Effective Performance Management Strategies

What is a performance review?

To understand what a performance management system(PMS) is, we need to understand what a performance review is first. A performance review, (which can also be called a performance appraisal or performance evaluation), is an assessment technique used by managers to evaluate the current status of the employee and provide feedback to them. This is done by evaluating the employee on multiple fronts such as work performance, strengths, and weaknesses, punctuality, etc. Based on this performance review, the manager determines the future goals of the employee and their prospects within the organization.

Slowly, the method of doing these reviews has changed. Earlier, these reviews were either annual or bi-annual, however, more and more organizations have shifted to a more ‘continuous system of evaluation’, which was made possible by the implementation of HRMS. Nowadays, employee performance review can be conducted informally and on a one-on-one type session, instead of doing a review of an entire batch of employees.

Performance appraisals are extremely important for both the organization and the employees. If done correctly, they help the employees to understand their current position, how to work more efficiently, and what can be their prospects. It also helps the managers to understand the current status of the employees and the obstacles that they might face, what their expectations are, etc.

How to perform Continuous Performance Management (CPM)

The CPM system is being adopted by many organizations in recent years due to its effectiveness. The regular performance review system is normally future-focused and looks forward to the development of the employee. It provides employees with an opportunity to look back at their recent successes and any point that they have faced difficulties in. By looking back at these occurrences, it helps the managers and employees to gauge their current capabilities and provides them an idea to enhance their current situation.

The Basic Elements Necessary for Effective Performance Management Strategies

Setting the goals

The goals are needed to be set flawlessly. The goals should be communicated between the employees and upper management to avoid any confusion. The goals are needed to be set quickly and precisely with a clear understanding of all parties. Employees need to know why these goals have been set for them and how it’s going to help them in building their skills. Employees will be more motivated once they understand how their work is helping the organization.

Goal framing is always a process that requires collaboration. To be successful, managers must be transparent with employees about the company’s objectives and any preventive obstacles. Employees should also be allowed a modicum of freedom to set their own performance goals. By giving employees this sense of autonomy, it allows them to be more motivated and work more efficiently.

Transparent communication and collaboration

Employees deserve to be kept in the loop regarding decisions that affect them personally. A certain level of trust between the employees and upper management is needed to tell them their true thoughts and honest opinions. Open lines of communication will result in a healthier work environment within the organization and will positively affect the culture.

Employee recognition 

Employees deserve to be recognized for their contributions and the work that they do for the organization.

A good PMS should encourage employees and make them feel rewarded for their achievements. If employees don’t feel valued, they are liable to leave.

Honest and regular feedback

Frequent and precise feedback is the key to improve individual performance. By giving employees regular insights regarding their work, they can be motivated to improve their work.

Employee development 

Nobody wants to be stuck in a rut. Advancing and honoring of the skills of the employees will keep them motivated as well as benefit the company in the long term.


A good performance management software (PMS) along with effective performance management strategies can take care of the performance of the employees with ease. Continuous performance management is only possible with the implementation of performance management software. A good performance management system should be integrated properly with the existing HRMS systems with no difficulties.

Also Read: How is Performance Management different from Performance Appraisal

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