As companies continue to flatten their structures and as supervisors are assigned expanded spans of control, a new challenge is created for the organization. How can you help employees be more efficient and effective as they try to do more with less? One answer may be to initiate a Performance Management Process (PMP).

Research indicates that companies with a PMP see the results on the financial page. When compared to companies without a Performance Management Process the companies with PMPs report higher levels of productivity sales per employee along with higher rates of income per employee. A PMP can help with the management of current trends and make direct contributions to the bottom line in the following ways:

• clarify the role of the team members
• empower employees to take ownership of the assigned functions
• establish a process for linking individual goal setting to the corporate goals
• encourage continuous feedback and learning
• provide a process for monitoring performance improvement plans

The PMP should be cost effective to establish, simple to implement, and linked to the proper motivators. It should also reflect the vision, mission and values of the organization, as well as, identify what successful performance factors are.

There are four critical elements to the PMP: Planning, Feedback, Evaluation and Motivation. Each element provides both the employer and the employee the opportunity to participate fully in the process.

The model stresses a need to be fluid and flexible in order to address changes as they are required. To ensure success, be aware of and pay attention to avoiding some of the pitfalls others have encountered with establishing PMPs:

• address only one objective
• educate managers on the benefits of the process and gain buy-in
• strengthen feedback skills to ensure face-to-face sessions are successful
• encourage a continuous feedback dialog, not a once-a-year meeting
• survey staff to link performance management to proper motivators