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1. What Are Performance Management
Systems? 3 Phases to Implement It
While performance management is an essential part of Human Resources, it is not always
successful in implementing the most effective model that best meets company needs.
Performance management is a method used by HR to measure employees' performance,
although other factors also play a role. Employee evaluation is, therefore, a priority for those
in charge of HR.
Most organisations downplay the importance of performance management and don't have an
effective performance management system. Incorrect performance management can
negatively affect a company's productivity and competitiveness. How can we ignore the
importance of performance management systems?
What Are Performance Management Systems?
Performance Management Systems are the combination of technologies and
methodologies to assess the performance of workers. Employee performance management
systems comply with a set of procedures, techniques, and criteria within a company to score
employees' performance.
In many ways, the employee performance management system influences the company's own
performance management, as it determines promotions, hiring needs, or other changes to the
organisation's human resources management.
Importance of Performance Management Systems

2. In line with the above, performance management in Human Resources should help both the
company and the employees. For organisations, the importance of performance management
lies in the fact that it is the most effective way to influence the work performance of the
workforce, helping to achieve or exceed the objectives set.
But workers can also benefit from the implementation of a good performance management
system. The availability of evaluation indicators, for example, helps workers to be more
efficient in their tasks while knowing exactly what the company expects of them.
The implementation of evaluation software is a key point in any digital transformation plan and
an unavoidable step to optimise such a sensitive procedure as much as possible. The
evaluators have centralised access to the information, they can enter all the indicators they
deem appropriate and, in addition, they will have always updated statistics.
Advantages of Implementing Employee Performance Management System
The foundation of organisational performance improvement is NYGGS Employee
Performance Management Systems, which sometimes become complex due to confusion
and a few errors. As a result, it needs the core attention of any human resource management
model, allowing them to take advantage it offers:
 An effective tool for communicating the organisation's values, priorities, and objectives.
 Creating a channel for clarifying mutual expectations.
 A frame of reference to guide daily and constructive feedback, strengthening
relationships on a day-to-day basis.
 A means to identify strengths and opportunities for improvement at work.
 The benchmark for focusing investment in training and development on the
organisation's performance improvement needs.
Performance Management vs. Performance Evaluation
The previous sections have led to the conclusion that performance management and job
performance evaluation seem to be almost equivalent concepts. This is true to a large extent,
but in reality, they refer to different areas within talent management.
Performance management is a global strategy of which evaluation itself is just one more pillar.
The project involves overseeing evaluation processes, planning actions to maximise
employee performance, and improving the management of human talent in general.
Performance evaluation, on the other hand, is perhaps the most visible and decisive aspect
of performance management, as it consists of specific tests for determining job performance
and its conditions. This would also include, for example, the preparation of Feedback for
employees.
What Are the Three Phases of Performance Management?
The three phases of performance management are Planning, Execution & Monitoring, and
Review & update. As in any other long-term strategy, performance management includes
phases whose duration is hard to determine, since each company will have its own means for
implementing the strategy. However, each phase can be distinguished by its distinct actions.

3. 1. Planning
What exactly do you hope to achieve by implementing a performance management system?
The company should define its objectives and performance indicators as clearly as possible.
At the same time, it is time to establish a calendar of all the actions or, at least, the most
important ones.
2. Execution and Monitoring
There are a number of important aspects of the performance management system to execute,
including assessment tests, meetings, data analysis, and employee feedback (the much-
needed feedback).
3. Review and Update
As nothing is set in stone, performance management should always remain flexible, meaning
should be permanently open to change.
Conclusion
Any high-performance organisation requires an enterprise performance management system
to connect the planning and execution of business strategy. However, finding the winning
combination of standards, criteria, and processes that allow leaders and employees to
evaluate results and behaviours is not easy. A good integration with the company's strategy
and culture is required, as well as everyone's commitment to its application.
If you want your organisation to become high-performance and improve your performance
management system, we can help you. At NYGGS, we put at your disposal our expert
knowledge and experience in the design and implementation of this type of system. We
respond to your challenges with solutions with the NYGGS Employee Performance
Management System.