Performance Management Process

Step 1: From the business plan, identify the requirements and competences required to carry it out.

Step 2: Draw up a performance agreement, defining the expectations of the individual or team, covering standards of performance, performance indicators and the skills and competences people need.

Step 3: Draw up a performance and development plan with the individual. These record the actions needed to improve performance, normally covering development in the current job.

Step 4: Manage performance continually throughout the year, not just at appraisal interviews done to satisfy the personnel department. Managers can review actual performance, with more informal interim reviews at various times of the year.

1. High performance is reinforced by praise, recognition, increasing responsibility. Low performance results in coaching or counselling.
2. Work plans are updated as necessary.
3. Deal with performance problems, by identifying what they are, establishes the reasons for the shortfall take control action (with adequate resources) and provide feedback.

Step 5: Performance review. At a defined period each year, success against the plan is reviewed, but the whole point is to assess what is going to happen in future.

Components

1. Establishing Performance: This stage involves the establishment of the performance objectives, competence requirements and performance related agreements with the employees and their supervisors.
2. Performance Planning: This step involves agreeing objectives and competence requirements and agreeing upon performance related action plans, performance improvement and personal development plans.
3. Acting: This involves carrying out various activities required to achieve objectives and plans and observing developments in the overall performance.
4. Monitoring and Evaluating Performance: This involves checking on the progress in achieving performance objectives and evaluating the performance and achievements accomplished.
5. Rewarding: This step involves recognizing the contribution in terms of performance accomplishments and achievements by compensation and rewards.
6. Identifying Performance Problems: It involves identification of the bottlenecks and roadblocks of performance and also areas of improvement.
7. Performance Development Planning: It involves planning of developmental activities so as to enhance capabilities of people and contribute to the overall performance improvement.