Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.

Performance Management: 5 Solutions to Challenges We Face

Editor's Note: Take a look at our featured best practice, Objectives and Key Results (OKR) (23-slide PowerPoint presentation). Successful organizations are using Objectives and Key Results (OKR) now. OKRs are efficient way to track company and team goals and measure their progress. It helps every organization's success by cutting out unimportant goals and focusing on what truly is important within the organization. OKR [read more]

Also, if you are interested in becoming an expert on Performance Management, take a look at Flevy's Performance Management Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

We’re all cognizant of the term “Performance Appraisal.”It refers to the methodical approach of employee’s performance, and the evaluation is done to understand the abilities of each individual for further career development. Regardless of how important the process is, to improve the overall organizational efficiency, inevitably we face certain challenges.

  • When you’ve worked in a company for a period of time, you’re likely to be opinionated about the fellow employees. Hence, at the time of yearly appraisal, there’s a biasedevaluation based on the previous professional conflicts of interests. Also, in some cases of appraiser’s chosen favorites, those are benefitted despite of poor performance.
  • Sometimes the assessment is done for the sake of it. There’s no aim for actual development. The employers will give periodic lectures on how to improve the conduct of work, but they won’t give individual attention. This also makes the employees disinterested in the evaluation process, and hence they begin to resist.
  • Employees don’t feel motivated to perform better as there’s no reward linked to the evaluation. Neglecting the evaluation, they don’t get a raise or promotion. Therefore, the mediocre work done in the office hours, never result in advancement of business.

Here comes in light, Performance Management – a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. Performance management is the continuous process of setting targets, analyzing the progress, and providing on-going guidance and feedback to ensure that employees are meeting their objectives and career goals.

Difference between Traditional and Modern Approach to Appraisals


Solutions by Performance Management

Review Frequency

Most experts agree that frequency is the key to boost Performance Management. To really reform, employees need to witness regular, steady, enduring progress. That’s constant momentum. The further the momentum generated, the superior the employees become in their job to accomplish aims.

The employee performance needs to be discussed daily. When the corporation notices potential as well as better results, it should contemplate to offer raise, promotion or bonus.

360-Degree Assessment

In order to prevent the unstable review methods and its adverse complications, it’s suggested to practice 360-degree assessments. In a 360-degree assessment, managers, co-workers, and assistants would have a straight say in a colleague’s evaluation. Moreover, a robust performance in a unique area might counterbalance a poor performance in alternate one. Hence, the 360-degree assessment provides a considerable balanced understanding of an employee’s input to the success of the business.

Appraisal Software

Performance management software carries about performance automation, which handles the ordinary features of reviews. With automation, corporate leaders can do more to upgrade performance in shorter time than before.  Reviews are being led entire year with extremely distinct and personalized methods. The main advantage of technology is that it offers a more proficient and operative tool for bagging and distributing information.

Better Follow-up

Modern-day technology permits for simpler compilation of data. An employee can now obtain additional feedback from further sources. Technology also allows for a better and impartial view of genuine performance on a project, and therefore ends in actual behavioral modification. It also recovers the custody of performance records or feedbacks in order to gain an efficient follow-up result.

Focus on People and Relationships

If managers maintain good relationships with their employees, a fair positive growth in performance can be observed. Employers need to understand that improving real relationships with their crew and investing in them every single week, helps employees to have a shared goal in their mind to work on.

The real aim of performance management is to construct greater performance for an employee and enterprise. The chances of this phenomena coming into existence is when frontrunners take an energetic interest in people.

Performance Appraisal is still growing, yet substantial practice which can cause a number of effects in various organizations. But, employers should ponder about the beneficial outcomes and apply it in a more enthusiastic way. Performance Management requires more efforts and engagement from the authorities’ end, but it is worth all efforts. The solutions offered by this, are exceptionally effective and easily applicable.

As John Wooden said, “Don’t mistake activity with achievement.” Hence, Organizations are bound to focus on every aspect which can help shine their respective businesses.

35-slide PowerPoint presentation
Elevate your team's performance and strategy execution to new heights with the Performance Scorecard Framework, crafted by former strategy consultants from elite firms such as BCG and EY. This unique tool combines the strengths of the Balanced Scorecard with an exclusive proprietary [read more]

Want to Achieve Excellence in Performance Management?

Gain the knowledge and develop the expertise to become an expert in Performance Management. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

Performance Management (also known as Strategic Performance Management, Performance Measurement, Business Performance Management, Enterprise Performance Management, or Corporate Performance Management) is a strategic management approach for monitoring how a business is performing. It describes the methodologies, metrics, processes, systems, and software that are used for monitoring and managing the business performance of an organization.

As Peter Drucker famously said, "If you can't measure it, you can't improve it."

Having a structured and robust Strategic Performance Management system (e.g. the Balanced Scorecard) is critical to the sustainable success of any organization; and affects all areas of our organization.

