5 Most Useful Employee Performance Management Tools
What is employee performance management?
Monitoring performance of their employees is one of the most important tasks undertaking by the organisation. Whenever a new organisation is formed, the whole management decides some set of parameters which become the benchmark of an employee working in that organisation. These parameters defer accordingly as per the work, and the daily tasks are given and according to the person who is monitoring their work. Every employee is entitled to achieve the target no matter what.
Management of the performance of an employee or a team is a comprehensive task which should be flexible. The key is to know how efficient is the employee and how well he has worked throughout the year. Their performance may not be more than the expectations of the management, or it should be equal and efficient. When we say efficient, we refer to the contribution that employee did last year in the growth of the organisation. For instance, the punctuality of the employee, working capability and the relations inside the industry and with other team members are judged. However, it is equally important to know the contribution of the employees in the growth of the organisation. Although metering the performance of the employee is always based on the hard data, it is very much important to make it flexible considering other qualities.
What are the major types of performance management tools?
Every company prefer to monitor the performance of the employees on a daily basis, weekly, monthly or yearly whether the organisation is commercial or non-commercial. It is something good to measure the performance if someone is putting his 100% into something, he must be highlighted and appreciated the benefits. Some very useful performance tools are available to ease out the work of the mentors and the managers.
- Key Performance Indicators
Key performance indicators are known as KPI, and it is one of the topmost management performance tools. The key performance indicator is a measurable metric that applies both to the organisation and the individual. At the level of organisation, it measures the efficiency of the organisation for the achievement of the goals. KPI will let you know the number of customers who were remained unsatisfied if you consider superior customer service. This way I would be easier for you to calculate the happy customers. But if we talk about the flaw of KPI, it would not consider the number which is very less or below normal.
KPI is directly linked to the organisational strategy. It monitors the performance at the team level, department level and organisational level. Furthermore, KPIs include the vision of the organisation, objectives, the overall goals of the organisation. It makes sure that the work of the organisation is aligned and organised towards the success of the organisation.
- Performance Appraisals
This tool of performance management is quite flexible with the parameters and performance area and rated as the most-structured tool. Performance appraisal management tool is proved to be an excellent performance management tool for lining up the goal of the organisation with the goal of the individual.
Performance appraisal management has so much to offer to the management to monitor the performance. It helps the managers to chalk out the employees who deserve promotion and to frame training programmes for less rated employees. It also helps the employees to communicate with the employers and with each other in understanding the skills and merits of each other. They can also improve the professional bonding between the two.
- Lean Management
Lean management refers to the management tool that seeks to eliminate and waste of time creating more value and services for the customers. This tool monitors and identifies each step to figure out what department or step is not useful and productive for the organisation and which can be eradicated later on. Most of the organisations believe that lean management is only useful for manufacturing firms, but it can be applied to any tool or any business for employee management and a proper set of parameters. It is a process of implementing beneficial and productive steps to the growth of one organisation, but this is a long-term and repetitive process which achieves incremental changes.
- Management Dashboard
Management dashboard is one of the top performance management tools widely used by the organisations nowadays. One of the best quality of this management tool is a dashboard of an employee can be seen anywhere which makes it easy for the managers to manage the activities of the employee. But it has its limitations and employers need to understand all those to avoid any mistakes while measuring the performance of its employees.
- Mission and Visions Statement
Use of this tool is recommended as well as encouraged by most of the managers due to its overriding purpose. Mission and vision statement performance tool ensure that operational, individual strategies and performance level is same. Mission describes the purpose of an organisation and existence that motivates the team members.
Often, mission and vision statements may be misunderstood by many but not every time. It is very important that all the employees understand the mission so that their actions can result in the growth of the organisation.
Thus, these tools make it quite easy to measure the working abilities and capabilities of the employees.