Importance of a Performance Development Plan (PDP)

 

Importance of a Performance Development Plan (PDP)

Without work performance and engagement, it’s difficult to achieve the strategic objectives of an organization. The performance of employees is crucial to the growth of an organization. Failure to improve the performance standards of an employee may lead to staff turnover or may not reaching their potentials.

Performance Management is the continuous process of improving performance of individuals by setting strategic and individual goals which are aligned with overall goals and objectives of an organization. Effective performance management system accelerates the career development of an employee. It’s a holistic process which includes the people management, learning and development, performance measurement and organizational development.

Therefore, the best way to achieve it by creating a performance development plan. These performance development plan help both Supervisor and Employee to understand what actionable steps are needed to achieve certain assigned tasks.

 

What is Performance Development Plan?

A Performance Development plan is a strategy which helps an employee reach their personal goals as well as overall work targets. Its included specify courses of action to be taken to improve the performance. These plans mainly focus on an employee’s strength, weakness, the areas to be developed, action plan to improve the weak areas and further develop areas of strengths. It can be created for every job role from entry level to Executive levels (eg; CEO, CFO). No matter what the job positions is, nature of the job, it creates a room for improvement. A plan can be developed for each of the performance dimension evaluated on the performance appraisal form.

Development plans focus on short term specific dimensions but also concentrate on knowledge and skills needed for career development in long run as well.

Performance management and development is all about helping to improve employee performance and productivity to achieve the organization objectives. Supervisors can create a performance development plan for an individual or for an entire team to support to achieve the business objectives.

The supervisor and the employee need to agree on the development plan, which will help to enrich the value of the employees.

 

These Performance Development Plans help to ensure following actions.

·         Setting goals and objectives for individuals and teams.

·         Create an action plan with timelines to help to reach professional goals.

·         Review the given actions regularly and provide continuous feedback for improvement.

·         Keeping development planning process updated.

·         To perform better in the future.

·         To overcome past performance problems.

·       Get a clear understanding of current performance level, what is the expected level in order to identify the gaps or to exceed the expectations.

·    To meet performance standards and include suggested actions to address each of the performance dimensions.

·         Identify the future opportunities and career advancement.

·       Provide opportunities to learn new skills and evidence will be gathered to know the new skill has indeed been acquired.

 

 

Why is Performance Development Planning Important?

The purpose of effective performance management systems is not only for an achievement of business objectives. But it should also focus to achieve individual goals and work expectations of employees. Therefore, development plans are important for an organization in order to increase the employee motivation and satisfaction.

However, the choice of what specific skills will be improved is influenced by the needs of the organization.

 

How to create Performance Development Planning

Identification of Key Goals: Set specific goals to individuals or team which suits to their need and level, which can be set to achieve short term and long-term objectives of the organization. However, supervisors should outline the set goals and highlight the reason behind the development plan.

Designing the Structure: The next should be designing the structure of the plan. It can be outlining one large goal with several objectives with specific timelines. Further, when designing a plan, it should be clear and transparent for everyone.

Review Periodically: Periodically review helps to guide and motivate staff on achievement on set goals on time, make aware of the gaps of current performance levels, provide feedback and also to identify any issues within the plan.

Encourage collaboration between teams:  Management need to focus on achieving overall business goals. Therefore, it’s best to encourage collaboration where staff can collectively strive towards team goals. By doing this, company can accelerate the productivity.

Provide Required Resources: It is required to provide required resources including training needs to achieve end result.

 Finally, it helps to increase the profitability of the organization, minimize the employee turnover and promote the career development of employees.

 

References

1.     BrightHR. (n.d.). Performance Development Plan. [online] Available at: https://www.brighthr.com/articles/culture-and-performance/performance-development-plan/ [Accessed 10 Dec. 2023].

2.     Everitt, J. (2020). How To Build a Performance Development Plan | Wrike. [online] Blog Wrike. Available at: https://www.wrike.com/blog/performance-development-plan-guide/#:~:text=Personal%20development%20planning%20encompasses%20the%20whole%20process%20of [Accessed 10 Dec. 2023]. 

3.     Personio. (2021). Performance Development Review (PDR): The Complete Guide. [online] Available at: https://www.personio.com/hr-lexicon/performance-development-review-pdr/ [Accessed 10 Dec. 2023].