Author: Puchi Andrea

Performance management: what it is, importance and how to do it

Performance management is a very common expression in the business world. But do you know what it actually means and how it works?

Performance management is a tool to measure and improve the company’s results through the performance of its employees. The objective is to develop the skills and abilities of professionals, implement process improvements and, thus, achieve organizational goals. But it is not so easy to put performance management into practice, mainly because it requires strategic planning in line with business goals.

But don’t worry, as in this guide you will learn more about the following topics:

  • Advntages of performance management
  • What it is for and how it came about
  • Performance dimensions and cycle
  • Tips for good management
  • Tools and methodologies.

So, ready to implement performance management and take the company’s results to the next level?

What is performance management?

Performance management is a way to evaluate and improve the performance of employees to make the company more efficient and effective in all its processes. For RK Sahu, in the book Performance management system (Excel Books India, 2009), this type of management is a strategic and integrated process that establishes a culture of success for organizations.

This occurs through improving the performance of the people who work in the company and developing the skills of individuals and teams. “Performance management, in its broadest sense, is concerned with what people do (their work), how they do it (their behavior) and what they achieve (their results)”, says the author. But for this process to be effective, it needs to be continuous, mobilizing all sectors of the company and being incorporated into the routine of the HR sector.

How important is performance management?

Performance management is especially important for the company to achieve high performance and achieve organizational goals. It is a way to set expectations and align employees around the organization’s goals. Therefore, performance management must be linked to the company’s fundamental guidelines.

What are the benefits of performance management?

Better use of human capital

The performance management process allows employees to develop, be increasingly productive and improve aspects of production that need correction.

Training and hiring planning

If the company has a mapping of the team’s performance, it also gains a foundation to direct training to employees and make more assertive hiring, according to their needs.

Reduction of turnover

By doing this type of management, the company invests in improving the skills and competences of the professionals who already work within it.

The direct result is a reduction in turnover rates and, consequently, expenses related to selection processes.

Gain motivation in the team

In an article for the GovLoop website, Andrew Lessard points out that performance management sets goals with employees and gives regular feedback.

With this, employees gain motivation to improve their performance, as they understand what skills need to be worked on.

What is performance management for?

Performance management aims to improve performance through team performance and achieve the company’s goals. According to Elizabeth Pope, in the book HR how-to: performance management (CCH Incorporated, 2005), the objectives of performance management include:

Support business strategy

Improve communication

Provide training and development to employees.

For the author, management is the key to success, since it takes a joint effort by all employees for the company to achieve its goals. “Performance management encompasses all the interactions that supervisors have with employees, which help employees to become and stay aligned with the organization’s objectives,” he explains.

How did performance management come about?

The term performance management came up in the 1970s, when it was coined by Aubrey Daniels, an American clinical psychologist. As a research field, performance management emerged before, in the 1950s.

As David Grant points out, in the book Logistics and Supply Chain Management (Saraiva, 2017), it was at this time that academics and professionals became interested in the need to measure performance and the very consequences resulting from this measurement.

Before being disseminated, companies performed performance management disregarding employee behavior. In other words, the evaluation considered only objective aspects in the performance of employees. Over time, companies realized that this approach was not enough to actually manage performance, shaping the activity so that it became more complete.

What is the difference between performance evaluation and management?

While performance management is an ongoing process in the company, evaluation is one of its stages. As you will see below, management consists of setting expectations, measuring performance indicators and, finally, evaluating results.

And it is precisely this final analysis that allows us to understand which points need to be improved by each employee and by the company as a whole. In the performance evaluation, the manager usually responds to a questionnaire with relevant topics regarding the employee’s performance. Later, these data (when well systematized and stored) can serve as a basis for the manager’s decision making .

Why worry about this difference?

You must be concerned with this difference in order not to skip any steps. Evaluation is within management, and one does not rule out the need for the other. Performance management is useless if, at the end of the process, you do not carry out an evaluation and obtain relevant data to analyze the company’s performance.

How does coaching assist in performance management?

This methodology is focused on the individual’s attitudes , being directed towards the development of skills.

Coaching promotes self-knowledge and the identification of strengths and vulnerabilities that must be corrected. In performance management, this is very useful, since each employee will be able to reflect on their own professional growth and gaps to be developed.

In addition, throughout the process, the coachee receives support from the coach to follow the growth journey, facing all the challenges that arise and evaluating the performance at each meeting. In this sense, coaching can enter the performance management strategy as an important tool to apply with employees.

Employee development and performance management

Performance management allows the company to foster employee development. After all, it is based on performance analysis that it becomes possible to identify competencies to be developed.

