Performance management is a key aspect for any organization to focus on, whether public or private, corporate or democratic. In the digital age, a dazzling array of tools to measure performance management are available to organizations and their employees. Using these tools, managers can record, measure, and manage progress to identify areas of strength and weakness among their employees.
Plenty of performance management frameworks have been developed over time, from the traditional ‘annual review,’ which is not in vogue anymore, to newer ones like OKRs (Objectives and Key Results). Organizations aiming to overhaul their performance management process, or improve the current one, can pick and choose some features from different methodologies and create one that works best for them and their employees.
It is an open secret that most employees feel the traditional performance review system is ineffective. A survey found that around 72% of employees felt their performance reviews would be effective if they were properly tracked and feedback provided regularly. Modern performance management tools and techniques can allow organizations to do so.
10 performance management techniques
Performance management is not just about the output of the employees – it is about helping them grow. Organizations that look at performance management to extract more value from employees without thinking of giving them anything in return will not succeed in their endeavors. Keeping up-to-date with emerging performance management trends is essential for you to find the best framework for your organization. While plenty of goal-setting-specific performance management tools are available in the market, choosing one that suits the needs of the teams and seamlessly integrates with the teams’ routine workflow can improve compliance.
Let’s look at some performance management techniques that all organizations should consider including in their process:
1. One-on-one check-ins
Check-in meetings between managers and employees capture weekly or bi-weekly information about goals, work progress, plans of action, and roadblocks. The idea is to have regular conversations about performance instead of reviewing it yearly.
Unlike annual reviews, ongoing check-in meetings provide continuous feedback to the employee and give them a broader idea of how to go about their work while allowing managers to keep track of employee accomplishments done over the year (negating recency bias), compare the employee’s self-evaluation with the observed output and growth, and take decisions on the next steps of KPI management.
2. 5As
5A is a tool that promotes jointly set goals that are assessable, aspirational, aligned, accountable, and agile – the 5As. This method collaboratively approaches performance management. This method accounts for the complex needs of today’s goal-setting process and rapidly evolves through collaboration. Like other methods, this one also offers the advantages of 360-degree performance reviews with a balanced scorecard.
Assessable refers to the measurable goal, so everyone involved knows what is expected.
Aspirational goals stretch people trying to achieve them and encourage people to move out of their comfort zone, little by little. The incremental growth adds up, leading to high-performance individuals, teams, and organizations.
Aligned goals help everyone in an organization concentrate their efforts toward one common goal. This does not mean that employees sacrifice their personal preferences – the process of collaborative goal setting ensures that employees can derive value from their organization’s vision and mission and align their growth accordingly.
Accountability gives employees a clear understanding of their goals and gives them a free hand to achieve them. As team goals are shared between team members, the act of collaboration develops automatically, and individuals complement the strengths and weaknesses of other team members. With constant check-ins, managers ensure employees are on track and help out if things get choppy.
Agile goals are short-term, typically lasting for a quarter of a year. They are also reviewed regularly, and the next set is decided once completed.
3. Real-time feedback
Real-time feedback focuses on continuous development and is essential for any process involving 360-degree performance reviews. In this method, managers are asked to give feedback on any moment of employee interaction and help their subordinates understand the best course of action. The flexibility and constant engagement aspects of real-time feedback lead to productive self-aware teams, as they frequently monitor their outputs and behaviors and change them as needed.
A Gallup survey shows that organizations with highly engaged workforces have 21% higher profitability and 17% higher productivity than their counterparts with disengaged workforces. The reasons are clear – employees involved will be motivated to complete their tasks and try to improve upon them. The same survey also shows that engaged employees are happier and report lower absenteeism. Their mean time spent at those organizations is also very high, and their KPI management gets simplified.
4. Personal Development Plans (PDPs)
PDPs are tailored action plans based on an individual employee’s unique strengths and weaknesses. These plans set goals that encourage employees to perform better and can contain actions that will support employee development. While PDPs are used to identify opportunities to train and develop individuals, they also give organizations a chance to ensure employee loyalty by genuinely investing in their growth.
Managers can use performance management tools to create an action plan to meet those needs associated with L&D or HR, identify courses, allow employees to learn on the job from colleagues, and so on. By encouraging individual employees to chart how they want to grow, organizations can help them act and drive overall performance within and maintain a balanced scorecard.
5. Reward and recognition schemes
These schemes allow organizations to show the value their employees add to the system. These programs need not celebrate high performers alone – any act of helpfulness, an initiative that helped others, or something else – even a single ‘thank you/appreciated’ mail can strengthen the team morale like no other. Care should be taken that these systems are continuous ones and not half-yearly/yearly affairs because recency bias and other factors can cloud the judgment of people deciding on awards. This might lead to employees feeling that their performance is not good enough and ultimately disengaging from the organization’s overall mission.
