Performance management system vital in attaining business growth

CEBU, Philippines -  “What you do not measure you cannot improve. Everyone wants growth in the business and the only way for an effective growth is the need to use an effective performance management system.”

This according to Jong Fernandez, general manager and chief executive officer of AGF Consulting Group, during the company’s seminar on how to develop an excellent employee performance management system that was held yesterday at Cebu Parklane International Hotel.

Once an excellent performance management system is implemented among local companies, he said that it will greatly contribute to the national economy and improve the already-booming business climate in Cebu.

He also said that there is a need to empower companies on how to set up and sustain a performance management system particularly the small and medium enterprises (SMEs) towards further productivity and profitability.

“SMEs cannot just remain as SMEs forever. They should graduate and become larger companies. They will have no improvement if they won’t have any action plans,” he continued.

He cited that incorporating such system accounts 80 to 90 percent of the success rate in the achievement of the organizational goals as it eliminates the execution gap.

Employee performance management is the process of involving employees in accomplishing the agency’s mission and goals that includes planning work and setting goals, monitoring performance, developing capacity, reviewing performance, and rewarding good work.

Fernandez cited that it involves the setting up of a performance plan that consists of widely important goals which is then communicated to the people who are committed to achieve the plan.

He noted that such system requires a two-way relationship between the top management and employees as the former sets the right direction and ensures the right set of competence and commitment of the latter. 

“It is very critical. Competence is the key in accomplishing the goals while commitment can only happen if the employees know the roles in the achievement of such goals,” he told The Freeman. 

He added that the overall organizational success of a business is dependent on the performance management system of its workforce, processes and services.

Although companies already have different practices on performance management, he described them as only guidelines and are not the existing global standards that conform in the industry.

“Most companies have a plan but they normally stick to them as merely plans. Other companies implement something without having a plan. Either way, it would not work. But once the system is there, they will have a clearer direction and it will greatly improve the performance of all organizations,” he added.

He noted that it may look as simple as it is but the system requires a tremendous commitment from the top management to the working staff since it is primarily an investment of time and people.

Fernandez then challenged industry players to build a robust system rather than just guidelines to ensure sustainability and competitiveness.

Serving as an eye-opener among organizations, the seminar was attended by various companies in manufacturing sector, business process outsourcing, logistics and the academe.

With AGF Consulting Group Senior Trainer Jane Frias, the second leg of the seminar that is held today will focus on the role of coaching, mentoring, performance appraisal and rewards and recognition program as effective tools towards performance management. (FREEMAN)