What Is Performance Management System?

Performance Management

When considering a performance Management control system, no one questions the need and logic of one at a financial or economic level, since we are all aware of how important they are in making strategic and operational decisions in these areas. However, when doing the same with human capital, both the concept and the purpose are more abstract and therefore more difficult to define and pose.

A performance management system is a methodology that an organization follows, supported by the processes, systems, and metrics necessary to measure and monitor business performance. And any entity interested in improving and maximizing corporate performance management cannot ignore the impact that employee performance has on organizational results.

Moreover, when carrying out this approach to high business performance, it is essential to have the commitment of the management, which will lead to the management of resources; namely time, money, and knowledge, which are essential components of the development of the strategy.

On the other hand, having business performance management systems is not only for the leading companies in the sector. In an environment in which competitiveness, globalization, and uncertainty reach heights are never seen before, having performance management tools helps to guarantee the smooth running of the entity.

In addition, it should not be forgotten that as a company develops, the organization chart becomes more complex, since it has to present the control panel with the functions and responsibilities and may also give access to related information. Such as the knowledge and experience required of human resources, the objectives and remuneration levels, etc. As can be seen, if we think about the situation of any organization,

Performance Management Goals

Although a performance management system has to provide certain flexibility – since it has to be able to adapt to the corporate culture, to different management models, which in turn will be defined by different management processes – it is also true that It must be a source of solutions to recognized and specific challenges and objectives.

Organizations often purchase and implement integrated performance management systems for the following reasons:

Improvement Of Results:

Especially at the economic level, because in the end any organization is judged by the results accounts. An enterprise performance management system serves to show how the implementation of the management strategy contributes to the continuous improvement of the results.

Communication And Feedback 

A high-performance management system must ensure that the entity’s vision and strategic objectives are known by all its members and that they are aligned with performance expectations. If, in addition, workers are able to use the system as a means of feedback, it will be possible to overcome the cyclical limitation that performance evaluation usually presents and make it a process of continuous improvement.

Improved Planning:

When implementing and developing a high-performance corporate strategy, over time we can deviate from the objectives set due to a multitude of factors. A reliable performance management system should help us identify them early and maintain the essential characteristics of any goal; that are specific, measurable, achievable, realistic, and with a determined time horizon.

This helps strategic planning to be directly related to performance evaluation so that performance evaluation is carried out in the most objective way possible, not only taking into account the objectives but also what has happened during the analyzed period.

OpenKM’s document management software has all the necessary tools to become your company’s business performance management system.

Performance Management Phases

Any self-respecting strategy must be organized in successive stages without which it would be difficult to articulate the business project

Planning:

It is necessary for the board of directors, in coordination with middle managers, to reach a consensus regarding the objectives and the necessary and available means and resources (they are not the same) to achieve them. It is possible that as a result of the foregoing, the description of the positions, their responsibilities, and the associated remuneration will be updated. All this information rests in the form of content that can be created and managed in very different ways.

The OpenKM document management system can be the ideal platform in which the members of the company create and develop the documentation resulting from the planning of the company’s strategy. In addition, thanks to the communication tools present in the document manager, the staff will be able to be aware of any relevant updates or changes.

Implementation:

Once the objectives have been defined and the means to achieve them have been clarified, it is necessary to act accordingly and carry out all the changes, updates and even start new tasks to solve previously untreated issues. Thanks to the presence of functionalities such as automated workflows, zonal OCR, reports, subscription services, etc., the organization will have all the necessary tools to apply the plan developed by the directive.

Follow-up, Review, And Update:

Once the performance management system has been defined within the platform, it is time to carry out the monitoring, review, and update phases if necessary. We must be aware that the perfect strategy does not exist, given that both internal and external factors of the company are constantly changing. Therefore, the ability of the performance management system to adapt to changes is a very important factor when choosing the technological tools on which the company will rely.

The OpenKM performance management system is based on free software, which guarantees the organization the necessary flexibility to adapt the software to current and future needs. In addition, the complete API together with the presence of the SDKs for Java, PHP and . Net allow any organization to seamlessly integrate the system within its software suite. On the other hand, once the daily work has begun within the platform, the monitoring and review tasks can be carried out on a daily basis and sustained over time.

Benefits Of Performance Management

Performance management has many advantages, all of them within the reach of any organization.

Corporate Culture:

The performance management system of an organization is the cornerstone on which the communication and transmission of the values ​​and objectives of the organization rest, which contributes to clarifying and strengthening it, by fostering the commitment of all members of the organization.

Improvement Of Personnel Performance And Talent Management:

The business performance management system can and should be used to measure the professional performance of the organization’s human resources and, in turn, should become a reliable instrument for people dedicated to management. of the staff. The detection of deviations should be compensated with the offer of training courses, career plans, and why not, remuneration programs that maintain the motivation of employees and contribute to the retention of the best professionals.

Minimization Of Errors And Biases:

One of the most noticeable contributions of a performance management system is the potential to reduce, and even eliminate, system-specific errors. The existence of possible internal conflicts and even the presence of factors that influence personnel management – such as the halo effect, echo, contagion, contrast effect, scoop, or recency – can be tackled with the consistent and responsible use of management software high performance.

We must not ignore the discouraging effect that performance evaluations can sometimes have on workers. If the organization undertakes to globally evaluate the professional practice of its human resources, this will encourage the staff to feel more valued, since not only the “hard” results of the company will be emphasized.