Ontario Municipal Human Resources Association

What is Performance Management?

Performance management is a systematic approach to improving the effectiveness of individuals and organizations by evaluating the performance of employees and providing feedback, guidance, and support to help them reach their full potential. This approach is essential for the success of businesses and organizations, as it helps to align the goals and objectives of employees with those of the company, promote continuous learning and development, and drive continuous improvement.

Stages

Key stages of the performance management process, include setting performance expectations, regular feedback and coaching, performance evaluation, and recognition and rewards. These stages help to drive performance outcomes, such as increased productivity, better job satisfaction, and higher levels of employee engagement.

Stage 1 – Planning

Managers and employees discuss the expectations and goals for the year ahead and determine the steps that need to be taken to achieve these goals.

​​​Managers and employees should work together to identify S.M.A.R.T goals (Specific, Measurable, Achievable, Relevant, and Timely) that align with the company’s vision, mission, and values. This stage should also include a discussion on resources, support, and training that will be provided to help the employee achieve their goals.

Information from this discussion should be put into a development plan to be reviewed throughout the year.

Stage 2 – Monitoring

Focused on regularly checking in with employees to provide feedback on their performance and to help them stay on track toward achieving their goals.

It’s an opportunity for managers to provide guidance and support to employees, and to help them overcome any obstacles they may be facing. At this stage managers can address any performance issues and provide coaching and mentoring to help employees improve and develop.

This stage should involve regular feedback, such as weekly or monthly check-ins, as well as more formal feedback through performance reviews. During these check-ins, managers should provide employees with constructive feedback on their performance and discuss areas for improvement.

Stage 3 – Reviewing

Reviewing provides an opportunity for managers and employees to reflect on the progress made toward achieving their goals, and to discuss their performance over the past year. Managers should provide employees with an overall evaluation of their performance, including feedback on both their strengths and areas for improvement.

The outcome at this stage is a formal performance evaluation, which should be documented and used to inform future performance management processes. This evaluation should provide a clear understanding of an employee’s performance and be used to guide future discussions and development plans.

Stage 4 – Rewarding

The final stage is the most important for employee motivation.

Recognition and rewards are an important part of the performance management process, as they help to motivate employees and recognize their achievements. Recognition/rewards can be in the form of verbal praise, bonuses, promotions, or other incentives, and they should be tied to specific performance goals.

This helps to create a culture of continuous improvement and drives performance outcomes, as employees are motivated to achieve their goals and are recognized for their efforts.

Advantages of Performance Management

1. Improving employee performance: Performance management provides employees with regular feedback on their performance and helps identify areas for improvement. Feedback helps employees to understand their strengths and weaknesses, and to develop the skills and knowledge needed to reach their full potential.
2. Aligning employee performance with company goals: Performance management helps ensure that employees are aligned with the goals and objectives of the company. By setting clear expectations and regularly monitoring and reviewing performance, managers can ensure employees are working towards the same goals, and that performance is contributing to the overall success of the organization.
3. Supporting employee development: Providing employees with regular feedback and coaching helps support their professional development. This feedback can be used to guide learning and development opportunities, and help employees grow and progress in their careers.
4. Improving organizational efficiency: Performance management helps to ensure resources are being used effectively, and employees are working towards identified priorities; increasing organizational efficiency and improving overall results.
5. Enhancing employee motivation: Providing employees with regular recognition for their achievements helps celebrate their successes. Recognition helps motivate employees and reinforces their commitment to achieving their goals.
6. Facilitating open communication: Performance management provides opportunity for managers and employees to have open and honest conversations about performance and discuss any challenges or obstacles they may be facing. Open communication helps build trust and improve the overall relationship between managers and employees.

Written by: Ainsley LaCroix – HR Consultant, Fractional HR