Business performance management

In this planning step, the manager needs to decide on the overall company-wide goals. These goals are then openly and transparently communicated to all employees.

Company-wide goals are typically objectives that drive business growth and adaptation to market conditions. These goals can include market expansion, revenue and profit growth, and human resource development. Regardless of the goals, managers should align them with the long-term strategic direction of the business.

For example, if your company aims to become a leading business performance consulting firm in Vietnam, the goals for 2021 might include:

• Significantly enhance the company’s brand recognition.
• Efficient recruitment of suitable candidates, especially business management experts.

The company-wide plans and objectives, as well as the steps and efforts to achieve them, contribute to a larger ‘big picture.’ Therefore, ensure that the goals you set will help the company develop in the right direction in the short, medium, and long term.

To establish effective plans, you can refer to the SMART goal-setting method (Specific, Measurable, Achievable, Relevant, Time-bound). This goal-setting model can help your business develop plans that align closely with reality and the inherent demands of the business.

Employee job performance can be influenced by various factors. During the course of their work, employees may encounter obstacles and unforeseen circumstances that hinder their ability to complete tasks efficiently.

Periodic monitoring: To ensure that employees can work towards their goals smoothly and in the right direction, it is recommended to conduct periodic performance monitoring on a monthly or quarterly basis. Monitoring should not be done over too long a cycle, such as 1-2 times per year, as the value of monitoring is significantly reduced with such a cycle.

Collaborate with employees to achieve goals: The essence of monitoring is to identify gaps and shortcomings in task implementation and find solutions to overcome them. Monitoring activities should not be used to exert pressure on employees. Instead, you and your employees can view monitoring as a collaborative process aimed at improving overall work outcomes.

Adjust goals: In the process of monitoring the implementation of the plan, there may be situations where changes in the market or new situations arise, leading to the need for businesses to adjust their goals. This is also an important value of monitoring activities. Monitoring serves not only to ensure that employees adhere to the plan but also to ensure that they can pursue goals and results in a suitable, flexible manner rather than working mechanically.

The performance management process always needs to be accompanied by feedback and evaluation. When managers conduct feedback and evaluations, they gain additional accurate grounds to recognize the results and work performance of their employees. You can refer to the following set of questions to provide feedback and evaluate the performance of your employees:

• Are the initial goals realistic and suitable?
• Are the goals aligned and linked with the company’s objectives?
• Have employees acquired useful experience or skills?
• How did employees complete their tasks? (Not achieved / Achieved / Excellent)
• Did the company provide adequate support to help the employee achieve their goals?
• In what ways can future goals be adjusted to increase success and work efficiency?
• What aspects of the job can be better organized or improved?

Providing feedback and evaluation helps employees improve their performance. You should also consider linking feedback and evaluation with appropriate rewards for employees. When employees exert high effort to achieve good work performance but their efforts are not recognized or rewarded by the company, it can lead to a decrease in motivation for further tasks.

Rewarding should be conducted fairly, transparently, and clearly. When employees feel that their efforts will be recognized and rewarded accordingly, the work culture and motivation within your company will significantly improve. On the other hand, employees who have not achieved good work performance can look to outstanding team members for additional motivation and effort in their work.

Employee performance rewards are not always monetary and can take many other forms, such as vacations, wellness vouchers, thank-you letters, certificates of appreciation, commemorative medals, honor banquets, and even company shares…

In addition to rewarding, providing feedback to employees who have not performed well or whose work results are not satisfactory (feedback that does not diminish work motivation) is equally important. Managers can provide one-on-one feedback with a neutral attitude, listen to the employee’s proposed solution directions, and provide guidance on problem-solving and issue resolution. This is also considered a critically important factor in nurturing and fostering employees’ efforts and creation.

One of the great advantages of performance management is the building and development of a professional team that is loyal to the company. To successfully manage performance, the Human Resources department plays a crucial role. This department is responsible for recruiting personnel who possess not only the necessary expertise but also cultural compatibility, and for working with managers to develop individual career paths for each employee. Of course, this also involves the removal of underperforming personnel.

As such, managers will observe performance and work attitudes to establish goals and plans for when employees should be ready for higher positions. In this way, businesses can both retain talented employees and cultivate a pool of high-performing individuals. Each department with many good employees who have made long-term contributions will form an organization with a strong team of employees, improving work efficiency while still saving costs.