Performance Management or Employee Development? Is there a Way to Merge Both?

Performance Management or Employee Development? Is there a Way to Merge Both?

If you ask an employee on what a performance management is, he or she will mention that it is nothing but the annual appraisal of his or her performance followed by salary revisions. Employees also tend to view performance management process with a lot of skepticism, as generally they are not happy with the subjective appraisals and get dis-satisfied with their salary revisions.

An effective performance management system should not stop with just once a year performance appraisals and salary revisions. It should be much more comprehensive, and one of the key goals of such an effective performance management system should be to develop employees.

What is employee development?

Employee development consists of activities that are initiated by an organization that would help in the overall development of an employee. An effective performance management system is one which gives high priority for employee development.

Benefits of employee development

When a performance management system focusses on employee development as well, the return of investment from such a system would be good due to the following reasons:

1) Well trained employees become more competent and execute their responsibilities productively.

2) Employees become happy as their development is taken as the prime focus.

3) When leaders are groomed within the organization, it helps in succession planning and reduces the associate costs and risks in hiring a new employee.

4) When facilities are created for employees to do their job effectively and obstacles are removed, it ensures that organization goals are met.

How do you convert your Performance Management System to Employee Development System?

Most companies do performance appraisals once a year and use performance management software for streamlining the process (self-evaluation, 360 degree feedback, manager’s feedback & rating, recommendation, etc.). Due to the volume of the work and stress associated with this process, the process stops with the salary revisions. Ideally, the HRs and managers should extend this process to identify the training needs, strengths & weaknesses of the people/organization, people development needs and put a clear roadmap for addressing them.

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10 BPM tools every manager needs to know

10 BPM tools every manager needs to know

Managing business performance is everyone’s everyday job. You could argue that making sure the business is performing well is THE job of any manager. The challenge is that there are many different tools available to mange business performance, here I want to look at 10 popular BPM tools that every manager should know.

1. Planning and budgeting

This is probably the most widely used BPM approach in businesses by which plan ahead and set budgets for the following year. This is traditionally done annually where organisation set goals for the next 12 months and negotiate a budget to achieve the goals.

2. Key performance indicators (KPIs)

KPIs are the navigation instruments that companies use to understand whether they are on track or veering off the prosperous path.

3. Balanced scorecard (BSC)

The BSC is another popular management tool that has been designed to articulate the strategic objectives of a business and then align performance measures and action plans to these strategic objectives to ensure the strategy gets executed.

4. Benchmarking

Companies use benchmarking to compare their own performance with those of others. Benchmarking is traditionally seen as comparing your own performance with external best-practice performance (where best practice performance can come from outside the sector or industry a company operates in).

5. Business excellence model

The business excellence models come from the quality movement and have been developed by national bodies to assess quality standards in companies. There are various national standards that are often used as the basis for quality awards.

6. Enterprise risk management (ERM)

ERM represents a set of tools and approaches to identify, assess and manage corporate risks. While risk management started its life very much as an internal control back-room function, today it has moved up onto the boardroom agendas of most businesses.

7. Six sigma

The six sigma is a tool that was pioneered by Motorola in the late 1980s and later adopted very successfully by global giants such as General Electric and Honeywell as well as many other companies of various sizes.

8. Performance dashboards

Most organisations today are bursting with data, metrics, reports and analyses. Dashboards provide single-page at-a-glance overviews of areas of performance (eg corporate overview, sales, finance, HR, business units, etc).

9. Customer relationship management (CRM)

Most companies want to make sure they not only have satisfied customers but that they turn their customers into profitable and loyal customers.

10. Performance appraisals

Another popular performance management tools is the performance appraisal. It is basically a tool to assess job performance of individuals in a company.

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How to Develop a Performance Management System

A "dashboard" is like a speedometer ...

(Photo credit: Wikipedia)

How to Develop a Performance Management System

Performance management involves more than simply providing an annual review for each employee. It is about working together with that employee to identify strengths and weaknesses in their performance and how to help them be a more productive and effective worker. Learn how to develop a performance management system so that you can help everyone in your organization work to their full potential.

  1. Evaluate your current performance appraisal process
  2. Identify organizational goals
  3. Set performance expectations
  4. Monitor and develop their performance throughout the year
  5. Evaluate their performance
  6. Set new performance expectations for the next year

Setting performance expectation for the next year is one of the important keys. What is your new year’s resolution? Feel free to leave us a comment or send us a message.

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Using Performance Management to Motivate a Disaffected Team

Using Performance Management to Motivate a Disaffected Team

If you’re in charge of a team, you’ll appreciate that they’re rather tricky animals. At times, all appears well, but you’re achieving little. At other times, you’re reaching your targets, but there’s unhappiness and resentment. If your team has become disaffected, then it’s time to rely on performance management to set people straight again. Following a four-step program should ensure success.


It’s vital to establish why a team is disaffected. Usually, it’s related to performance – of the entire team or of an individual. The cause may be that the wrong objectives have been set. Perhaps your team members feel their objectives are not achievable or not realistic? Performance management will help you to review these targets.

