Performance Management systems to improve the management of an organization’s intellectual capital



Since 2002, Dr. Hole has worked with restructuring in several large organizations in various industries, ranging from construction, distribution of fruit and vegetables, to the media, logistics, distribution, customer service, accounting, electro, health services etc. In other words, a large range of industries.

What all these sectors have in common is intellectual capital (employees). Research shows that most people want employees to succeed in their positions and they want to be good contributors to an organization’s success. Employees want to know what is expected of them and how they in the most effective way to achieve the expectations placed on them.

Performance Management is a systematic process by which one that leads you involve employees in achieving the company’s mission and goals, improve the overall efficiency within the company and help employees to understand the importance of their contribution, so that they understand that they are an important part of the value chain of the organization.

Effective management through performance management requires that the manager:

  • Identify tasks that it is expected that each employee must achieve
  • A clear competence profile (education, knowledge) of what is required and expected of whoever possesses position
  • Ensure that employees have the necessary competence, or that it is a process and a skills plan on how each employee will acquire the knowledge
  • Provide rapid feedback on how effective the employee is working to acquire the expected knowledge to achieve the objectives set for the position they hold
  • Reward of milestones achieved and good results

In cases where the effort is not satisfactory and he employees cannot fulfil the requirements that one has agreed about, the manager must understand how corrective processes and methods that can help improve employee performance.

It is incredibly important that each employee has an updated job description so they always know what is expected of the job they will perform. The employee should have an opportunity to consider their own job description and get clarification on items they may not understand or agree with.

The organization should develop a competence plan and keep track of every position on their level. If you find that some employees do not have the expertise that the individual position requires (which is quite common for various reasons), it must develop objectives for an in-service training so that the worker can achieve the desired level of competence for the position.

Decide how you in the most efficient way to assess employee and provide them with constructive feedback on their efforts. Here it is important to make sure that employees understand the actions and / or methods for a use to find out how good they are to achieve the objectives set for them.

It is important that feedback is timely, and that recognizes the good results if you give coaching and corrective advice on unsatisfactory deliveries. Too often it is expected that will produce good results and that one forgets to give recognition for good work. Instead gives one only negative return messages. Most employees want a balanced assessment of the positive and less positive aspects. Employees want a honesty and fairness feedback, which is considerably easier to quantify through a Performance Management system.

There should be at least an annual and thorough review of the employee’s achievements and what has been achieved and what you can work on. An annual review is an opportunity to focus on the following:

  1. Summarize an overall assessment of how the efforts of the previous year.
  2. Identify the goals that have been met and where possible should have extra focus on the future.
  3. Determine if the employee’s job description and competence reflects the reality of the position, and possibly make updates as necessary.
  4. Identify efforts, achievements and / or developmental for the coming year.
  5. Ensure that the employee has an opportunity to give the input before the review is completed.

The annual staff review should be carried out, then it is reviewed and signed by the employer and employee.

If an employee’s work is not satisfactory which can happen from time to time, and even after coaching, mentoring and training not brought the expected results to an acceptable level, it may be necessary to implement corrective measures.

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