Performance management tools are instruments designed to track, analyze and monitor employee performance. They assist top management in ensuring that individual employee goals are aligned with corporate goals. Let us dive into some standard performance management tools your organization can use.
Common Performance Management Tools
1. Key Performance Indicators (KPIs)
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KPIs are a fantastic performance management tool that gauges how well an organization, corporate divisions, and employees accomplish their strategic objectives. However, the main benefit of KPIs is not the measurement itself but rather the facilitation of rich data-driven performance dialogues and improved decision-making.
All that is achieved by measuring movement is merely the appearance of controlled performance. Well-designed KPIs should provide a clear picture of current performance levels and indicate if the business is headed in the right direction. It is crucial to ask, \"What objective will this KPI assist my organization in achieving, or what issue will it solve?\" Another question to ask is, \"what choices will the KPI support?'
2. Performance Appraisals
Performance appraisals are perhaps the most widely used performance management tools, and they work hand in hand with KPIs. This performance tool may effectively bring individual goals and organizational strategy together. Employees must, however, believe that the assessment process is open, fair, and productive two-way communication if they are to get the most from this instrument. If not, performance may suffer due to how demotivating assessments can be.
3. One-on-one performance check-ins
One-on-one performance check-ins should be introduced if you wish to follow in the footsteps of a corporate juggernaut like Adobe, which decreased its volunteer turnover by 30%. Companies including IBM, Google, Cargill, HarperCollins, IBM, and ITV have taken notice of this performance management tool and now use it.
Regular performance reviews throughout the year strengthen ties between supervisors and employees, raise employee engagement levels, and increase productivity. In contrast, the traditional performance management method has become a serious waste of time and resources. We expect that relying on a single annual appraisal will be obsolete in a few years.
4. 360 feedbacks
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The 360-degree appraisal is a performance management tool that seeks to answer the question, \"How well are our employees performing in the eyes of individuals who are interested in their performance.\" It gives people a comprehensive evaluation of their performance based on the opinions of those close to them, such as their manager or supervisor, direct reports, peers, clients, vendors, etc. Results are anonymously compiled and presented by a top manager to an employee. When done correctly, 360-degree feedback broadens the review process' considerations to include more people than just the employee's direct manager. The 360-degree feedback insights are frequently applied to staff training and development.
5. Personal Development Plans
A personal development plan is a tailored action plan based on reflecting and understanding an individual's performance and needs. PDPs are frequently used to pinpoint specific training and development needs and produce a plan of action to address those needs (for example, through specific courses or shadowing other employees). It assists people in determining their personal growth goals and the steps they can take to get there.
Research says personal development is a significant factor in employee performance and engagement. 87% of millennials say that development opportunities are key factors that make organizations more attractive. It would help to incorporate the PDP as a performance management tool into your company to retain more competent staff.
PDPs are not a performance management tool that you should merely give lip service to and then ignore. Managers and employees should instead develop SMART PDPs that can be updated and reviewed online all year. Companies gain from a workforce that has a sense of direction and purpose about their careers by encouraging this in their employees.
6. Reward and Recognition Programs
Nobody works for a job solely for the paycheck. According to research, 80% of employees put in more effort when they feel appreciated, and many are more motivated by appreciation than by money. Additional data suggests that organizations with high-recognition cultures experience 31% lower volunteer turnover than organizations with low-recognition cultures.
Consider creating and implementing a reward and recognition performance management tool to motivate your employees to perform exceptionally well. Remember that there are inexpensive yet effective ways to motivate your employees.
7. Performance Management Frameworks
This performance management tool helps to effectively communicate organizational goals and objectives, keep track of the progress in achieving the goals, and forecast how to achieve goals.
The Balanced Scorecard is undoubtedly one of the most common performance management frameworks (BSC). According to a Harvard Business Review, the BSC has seen tremendous success over the past 20 years and has been ranked as one of the most significant business concepts ever. The BSC is a tool for executing a strategy that helps businesses in the following:
- clarifying their strategy and communicating their business priorities and objectives;
- tracking their progress by gauging the extent to which their priorities and objectives are being met; and
- Defining and managing action plans to ensure that initiatives are in place to achieve their priorities and strategic objectives.
Other commonly used performance management frameworks include Objectives and Key Results (OKRs) and Results Based Management.
Online Performance Management Tools
Performance management tools are easier to implement when embedded into an online platform. Below is a list of online performance management software, the tools that are offered by each software, and other additional features:
1. Appraisd
- 360-degree feedback
- Personal development plans
- Performance management framework
2. Synergita
- Performance management framework
- Personal development plans
- Performance appraisals
- Rewards and recognition program
- 360-degree feedback
- Employee engagement
- People and performance analytics
3. People Goal
- KPIs
- 360-degree feedback
- Performance management framework
- Customized templates and dashboards
4. Actus
- Performance management framework
- Personal development plans
- Performance appraisals
- Talent management
5. Performance Manager
- Performance management framework
- 360-degree feedback
- KPIs
- Rewards and recognition program
- Performance reports
6. Deputy
- 360-degree feedback
- Performance appraisals
- Performance management framework
- Continuous performance analysis
7. Bitrix 24
- 360-degree feedback
- Performance appraisals
- Task ranking
- Communication management
Why Performance Management Tools?
Performance management tools make motivating, inspiring, and retaining staff easier. Performance management software goes a step further in improving your performance management process. Many systems in the market now have all performance management tools embedded in them. Optimize your company's performance by making use of these tools and systems.
Nicole Chimwamafuku is Finance, Strategy, and Performance Management Consultant at Industrial Psychology Consultants (Pvt) Ltd, a business management and human resources consulting firm.
Phone: +263 242 481946-48/481950
Mobile: +263 782 415 973
Email: nicole@ipcconsultants.com