The Importance of Performance Management

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Recommended: Implications of getting performance management wrong

Every year toward the end of the current fiscal year, the management team at my company gets together to discuss where we are at with the department’s activities and what tasks are still outstanding. Each year, one of the topics on the list is annual employee performance reviews. The topic of annual performance reviews is often groan worthy from some of the department leadership, which seems to be a common issue for companies according to Geller & Reis (2010). Each year, we discussed that not all managers have completed their annual employee review cycle and they need to hurry up get them done. The conversation usually focuses on managers expressing that they do not have enough time or the manager or their associates do not feel the process is worthwhile. Luckily, there is a portion of the management team that feels that employee reviews provide continual, constructive, and thoughtful feedback to employees, that it is a critical part of being a manager and should be a continue process that is not just something you do annually as part of a performance appraisal. In my opinion, performance management is one of the most important aspects of being leader in an organization.
The Negative Impacts of Poor Performance Management
When I took over as director of our global support services organization, I was getting to know the manager better. He had worked for the company for more than 30 years and had been a manager of the group for more than 15. There was a mixture of long-term employees with over 25-35 years in the same position and a few recently hired employees with 2-3 years of employment. A few of the newer employees approached me, concerned, that they had not had a formal review since they started with the company. They...

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