Performance Improvement

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What is “performance improvement”? 

Performance improvement, as the name suggests, is enhanced performance. In the workplace, performance improvement refers to a process under the bigger scope of performance management. When we say performance improvement in the workplace, it can mean improving the work efficiency and work performance of an individual, a team or department, or an organization. 

Let’s talk about the performance improvement of an individual first. In the employee lifecycle, employees are gauged through performance reviews where their work performance is evaluated based on the company’s standards, parameters, and requirements. If an employee’s work performance is evaluated as being subpar, the employee is underperforming to the company’s expectations. 

As a response, managers of the underperforming employees can develop a performance improvement plan to help the employee improve in specific areas. Performance improvement plans are time-bound and structured. Managers are also responsible for monitoring the employee’s progress in line with the performance improvement plan. The results are measured using company-set metrics. 

Performance improvement plans work best if the performance issues are measurable. For example, companies can use sales targets for a sales post or customer satisfaction rates for customer service positions. However, issues such as poor leadership or other behavioral issues may be difficult to measure. When managers are faced with these concerns, a different approach may be more beneficial. 

Finally, when performance improvement is aimed at improving an organization, this is called organizational performance improvement. Depending on the areas for improvement, stakeholders can use customer reviews, sales targets, and quotas to keep tabs on the organization’s performance. 

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