Startup8 MIN READ2021-07-22

How performance management help us build development teams?

How performance management help us build development teams?


Human resource is an integral part of a business. Either be it, managers or employees, anyone associated with the organizations need to give their best and fulfill their roles and responsibilities effectively and efficiently.

The performance of everyone in an organization matters a lot to make it successful. To make this happen, the organization needs to bring out the full potential of its employees. So, to tap the full potential of the employees, performance management came into practice.

Let’s see in detail about the performance management.

What is Performance Management?

Performance management is a process and a framework focusing on the performance of an employee and devising plans that help employees to perform at their best. It mainly focuses on providing an ideal environment enabling the employees to perform to the best of their skills and abilities.

Employee performance is crucial for an organization. So, performance management helps in evaluating the employee’s work and also evaluate the employee’s performance on the company’s success.

Performance management isn’t about how an employee does his/her job rather it’s about how much effort he/she is giving to achieve the company’s goals and objectives and how he/she is contributing to the company. In the end, it all comes down to the potential and skills of the employees.

So, performance management ensures that the organizational goals and objectives are achieved effectively and efficiently.

Performance Management Process

To get the best from the performance management, you need to follow some steps and keep up with it. So, here are some of the steps involved in the performance management process.

  • Planning


We all know that performance management is a process of ensuring that the organizational goals are met by focusing on the performance of the employees. Since it focuses on bringing out the best from the employees, first you need to decide what to do.

You need to define the company’s goals and objectives. Based on these goals and objectives, you need to define a system or process that ultimately focuses on a set of activities that guide the employees to carry out their roles at their best.

Second, you need to understand the behavior and skills of the employees. No matter what you do, employees won’t feel satisfied and motivated until they are assigned to the roles that bring out their best.

Also, the same skills and knowledge won’t make your employees competitive. So, you need to devise plans to improve their skills and knowledge. You need to train them, coach them, counsel them. This allows employees to take their skills and knowledge to the next level increasing their performance and productivity.

Lastly, you need to give targets to each employee. The employees have their own personal goals and objectives. You need to consider their goals and align these goals with the company’s goals.

  • Executing

Executing Plan

You now need to take the initiative and execute the plan. You need to carry out the work to implement the plan that you worked hard to devise.

In this phase, you need to define a framework and tools to perform the task. You need to provide the necessary resources, equipment, and tools to the employees to perform their tasks effectively and efficiently. You need to give instructions and provide resources and tools to bring out their potential and provide you better results.

You also need to define communication guidelines and channels to make collaboration easier. It is important to communicate with the employees and track the progress of the project, so communication and collaboration tools make it easier. Tools like Slack, Trello, Asana, Google Hangouts, Skype, etc. can be used.

  • Assessing and Monitoring

Assessing Performance

After the execution phase, you need to monitor the performance of employees. You need to check what is being done and check whether the performance of the employees is as planned and expected or not.

Each employee has their own targets to achieve. So you need to assess the performance of the employees against the set targets. You need to check whether the employees are achieving their targets and see if there is any deviation.

The best method is to implement OKR (Objectives and Key Results) to assess the employees' performance.

  • Review

Goals Review

You now need to review the progress of each employee. You need to focus on the achievement of each employee. And feedback is one of the effective ways to inform the employees about their performance.

You need to check the performance of each employee against the set goals and targets. You need to check if there is any deviation from the set goals and targets. You need to take corrective action if the expected targets aren’t met. You should provide suggestions on improving their performance and you should motivate them to give their best and produce better results.

You need to give honest feedback to your employees based on their performance.

  • Renewal and Reconstructing

Performance management is an ongoing process. Once the set goals and targets are achieved, then the next targets and goals are set. And along with this, a new performance standard is set.

The goals and targets of each employee are again aligned with the company’s goals when a new performance standard is set. Every year the performance management plans may not be the same. Employees including new ones are given their targets to achieve. And new plans and strategies are set that are aligned with the company’s goals and visions.

So, performance management is a continuous process.

How Performance Management Helps?

“The biggest room in the world is the room for improvement.” — Helmut Schmidt

There is always room for improvement. One truly stops growing when he/she doesn’t want to improve or when one stops breathing. So, you should never stop yourself from learning new skills and knowledge. You should always drive yourselves to improve further.

