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How to Guide on Performance and Managing in Business

Updated on November 2, 2017
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I have worked in administration most of her working career, some of my experience and knowledge can be found here. Health & Safety included.

The team
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Overview on how to manage performance effectively

Performance Management - Overview

Employees performance and managing it is an ongoing process for Manager's. Ensuring that the goals for the business and the individual teams has been met by the individual employee.

If performance management is carried out correctly and efficiently the following areas are recognised by the business and the individuals working in it:-

  • What the business is going to achieve
  • How the individual is going to contribute to the overall goal
  • What the individual needs to fulfill their individual goal by way of skills
  • What standards are expected
  • What the individual can do to assist in achieving the overall goal by developing and contributing to the business
  • How the individual is doing
  • What to do when there are performance problems

These are some of the basic principles in performance management and achieving the desired goal.

Where a performance management system is working well employees are more likely to reach their individual goals.

Employee performance can be linked to the pay they are receiving.

Why performance should be managed

Managing performance can be the key to good communication and personal development.

If the employee is engaged with his/her work they are likely to be working effectively to achieve the highest resuls and taking pride in their work and working as a team with their manager and team members.

They are also willing to go that extra mile.

Managing performance is an ongoing process throughout the year between the employee and the line manager, at the meetings they would discuss how well they think they are doing and how they can improve, this helps the individual to feel more settled within their role by feeling like they are part of the business.

Good performance management can contribute to the following:-

  1. Leadership showing vision and values
  2. Managers that facilitate and empower showing respect and commitment
  3. Employees can speak openly regarding concerns and views
  4. Consistent values are achieved


Line Manager role in managing performance

  • Agreeing goals, competencies and development
  • Reviewing performance against goals and competencies
  • Giving feedback and discussing any amendments
  • Agreeing skills and behaviours
  • Helping staff to achieve goals
  • Agreeing a personal development plan
  • Providing training
  • Managing under performance
  • Holding annual appraisals

'SMART' Useful tool to use for getting it right


Specific - goal should show desired outcome

Measurable - how will employee know when goal has been achieved

Achievable - is the goal achievable but also challenging

Relevant - does the goal relate to the business and the team

Timebound - When does the goal need to be achieved

Personal Development and the reason for it

Skills and competencies are brought to jobs and need to be developed further and consistently to meet short and long term goals.

Needs may come to light through discussion at a performance review.

A personal development plan can help development needs by outlining what is expected and how it will be achieved and when and how the achievement will be measured.

Some of the way to improve development could include, formal training courses, further education, changing jobs, special projects, online training, coaching, mentoring, shadowing and cross training within departments.

Personal development is a specific part of performance management.


Reward and Recognition

Some organisations use pay to reward their staff however if you are a small business you could use reward and recognition this could consist of a small individual gift, gift voucher, chocolates and so on.

If you have discussed from the onset that reward and recognition will be paid in the above way then the employees will expect no more than what you have told them at the onset.

I would love to hear your views

Please leave a comment.

© 2012 Trudy Cooper


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