Compensation and benefits concerns are very important to employees and employers. A lot of the top performing employees are drawn by successful organizations, as well as the organization providing a detail compensation and benefit plan. Now it is time to focus on the performance management structure that will help you succeed in your business. In this document I will focus on different aspects that will help you launch a well-done performance plan. This plan will also help you increase the performance of your associates and prevent a high turn over.
Performance management is part o Lean Manufacturing, and even though your company does not belong to manufacturing, we can implement it and get good results. Performance Management is about letting you employees know the health of the company and taking the appropriate actions to prevent a decrease in performance, efficiency, high costs, etc.
The first objective in implementing Performance Management is that there must be a commitment between the associates and the organization to improve the performance. Communication plays an important role here, the objectives must be clear in order to have a good communication between departments and this will arises alignment. As part of having a good communication, employees must have clear their responsibilities, goals ad how they are performing. You must also be prepared to correspond to the good performance of your associates; you must also create a plan for professional growth for them. Associates tend to be motivated and work as a team in continuous improvement projects and finding ways to improve the quality of the organization.
The second objective would be setting up system a method to measure the performance of your employees. We already talked about how to measure the health of your company and we talked about Key Performance Indicators as a method to measure the objectives of your different departments. Now it is time to go a little bit deep and set up a method for measuring the performance of your employees. During a performance appraisal you must abroad skills, ethics, how he/she is performing according to the tasks that are cited in the job description.
There is not a specific method for measuring the skills of an associate, what is really important is to monitor your employees on a consistent basis. An employee appreciates to know where he/she stands and know what he is doing right or the things that need to be improved. 360-degree feedback is a method that I would like to recommend. The reason is that in this method the employee not only receives feedback from the supervisor; peers, subordinates or even customers if applicable provide feedback. Obviously this method involves more and provides a better picture. I can provide more specific information or if you want to use the traditional way is correct.
Third, so far we have covered the base. Now it would be time to execute what has been planned. In this step I would like to cover how to convince your people that Performance Management is important. Your supervisors must understand that if something is not measured it cannot be improved, and that associates are important for the success of the company. Performance Management is a cycle where data is collected, analyzed, it is seen if there is room for improvement and then action is taken to make the corrections needed.
I recommend the usage of board to communicate the performance of your employees and at some point build an internal competition in order to reach better results. These board also helpful for monitoring and you can even add a log of corrective actions with responsible and due dates. Here is an example of the information that I used to post in another company.
Every operator used to receive weekly feed back about their performance and at the end of the month the results were posted and they knew the bonus percent they has earned. As far as daily information transmitted to the associates, s software was bought and we configured every machine with the appropriate standards and the associates were able to see the weekly schedule, plan fulfillment, performance, waste, etc.
This company in specific belongs to another industry but the purpose is the same. Also, keep in mind that at the end customer satisfaction is almost the most important thing. Finally, I would like to make some comments regarding how to provide feedback to the employees, As mentioned before, feedback is important to help employees perform at their best. You will notice that Performance management is being effective when they ask how they can improve and what are the things that are doing right.
This practice will lead you to create a training plan or training matrix. The information provided must be specific and if possible with examples. Also, let them speak and listen to what they tell. Keep in mind that at the end, they are the one that are in contact with the process. In conclusion, motivation is very essential for every person in your business and every body must keep in mind that what they do is important for your clients. Performance Management is about measuring and knows what to do with the collected data. With this information you will be able to provide feedback and achieve goals.
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