Likewise, there is always room for improving your employees and making them capable enough to compete with the world. So, you should measure each and every employee’s performance which gives insight in developing strategies to improve the performance of your employees.

  • Create a Standard Format to Define Performance

Performance management helps in measuring the performance of the employees which in turn helps to create a standard format to define performance. Further, it helps to define goals and targets for every employee which is an ideal way to measure performance.

Setting goals and targets drive every employee to meet the goals and targets set by the organization. Similarly, it will also influence employees to complete a project on time with quality and within the budget. Thus making them more motivated to complete a project that is reflected in the development process.

  • Alignment of Goals

Achieving goals and objectives is the sole purpose of an organization. Once set goals and objectives are achieved, new goals are defined. It is an ongoing process. As long as the organization exists, goals and objectives exist.

Performance management focuses on achieving organizational goals effectively. So, it helps to set goals for an organization. This helps you to bring every employee on the same page. As a result, they will collectively work together to achieve the same goals and objectives.

Employees will understand their roles and responsibilities and they will be more engaged. Engaged employees are more determined, passionate, and creative. Thus, making them more committed to the organization improving their skills and developing quality products.

  • Track Performance

Since performance management focuses on performance, it is obvious that it helps in tracking the performance of an organization and employees.

Each and every employee has their own targets to achieve. So, performance management helps to track each employee’s performance against the set targets. As a result, it helps in identifying any deviation resulting from the employee’s action.

Performance management helps to measure how much work has been completed by the employees and find whether the employee’s performance is as expected. It also helps to find whether the project is right on track or not.

  • Identify Weaknesses

Tracking the performance of an employee helps to find the weaknesses that need attention. It encourages the employee to work on the weaknesses and improve their skills and knowledge.

You will also be able to know their skills and their abilities making it easier for you to assign them to the right place. In the end, they will be more passionate about their work if given the opportunity to work that brings out their best.

  • Motivation

Performance management is an ongoing process that helps in improving the performance of an employee. It helps to review goals and contributions of each employee to the organization. Employees with better performance are motivated even more to produce better results next time.

Not only this, the employees with poor performance are encouraged to work on their weaknesses. They are provided with suggestions helping them to improve their skills. Also, different training and development programs are conducted to develop their skills further.

The organization cares about its employees. So different training and development programs are conducted so they improve their skills and are motivated to give their 100 percent.

Motivating Employee

  • Better Team Building

The goals and targets are not only set for each individual but are set for development teams as well. They have their own set of projects to complete within the set time and budget. As a result, this helps team members to collaborate together to complete the project.

They will together deal with the hardships and celebrate together in their happiest moments. They will be able to know each other better than ever building and promoting true team spirit. They will help each other to improve their skills and knowledge.

  • Feedback

Feedback is an effective way to deliver information about the employee’s performance. It helps employees to know where they stand right now, what they are lacking, and how they can improve.

Feedback also helps to know the problems employees are facing that are restricting them from giving their best.

The exchange of feedback helps them realize that the organization cares about them and they are a valuable asset. They will realize that they are needed for the success of the organization.

Giving Feedback

  • Recognition

Performance appraisal is a part of performance management. Employees get motivated when they know they are producing great results and are contributing to the organizations. This influences them to contribute more and improve their performance.

When an employee gets credit for his/her hard work and efforts, he/she is filled with positive energy and feels like doing more for the organization. Performance appraisal also helps to build healthy relationships with the employees. Such employees stay with the organization for a long time and take a major part in the organization’s success.

  • Accountability

Ultimately, performance management helps employees to be focused on their goals. They understand the importance of their roles and responsibilities for the organization. They become more committed and determined to achieve organizational goals and objectives.

Employees develop a feeling of ownership and they take full responsibility to complete a task. They work hard to meet the expectations of the organization. Even if they fail to complete a task, they take full responsibility for their actions. They commit themselves not to repeat the same mistake again.

In Conclusion

This is how you can measure the performance of your employees and never miss an opportunity to build a reliable development team. Development teams filled with motivation and who feel responsible always look for opportunities to improve their skills and knowledge.

If you have any suggestions or are looking for a development team to work for you, we will provide you the best team we have. So, please feel free to contact us.

References: Govloop, Cleveroad

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