The Best Practices of Performance Management*

Why do we need smartphone fitness applications to track our steps when we know that regular jogging in the park will meet our daily exercise needs?

Human beings inherently set targets and analyse results, which in turn motivates them to work more passionately towards their end goals.

Similarly, ‘Performance Management’ is one of the key reasons why an organisation requires an efficient HR function.

Often, most HR functions could be criticised by other organisational departments as unpurposeful. However, an efficient ‘performance management framework’ is an important element that HR can directly link its contribution towards and therefore achieve organisational business goals.

In simple terms, performance management is used by most organisations as a weapon of disciplinary action, to get rid of non-performers or troublemakers.

But it is not the way it should be used!

Its functionality or usage is more than mere disciplinary action management. It can link the entire organisation to a common goal, enhance synergy within various functions of the organisation, and engage and enhance individual contributions to the organisation. Most importantly the tone of performance management should be directed more towards the needs of an individual and the development of the team rather than disciplinary actions.
Having said that, Performance Management is not purely an HR exercise, it is an organisational exercise involving all parties and staff members to comply with the procedural requirements.

To start with, the process should be owned and endorsed by the Executive team comprising of the CEO and the Top Management. They will be the decision makers to decide on Organisational Goals that would be pursued during the evaluation period.

One of the key channels of the process are the line managers. They bridge the gap between organisation’s top management and employees. They are responsible for the performance management dialogue process thus should be provided with appropriate training and knowledge-support by the organisation.

Employees on the other hand own the process and need to understand the requirement of this chain process, just like they understand that they would need a smartphone fitness application to monitor the progress of their daily exercise needs.

*Copy supplied by Farhad Mahbub, Director of Human Resources at Latitude 12 Pty Ltd

About Latitude 12: Based in Darwin, Latitude 12 provides tailored ‘Managed Business Solutions’ to clients in Northern Australia, with a suite of business services empowering Regional Businesses, Councils and Corporations to improve productivity, proficiency and profitability. Our expertise and understanding of the regional requirements have helped is design each service and product to suit the business needs of Remote and Regionally based organisations.