Managing performance is crucial when considering the relationship between managers and employees. It can be a key element of good communication and foster trust. Managing performance is vital to how well your employees will be engaged in their work because if a performance management system is working well employees are more likely to engage with the goals of the business. An engaged employee is someone who:
• takes pride in their job and shows loyalty towards their lmanager, team or organisation
• goes the extra mile – particularly in areas like customer service, or where employees need to be creative, responsive or adaptable.
Good performance management helps everyone in the organisation to know:
• what the business is trying to achieve
• their role in helping the business achieve its goals
• the skills and competencies they need to fulfil their role
• the standards of performance required
• when there are performance problems and what to do about them.