PERFORMANCE

STANDARDS
Performance Management
Performance Management
• Performance management is a corporate management tool that
helps managers monitor and evaluate employees' work.
Performance management's goal is to create an environment where
people can perform to the best of their abilities and produce the
highest-quality work most efficiently and effectively.
Key Takeaways
Performance management tools help people to perform to the best of
their abilities and produce the highest-quality work most efficiently
and effectively.
The precept of performance management is to view individuals in the
context of the broader workplace system.

Performance management focuses on accountability and

transparency and fosters a clear understanding of expectations.
Understanding PM
• A formal performance-management program helps managers and
employees see eye-to-eye about expectations, goals, and career progress,
including how an individual's work aligns with the company's overall vision.
• Performance-management programs use traditional tools such as creating
and measuring goals, objectives, and milestones. They also aim to define
what effective performance looks like and develop processes to measure
performance.
• For example, the manager of a sales department gives staff target revenue
volumes that they must reach within a set period. In a performance
management system, along with the numbers, the manager would offer
guidance gauged to help the salespeople succeed.
Performance-Management Programs

• Aligning employees' activities with the company's mission and goals. Employees should
understand how their goals contribute to the company's overall achievements.
• Developing specific job-performance outcomes. What goods or services does my job produce?
What effect should my work have on the company? How should I interact with clients,
colleagues, and supervisors? What procedures does my job entail?
• Creating measurable performance-based expectations. Employees should give input into how
success is measured. Expectations include results—the goods and services an employee
produces; actions—the processes an employee uses to make a product or perform a service;
and behaviors—the demeanor and values an employee demonstrates at work.
• Defining job-development plans. Supervisors and employees together should define a job's
duties. Employees should have a say in what types of new things they learn and how they can
use their knowledge to the company's benefit.
• Meeting regularly. Instead of waiting for an annual appraisal, managers and employees should
engage actively year-round to evaluate progress.
Performance Standards
• A performance standard is a management-approved
expression of the performance threshold(s),
requirement(s), or expectation(s) that must be met to be
appraised at a particular level of performance.
Levels of Performance Standards
• Strategic: This level refers to goals on the organizational, or company,
level. Strategic standards should align with the company's vision,
objectives and values.
• Operational: This level of performance management emphasizes how
departmental activities work to achieve the company's goals. Employers
may make performance standards that apply to the company's
departments.
• Individual: This level focuses on the individual employee to ensure that
all employees are performing their tasks well. Individual standards
evaluate employees' work and seek to improve the quality of their
performances.
Why are performance standards important?

• Performance standards and important because they provide employees

with a framework of how the company expects them to work.
• This allows for open communication between the employer and the
employee, which can help the employee understand their
responsibilities.
• It also explains how employees can meet these goals. For example,
communication might be a performance standard, and then the
employer might explain what communication means to the company and
how the employee can meet this standard.
• Performance standards are also important because employers can use
them as evaluation tools.