Designing a Performance Management System

1.

Designing a Performance
Management System

2.

Step 1
Consider Stakeholders:
If a management system is going to work, everyone
that has a stake in the company needs to be involved
This means not only including the employees and the
management, but also stakeholders and investors
Because everyone has to work as a team, if one person
does not agree with the system, he or she will essentially
be working against the company, causing a hurdle to
reach the organization's goals

3.

Step 2
Know and Outline Goals :
If employees do not know what is expected of them, then
they will not be able to contribute effectively towards the
company's goals. This means that a good performance
management system needs to outline the following:
Job duties, responsibilities, and tasks - what does the
employee need to do?
Job goals - what tasks will be measured and how will they be
measured?
Explain importance - employees need to know which tasks
are the most important. Which tasks should they focus on,
and which tasks will help contribute to the goals of the
company?

4.

Step 3
Communication and Continued Feedback :
Companies also need to continuously communicate
and provide feedback.
For example, let employees know how they are doing.
What are they doing well? Where do they need
improvement? T
his feedback often comes from an immediate
supervisor, but occasionally, it can come from a client,
other employees, and leaders of projects.
It is also a good idea to keep notes and records of
employees' performance. This gives the company an
opportunity to refer back to the notes for clarification or
reference.

5.

Considerations
Feedback: Management and employees need
proper training and need to be aware of their
roles. For example, management needs to know
how to give feedback and employees need to
be trained how to use that feedback
Privacy: Some questions that need to be
answered are: who has access to the
information, where will it be stored, and how will
everyone will be protected

6.

Setbacks and Problems
In performance management, there can be
setbacks or problems, often known as
constraints
Being able to recognize these elements can
help a company make necessary changes so
that they cause the least amount of trouble
Some examples of constraints might include not
enough supplies, equipment problems, and a
tight budget.