Prerequisites of effective performance management are as follows:
1. Clarity of Organisational Goals: Managers need to clearly and precisely lay-down the organizational goals and objectives and ensure that these are well-informed to the managees and other employees and make them realize what the organization expects from them. The organizational goals need to be translated into individual, team, and departmental/divisional goals.
2. Evaluation: Individual, team, department/divisional performance need to be evaluated on a continuous basis. The organization should develop an evaluation system and process, which is designed and developed on scientific lines.
3. Cooperation but Not Control: Managers should nurture the practice of getting work done through the system of obtaining managees’ consensus rather than through control or coercion.
4. Self-Management Teams: Management needs to encourage the individual and teams for self-management of their performance.
This procedure creates in the managees a sense of responsibility and develops a spirit to work with commitment and evaluate his/her strengths and weaknesses from time-to-time and plan for reducing the performance gaps.
5. Leadership Development: Managers need to identify such managees who have leadership potential apart from sincerity and honesty to ensure better and effective two-way communication between the managers and the managees.
6. System of Feedback: Organisation must have a foolproof feedback system of managees/ individuals/ teams/departments’ performance. It should be monitored continuously and generate feedback loops for better performance management.