by Mark Ritchie
Oct 18, 2019


People are your most valuable asset, and make the difference when it comes to the success of your business. Therefore, the challenge for managers and supervisors is, how can we get the best out of our people?

Put simply, effective performance management systems make the difference! But what do these systems look like? And how can be they be enforced, maintained, and amended? Unfortunately, the answer is not as simple.

What is ‘performance management’?

Performance management fundamentally involves recognising any obstacles in the path to good employee performance. It requires you to identify the organisational practices that contribute to these obstacles, and to develop strategies on how to eliminate them.

Performance management involves a series of processes designed to influence employee behaviour to support business outcomes and recognise individual needs. Key elements of performance management strategies might include:

  1. Planning – clearly defining individual roles and responsibilities of employees, and regularly discussing measurable expectations and goals.
  2. Coaching – supervising employees, and reinforcing or re-directing their efforts through recognition and feedback
  3. Evaluating – assessing employee performance against established criteria.
  4. Rewarding – recognising effort, and rewarding individual employee contribution and achievement.

What does an effective performance management system look like?

Performance management systems can take various forms; and are often redesigned, re-launched and abandoned on numerous occasions within an organisation. 

An understanding of the relevant components of performance management (and their importance) will help to successfully use performance management as an effective business tool, an example of which is as follows:

Essentially, the key to a valuable performance management system is to ensure all staff commit to the system, as opposed to merely comply with isolated conditions and protocols.

Benefits of effective performance management

Managers Employees
Can achieve business goals through the effective use of their employees Know exactly what is expected of them, in line with ‘big picture’ business goals
Have tools for effective communication with employees, particularly when dealing with poor performance Regular feedback helps identify opportunities for improvement, development and career planning
Helps develop effective leadership skills and performance Improves job satisfaction and motivation for productive outcomes

Need specialised help?

Workplace Wizards assists employers to proactively institute performance management strategies, or can help organisations who are managing poor performance or defending dismissal-related claims. Our experts provide practical and easy to follow advice and support as well as confident and experienced representation at hearings before the Fair Work Commission.

Managing an employee out of your business or defending litigation can be costly as well as resource intensive. Workplace Wizards can protect your business interests whilst saving you tens of thousands of dollars and hours in time. For specialised assistance, contact Mark Ritchie on 0458 644 469 or email   


Mark Ritchie

Managing Director / Principal Consultant

Mark is passionate about helping Australian businesses efficiently resolve their industrial relations issues. Mark has demonstrated proficiency advising managers, executives and boards of small to medium-sized enterprises, as well as some of Australia’s best-known companies, on both litigious and non-litigious matters.

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