What Makes a Performance Management System Effective?

Performance Management System

What Makes a Performance Management System Effective?

Performance management is a topic that’s received a great deal of attention recently – most likely due to the fact that so many companies are taking a new approach to their performance management practices. But before you go overhauling your entire performance management system, let’s take a look at what performance management actually is, and which practices you can implement to make it most effective for your company.

According to HR Council, performance management is an ongoing process through which managers and their direct reports work together to plan, monitor & review employee goals and contributions.


Strategies You Can Use

Chances are, your managers are already planning, monitoring, and reviewing goals with their employees. So, what are some strategies you can use to drive efficiency with your existing performance management system?

  • Use A Real-Time Approach
    Annual performance reviews are on their way out, because it’s ineffective to provide feedback for employees months later. As one business leader told the Chicago Tribune, performance management “has to be instantaneous because our world is instantaneous.”Encourage managers to give feedback as soon after they notice positive (or negative) employee behavior as possible.
  • Give Ample Feedback
    In addition to giving timely feedback, managers should also be giving enough Without achieving clarity about how they’re doing, employees won’t know whether they need to improve in certain areas.

Make sure that managers are setting clear expectations and checking in frequently with their teams to coach and provide actionable feedback.

  • Simplify The Process
    Most importantly, the goal in giving frequent, timely feedback should be to keep the communication process as simple and effective as possible. ERE Media recommends that managers focus on one competency at a time to help employees achieve progress.Because both managers and their teams are already busy, one way to facilitate ongoing communication is through a performance management software solution. When married with your existing processes, these solutions can simplify managers’ responsibilities with tools such as automated workflows, performance ratings, and real-time functionality.


Making performance management a priority in your organization can benefit the people, results, and culture of your company in countless ways. As long as your managers are approaching it as an ongoing (versus static) process and using timely, encouraging coaching to drive their teams towards improving their performance, you’re on the right track.

HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Performance Management Software, PERFORMview, click the button below!

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