Last edited 12 Apr 2017

Performance management plan

In construction, (and in manufacturing), innovative new methods and techniques have been introduced to try and improve performance levels, such as lean construction, total quality management (TQM), and value management.

Performance management is a key issue in the construction industry, which is often criticised for poor productivity compared with other industries and other countries, and so some organisations prepare performance management plans to ensure continuous improvement. Organisations that have effective performance management plans can experience increased productivity and higher levels of employee motivation and attainment.

Performance management is the process of supporting and enabling employees to work in a way that allows the organisation to efficiently and effectively meet its needs. Managers are able to communicate with employees and provide feedback on their performance.

A performance management plan should begin by defining role-based competencies and behaviours for every employee. This enables employees to know precisely what is expected of them.

This assessment should take place as soon as they start working for the organisation, and should be revisited and revised regularly if necessary. Reviews are often annual, but some organisations review on a quarterly or half-yearly basis. Frequent reviews can provide for a more fluid assessment process, with negative or less efficient behaviours being identified and addressed earlier. However, it can be more time-consuming for managers and HR teams, especially in large organisations.

Online talent management tools are available that allow managers and peers to give feedback on employees’ work and track performance ratings in databases. Performance evaluation of this kind is designed to assess past levels of goal achievements, assist in identifying future goals and objectives, and encourage and improve communication between employee and manager.

The Balanced Score Card (BSC) is a performance management system that comprises four main measurement categories, each of which are sub-divided into a wide range of other measures. It incorporates ‘leading’ and ‘lagging’ indicators such as client perspective, internal/business processes, learning and growth, and financial, to evaluate whether strategic goals are being sufficiently moved forwards by the organisation.

The European Foundation for Quality Management (EFQM) Excellence Model is an excellence framework for organisational management, which is designed to help increase competitiveness. It does this by measuring the position of an organisation on the ‘path to excellence’, and helping identify and understand any gaps and potential solutions.

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