How to Define Performance Management?

Every company aims to differentiate itself from its rivals, achieve a competitive edge, accomplish its objectives, and eventually expand and advance. The employees of the companies play the biggest role in fulfilling these demands. In other words, successful employees are the foundation of every successful company. As a result, the continued success of the firm as a successful organization is directly tied to the excellent performance of the employees while they are at work. Today, performance management which is crucial for both businesses and employees has gained significance. What you need to know about performance management, which enables businesses to make smart decisions on time, is discussed in this article.

What is Performance Management?

Performance management is a method that allows a company’s resources, financial structure, and employees to be managed and directed in accordance with the company’s long-term objectives. Performance management aims to boost employees’ motivation, develop their sense of accountability and belonging to their jobs, evaluate the current situation and highlight what needs to be done to get it to the right place, and support its implementation.

One of the most significant components of performance management is recognizing and rewarding people for their achievements. Employees whose efforts are recognized and rewarded will perform better in the future and contribute more to the company’s overall success.

Why Does Performance Management Matter?

Performance management decides whether and when the company is generally successful.  In other words, it is one of the most significant methods that demonstrate the extent to which organizations have met their objectives.

Performance management helps an organization realize the actions carried out for a given goal, gives the top management essential knowledge about the organization’s direction, promotes accountability, and identifies performance trends based on specific activities.

Benefits of Performance Management for Employees and Managers

Performance Management for Managers

  • Managers improve their capacity for planning and controlling.
  • Communication within the company improves.
  • They can identify the employees’ strengths and potential growth areas with less difficulty.
  • Approval procedures becomes more comfortable when managers are more familiar with employees.
  • Improves managerial abilities.

Performance Management for Employees

  • Reveals the management’s identity, forward-thinking, and career-planning steps.
  • Depending on their individual performance, they identify their strengths and limitations.
  • It’s encouraged to take on responsibility and a leadership role.
  • Based on the outcomes of their performance, their self-confidence develops.

How Twiser Can Help You Improve Your Performance Management?

Twiser is a people-oriented OKR & performance management solution, flexible and easily adaptable to company strategies, which is changing circumstances in the work environment. It is successfully implemented and trusted by organizations operating in 12 industries across 25 countries.

Twiser’s unique three-step “Best Fit OKR & Performance Management Solution” involves:

  • Assessing your company’s culture, needs, and expectations
  • Designing your individual “Best Fit Solution”
  • Supporting you throughout the entire journey with our coaches and customer success team

Twiser enables you to achieve your mission by setting clear and aligned OKRs (Objectives & Key Results), tracking progress, arranging 1:1s, getting feedback and evaluating your colleagues’ competencies and performance while having transparent communication across your company.

The solution is ideal for small and mid-size companies as well as large enterprises willing to enhance performance management to cultivate strategy execution.