Human resources experts cite the importance of setting objectives for all employees. These objectives are often tied to larger company performance goals. And the alignment of these goals throughout all employee levels helps ensure a clearly focused organization.  

Why is performance management valuable?

Human resources experts cite the importance of setting objectives for all employees. These objectives are often tied to larger company performance goals. And the alignment of these goals throughout all employee levels helps ensure a clearly focused organization. 

A formal performance management process is important because it lets managers and employees know where they stand with their goals. In Ceridian's Performance Management Express system, employees' goals can be digitally recorded and tracked. The goals can be created by the manager and/or the employees. The employees can access their goal plans and easily update their progress. Then, when the formal performance review is held, goals and updates are easy to access and facilitate meaningful conversations and coaching between managers and employees. 

Managers should consider establishing processes to coach their employees on a weekly basis. By asking questions and listening, managers and employees can discover new ways to collaborate and ensure ongoing communication about projects, issues and successes. Frequent performance updates also link the tracking of performance to the real work that occurrs each and every day. This work is often communicated in status reports, project dashboards, one-on-one or in staff meetings. The coaching process should focus on only one or two topics at a time to allow for deeper discussion and understanding of an issue. 

Coaching also focuses on the employee's growth and development needs. The process is relaxed and conversational. This is quite different from the more formal annual performance review process. By blending the two together -- weekly coaching with formal performance reviews -- the manager and employee can build a relationship on a foundation of trust and respect, and when it comes time for performance reviews, there are no surprises.