Performance Management: A Guide to Improve Organizational Effectiveness

July 8, 2021

The effectiveness of an organization is crucial for organizational productivity and long-term success. An effective organization runs like a well-oiled machine that runs smoother by integrating every part to produce the organization’s expected outcomes successfully. It also allows an organization to waste as little time and resources as possible, promoting lean management and strategically guides an organization to reach its goals.

Performance management is a streamlined HR process, often integrated into an HR software that allows managers to monitor and evaluate employee performances to ensure their direction of work and set of activities meet the established goals of an organization effectively and efficiently. Here are three main ways how performance management can improve organizational effectiveness. 

Aligns organizational goals 

One of the primary reasons organizations lack workplace effectiveness, and productivity is that employees have less clarity regarding their role within the workplace or what long-or-short-term goals they are trying to achieve. As performance management gives a fool-proof HR platform to continuously monitor and track an individual or team’s activities and how well they are serving the organizational goals, it is easy to alter or adjust individual or team goals to align with the overall organizational goals-whenever they deviate. 

As a result, this firstly eliminates the ambiguity involved for teams or individuals in getting their tasks aligned to enhance effectiveness and workplace productivity. And secondly, keep employees more involved within the direction of activities expected from them or by specific teams, giving them the autonomy to set goals relevant to the organizational goals with an enhanced sense of ownership and control with their performances, which all seamlessly improves the effectiveness of a workplace. 

Boost employee engagement and productivity

One of the most influential things about performance management is that employees can be rewarded or recognized according to their performance. This is usually done by integrating a performance management system to an appropriate reward management system that will appreciate and recognize high-performing employees or teams. When employees are appreciated or recognized for their efforts through intrinsic and extrinsic benefits, they feel appreciated, valued, and trusted within an organization. This increases employees’ motivation and satisfaction levels and persuades them to perform better every time, thereby improving employee engagement, which directly boosts organizational effectiveness and overall productivity. 

In addition, when employees are aware that they are rewarded according to the results of the performance management system, it will encourage almost all employees to perform better to achieve the rewards they are attracted towards, thereby again improving organizational effectiveness smoothly.

Create rewarding Employee Development Strategies

Performance management breaks down what individuals or teams lack in terms of skills or experience in achieving or aligning their performances towards organizational goals. In addition, it gives HR managers a comprehensive view of what kind of strategies, methods, or initiatives to take towards training and developing employees or teams. 

Employee development strategies built on a true measurement of an employee or team performance allow HR managers to focus on key areas that truly need improvement and not vague approaches that won’t benefit. 

Continuous performance management allows an organization to match the gap between an employee’s existing skills, knowledge, or experience to that of what is required by an organization to meet its goals by precisely planning out appropriate development strategies. 

If you’re looking to integrate an effective performance management system to improve organizational effectiveness and make a breakthrough change in enhancing workplace productivity, contact us at EmiratesHR. As one of the leading HR & Payroll software solution providers in the UAE, all our platform is custom-made to meet our customers’ most precise HR and payroll needs to save time and money.