Then, the company can direct employees to reinforce these points, offering training, growth opportunities and regular feedback .Development can include different aspects: level of productivity, responsibilities and quality of the activities carried out, for example.

Decision making and talent management

By doing talent management, which is precisely to give development opportunities to employees, the company gains a basis for decision making.

In practice, this is because it gathers important data on the performance of employees and their own commitment to growth. Therefore, this information can be analyzed whenever it is necessary to make important decisions, such as promotions, salary increases, dismissals, hiring and delegation of responsibilities.

What are the dimensions of performance?

There are two dimensions of performance that must be managed by the company: results and behaviors. Both are fundamental to performance management and, therefore, should receive attention throughout the process.

Results

The results are what the employee produces. It is at this point that the manager assesses the responsibilities and activities delegated for each position and observes what has been achieved by the employee.

Behaviors

The behaviors concern how the employee arrived at the results obtained. In this case, it is possible to analyze the skills used throughout production, such as, for example, communication skills and strategic thinking.

The performance management cycle

As with any process, performance management must follow a cycle with different stages. You will see below that it starts with the establishment of expectations and goes through the indicators and goals and the development plan.

Performance expectations

At the beginning of the cycle, there is an alignment of expectations between the employee and the manager, according to the organizational objectives. At this point, it is important to prepare the job description, a document that describes tasks, responsibilities, skills and abilities for each position.

Indicators, goals, activities and projects

After setting expectations, it is time to establish the indicators, goals , activities and projects for the employee. Indicators are indexes used to measure the efficiency of the employee when performing tasks. Goals are the goals that each employee must achieve in a given time, guiding their performance in the company.

PDI

Another stage in the cycle is the development of the individual development plan (PDI), a human resources tool that defines a strategy for employee growth.

Increasingly, distance learning has allowed students and institutions to find more space within the market . There are several free and professional courses available through distance learning platforms . However, the operation and management of this learning system leaves doubts, both for those who want to buy and offer content at a distance.

The distance education has achieved good results in various regions of the world, and countries like USA, South Korea, Australia and Brazil, has shown a population increasingly willing to consume this mode. Although the custom when talking about learning management system, is to resemble digital educational content , teaching without the need for the student to be present at the institution, it has been working for a long time before the creation of the internet, and in Germany in 1890 correspondence courses already were made available through newspapers.

According to the Higher Education Census only in a period of 6 years, while distance education grew 13%, the face-to-face method fell the same amount, this only referring to the years 2010 and 2016. The distance education system consists of providing a better cost -benefit for the participants, and the tendency is that these numbers continue to evolve to the point of surpassing face-to-face enrollments. However, as not everything is “flowers”, it is essential that schools that decide to act in this way be aware of the platforms adopted , so that the study experience is not frustrating.

Learning Management System

Better known by its acronym LMS , the Learning Management System ( Learning Management System ), allows the management of distance education platform is made. It is through the LMS that it is possible to share content, manage student data, evaluate their educational progress, issue certificates, facilitate financial processes and various other activities, depending on the platform acquired. Therefore, the choice of the system must be made with great care by the school.

There are some integrated LMS systems , which allow connectivity with several others. There are free options, but they are usually not as complete and secure as private ones. As it is a complex system that gathers several tools for the provision of distance learning , it is necessary that the adopted platform offers accessibility for the technical assistance team, designers, tutors, administrators, and several other professionals who will contribute to a quality performance.

The DL works, since it is applied correctly. The chosen platform must meet the needs of the institution and the student, providing a quality AVA ( Virtual Learning Environment ). If the system does not work properly, it will devalue the content provided – even if it is excellent – and, it will damage the credibility of the educational institution. For those who wish to make the investment, it is advisable to seek specialized guidance and be able to follow the entire process.

Your EaD in good hands

WIDE helped several schools to offer quality distance learning , taking care of the entire journey. And do not think that our services are limited to just a consultancy, they also cover the process of installation, data management and prospecting of suitable students for each course offered.

The new learning management systems (LMS)

A constantly changing market demands the development of new skills for work, such as self-management, capacity for innovation, adaptability, initiative and collaboration. Traditional approaches to training and developing employees are already ineffective in the face of current organizational challenges. In parallel, the exponential evolution of information and communication technologies (ICTs) brings new perspectives to the educational area.

E-learning develops gradually within companies. Initially used for the purpose of reducing expenses with training and development of employees, today the modality is already recognized for the quality of the results it can generate. Its use has even grown over the years. According to data from the company Bersin by Deloitte, the use of learning solutions with at least some online resource grew by more than 100% from 2009 to 2015.

