Performance Management Applications:
Performance Management Applications:
In the distant past, the only aspect of Management Applications that really mattered was the result. Just it! Financial result, money in your pocket, profit and more profit! Is this still an important aspect? Of course, very important, because companies live on profit. And if the account doesn’t close, the company itself will end up closing it!
But over time, organizations began to understand that we don’t have to focus on profit all the time. There are ways (more efficient, even) to measure the performance of a team. Ways that will ultimately have a positive impact on the financial health of the organization.
So, measuring short-term profit left and right is a very limited way of looking at organizational performance. Because it ignores its ability to generate cash in the long term. Cool, but then what conclusion do we draw from this? Well, all this discussion ended up giving rise to the model we know as Balanced Scorecard (BSC).
This Model Defines Four Dimensions Of A Company’s Performance:
Financial: company growth, cash flow, profitability, costs, etc. That is, the analysis of the financial health of the organization.
Customers: customer satisfaction, market share , etc.
Internal Processes: level of innovation, operational and service efficiencies, etc.
Learning And Growth: employee satisfaction, skill set, training, individual development plan, etc.
Therefore, we see that the BSC captures a large part of an organization’s needs, whether human, efficiency and performance. This is exactly why it is used a lot in our environment, giving us a vision that is very focused on the goals set.
But we must remember that these four dimensions should not be analyzed in isolation. No! They must be monitored side by side , because they are balanced in a way that leaves no aspect loose and uncontrolled.
Main Objectives Of Performance Management
We can make a list of the most important objectives of good performance management. Thus, it is easier to locate the reasons that lead us to adopt such practices in our company. Are they:
Decision making and talent management
As they are very different goals from each other and very fertile in information, we are going to take a closer look at each of them. We want you to leave here fully understanding the reasons for investing time in structuring good performance management.
The main objective of any performance management program is, guess what, developing employee performance!
But when we talk about “development”, we mean increasing the ability of individuals to produce results through improvements in their productivity. And also increase (and make more complex) your level of responsibility.
So it’s not that obvious, it requires a lot of care and precise measurements. At that time, the HR indicators are like our guides, alerting us to the best paths to take.
The goal of developing a performance management process probably has the highest ROI (“return on investment”) of all goals! Amazingly, this impact is one of the most overlooked.Unfortunately, not all leaders and HR professionals make the connection between investing in employee development and increasing bottom line. Fortunately, though, this is changing, and the change is most welcome!
In general, traditional performance management programs are more oriented towards performance measurement than performance development.
In other words, they end up functioning much more as performance appraisals than purely as performance management. And you now know that they are different things. Management must be oriented towards concrete actions for change and improvement . Is something bad? So let’s improve! Is something already good? So let’s strengthen! Otherwise, it’s just a measurement, an evaluation.
It’s no use having employees get wonderful reviews but have no insight into how they can become even better than they already are at their jobs!
Decision Making And Talent Management
We already discussed talent management in a thread above. So, we assume you already know the difference between this type of management and performance management. But why would it enter as one of the main goals of performance management? And what does it have to do with decision making?
Well, one of the functions of monitoring and managing the performance of employees is to guide them in decision making . A good performance must be aligned with the best decisions . Because, as we know, good performance in itself, isolated from more global issues, does not always help the organization to improve its processes. It doesn’t even necessarily help improve team performance!
That’s because, in human resources, 2 + 2 can be 5! That is, the sum of the parts alone is usually less than the total amount when they are all added together .And that’s where talent management comes in. With more comprehensive management and longer processes, leaders have control over all stages of employee development (not just performance).