Why is a performance management system superior to a performance measurement system?
Team performance is an important factor for company growth. But how do you guide it to success? At first glance, you may believe it is simply adhering to pre-determined KPIs. Or simply use a performance measurement system. However, this works when you develop projects not people. Once you’ve included people in the evaluation, everything changes. Performance management systems then come into play to create a unified picture of each team member’s development as a part of the whole company growth strategy. But where comes the gap between the performance measurement and performance management system? Let’s find out by diving deep into the differences between the two systems and how one surpassed the other.
The distinction between performance measurement and performance management
To assess the effectiveness of a project, program or initiative, you need to measure the performance. The methodical approach to gathering, analysing and assessing how “on track” a project/program is to achieve its predefined goals and objectives is known as a performance measurement. Through this assessment teams demonstrate accountability, support decision-making, and improve processes. The performance measurement systems assist the strategic team in making long- and short-term decisions about what an organization does and how well it performs.
Performance management, on the other hand, assists managers and employees in communicating expectations, goals, and career advancement, as well as how an individual’s work aligns with the company’s overall vision. A performance management system such as GROW could assist businesses in streamlining their employee appraisal process, improving communication between team leads and employees regarding their evaluations, and making appraisals a fair and transparent process.
Key takeaway: Performance measurement allows you to analyse your company’s processes in relation to pre-set end success indicators. Performance management assists you in streamlining employee evaluations and communication between team leaders, as well as considering each individual in the overall picture of your company’s development. In other words, the first provides just a small part of the full picture.
The role of a performance management system in a company’s long-term performance management and goal-setting strategy
Performance management is not an easy task though. Especially when you use tons of spreadsheet files to evaluate your team development. A system with the right pack of features can help companies improve visibility, enable cross-functional collaboration, and promote an outcome-driven culture. And that’s exactly what our GROW system is designed to do. It was built to assist small and medium-sized businesses that require innovative solutions to manage team efficiency, set relevant and measurable personal goals for each team member, and create transparency every step of the way to personal career success. With GROW the HR team and every manager can easily set clear and applicable for each of their teammate’s goals, which are easily measured and can be achieved in the pre-defined period.
But can GROW help your organization in the long-term growth strategy of your site and your team? Short answer – yes. It limits the chances of loss of information in the well-known piles of dozens or hundreds of files. Now you can effortlessly store all the data of your employees’ development, to set the next goals with all the information and the full background you need for them and to be relevant to each person. At Proxiad, we saw how important it was for every team member to have a say in the direction of the development goals, so we replicated this observation as a fully customizable feature in GROW that can be easily adapted for every organization and its needs.
To summarize, a performance management system such as GROW could help businesses streamline their employee appraisal process, improve communication between team leaders and employees about their evaluations, and base each team member’s development on value-driven goals. Now you can GROW your company by developing the people in it!
In case you want to know more about GROW and how it can help your company create a seamless performance management process for the team, book a demo with someone on our team.
