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Employee performance management

Employee performance management is both a process and a commitment to building a performance culture that:

  • Links individual performance to organizational goals and performance measures.
  • Ensures both the organization and its staff succeed in achieving business objectives.
  • Promotes employee engagement, productivity, growth, and retention.

Practices are the tools organizations use to make a performance culture visible and tangible. 

  1. Communication of executive commitment. The chief executive clearly communicates to all staff their commitment to the values of a high performing culture. 
  2. Organizational performance management. The organization has a vision, a mission, and a strategic plan that has clear goals, objectives, performance measure and targets, and strategies. 
  3. Performance planning. Organizational goals, objectives, performance measures and targets are cascaded through manager and employee performance plans and key results expected. Employee results expected are explained in measurable or observable terms. Benchmarks are communicated for both successful and outstanding performance. Individual development plans identify training and development needs and commitments.
  4. Performance coaching, feedback, and evaluation. Coaching and feedback are provided both when needed and at regular intervals. 
  5. Corrective action and discipline. Using a systematic approach, underperforming employees are identified, corrected, moved to another position, or terminated.
  6. Recognition and reward. A process exists to distinguish, recognize, and reward employees who exceed performance expectations.
  7. Training and development. All supervisors receive initial and refresher training in employee performance planning, coaching, feedback, evaluation, corrective action and discipline, and recognition and reward. Employees are informed of the performance management systems, including the strategic plan’s goals, objectives, measures, and strategies.
  8. Management accountability. Performance plans, interim reviews, and evaluations are audited for both completion and quality. 
  9. Employee confidence. A process exists to measure employees' confidence in their personal connection to achieving organizational goals, supervisors' investments in their success, management’s ability to effectively address performance problems, and management's commitment to building and maintaining a performance culture.
  10. Resource allocation. The chief executive and senior leadership allocate sufficient resources (staff, budget, time) to successfully use all performance management systems, including individual development plans and performance awards.
Last updated
Tuesday, May 2, 2023
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