Performance Management and KPI (Key Performance Indicator)

 

Performance Management and KPI (Key Performance Indicator)




What it is Performance Management?

Performance management involves continuous feedback and communication between managers and employees to achieve an organization's strategic objectives. It involves goal structure, evaluation, feedback, development planning, and incentives to improve productivity, employee engagement, and encourage continuous growth (Lalwani , 2020).


Performance Management: A Collaborative Path to Employee Growth

Measure employee performance annually or quarterly, collaborate with managers and employees, keep them informed of changes, and simplify processes to improve overall performance. Employees trust managers' investment in their work and job goals (Lalwani, 2020).

Empowering Employee Success: The Crucial Role of Effective Performance Management

Businesses often fail to fulfill management systems, leading to employees losing work-life balance and imitating short-term rewards to meet company goals. This can negatively impact employees' overall well-being (Gardner & Matviak, 2022).



Driving Company Success through Strategic Key Performance Indicators (KPIs) for Employee Performance and Productivity.


KPIs are crucial navigation tools for managers and leaders to assess success. Understanding organizational aims and strategic orientations is essential. Create a strategy and relate KPIs to objectives for effective implementation (Marr, 2011).

To ensure company success, use key performance indicators (KPIs) to make informed decisions. These include employee satisfaction index, engagement level, staff advocacy score, employee turnover rate, average employee tenure, absenteeism Bradford Factor, 360-degree input score, wage competitiveness ratio, time to hire, and training return on investment. By analyzing these metrics, companies can identify areas for improvement and make informed decisions to improve employee performance and productivity (Marr, 2011).

Self-reflection 

I realize that if an individual seeks growth in their career, the company must utilize appropriate KPI tools to assess employee performance. I would like to share my own job experience, as I worked at Lanka Milk Food LLC in Sri Lanka. Despite working hard to fulfill business goals, the company failed to promote me to the next level because of the employer's lack of KPI analytical abilities.


Conclusion

Performance management is a critical procedure that encourages managers and staff to provide continual feedback and communication. It improves productivity and employee engagement by connecting individual, team, and corporate performance with strategic objectives. However, excessive compensation for workers in some firms may cause work-life balance issues. Implementing suitable Key Performance Indicators (KPIs) contributes to a better understanding of colleague performance and success. Making collaborative performance management a priority inspires workers and adds to overall organizational progress. 


Reference 

Gardner, H. & Matviak, I., 2022. Harvard Business Review. [Online]
 Available at: https://hbr.org/2022/09/performance-management-shouldnt-kill-collaboration

Lalwani , P., 2020. [Online]
 Available at: https://www.spiceworks.com/hr/performance-management/articles/what-is-performance-management/

Marr, B., 2011. The 75 Measures Every Manager Needs to Know. Pearson: Financial Times.

 

 

Comments

  1. Dimuthu Edirisinghe - MBA28July 21, 2023 at 6:12 AM

    KPI is very important in performance management system of an organization. Usually the KPI criteria is based on industry specifications and also influenced by the competitors in the same industry. Having KIPs which covers all the areas and which is clear and simplified encourage the employees to perform and employees will have a clear path on their career progress.

    ReplyDelete
  2. Nimantha WickremasingheAugust 1, 2023 at 8:48 AM

    KPIs are important and act as a baseline for performance management as you clearly explained. With the increasing diversity of the workforce, I think the way we define KPIs must be reevaluated. Each person is different and measuring everyone against the same scale may not be ideal. Taking a simple example, a rabbit and a fish could go from A to B within the same time, but their environment has to be viable to use their strengths. The rabbit won't be effective in water while the fish won't be effective on the ground. We can perhaps think about one set of KPIs based on individual performance geared towards team targets and another set KPIs based on teams geared towards organisational targets. This would probably define more holistic KPIs in terms of Human Resource Management.

    ReplyDelete
  3. Prabath MudaligeAugust 8, 2023 at 8:41 PM

    underscores the critical role of performance management in fostering continuous feedback, communication, and alignment with strategic goals. The balance between performance incentives and work-life equilibrium is noted, emphasizing the need for a well-calibrated approach. Collaborative performance management is presented as a means to inspire employees and contribute to overall organizational advancement.

    ReplyDelete
  4. I U K YaddehigeAugust 10, 2023 at 6:57 PM

    An accurate KPI indicator of an organization should be maintained, it helps in the survival and development of the organization, especially in determining the strategic, financial and operational achievements of the company.

    ReplyDelete
  5. Lakshani N UlladupitiyeAugust 12, 2023 at 10:18 PM

    It is important to maintain an accurate KPI indicator in an interface.This is very useful for survival and operation.

    ReplyDelete
  6. Dinesh Chamira WijesinghaAugust 14, 2023 at 8:58 AM

    Teams are guided towards success by performance management and KPIs. Businesses can navigate obstacles, track progress, and achieve their objectives precisely by establishing clear Key Performance Indicators and managing performance.

    ReplyDelete
  7. Azaam MunasAugust 17, 2023 at 12:31 PM

    Performance management is always very important to any organization while moving towards achieving the goals. KPI is a good evaluating system for the organisation as well as for the employee. results of KPI can clearly see the company progress status and the employee productivity.

    ReplyDelete

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