We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Business

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Performance Improvement?

Jessica Ellis
By
Updated: May 17, 2024
Views: 5,948
Share

Few businesses ever reach a point where efficiency is completely maximized; in order to continually reach toward new goals, many businesses use a continually evolving process known as performance improvement. There are many different kinds of performance improvement programs, but most share a basic cyclical framework.

There are several basic steps involved in a performance improvement program. First, current performance levels must be analyzed through a period of close monitoring. Next, reasonable performance goals are set. Analysis of current performance is examined to determine areas where there are gaps and hold-ups that keep performance from reaching desired level, and strategies are worked out to reduce or remove these options. Once performance improvement strategies are integrated into the daily work plan, the process of monitoring begins again.

Performance improvement may be done on varying schedules; some companies opt for quarterly or trimester reviews, with small changes being made after each review period and larger changes being implemented on an annual basis. Other businesses may have an ongoing performance review and improvement program, one that is sometimes handled by an entire department. Large companies may need the most intensive performance improvement programs, since performance variables will mount as more people and larger operations are added to the equations.

The use of performance improvement techniques can benefit all areas of a business. Improving the efficiency, reputation, and scope of a business requires that all elements of the company work together fluidly. This interdependence can be a wonderful thing when managed correctly, but also means that what seems like an isolated problem in office supplies or employee communications can manage to gum up the works of the entire enterprise. Many performance improvement theories suggest breaking down the workplace into categories, such as employees, supply chain, demand chain, and job training, to help isolate performance issues with greater ease.

A continually functioning improvement system can benefit the workplace in a variety of ways. By improving external issues, such as customer satisfaction, financial performance, and business reputation, internal issues such as worker morale can be positively affected. This can create a positive cycle of work and evolution, as motivated and happy employees are more likely to contribute more, work harder, and participate in improvement programs. By creating an improvement program that visibly rewards success and actively encourages the input and help of employees at all levels, a business may be able to create a positive environment in which improvement goals are welcomed and heartily integrated.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jessica Ellis
By Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis brings a unique perspective to her work as a writer for WiseGeek. While passionate about drama and film, Jessica enjoys learning and writing about a wide range of topics, creating content that is both informative and engaging for readers.

Editors' Picks

Discussion Comments
By fBoyle — On May 28, 2013

fify-- All aspects of performance reviewed, employee performance and organizational performance go hand in hand.

It's also through the employees that a workplace identifies any problems in the work chain.

By turquoise — On May 27, 2013

@fify-- Businesses review all aspects of production periodically to see if things are running as they should. But the most commonly done review is the employee performance review or evaluation.

This is when an employee's performance is compared to the performance of other employees. The evaluation is usually done in the form of a questionnaire. The business then uses the results to develop a performance improvement plan. This review is also a good way to clarify individual and organizational goals. Unclear goals are a major reason for poor performance in businesses.

By fify — On May 26, 2013

Are performance reviews just done for employees or is it done for other aspects of a business as well?

Jessica Ellis
Jessica Ellis
With a B.A. in theater from UCLA and a graduate degree in screenwriting from the American Film Institute, Jessica Ellis...
Learn more
Share
https://www.wisegeek.net/what-is-performance-improvement.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.