Beautiful girl works with technologise on the phone and smiles

To meet this demand for solutions that are increasingly aligned with business needs, learning management systems (LMS) have evolved over the years. See below the trends of these platforms for management and support for training and development actions.

Gamification.

Gamifying means using a strategy based on elements originally associated with games, in order to engage the target audience. The use of the concept of gamification in an LMS occurs from the use of resources such as visualization of the employee’s status on the trail, scoring system and different levels of difficulty, competitiveness through ranking, rewards program, challenges, among others.

Adaptive platforms.

Adaptive learning, or adapted learning, is one of the main trends in the field of education. Each student is understood as a unique being, who has gone through a special set of experiences and presents particular needs and rhythms of learning. To personalize the development process, the LMS becomes an intelligent platform, where the student has multiple experiences and learning resources, following a unique path.

The environment, based on artificial intelligence resources, identifies how the student learns best and what his learning needs are in the chosen path, making individual recommendations about which themes and contents he should explore. The student gains more autonomy and has his learning capacity expanded from personalized stimuli.

Open learning experiences.

The LMS can aggregate external content, unifying different learning channels and facilitating access to different content, for example: within the management and leadership trail, the student will be able to access internal content, from Veduca, Coursera or any online publication specialized in the theme .

Videos and Microlearning.

One of the trends for the LMS is to present a structure similar to YouTube, becoming a decentralized platform where the student, within the concept of individualized learning, can seek knowledge from a specific need. The LMS, through resources such as optimized search, can suggest videos and short content to meet specific objectives, such as solving a specific problem.

Collaborative learning.

Also known as crowdlearning, collaborative learning is already a reality. Forums and chats, for example, are already widely used for different learning purposes. As an evolution of the concept of collaboration, the LMS may enable the management of communities whose purpose is the co-creation of knowledge. Students will be able to act as apprentices or mentors, accessing and producing content through videos, e-books, poadcasts, wikis, etc.

If before the LMS focused on content management, with all these changes it becomes a student-centered environment, enabling an individualized learning experience, according to the level of knowledge, pace and learning profile of each one.

What is the role and importance of the finance manager in any company

First of all, a regional finance manager is a person who is charged with the responsibility of overseeing all the financial operations of the firm right from preparing financial reports to developing long terms strategies to meet the organization‘s goals. Finance managers usually work in numerous places, including insurance companies and banks.

What does a regional finance manager do?

Finance managers are typically responsible for the overall financial health of a firm. With the recent revolution in technology, the roles of regional finance managers are changing each day, consequently reducing the period taken to produce financial reports. In the recent past, the significant tasks of a financial manager were to supervise the company’s finance; nonetheless, they now perform a wide array of duties including advising senior managers on techniques used to maximize returns. In addition to this, they now perform complex data analysis jobs for organizations.

The specific duties assigned to regional finance managers purely depends on the particular industry they work. For instance, healthcare financial managers must be well versed in all subjects about finance in a hospital set up.

Regional finance job description

The following are the major duties that regional finance managers perform;

Coming up with innovative policies and procedures needed in accounting and preparation of financial reports

Reviewing, analyzing and preparing financial reports as well as projecting data while complying with GAAP

Managing the documentation of controls in all financial sectors in compliance with Sarbanes – Oxley (OX)

Implementing a strategy, all the financial accounting strategies which are compliant with the SOX

Managing all the procurement activities of the firm by creating a firm procurement financing foundation for local farmers through myriad collection gate points

Overseeing accounting reports for shareholders in international offices

Providing clients with insights needed to establish a start-up and how they can build a solid financial base

Using quick books to generate new accounts and possibly altering current accounts

Keeping track of all the employees who are tasked with the responsibility of doing financial reporting and budgeting

Evaluating market trends to take advantage of any opportunities that may arise to broaden the portfolio of services provided

Keeping a tab on financial operations to ensure that all the legal requirements are met

How to become a regional finance manager in a regional finance system

To become a regional finance manager, we need to have a bachelor’s degree and an experience of five years or more in any financial role such as a financial analyst or accountant. However, things have changed, and employers are now recruiting people with a Master’s degree in Economics, accounting, and business administration. Generally, educational institutions provide us with an opportunity to develop practical analytical skills as well as grasping financial analysis methods and software used.

Licenses and other certifications

HOW TO BECOME A REGIONAL FINANCE MANAGER in accounting firm

Well, professional certifications are not necessarily required, although some financial managers still produce them to add to their competencies. The Chartered Financial Analyst honours investment experts with the CFA certification provided they have a bachelor’s degree, approximately four years of work experience, and previous three exams. Similarly, the Association for Financial Professionals bestows investors with the Certified Treasury Professional certificate to those who pass the exam and have two years of experience.

