Performance management is defined by Armstrong and Baron as ‘a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance’.

The purpose of Performance management is to develop the ability of individuals to meet and often exceed expectations to achieve their full potential in the individuals given field of expertise, therefore benefiting themselves and the organisation. Performance management provides an origin for self-development and it helps ensure that the support and direction these individuals require to improve is readily available. Consistent communication of strategic goals, performance achievements of associated people and processes aids in motivating employees to become high performers because they feel valued within the organisation and they can relate their performance towards organisational success through performance management.

Employee performance affects company performance. If you express clear expectations to your employees, set clearly measurable goals you will improve morale, have a happier workplace and higher profits.

The main components to achieve this are;

1. Develop a Strategic Plan – Put the company’s vision in writing

2. Identify Organisational Goals - Determine what needs to be achieved to realise your strategic plan

3. Translate Organizational Goals into Measurable Employee Goals – Goals must be S.M.A.R.T

•Specific – What are you going to do? How are you going to do it?
•Measurable – Establish criteria to measure progress
•Attainable – Identify goals that are important to you and realistic to achieve
•Relevant – The goal should help you achieve your ultimate goal
•Time-bound – Set a time frame for the goal to be achieved

4. Review Employee Progress on an Ongoing Basis - Acknowledge good performance, identify how the employee can improve and provide coaching and support

5. Identify Specific Training and...