Performance Manage People

by Paula Newton

Why is performance management important?

The management of staff performance is critical to organisational success. If performance is not managed and if there are no standards, then individuals, teams and organisations will not perform to their highest abilities.

It is also an essential component of simply getting things done. The management of both individual and team performance is a prerequisite if projects and initiatives are to be delivered to a high standard and in a timely manner. It gives teams, departments and companies something to work towards and a sense of achievement on completion.

And this sense of achievement is very important. It is one of the primary motivators that will keep the morale of a workforce high. Herzberg’s Motivator-Hygiene theory (see Herzberg for greater detail) shows us that important motivators are

The value of achievement lies in the achieving.

Albert Einstein
  • Achievement
  • Recognition
  • Responsibility
  • Advancement/growth
  • Nature of work.

Effective performance management is directly related to every one of these motivators. Performance management, through feedback, coaching, expectation-setting and the creation of objectives, serves to show staff that their performance and achievements are recognised. It allows people to take on greater responsibility for personal advancement and growth. And it affects the nature of the work that they do. Most people need to believe that they are moving forward and developing their skills if they are to feel motivated.

Managing performance effectively helps individuals, teams and companies achieve great things. It provides them with the energy to go on and achieve even more.

Performance management is also required when you are managing employees who are not meeting the required standards. This is an unfortunate but essential component of any management or supervisory position.

For managers to progress to greater things themselves, they need to ensure that there are potential successors in line for their position. A manager who is seen as being the only one who can perform their role has less chance of promotion, because the company will be reluctant to move them from a job that no-one else has the skills to perform. Succession management – in other words, developing staff so that they achieve to the best of their ability and are able to step up to management roles themselves when required – is an integral part of performance management.