Performance is one of the most often used concepts in an organization. Employers always seek to attract and train well performing employees, while employees want their workplace to stimulate them to be better.
While some companies believe it only takes establishing and communicating to the employees a set of goals in order to connect the vision and the expectations of the two parties about what performance is, others use specific instruments tailored to manage precisely this indicator.
More and more companies are now seeking to institutionalize this aspect as much as possible and turn to what specialists call performance management. This means that using specific tools, they monitor employee progress, identify the factors that stimulate them, and then the data are processed to build a suitable environment for the employees in question to perform, writes BUSINESS Magazin.
Even though the underlying principles of performance management are relatively simple and their presence in the organizational culture of every company is only logical, performance management is in its early stages in Romania.
“However, interest in performance management has witnessed exponential growth in Romania over the last few years,” says Adrian Brudan, strategic performance solutions manager at Acumen Integrat.
Even the new Labor Code makes employee evaluation criteria and procedures mandatory, and provides for the right of the employer to set individual performance targets.
The main benefit of the system is that it allows managers to identify flaws in the management processes and take steps to address them. Eventually, this means higher productivity and better results.
“Most effective performance management in an organization means unconditional involvement and support from the CEO,” says Adrian Brudan. This is important because performance management is conducted from top to bottom involving all the layers that make up the organization.
One of the most frequent dangers for a company not doing effective performance management is the emergence of a state of semi-chaos, generated by the impossibility to reconcile strategies and goals and then to put them in sync with performance indicators. Employee dissatisfaction is possible, too, which affects the same indicators.
(English version by Loredana Fratila-Cristescu)