The first purpose of strategic performance management & appraisal systems is to help company's management achieve strategic business objectives.
By linking the organization's goals with individual and team goals, the performance management system reinforces behaviors consistent with the attainment of organizational goals.
Moreover, even if, for some reason, individual goals are not achieved, linking individual and team goals with organizational goals serves as a way to communicate the most crucial business strategic initiatives.
A second strategic purpose of performance management systems is that they play an important role in the on-boarding process. On-boarding refers to the processes that lead new employees to transition from being organizational outsiders to organizational insiders. Performance management serves as a catalyst for on-boarding. It allows new employees to understand the types of behaviours and results that are valued and rewarded, which, in turn, lead to an understanding of the organization's culture and its values.
Learn about the truths and myths concerning the "Death of Performance Appraisals" and discover the new trend of monthly milestones rather than annual goals via KPIs. Support business effectiveness by implementing a best practice performance management system and performance appraisal process, and use best-practice to conduct appraisals and understand the advantages and disadvantages of appraising both objectives and competencies.
Understand the critical components of an effective performance management system which include setting objectives, measuring competencies and planning development, and drive performance by developing SMART objectives as part of performance management.