1. Performance Appraisals
Performance appraisals are one of the top 5 performance management tools. The tool is known to be potent for combining the goals of the individual with the common goals of the organization, but when used correctly.
To get the right amount of output from this tool, employees must ensure that the appraisal process is honest and fair and that constructive two-way communication takes place. If these points are not kept in mind, appraisals can work as demotivation for the organization and will lead to a decline in performance.
2. 360-Degree Feedback
360-degree feedback usually deals with the evaluation and assessment of employees, whether internal or external. The main question that this tool has to answer is, “How well are their employees performing?”. It provides each and every individual of the organization with a detailed assessment of their performance based on the views of the people with whom they work.
3. Key Performance Indicators (KPIs)
KPI is a perfect performance management tool that provides different ways to measure how well the organization, its units, projects, or the individual employees are performing to fulfill the organizational goals and objectives. It is a form of HR software. KPI is also used in enabling performance conversations, which are rich and data-driven. They also help in making better decisions for the organization.
4. Personal Development Plans (PDP)
A personal development plan is an expertly and efficiently designed action plan which is based on the needs, wants, and awareness of the actions that are going to support personal and organizational development. PDPs are most often used to identify various types of training and development needs. A PDP creates an action plan for fulfilling these needs. It helps individuals set out the way they want to grow and find out how they can achieve their goals.
5. Reward and Recognition Programs
Excellent performance should always be praised and rewarded. When employees feel that their hard work and performance go unrecognized and unrewarded, they become demotivated, which makes them deviate from the organization’s overall objectives.
Every organization should have rewards and recognition programs, which are an essential part of the whole performance management system of the organization.
Many big organizations think of reward and recognition programs as a source of distributing financial rewards and incentives like bonuses and increments. But sometimes, simple recognition of hard-working employees is an essential aspect of maintaining morale.