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Designing a Performance

Management System
Step 1
 Consider Stakeholders:

 If a management system is going to work, everyone that has a stake


in the company needs to be involved

 This means not only including the employees and the management,
but also stakeholders and investors

 Because everyone has to work as a team, if one person does not


agree with the system, he or she will essentially be working against
the company, causing a hurdle to reach the organization's goals
Step 2
 Know and Outline Goals :
 If employees do not know what is expected of them, then they will not be
able to contribute effectively towards the company's goals. This means
that a good performance management system needs to outline the
following:
 Job duties, responsibilities, and tasks - what does the employee need to
do?
 Job goals - what tasks will be measured and how will they be measured?
 Explain importance - employees need to know which tasks are the most
important. Which tasks should they focus on, and which tasks will help
contribute to the goals of the company?
Step 3
 Communication and Continued Feedback :
 Companies also need to continuously communicate and provide
feedback.
 For example, let employees know how they are doing. What are
they doing well? Where do they need improvement? T
 his feedback often comes from an immediate supervisor, but
occasionally, it can come from a client, other employees, and
leaders of projects.
 It is also a good idea to keep notes and records of employees'
performance. This gives the company an opportunity to refer back
to the notes for clarification or reference.
Considerations
 Feedback: Management and employees need proper
training and need to be aware of their roles. For example,
management needs to know how to give feedback and
employees need to be trained how to use that feedback

 Privacy: Some questions that need to be answered are:


who has access to the information, where will it be stored,
and how will everyone will be protected
Setbacks and Problems
 In performance management, there can be setbacks or
problems, often known as constraints

 Being able to recognize these elements can help a


company make necessary changes so that they cause the
least amount of trouble

 Some examples of constraints might include not enough


supplies, equipment problems, and a tight budget.

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