What is performance management?


Employee performance management appeared in the 1960's, and it is used to determine an employee's performance. It has been an indicator and source of employee's wage and financial rewards determination. It has replaced various employee appraisal approaches which has been less effective. 

For employees who could be motivated by financial rewards, the performance management of the 60’s has been effective and worked well. But from the 80's, such system was becoming increasingly less effective because many employees’ motivation was becoming increasingly dependent on developing their skills and knowledge. 


Performance management nowadays

Modern performance management system is used in companies for ensuring that the employees' activities and outcomes are in line with the company's vision and goals. It helps an employee to understand the company’s expectations.

How to achieve effective performance management

  1. Connect individual employee’s goals with the company's goals, mission, and plan.
  2. Set clear performance objectives and expectations to employees, and use appraisal of results, actions, and behavior.
  3. Discuss the company's development strategy and plans with your employees to inspire them.
  4. Regularly hold meetings and workshops for your staff throughout all performance cycle, where you coach and instruct them.
  5. Create a culture of openness. Allow your employees to openly share and report. Receive the employees’ feedbacks and their own assessment of what is happening in the company.