Performance Management Systems

The Performance Management (PM) System summarises and navigates the process of continuously identifying, measuring, developing and improving employees’ performance in the organisation.

The Performance Management system has two main purposes: Evaluation of past performance and Development of future performance.

The PM system contains 4 basic elements:

Our role as Organisational Consultants is to support our clients in setting up all elements of the PM systems, aligning it with the business specifics and strategic goals of their companies.

The Competency Model structures the key technical and personal (“hard” and “soft”) characteristics, that an employee needs to have in order to implement his/her tasks effectively. It also makes the important connection with the company's strategic goals, mission and vision.

CATRO supports its clients in developing competency models and job profiles, in order to build the sound basis for understanding of the core skills, knowledge and competences relevant for the successful performance of all employees. For more information click HERE

The Leadership development contains all skills a leader or a manager needs to have to be able to motivate, inspire and lead people. The managers and leaders in the organisations play a crucial role in the process of establishing a Performance Management System, because they have to win the trust and to increase the acceptance and commitment to the newly established standards and PM procedures by providing transparency, communicating openly and involving the in key stages of the process.

CATRO supports its clients in providing training and coaching for the management focusing on successful implementation of the PM processes, by improving their key skills needed in this complex process e.g. giving feedback, communicating organisational vision, strategy and cascading goals, identifying and understanding employees’ needs.

Performance Appraisal (PA) is the process where the evaluation actually happens. This process is very often mistaken believed to represent the whole Performance Management system. However, studies in many companies have shown that in bringing positive change in employees’ behaviour the holistic performance management approach is more effective than a single annual performance appraisal. Still, as a key element of the PM System, the measurement and management of employees’ performance are very fundamental to unlocking the organisation’s full capacity when achieving the organisational goals, because it sets clear milestones in the professional development of the employee, ensures a regular, structured and transparent feedback process, laying out clear goals for future development.

CATRO supports its clients in the process of PA by providing supervision and by facilitating the PA meetings during the first year of PM system implementation. The benefits for our clients during this supervision could be summarised as following:

• Bringing clear understanding of the competences and the way they are being measured.
• Providing expert support in identifying strengths and gaps in employees’ performance by communicating these in an objective, well-structured, justified and motivating way.
• Providing expert support in identifying future training and development needs.
• Providing assistance in setting up SMART goals for future assessment periods, that are accepted by the employees.
• Providing assistance in reviewing the progress towards the goals and objectives established in the previous PA.
• Giving constructive feedback to the management (assessors) after each PA discussion in order to improve their performance appraisal skills.

Performance plans and Goal setting are critical for the success of the overall Performance Management and the business success in general. They ensure that the employees could see the strategic direction of the business and realise how their jobs would fit in this “Big Picture”. Essentially, goal alignment strengthens the leadership and creates organisational agility by focusing employees' efforts on the most important company goals, which allow them to understand more clearly all responsibilities associated with their own specific goals. Last, but not least – it strengthens the accountability by assigning measurable, realistic and specific goals.

As already mentioned above CATRO supports the management (the assessors) by setting up SMART goals together with their employees covering future assessment period, allowing the progress status of the implementation of these goal sets to be reviewed later.