Is there a difference between normal performance management and performance management for executives?

Simangele Mzizi, Fsp Business, 07 Jul. 2014

Tags: difference between normal performance management and performance management for executives, performance management, managing performance, performance management for executives

The word “performance management” is thrown around a lot in the workplace. But what does it really mean?

The Practical Guide to Human Resources Management defines performance management as the process of setting performance objectives and standards and the continuous measurement and management of these goals, with the aim of continuously improving the performance of the organisation.

Now that we’ve established what performance management is, let’s take a look at the difference between managing employees who aren’t executives and performance management for those who are.

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Here’s the difference between these two types of performance management

When we talk about normal performance management, we’re referring to the procedures you’d follow to address performance when it comes to employees who aren’t executives.

Some of these procedures include doing performance reviews, developing performance contracts and managing poor performance.

What you need to know is that performance management for executives isn’t different from normal performance management in its approach and processes, only the content of what you appraise is different.

This makes sense because what a junior employee does is different to what an executive does – their job descriptions differ hugely.

The Practical Guide to Human Resources Management says, in theory, the appraisals should occur less frequently for executives (for example, annually) compared to bi-annually or quarterly for the rest of the company.

The reason behind this is that the executive’s role is more strategic and regular assessments will be fruitless.

You must ensure that the system for executives is self-sustainable and takes up as little energy and time as possible.
Also note that in some – especially larger – companies, the performance reward of the executives and the rest of the organisation differs with regard to, for example, bonus and/or share performance incentive schemes.

It’s that simple.

Knowing the difference between managing employees who aren’t executives and performance management for executives will go a long way in helping you effectively manage performance in your company.

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