How to Optimise your Performance Management System

How to Optimise your Performance Management System

performance management

Performance management is a very important concept for companies looking to make sure that their team members are working at a sufficient level. Without a high enough level of employee performance, a company could be in grave danger. When looking at the question of how to optimise your performance management system, there are a few critical concerns to keep in mind.

Create A Clear Policy

If you do not already have an official system in place for performance management, it is critical that you create one as soon as you can. According to research conducted by iHR Australia, 92% of companies have a formal performance appraisal system in place. Make sure that managers, as well as employees, understand the performance management policy and exactly how it works so that there is never any confusion about how an employee will be evaluated by a performance evaluation system.

Involve The Team

If employees are evaluated on a performance management system that is very one-sided, it can lead to a decrease in morale and resentment in the office. To combat this problem, many companies have started using a performance management system that consists of something called performance dialogues. As the name suggests, these dialogues are more of a two-way conversation that engages and involves employees, instead of supervisors doing all of the talking about what is going on with an employee’s performance. The advantage of a dialogue is that you may garner additional insights into an employee’s performance, such as some reasons why they might be having trouble with a particular task.

When it comes to involving your employees to optimise your performance management system, another critical thing to remember is to make sure that you ask your employees what they want from your performance management system. This step is more applicable in smaller businesses where performance management systems are more fluid and can be changed more easily. Allowing your employees to give input about what a performance management system should be will help you optimise your performance management system by making sure that it aligns with everyone at the company, not just managers and executives.Research shows that when people invent the performance management system that they are governed by, these systems are much more effective.

performance evaluation

Make Performance Management An Ongoing Conversation

The worst types of performance management systems are the ones that only provide feedback for employees a few times a year. On the other hand, the best performance management systems are the ones that are a natural extension of discussion with team members. You should make sure that your performance management reviews are never unexpected. Employee performance and evaluation should be something that is addressed every day, whether it comes in the form of rewarding a team member for doing a great job on a last minute project, or discussing methods that could be used in the future to better approach certain workplace tasks. Your performance management should never be constrained to official meetings or tedious forms that are processed through your human resources department; your supervisors need to be practising performance management with a majority of the interactions they have with their team.

Be Willing To Change

One of the worst things that you can do with your performance management system is to make it static and resistant to change. A good quality performance management system should be responsive to both external and internal changes in the office. If your company takes on a new role in the industry, for example, it may be necessary to tweak your performance management system. Another excellent way to optimise your performance management system is by getting feedback from your employees and managers. These are the ones who spend the most hands-on time with your performance management system, meaning they have the strongest sense of how it is working and where it may be falling short. It is a good idea to periodically review your performance management system to ensure that it is achieving what it needs to achieve and to determine how it can be improved moving forward.


Performance management is a tricky subject that differs depending on several variables: company size, goals, and industry. The keys to a successful performance management system lie in creating a set system, adapting that system to change, and examining the real-world impact of your performance management system to ensure that it is doing what it should be doing. With a high-quality performance management system built by competent, confident and qualified HR Managers, your business will reach new heights of productivity and your employees will be happier than ever before.

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