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How important is a performance management system?

The performance management system is extremely important for the future of the business. In an increasingly competitive market, your company needs to stand out from the competition by offering impeccable quality products or services to customers.

In addition, the entire internal organization of the company and the bureaucracies related to it must work perfectly. Only then will you create a market differential and work towards growth and business success.

All of this can be achieved through a performance management system. It allows you to monitor the results and diagnose problems, correcting them before they interfere with the quality of the product or service offered to customers.

In addition, with the use of this system, you can monitor the results of qualifications and training offered to employees. That’s because you follow the metrics in real time, having access to very important data to identify improvements from the investments made.

Therefore, the performance management system can be the greatest ally in the quality sector of your business, in addition to improving the planning of the people management area.

How to implement a performance management system?

In view of so many benefits, the need to implement this type of tool in the company is clear. However, in order to adopt it, it is important that you follow some basic steps.

Understand the dynamics of employee performance

First, to make a system that works and that generates changes in the conduct of employees, it is necessary to look for methods capable of promoting a fair and flexible assessment. Thus, your organization, as an appraiser, must fully understand how the performance dynamics of people within companies work.

There are, in this dynamic, three components interacting in a way that conditions the performance of employees. Are they:

capacity (development);

environment (opportunity);

effort (motivation).

How to do performance management? Evaluating them! Therefore, you must create methodologies focused on each of them and integrate them into the performance evaluation system.

Provide development opportunities

It is also up to the organization to provide opportunities for the employee to develop and grow. Thus, it is necessary that you invest in strategies in this aspect, and they should also be the objective of the evaluation implemented through the performance management system.

These assessments will not only help when setting up a consistent career plan, but also serve as a parameter for improvement and training programs.

Create indicators

Your assessment system must be continuous and consistent. Thus, it is possible to work with accessible indicators that demonstrate what you are looking to investigate.

Understand well what the company expects of employees and focus on these aspects. You can invest in a list of organizational skills, as well as essential skills for each position in your company.

In addition, it is possible to assess the organizational environment, the company’s climate, the leadership and motivation of the team. With these skills and job characteristics at hand, you will be able to implement an efficient performance evaluation system in your company.

Remember that only by measuring the most important aspects of management, it is possible to identify problems and propose improvements.

Keep up with it constantly

Performance management work requires the continued attention of leadership. Giving annual feedbacks based on the latest results will totally discourage the team and is a waste of the investment made to carry out this work.

Constantly monitor, give short, accurate and recurring feedbacks, detect variations in indicators (both negative and positive) and observe changes in behavior and how they impacted productivity.

With this monitoring, the performance management system will act as a general framework and will provide the necessary information for new strategies to be applied and the results to be achieved.

How to prepare the company for change?

A new system brings a series of transformations to your business. Therefore, it is important that you prepare the team and the organization as a whole for these changes. Discover, now, some elements that you can take into account at this moment.

Get closer to the IT team

When implementing a new system, your company’s IT team is the most suitable to assist in the process. This is because these professionals deal with this type of tool all the time, and can become great allies.

Therefore, first introduce the company’s IT system and ask the industry to analyze the tool and create a deployment plan. From there, start spreading the software to other areas.

Engage employees

Employees need to feel part of the whole process. So, talk to them before imposing the performance management system.

This is the time to explain all the benefits of the change and to make it clear why the changes were made. Take the opportunity to collect feedback on the team’s first impressions in order to make the necessary adjustments.

Empower the team

It is also necessary to train the team to use the new tool, especially the leaders. Otherwise, you may experience problems with the implementation, which compromises the veracity of the data generated.

Therefore, promote training and take all questions from the team about the new performance management system. Follow the first weeks of implementation closely and ensure that everyone is using the software

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