Performance management is the process of identifying employee (organizational or work unit) strengths/opportunities for improvement, establishing objectives, agreeing on the means by which results will be achieved, determining evaluation criteria, and assessing available resources that can help or hinder success.
Effectively executed, the performance management process can enhance the level of employee engagement by providing the leader an opportunity to reinforce the work unit’s mission and values, actively listen to employees’ ideas on how to improve performance quality , clarify individual roles and levels of authority, identify impediments to employee job success, differentiating “problems” (within the leader’s control to solve) from “realities”(outside the leader’s sphere of influence to overcome).
In short, the performance management process can reshape the leader-employee relationship from:
Command decisions to consensus building
Task orientation to a focus on verifiable results
Motivation through fear to positive reinforcement and individual responsibility
The leader having all the answers to utilizing employees as internal consultants
Record keeping and documenting mistakes to coaching for success
Unstated vision and assumed values to the open sharing of purpose