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Teaching about a successful performance management system is the job of Human Resources.  HR provides the training and the insights on how to effectively implement a performance management system.

Where the rubber meets the road is with management. HR trains up the management to lead in a performance management system, but it’s the management that is called up on to lead, develop and bring out the potential of the employees that they lead.  A part of the training is to figure out how to motivate employees and create a performance based culture. 

Performance is the true test for culture, and for a company’s success within its marketplace.  When management understands the need to cultivate employees and reward them for success it can begin to create sustainable growth. 

Basic psychology (such as through Maslow’s hierarchy of needs) tells us that people have different forms of motivation.  Once those motivations are discovered, managers need to understand how to encourage certain behavior through these motivations.  Once encouraged via a performance based incentive program, employees will feel like they are needed and that their work is being recognized and not just lumped into a big pile.

The biggest thing about a performance based management system:  finding the rewards that people will respond too.  It’s not always money that makes people work hard. Sometimes it’s recognition.  Sometimes it’s paid time off.  In our company, PeopleG2, we utilize a Green Flag, which is an internal recognition symbol that someone has done a great job on a project.

It’s important that HR take the lead in creating this performance based management system and that the culture begins to reflect this program. When incentives are present, it can create a desire to work hard towards achieving a particular goal, which will only enhance the overall success of the company within it’s marketplace.