Should You Be Using a Performance Management System?
We all want to get the best performance out of our supply chain employees, so we have to decide: Do high-performing employees happen by chance, or by design? Will your employees reach not only their own professional goals, but that of the organization, if they have no strategy to follow?
That’s where a performance management system comes in. It’s a systematic process for making sure your employees are involved in achieving your company’s mission and strategic goals. And these days, companies that fail to implement performance management systems are putting themselves at a disadvantage.
Why? What’s so great about performance management systems anyway?
1) Performance management systems make it easy to define goals, track progress, and diagnose and prevent problems in performance.
2) With the click of a button, companies are able to quickly review information and pinpoint specific areas that need improvement.
3) Companies can work with employees on areas that will help them meet their goals and become A players, by implementing performance improvement plans.
4) Performance management systems reveal who top performers are, so companies can reward and recognize their contributions.
5) Performance management systems enable you to identify areas where you are lacking in personnel, and then use that information to work with a recruiter to fill those gaps.
If You’re a Manager:
A good performance management system will also give you:
- Better knowledge of your team members
- Increased team and individual productivity/performance
- Ongoing feedback to keep up an ongoing discussion about performance—which can help forestall problems
It will help you:
- Communicate the company’s strategy and goals better
- Determine the increase and/or bonus budget, which will be spent on a fairer basis, will be more credible, and should yield better returns in terms of recognition and motivation
Of course, all these positive aspects will only happen if the performance management system you choose:
- Is aligned with your company strategy
- Fits with your company culture
- Is supported by the top management
- Helps you make feedback an ongoing process, not a once-a-year event
- Is not “stand-alone” but integrates with other people-management processes and managerial activities.
In short, a good Performance Management System has the potential to increase the performance of your supply chain organization – just like working with an experienced recruiter will. Contact ZDA Supply Chain Recruiting if you’re looking for help managing your hiring and staffing. You’ll love what having the right employees will do for your company!