How to Implement SMART Management of Performance System

The performance management system is the process used to measure the performance of employees in an organization. It is widely used in majority organizations as management of performance for employees.

The performance management system helps an organization arrange its mission, goals, and objectives with the available resources. Nowadays, organizations ask supervisors to evaluate the Management of Performance outcomes of employees, focusing on SMART goals. The SMART refers to an ellipsis built around the critical characteristics of significant and meaningful goals that can help in writing performance expectations to evaluate the effectiveness of work and performance.

Management of Performance

SMART Performance Management System


Management of Performance

SMART goals primarily focus on the following:

  • Specific: ‘Specifically’ means what an organization expects from an employee to deliver. The smart performance report should include details on the employee’s personality and experience level. Like, a highly experienced employee would require fewer details in comparison to a less confident one.
  • Measurable: The measurable term states whether the organization can measure the achievement of goals and targets by the employee. The measure part of the report should have details as to how an organization would measure success- in terms of quantity, quality, timeliness, or cost.
  • Achievable: Achievable is to ensure that the process of accomplishing the goal is within the employee’s realm of authority and abilities. While evaluating the achievable capacity of a goal, it is necessary to consider the employee’s total targets and goals.  
  • Realistic: Realistic refers to practical goals that an organization should assign the employee. The system should ensure that the goals are results-oriented and within the employee’s realm of achievable capacity.  
  • Time-bound: Specify the timeline when goal/target needs to be completed (by the end of the week or the month).

Developing SMART Goals based on Job Duties

Performance goals are set to describe the measurable results that an employee needs to achieve within each functional competency area. The goals should be combined with the business outcome the supervisor needs to accomplish in the assignment. The ‘SMART’ in SMART performance management system evaluates both the goal and the objective that an employee needs to achieve. The SMART goals are realistic targets that an employee should regularly achieve, or over the annual cycle.

Benefits of Establishing a Management of Performance

In the present global environment where businesses are progressing manifold, and the market is evolving at a breakneck pace, an organization must understand the benefits of establishing a SMART Management of Performance system. Managing an employee’s performance is the ultimate requirement of any organization. The SMART performance management system serves several benefits to the organization, like:

  • The SMART performance system supports providing detailed data to find the skills and knowledge gaps of employees to improvise them through training.  
  • The performance system motivates employees to take up new challenges and innovate through a brief structural process.
  • The system provides new opportunities to the employees to enhance their growth and development in their career
  • It defuses the grievances and conflicts that arise between team members through a proper performance evaluation system.
  • It assesses the performance of an employee fairly and accurately without any unfair means against the performance targets.
  • Employees are encouraged to give better results due to the clarity in their performance targets.

The Management of Performance system provides an excellent platform for discussing, developing, and designing the departmental and individual goals through discussion among managers and their counterparts. With this process, the under-performer can be identified, and their performance can be enhanced through training. The Management of Performance system calculates an organization’s learning requirements through individual development plans or performance improvement plans.

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Diana Coker
Diana Coker is a staff writer at The HR Digest, based in New York. She also reports for brands like Technowize. Diana covers HR news, corporate culture, employee benefits, compensation, and leadership. She loves writing HR success stories of individuals who inspire the world. She’s keen on political science and entertains her readers by covering usual workplace tactics.

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