of increased productivity (determining where
1. PM as an administrative function training is necessary and implementing it can be of
PM contributes to other administrative duties such great help), measuring employee performance in a

26 JUNE 2018 · HR FUTURE