Performance Management System

Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Job Description: A detailed job description is an important part of the system. It outlines the daily tasks an employee is expected to accomplish and to whom the employee reports. Other tasks and duties, perhaps monthly or quarterly, are listed as well. Additionally, legal requirements must be disclosed to the employee so he understands the physical and mental requirements of the position. Any special tasks are usually listed as ad hoc projects. Employee Goals: Along with the employee job description, a set of goals is listed for each position in the company. Each set of goals is specific to the employment level--managers, supervisors, full-time and part-time positions. These goals help increase the productivity of the employee's department or improve the financial returns on goods or services. Some goals may carry a financial bonus or reward for the employee who helps accomplish each goal in the best way possible. Employee Evaluation: Most companies review their employees on a quarterly or annual basis. The purpose of this evaluation is to ensure the employee is advancing in the requirements of his position and show the employee where improvements are needed. Some evaluations also show the employee how well he is meeting the requirements for bonuses or pay increases. Most pay increases are reviewed annually. Compensation Rewards: Disclosing compensation rewards to an employee along with the job description encourages the employee to work as hard as possible in his position. Bonuses, merit pay and salary increases are outlined for the position, along with the requirements to achieve each goal. Some bonuses may be calculated toward the end of each year based on a department or company-wide performance.