6. Well-being scheme
A well-being scheme ensures employees are in excellent condition to focus on their work. Allowing them to focus more on their personal life lets them be more attuned to their work and keeps them engaged. By ensuring needs like insurance, conveyance, and telecommuting needs are taken care of, organizations can get a lot more than the focused effort of their employees.
7. Streamlined onboarding process
An excellent onboarding process indicates seriousness, even if the process is full of fun and whistles. Organizations use data analytics and tools to ensure a smooth onboarding process for their new hires. If your team is working remotely, new entrants to the workforce will need to start their induction on a video call. New techniques will need to be set up to ensure they do not face any hiccups.
These processes can be re-examined and made smoother, like providing team interactions/introductions over emails in the days before joining, fun interactions with the team, and more – so that new employees feel safe and secure enough to start making a positive impact as soon as possible.
8. Management by Objective (MBO)
MBO is a framework for defining objectives and then setting the systems to achieve them. The process favors linear work and establishes a culture where everyone works towards common goals. As each objective is achieved, employees responsible for the achievement will be aware of it – which boosts morale and motivation across the team. MBOs require managers to set expectations of individual employees (or by leaders, expectations are assigned to teams) and measure performance against them. Provisions can be made for managers to coach employees if specific expertise is required.
9. Employee feedback surveys
Feedback surveys can reveal many perceptions and help leaders understand unfavorable ones. For employees to be truthful and voice their honest opinions, the organization should have a culture of trust – or the survey should be truly anonymous. A good way of building trust can be to show action on any of the issues presented or highlighted in the employee feedback survey, so that employees understand their concerns are being heard.
Responsiveness leads to lower attrition and absenteeism, improved productivity and customer service, and higher morale. When employees honestly list their issues, managers or leaders of the organization can try to understand how to remove bottlenecks and work on a solution with employees. Not only does this improve trust, but it also gives confidence to employees.
10. End-to-end talent management
Talent management is essential for organizations to keep evolving – and as a survey points out, developing is also a favored option for the talent in question. Millennials and other younger generations prefer organizations that insist on frequent feedback rather than a singular discussion. End-to-end performance management creates a workforce that knows their organization supports their growth – and strives harder to contribute better.
Now that you’re aware of different performance management techniques, let’s discuss how to select the practice and tool that best fits your organization.
How to choose performance management techniques
You should select performance management strategies that are effective, sustainable, and customized to your team’s needs. These management techniques should be set up to improve based on the needs and changing nature of your teams. Here are some tips on how to decide:
Understand your company’s goals
To truly create comprehensive documentation of what your team goals are, you need to sit and have a brainstorming session where you ask the following questions about what the focus of implementing performance management techniques is:
- Is the focus on individual employee growth?
- Is the focus team strategy and collaboration?
- What are the hard metrics tracking improvement in sales and efficiency?
Your performance technique should align with these priorities. For example, if innovation is key, a 360-degree feedback system encourages well-rounded insights. If speed and efficiency matter, OKRs (Objectives and Key Results) keep teams focused on measurable goals.
Keep employees engaged
Second, consider how your employees would engage with the strategy you would implement. The best techniques should not just evaluate, they should motivate everyone in your team. Traditional annual reviews often feel like dreaded report cards, while ongoing check-ins and real-time feedback encourage continuous growth. Pick a system that makes employees feel supported, not scrutinized.
Analyze the technique output
Lastly, look at the data or the hard number result of the technique you are planning to adopt. Some techniques rely on hard numbers (KPIs, productivity scores), while others focus on qualitative insights (peer feedback, self-evaluations). Now you must be thinking, what is better among them; qualitative or quantitative results?
The answer is simple: balance both. Think of it like coaching a sports team; stats like the winning rate matter but so does team morale.
The right technique will depend on your industry, company culture, and team structure. But one rule applies across the board: performance management should be a tool for growth, not just a measure of success.
Turning performance management into a growth engine
Performance management is about giving your team members performance evaluation tools to do their best work while being able to track them. Individual employees’ performance ultimately impacts your company’s bottom line. The right tools and techniques can transform workplace culture, boost productivity, and drive success. But it’s not a one-size-fits-all approach. The key is choosing methods that fit your company’s goals, engage employees, and use data effectively.
When done right, performance management turns feedback into fuel, challenges into opportunities, and teams into powerhouses. And that’s what sets high-performing businesses apart.
FAQs
What are the 5C’s of performance management?
The 5C’s of performance management are Clarity, Communication, Consistency, Collaboration, and Commitment. Clarity ensures that employees know exactly what’s expected of your team members. Communication fosters open dialogue between managers and teams. Consistency helps maintain performance standards over time. Collaboration ensures that employees and leaders work together toward shared goals. Commitment keeps everyone engaged and motivated to improve.
What are the pillars of performance management?
The core pillars of performance management are goal setting, continuous feedback, employee development, performance measurement, and recognition.
