Performance management and determining organizational performance evaluation indicators

Organizational performance management focuses on individual employees as well as on teams, programs, processes, and the organization as a whole. All five processes (i.e., planning, monitoring, developing, rating, rewarding) work together and support each other, resulting in natural and effective performance management. Effective employee performance management includes the five key components presented above.

Strategically managed organizations regularly plan specific goals. Monitoring the results of those goals is a simple but effective measure of organizational performance. Depending on the goals set, this approach may assess the achievement of goals in terms of costs, bottom line profits, innovation, or growth.

Performance management is an effort to maximize the value that employees create. Its goal is to maintain and improve employee performance in line with an organization’s goals. It is not a single activity, but a group of actions that should be approached holistically.