Performance management was initially used to determine an employee’s remuneration, and also to control the attitude of the employee towards his job in order to achieve some specific results. However, due to the difference in preferences; some employees were able to modify their behavior because they were motivated by financial gain, while others who were more motivated by acquiring skills and experience were not moved by the concept of performance management. It was as a result of these preferences that made performance management fail back then, and employers sought more rigorous way to individually manage their employees’ performance in line with the organizational aims and objectives.

The need to manage employees’ performance is important for two reasons, the first being to identify and reward outstanding performance. Yes, it is important to reward employees that are doing great. If you want them to do more, you must incentivize.

The second reason borders on improving your employee stock. With well managed employee performance, you can identify low performers, and call them to order, or replace them. However, it is advisable to figure out the strength of every employee and position them accordingly for optimum productivity.

So, how do you manage your staff performance?

Performance goals versus Job description
In a corporation, it is easier to align performance goals with job description. This is almost impossible for startups where employees have to wear many hats. But you still need to set these goals, after all, what does not get measured, does not get done. What will need to be done differently from corporation is to make the reality of ad hoc responsibilities clear to employees. You should also ensure that your goals are result based and hinged on the objectives of your business. To achieve this, remember SMART. The goals must be Specific, Measurable, Achievable, Relevant and Time bound, e.g. between January 1, and June 30, all entry level sales staff must achieve sales worth $2000.

Feedback versus Appraisal
W hile appraisal is done just before the reward, feedback should be given, if possible on a daily basis. This will keep employees on their toes. The feedback should not be limited to the negatives alone, because positive feedback reinforces positive attitudes.

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Document
This is also very important. You need to document the goals, the feedback and the rewards. This can easily be achieved by investing in a robust performance management application. You will need some research to ensure your choice meets your need.

At appraisal, pay attention to how each employee has responded to feedback, check for trends in performance that will highlight their strength and work out how you can help them succeed. Bear in mind that you are not the scary auditor, you are not the task master, but you are the coach that brings out the best in your employees.

How do you manage your employees’ performance? Follow us on Twitter @excellaid to share your views

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