Work experience

Before being a financial manager, experience in other fields is needed, for instance, an accountant, security sales agent, or perhaps a loan officer. In some circumstances, companies offer training programs for their employees to help them get equipped with the skills required in the regional finance system.

Essential skills for a regional finance manager

Being a financial manager requires specific vital Skills to increase the productivity of the company. Some of these skills include;

Math skills – a good financial manager should possess strong math skills, algebra to be specific. An extensive understanding of complex business documents is also essential.

Written and verbal communication skills – Communication is key to every manager, and regional finance managers are no exception. They must be very fluent in English and be able to explain complex financial transactions without any errors proactively. Excellent communication skills depict that we are capable of relying on our opinions and ideas.

Analytical skills – one of the leading roles of financial managers is to aid executives in making informed decisions that affect organizations, and therefore they need to have exceptional analytical skills. Typically, analytical skills include the ability to assemble data from various sources and interpreting them to reach a credible conclusion that is beneficial to the business.

Planning and organizational skills – Usually, finance managers deal with complex data, and therefore they need to have the integration of excellent organizational skills to arrange documents.

Attention to detail – preparing balance sheets and statements of financial position may be a difficult task that requires a significant degree of care to more information.

Types of regional finance managers

Just like we previously explained, finance managers primarily focus on all finances of the company, and they generally make wise decisions when it comes to monetary transactions. Other duties of the regional finance manager will largely depend on the industry that he is working for. The various types of financial managers include ;

Risk and insurance managers

Both managers’ ultimate goal is to reduce the company’s risk; however, they use different approaches to accomplish this goal. A risk manager strives to minimize risks like a natural disaster, which brings their operations to a standstill. On the other hand, insurance managers buy insurance policies for a firm to reduce risks associated with threats.

Cash managers

A cash manager is tasked with the duty of managing all cash receipts and disbursements. In situations where the company lacks enough cash, he may resolve to a loan, but if the company is high on money, he may invest the funds somewhere else.

Chief financial officers

Being the senior-most financial manager, Chief financial officers are responsible for all the financial reporting of the company.

Branch managers

They help branch companies in approving loans and recruiting qualified employees so that the company’s productivity can elevate. In addition, branch managers schedule meetings with other top management executives to discuss both the current and future financial goals of the organization.

At Regional Finance, we specialize in aiding people to get access to personal loans. No application fees will affect your credit score. Kindly visit the Regional Finance login and find details about personal loans and the maximum amount of money you can borrow from Regional Finance.

FAQ

When was regional finance founded?

Regional Financial has become one of America’s biggest wealth management lending companies with credit lines. It was established in 1987. Regional has evolved over time to become a stable and successful organization that puts its clients first. It provides a range of loans and financial products to its customers, and also technical assistance. You do not need to be patient, Its customer relationships are indeed reliable since they are recognized to offer customer care of high quality, too. They currently represent over 350,000 clients across 340 + office locations around the country. Moreover, they are experts in several financial services as Cash, Deposit, Insurance, Banking Management, and Customer Support.

Where does regional finance have branches?

Regional Finance will always want its clients to find you quickly. That’s why they always remind us that it’s easy to find the nearest branch. This company wants to help its customers get the money they need. We recommend using the branch locator on their website. The loan specialists will work with clients to find the personal loan that fits the needs and budget of each individual who requires it. There are 11 states with over 350 branches. These branches are located in the following states (united state): Alabama, Georgia, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.

How do repayments work with regional finance?

We must know that Regional Finance is a plus in your life. This company offers you generous guidance for your needs. It allows its users to make payments via online, by phone, at a branch, or even by mail. If it is the case, customers hold the opportunity to request a change in the due date. Furthermore, they will only have to go to one branch to have the whole procedure ready. If clients wish to make automatic payments, you can also set them up online. On the other hand, Regional Finance recommends its users to make the last two monthly payments using one of its other options.

Not sure regional finance is right for you?

You may wonder why you choose Regional Finance. The answer is a simple personal touch. The mission is quite clear: This company helps its users get the money they need to improve their quality of life. They are not just lending money. They are also a helping hand. Regional Finance is suitable for far-than-perfect credit borrowers who have failed to secure a personal lender as they have no bank account at all. We know that borrowing a resource can be a little intimidating. At Regional Finance, they are well aware of this, and that is why they work closely with their clients to achieve the best possible solution. When it comes to Regional Finance, you do not need perfect credit to get a loan. Users can pre-qualify for their loan online in just minutes.