Performance management can mean activities as simple as annual appraisals or salary revisions, but in practice, performance management should be much more comprehensive and tie into the broader idea of employee development. Employee development, or the activities initiated by an organization to further develop an employee personally and professionally, is usually comprised of four activities: identifying training opportunities, recognizing an employee’s particular strengths, picking out an employee’s weaknesses, and understanding the external factors contributing to less than desirable levels of performance. When a performance management plan incorporates these elements, the return on investment is much higher than annual evaluations alone can yield. Employees are generally happier when their development is seen as the goal of performance management, and well-trained, engaged employees are generally more productive. Still, how can an organization shift its performance management system into one focused on employee development? Ideally, managers would extend performance management tools to include processes that would identify training needs and define a clear path for addressing them. It is also best to move to a continuous feedback system, where employees are appraised on regular and close intervals.
View Source: Training Zone