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What Is Performance Management?

Performance management (or performance management) is the ongoing process of feedback and communication between managers and their employees to ensure that the organization’s strategic objectives are met.

Management does not necessarily always have to focus on the organization as a whole: it can perform its function by focusing on the performance of a department or an employee. Or in the processes in place to manage specific tasks. But, in the end, all of them must be aligned with the larger goals of the organization .

The concept of performance management has evolved since it first appeared as a concept. What was once an annual process is now in transition to continuous management , always updated and integrated with other actions.

The objective is to ensure that employees perform efficiently throughout the year. And so they can solve any problem that could negatively affect their performance.

In this way, it is possible to see that nowadays automation plays a very important role in management. And many of the processes involved can be optimized so that employee performance is managed strategically.

Why Is Performance Management Important?

Simply and directly saying: performance management exists to improve your company’s performance! And how do you do it? Improving the individual performance of employees and teams .

This individual improvement is the key to collective improvement. It’s no use just measuring the performance of the entire sector once a year!

Is it an important report? It is yes, but also very thin, with extremely comprehensive data. It is very difficult to identify the problems and know exactly where you can improve with this type of macro analysis.

Therefore, performance management complements the annual performance review . It keeps both the manager and the employee informed about changes underway in the management process, what they can both do to streamline it, and how overall performance can be improved.

Metaphorically, we look at the bridge as a whole. Then we look at each girder on the bridge . If one is a little weak, we seek to strengthen it. After all, we don’t want the bridge to fall, right? And a bridge is basically composed of beams.

Just like a company is made up of employees. We, employees, are the heart of a company. So, for us, continuous management focused on performance indicates that our managers value us.

Overall , employees feel that their managers are interested in their work. And they also care about their goals and any kind of problem they might face. In the end, employees become more open to constructive feedback , and even eager to receive it!

Therefore, there is no denying that good performance management makes a huge difference within the organization.