Financial Performance management is a periodic, systematic, and objective process

of developing an employee to perform their job to the best of their ability. When
properly designed and implemented , performance techniques and processes enable an
organization to monitor , manage and improve strategy execution and the delivery of
results. It is One of the most critical factors in an organization's success, and
the ability to successfully manage performance and is the most important skill for
leaders and managers in organizations.
Performance management involves measuring and reporting progress from individuals
who work for companies with the main objective of improving performance.
Examples of performance processes or tools include performance appraisals, key
performance indicators and management dash boards . Essentially performance
management is what organizations do to become more successful and stay ahead of
their competitors.
It boils down to five component processes-
1. Planning – It is Setting goals and performance expectations. Planning is
looking ahead and chalking out future courses of action to be followed. It is a
preparatory step. It can also be a systematic activity which determines when, how
and who is going to perform a specific task or job in an organization. Planning is
a detailed program regarding future courses of action .It is a basic management
function which includes formulation of One or more detailed plans to achieve
optimum balance of needs or demands with the available resources.
2. Monitoring – This is Conducting progress reviews of employees and comparing them
with the elements and standards. It is ensuring that the project or activity is
going on as planned and that tasks within the project are being completed on time .
The metrics that require monitoring can be budgets, the time to completion and the
standard of quality.
3. Developing – Increasing capacity of the employees through trainings or giving
higher levels of responsibility is important.
Driven largely by technology, change is coming faster than many organizations can
cope with, putting new pressures on employees and resources . Rapid change requires
a skilled, Knowle able workforce with employees who are adaptive , flexible and
focused on the future . This requires employee
training and professional development at all levels of the organization.
4. Rating – This is evaluating an employee's performance against the elements and
standards in an employee’s performance plan. The importance of rating employee's
performance allows managers to inform team members of how well they are performing
and areas they can improve on. Supervision shows that you are serious about
performance and leaves less margin for slacking or coasting.
5. Rewarding – Recognizing employees, either individually or as part of groups, for
their contributions to the agency’s mission.
-Good performance should be recognized without waiting for nominations for formal
awards. Recognizing hard work and rewarding employees is important for both the
employer and employees because it motivates employees and this will lead to
boosting teamwork and productivity. It improves your workplace culture , creativity
and a supportive work environment. It helps retain top talent and reduce staff
turnover.