[10.03.16]

The aim of managing performance is to continuously improve the performance of individuals and that of the organisation. It involves ensuring that the performance of employees contributes to the business goals and objectives.

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 skill and competencies they need to fulfil their role
• the standards of performance required
• how they can develop their performance and contribute to development of the organisation
• how they are performing
• when there are performance problems and what to do about them.

As an organisation, you need to define your strategy and communicate it effectively to staff so there is a clear link between the strategic objectives and the work that individuals are undertaking:

A good place to start is with your Mission Statement, it should be inspirational, aspirational and explain why your company or organisation exists.  This should be communicated and explained internally, so all team members understand the focus and direction of the business.

Key performance indicators (KPIs) help you define and measure progress towards the Mission Statement and organisational goals. As the primary means of communicating performance across the organisation, KPIs should focus on a range of areas. KPIs should be defined for the organisation and then for the individuals, so everybody knows how they contribute to the overall Mission Statement.

Performance appraisals are a commonly used performance management tool. They allow managers to assess the performance of their team members and how their performance can be improved, their training needs and how they can support other team members.

Castletons Accountants