Performance Management Equals "Guidance" Plus "Incentives"
Why do so many companies fail in performance management? It is because they fail at the start. In the performance management trainings given by many HR staff, performance management is misunderstood as merely an assessment and not a method of employee improvement. It inevitably forms a psychological stress on employees, which ironically may effect their productivity, which is the opposite of what performance management is supposed to achieve.
It is more accurate to describe performance management as "guidance" plus "incentive." The so-called guidance indicates a process of communication between employer and employees to establish a goal for the employees or department to achieve and thus, help them develop and improve. The “incentive” means to inform the employees of the return for achieving the goal and the direct proportion between achievement and return. This guidance should be reasonable, while the incentive should be fair, impartial and effective.
- China HR Net
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