Implement Performance Management

Performance management works best when there is an atmosphere of honesty and openness. Try to encourage this in your people. Clear objectives also need to be set. Ensure they are SMARTER (specific, measurable, attainable, relevant, time-bound, evaluated and re-evaluated). This useful mnemonic was developed from George T. Doran’s comments in Management Review and has been in use ever since.

Set Goals

Ensure that any targets are clearly aligned to your company’s objectives. The work that your teams carry out should be considered within the work of the company as a whole. Make this as explicit as possible. Your employees need to know that their work matters and has relevancy within the company.


As soon as objectives are met, ensure you praise, reward and promote. Your team members must see that you, too, have an eye on their targets. The promise of promotion is a real motivator.

Appreciation and motivation are one of the keys to increase performance, and to align any targets to company’s objectives. If you have any opinion about this topic, feel free to leave us a comment or send us a message.

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What if Performance Management Focused on Strengths?

What if Performance Management Focused on Strengths?

Obviously we need a new system. And what can we say about the new system that would serve us better? Well, the specifics of the system will depend on the company, but we do know that it must have the following six characteristics, each of which follows logically from the one preceding.

First, it must be a real-time system that helps managers give “in the moment” coaching and course-correcting. The world we live in is unnervingly dynamic, where we are on one team one week and another the next, where goals that were fresh and exciting at the beginning of Q1 are irrelevant by the third week of Q1, and where the necessary skills, relationships, and even strategies have to be constantly recalibrated. In this real-time world, batched performance reviews delivered once or twice a year are obsolete before we’ve even sat down to write them.

We need much more frequent check-ins—weekly or, at most, monthly. Luckily, we now live in a world where most of us are armed with a device that knows exactly who we are, and into which we can record pretty much anything we want. This device—your mobile phone—will enable you, the employee, to input what you are doing this week and what help you need; and, because it knows you, it will be able to serve up to your manager coaching tips, insights, and prompts customized to your particular set of strengths and skills.

Second, it must be a system with a super light touch. Third, it must feel to the individual employee that it is a system “about me, designed for me. Fourth, and crucially, it must be a strengths-based system. Fifth, it must be a system focused on the future. Finally, it must be a local system.

If you have any question about performance management, or would like to have a discussion about performance management, leave us comment or send us a message.

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Why should leaders care about performance management?

Why should leaders care about performance management?

A consistent track record of sound results is the best indicator of leadership potential and capacity. Top-rated leaders are those with a history of repeated high impact results across a variety of contexts and complexities.

Consequently, performance management should be a central issue in every organisation. Sadly, in our experience, this is not so – in a significant number of cases we see leaders covering their incompetence and poor results with blame shifting.

Performance review meetings are seldom welcomed. They are widely regarded as the event about which most employees get no sleep the night before, and most leaders get no sleep the night after. We have observed many organisations in which performance management has been reduced, if not entirely relegated, to a once-a-year paper exercise for a mandatory input for annual salary reviews. We have also seen organisations where the performance appraisal is a one-sided affair in which the manager does all the talking, wanting to get one more unnecessary administrative formality out of the way as quickly as possible. Does this sound familiar?

Helping people achieve the very best results possible is a primary challenge for every leader and lies at the heart of effective performance contracting, reviews, correction and reward.

Here are five tips to improve your management of performance:

1. Reframe the purpose

2. Reframe the label

3. Reframe the timing

4. Reframe the model

5. Reframe your role

Performance is a crucial aspect in management. If you are interested in how to leverage your performance management, feel free to contact us.

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Risk,BI,Performance: Supply Chain Management

Lecture Series on

Risk, BI, and Performance Management in the Context of Supply and Demand Chain

Supply Chain Institute, Article one – Risk Management


If I may, let me start my journey on this subject with some meaningful quotes from many greats:

“The person who risks nothing, does nothing, has nothing, is nothing, and becomes nothing. He may avoid suffering and sorrow, but he simply cannot learn and feel and change and grow and love and live.”

Leo F. Buscaglia quotes(American guru, tireless advocate of the power of love, 1924-1998)

Man cannot discover new oceans unless he has the courage to lose sight of the shore.

Andre Gide quotes (French writer, humanist and moralist, 1947 Nobel prize for literature, 18691951)

Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one’s ideas, to take a calculated risk – and to act.

Andre Malraux quotes (FrenchHistorian, Novelist and Statesman, 19011976)

He who risks and fails can be forgiven. He who never risks and never fails is a failure in his whole being.

Paul Tillich quotes (German born AmericanTheologian and Philosopher, whose discussions of God and faith illuminated and bound together the realms of traditional Christianity and modern culture. 18861965)

“Only those who will risk going too far can possibly find out how far one can go.”

T.S. Eliot quotes (American born English Editor, Playwright, Poet and Critic, 18881965)

Continue reading

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Risk, BI, Performance Management in the Context of Supply and Demand Chain Management

Risk, BI, Performance Management

Greetings;Due to overwhelming demand from colleagues, customers, and market, we will start a new lecture series on Risk, BI, Performance Management, in the context of Supply and Demand Chain. These articles will appear as lecture series as well as the Latest News on this web site. Your participation and contribution is very welcomed and appreciated. We will try to address the said topics from Analytical Approach as well as Management points of view. I look forward to your input, contribution, and comments.Best Regards,Javad Seyed,

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