Learn about our Performance Management Best Practice Frameworks here.

Readers of This Article Are Interested in These Resources

25-slide PowerPoint presentation
The organizational maturity notion signifies the progress of an organization in terms of developing its people, processes, technology, and capability by implementing quality practices. Organizations aiming to achieve the highest maturity levels in performance need to take care of the intricacies [read more]

85-slide PowerPoint presentation
241-slide PowerPoint presentation

About Fretty Francis

Fretty Francis is currently a Software Analyst at SoftwareSuggest. She is passionate about performance management, HR, CRM among other things. Her interests include latest technology, business, travel and food.

Complimentary Business Training Guides

Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]

  This 48-page whitepaper, authored by consultancy Envisioning, provides the frameworks, tools, and insights needed to manage serious Change—under the backdrop of the business lifecycle. These lifecycle stages are each marked by distinct attributes, challenges, and behaviors. [Learn more]

We've developed a very comprehensive collection of Strategy & Transformation PowerPoint templates for you to use in your own business presentations, spanning topics from Growth Strategy to Brand Development to Innovation to Customer Experience to Strategic Management. [Learn more]

  We have compiled a collection of 10 Lean Six Sigma templates (Excel) and Operational Excellence guides (PowerPoint) by a multitude of LSS experts. These tools cover topics including 8 Disciplines (8D), 5 Why's, 7 Wastes, Value Stream Mapping (VSM), and DMAIC. [Learn more]
Recent Articles by Corporate Function






The Flevy Business Blog (https://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most of our articles are authored by management consultants and industry executives with over 20 years of experience.

Flevy (https://flevy.com) is the marketplace for business best practices, such as management frameworks, presentation templates, and financial models. Our best practice documents are of the same caliber as those produced by top-tier consulting firms (like McKinsey, Bain, Accenture, BCG, and Deloitte) and used by Fortune 100 organizations. Learn more about Flevy here.

Flevy Marketplace: Top 100
· Strategy & Transformation
· Digital Transformation
· Operational Excellence
· Organization & Change
· Financial Models
· Consulting Frameworks
· PowerPoint Templates
FlevyPro (Subscription Service)
KPI Library
Streams (Functional Bundles)
Flevy Executive Learning (FEL)
PowerPoint Services

FREE Resources

About Flevy
Management Topics
Marcus (AI-Powered Consultant)
Partner Program
LinkedIn Influencer Marketing
FAQ / Terms / Privacy / Blog
Contact Us: support@flevy.com

Acquisition Strategy
Artificial Intelligence
Balanced Scorecard
Best Practices
Big Data
Breakout Strategy
Business Continuity Planning
Business Plan Financial Model
Business Transformation
Change Management
Communications Strategy
Company Financial Model
Competitive Advantage
Competitive Analysis
Consulting Frameworks
Continuous Improvement
Core Competencies
Corporate Culture
Cost Reduction Assessment
Customer Experience

Strategy, Transformation, & Innovation
Digital Transformation
Operational Excellence and LSS
Organization, Change, & HR
Management Consulting

Customer Journey
Customer Service
Cyber Security
Data Privacy
Decision Making
Digital Marketing Strategy
Digital Transformation
Digital Transformation Strategy
Due Diligence
Employee Engagement
Employee Training
Enterprise Architecture
Growth Strategy
HR Strategy
Hoshin Kanri
ISO 27001
Information Technology
Innovation Management
Integrated Financial Model
Key Performance Indicators

Business Strategy Frameworks
Case Studies
Consulting Training Guides
COVID-19 Trend Data
Digital Transformation
Financial Advising Services (FAS)

Knowledge Management
Lean Manufacturing
M&A (Mergers & Acquisitions)
Market Research
Marketing Plan Development
Maturity Model
McKinsey PowerPoint
McKinsey Templates
Operational Excellence
Organizational Change
Organizational Design
Performance Management
Post-merger Integration
Pricing Strategy
Process Improvement
Process Maps
Procurement Strategy
Product Launch Strategy
Product Strategy
Project Management
Quality Management

Free Resources
KPI Library
Lean Management
Lean Six Sigma Training Guides
Marcus Insights
Operational Excellence

Real Estate
Remote Work
Risk Management
Robotic Process Automation
Service Design
Six Sigma Project
Social Media Strategy
Strategic Planning
Strategic Thinking
Strategy Development
Supply Chain Analysis
Target Operating Model
Team Management
Total Productive Maintenance
Value Chain Analysis
Value Creation
Value Stream Mapping
Visual Workplace
Workplace Safety

Product Strategy
Small Business Owner
Startup Resources
Strategic Planning
Strategic Planning Process
Value Innovation Strategy

© 2012-2024 Copyright. Flevy LLC. All Rights Reserved.