Performance Management Process Defined
A performance management process is what management uses to develop, reward, and retain company talent. The process is ongoing and fosters effective communication to increase employee proficiency.
The process consists of several stages, such as: planning and developing, where managers and employees collaborate to set short-term and long-term goals; evaluation, during which employee progress toward the goals is measured; and reward, at which time employees may receive merit increases, spot bonuses, or other forms of compensation for accomplishing their goals.
Why Use Performance Management Process?
The practice not only assists in company planning and development of a successful workforce, but it also keeps employees engaged as active participants in the organization’s growth. Businesses and organizations of all sizes, in all industries, have realized the importance and benefits of implementing a performance management process. Employees evolve as professionals working on a team, as well as individuals honing their skills and advancing their careers.