Performance Plan

By Ricky S Kahn

job, jobs, career

By definition, Performance Management refers to a tactical and combined approach which leads to increasing the efficiency of a company by improving the way people work, getting the most out of the team and individual contributions.

Performance management includes certain actions which guarantee that the most important goals of a company are met effectively. Performance management is not restricted to the performance of a particular department, employee or product; it may be a combination of everything on the whole. Performance management is adopted by every organization.

Benefits

When there is a good relation between programs used for performance management and business results, it leads to several benefits. A company can enjoy direct financial gains, growth in sales and lower costs. It brings the organization in alignment with its goals and decreases the time it takes to create strategic changes by communicating the alteration through a new set of goals. It also motivates the workforce by optimizing incentive plans. It creates a level of transparency in achieving the aim, improves management control and is flexible and responsive to management needs. It helps in auditing and compliance. Communication of goals and plans also gets simplified. A clear documentation system gets incorporated. It helps ensure that all the employees are treated equally, as the appraisals are based on the results provided by them. It shifts the focus from activity oriented to result oriented. Performance reviews focus on the contributions that an employee makes towards achieving the company's goals. It is more effective since it is an ongoing process and not a one-time thing.

Effective ways to develop a performance plan

The first step in the strategic planning process is an evaluation of the market. The outcome of this assessment process is known as the mission statement. An organization's goals are its priority. In order to establish them it is important to incorporate strategic planning.

A performance plan helps turn these goals into reality. These goals must be reviewed in terms of quantity, quality, cost or timeliness. Calculate the results. Objectives that cannot be attained should not be formulated. Test these objectives for challenge and achievability. Adjust the objectives to the available resources. Establish performance reports that measure advancement towards the objective. Review all the statements with others to assure consistency and mutual support. Modify your statements to meet changing conditions and priorities. Provide a rational design. It is important to identify the outcome, driving measures and patterns of effects. The evaluation standards should be identified. The goals must be clear, concise, measurable and attainable. A target date for completion must be agreed upon. Document a performance plan which include the desired results, measures and standards and keep a copy of it in your briefcase.

When there is a clear understanding of competitors, customers and suppliers, an evaluation of the company's strengths and weaknesses can be made. Formulate a business plan which helps in determining the possibility of the results required. A well-written business plan helps in identifying the progress a company has made towards achieving its goals and control the decisions later on.

A major portion of employee's performance directly contributes to the results of the organization. The results need to be prioritized. It should be identified how the results were achieved. The most valid, reliable and practical measurements should be used.

Therefore, when a proper performance plan is put into perspective it has several benefits. It helps in career advancements, promotions, progress and success. It is responsible for the growth, development, performance and profit of an organization.