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Performance management, a technique for company management, enables managers

to keep track of and assess workers' productivity. The purpose of performance


management is to establish an atmosphere where employees may function to the best
of their ability and offer the best output productively. (Tardi, 2022).

I previously had to leave a job because of how my management handled my


performance. Even though I was doing my best and met or even exceeded all my sales
and P&L targets, my manager somehow decided that repeatedly giving unfair results
would encourage me to be more productive. He didn't even implement any
performance management. Poor people performance management (PPM) has many
critical negative implications on the organization. Among these disadvantages,
according to workfront.com (2019), are:

1.     Employees quitting because of unfair results

2.     Affecting the review, positively or negatively, by using fabricated or misleading


information

3.     Dropping employee’s morale

4.     Wasting resources

5.     Demotivating employees

6.     Dropping job satisfaction

Having employees who understand their goals and the reasons behind them is essential
for influential people performance management (PPM). Setting targets or goals is the
primary method for accomplishing them. Every employee should know the goals of the
organization and their team, as well as their personal duties in achieving those goals.
Goals should preferably not be "established" for an employee but instead agreed upon
by the employee and manager. Employee participation in goal-setting strengthens their
sense of ownership over the goals and, as a result, can inspire them to succeed in their
positions. (“People Performance Management Toolkit”, 2017).

Considering our salesforce, in my current company, the four most significant job
responsibilities, the four vital goals, and their measurements using the SMART technique
are:

Responsibility Goal Measurement Method


Lead Generation Minimum 50 leads per month Leads generated monthly as a
percentage of the target
Proposals Submission Minimum AED 5 million Proposals submitted monthly
proposals submitted per month as a percentage of the target
Jobs Closing Minimum of AED 700K closed Jobs closed monthly as a
per month percentage of the target
Invoicing Minimum of AED 400K invoiced Monthly invoicing as a
per month percentage of the target
 

As it includes each of the four SMART objectives technique pillars, this is thought to be
the simplest and most equitable way to assess the success of our sales team:

1- Specific: It makes it obvious who is in charge, what must be done, where, when, and
why the goal must be achieved.

2- Measured: Using our CRM and financial reporting, it is transparently, fairly, and simply
measured.

3. Achievable: A good, diligent sales engineer with some experience and a small network
may easily bill AED 400–600K per month in our industry.

4- Achievable: Considering the industry ratio of 0.2 or 1/5 for the number of sales
engineers to the annual target of AED 3-5 million, the goals are highly realistic.

In order to help the business achieve its strategic goals, performance management is a
continuous method of interaction between a supervisor and subordinate that takes
place throughout the employment lifecycle. Clarifying expectations, establishing
objectives and targets, giving constructive tips, and evaluating outcomes are all parts of
the process.

References

Tardi, C. (2022). Performance management: Understanding a key corporate tool.


Investopedia. https://www.investopedia.com/terms/p/performance-
management.asp

10 disadvantages of poor performance management. (2019). Adobe


Workfront. https://www.workfront.com/blog/the-disadvantages-of-poor-
performance-management
People Performance Management Toolkit.  (2017).  NHS Employers and Skills for
Care.    Retrieved from: https://www.skillsforcare.org.uk/Documents/Leadership-and-
management/People-Performance-Management-Toolkit/People-Performance-
Management-Toolkit.pdf

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