Performance Improvement Programs

Performance Improvement Programs are programs designed to improve performance of employees in the areas of attendance, participation, productivity, product or service quality, teamwork, etc. Performance improvement highlights processes and systems that need to be improved. Then, there is a follow-up with an action plan to improve the outcomes.

Three critical elements of performance improvement programs are time spent on improvement, improvement skills and mechanisms, and improvement perspective and goals. The two main ways to focus on an improvement process is result focused and process focused.

Performance can be considered improved if the time spent on a product or service is reduced. Management support must increase when addressing performance improvement programs with time spent on improvement. When management support is increased, employee motivation is heightened. If the employee's efforts are rewarded quickly or if the positive results of the improvement comes quickly, then employee motivation if further heightened. Focusing on time spent on a product or service is considered a process focused action.

Performance can be considered improved by improving the skill-set of the employees and improving the mechanisms by which the product or service is delivered. As employees are trained to learn new skills or enhance their current skill-set, they are equipped to improve the service or product they deliver. Focusing on this area for improvement is considered a process focused action.

Thirdly, performance can be considered improved if the perspective or goals are improved to better meet the vision of the company. Items that fall under the category of perspective or goal improvement are scheduling, safety, quality, cost, and change management. Focusing on perspective or goals is considered a result-oriented action.

Employee recognition programs are programs designed to recognize employees for quality, outstanding delivery of a product or a service. Employee recognition programs are very popular in regards to motivating employees. Employees can be rewarded immediately upon their accomplishment or rewarded at a later, specified date.

Performance improvement programs are focused on future outcomes. Two types of performance improvement programs are employee training and pay-for-performance. Employee training is any means of training that enhances the skill-set of an employee. Pay-for-performance is compensation for an employee's productivity.

There are advantages and disadvantages to both performance improvement programs. The advantage of employee training is that it better equips the employee to deliver a higher quality good or service.