Performance Management System

Performance Management System

The Performance Management System is a Human Resources strategy to optimize and develop team skills. Complementing the Performance Assessment, the Performance Management System covers the entire annual work calendar, being essential for the collection of essential information and for decision making with regard to people management.


Hence, the Performance Management System constructs a file showing the performance history of each employee within the organization, including strengths and weaknesses, development, attitudes taken, and postures adopted.


This review process also helps to disseminate the company’s strategies, culture and organizational values.


The fundamental element of the Performance Management System

The fundamental element of the Performance Management System is the Individual Performance Assessment , which, as we have already said, is carried out on a constant basis.


The Employee’s Individual Performance Assessment involves two types of review that are defined as: quantitative and qualitative.


  1. Quantitative Assessment : one that focuses on technical and behavioral skills;
  2. Qualitative Assessment : Focuses on individual goals and objectives.

It is worth mentioning that all the objectives, competencies and goals included in the Individual Performance Assessment must be completely aligned with the cultural values ​​and the organization’s consolidation and growth strategies.


In this way, the Performance Management System is essential for the career development of employees, to establish the need for training, for promotions, changes in positions, definition of bonuses, building feedback , monitoring goals, etc.


A company that implements the Performance Management System certainly has a stronger and more focused team, where the organizational climate tends to be more pleasant and employees are engaged in their roles and in their work for the sake of profitability and good placement for the company.


How to implement a Performance Management System

To apply a Performance Management System, it is necessary to have software that supports the chosen model, as it would be totally unfeasible to do it manually.


The files would be huge, difficult to find and handle. That’s why computer programs are chosen.


Currently, there are several performance management software on the market. These programs adapt to the company’s needs and customizations.


Another positive point is that there is training support for employees and managers.


The chosen software must clearly establish the objectives intended by the company.


In this way, there is the possibility of giving constant feedback to employees, and not once a year in the Performance Assessment process.


With continuous feedback , the employee will have the chance to correct their mistakes early on, before it snowballs.


Thus, there will be a greater chance of having a successful work and as expected, making the time better spent in terms of productivity.


In the same way as the Performance Assessment , the Performance Management System also allows the identification of the most expressive talents in the company. These talents must be recognized for their efficiency and quality, and they must be a model to be followed by other employees.


Main objectives of performance management

Do you know why structure your performance management processes? We explain!


We can make a list of the most important objectives of good performance management. Thus, it is easier to locate the reasons that lead us to adopt such practices in our company. Are they:

  • employee development
  • Decision making and talent management
  • Strategy execution
  • Culture maintenance
  • legal aspects


As they are very different goals from each other and very fertile in information, we are going to take a closer look at each of them.


We want you to leave here fully understanding the reasons for investing time in structuring good performance management.


Employee Development

The main objective of any performance management program is, guess what, developing employee performance!


But when we talk about “development”, we mean increasing the ability of individuals to produce results through improvements in their productivity. And also increase (and make more complex) your level of responsibility.


So it’s not that obvious, it requires a lot of care and precise measurements. At that time, HR indicators are like our guides, alerting us to the best paths to take.


The goal of developing a performance management process probably has the highest ROI (“return on investment”) of all goals! Amazingly, this impact is one of the most overlooked.


Unfortunately, not all leaders and HR professionals make the connection between investing in employee development and increasing bottom line. Fortunately, though, this is changing, and the change is most welcome!


In general, traditional performance management programs are more oriented towards performance measurement than performance development.


In other words, they end up functioning much more as performance appraisals than purely as performance management. And you now know that they are different things, don’t you?


Management must be oriented towards concrete actions for change and improvement . Is something bad? So let’s improve! Is something already good? So let’s strengthen! Otherwise it’s just a measurement, an evaluation.


It’s no use having employees get wonderful reviews but have no insight into how they can become even better than they already are at their jobs!

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