Culture and performance

People are the most important part of your business

First published on Thursday, June 4, 2020

Last updated on Friday, August 16, 2024

It’s about evolving your organization’s way of working and helping employees reach their potential.

If you think that sounds difficult, you’re correct. Research shows most change initiatives fail, making effective culture and performance management even more valuable.

“Your performance depends on your people. Select the best, train them and back them.” — Donald Rumsfeld, former US Secretary of Defence.

It’s also vital to the long-term health of your business. Organizations exist in a state of flux, operating in a constantly changing world. So even if you’re on top today, you’ll need to manage culture and performance well to ensure your performance is sustainable.

Performance management

Performance management is a holistic process that brings together people management, learning and development, performance measurement and organizational development. That can make it difficult to pin down, but CIPD academics define it as:

“A process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance.” — Armstrong and Baron, CIPD 2004

More tangible are the tools of performance management, which can be used to improve visible short-term metrics.

Our HR software allows you to make insights in your employees’ performance.

Tools of performance management

  • Performance appraisal — The most visible method of managing performance and appraisals usually relies on employee-line manager meetings to define and review objectives and progress. Many organizations conduct performance appraisals annually.
  • 360-degree feedback — An appraisal method that utilizes a wide range of performance data sources, including the employee’s colleagues, customers and line manager.
  • Pay — Benefits of this common approach are that it incentivizes good performance, and links the organization’s wage bill to revenue. Possible negative effects include increased focus on short-term results, which can undermine the organization’s wider aims.
  • Training — Learning and development has a big role to play in performance improvement. Use of personal development plans (PDPs) enable managers to set targets that meet organizational needs.
  • Objectives and standards — Performance objectives and standards can give employees visible targets to aim for and a clearer understanding of what’s expected from them.

Changing organizational culture

Guiding your organization’s long-term success requires a different approach: managing culture, or organizational development.

“[Culture is] a pattern of shared basic assumptions that the group learned...that has worked well enough to be considered valid and therefore, to be taught to new members as the correct way.” — Edgar Schein, MIT management professor.

Culture develops naturally and affects every aspect of how your organization operates. But its direction can also be influenced. Ensuring your culture fits your future needs is vital to sustaining success.

Effective change management

Changing culture is also a major undertaking. The following is just a brief glimpse of the practices that can make change management effective.

  • A well-designed transformation — Successful transformations align their culture-change goals with business strategy. They’re presented in a context that employees can get on board with, thereby removing the obstacle of resistance to change.
  • Building understanding — When employees understand how change will happen and the positives it will bring, the abstract idea of ‘culture’ becomes more meaningful. Use of stories, conversations, pictures and symbols can help to engage individuals.
  • Managing the transformation — Culture is rarely changed through force of authority.

Through negotiation and engagement with employees, you can build trust and understanding that overcomes resistance to change.

More about culture and performance management

For detailed answers to your culture and performance management issues, use our resources below. BrightBase brings you up-to-date compliance guides, opinions from leading HR professionals and lots more essential reading.

Frequently Asked Questions about Culture & Performance

Our clients ask loads of questions about culture and performance, so we’ve answered some of the most common ones below.

Not found an answer to your question? BrightHR Lightning gives you the answer to thousands of employment questions in seconds.

Why is Performance Management Important?

Performance management helps employees and employers to track their progress; and assist with the completion of work.

It’s important for engaging employees with their work. Helping them to see the bigger picture; and see the impact of what they do. This helps to boost happiness and staff retention.

What are Human Resource Management Practices?

Human resource management practices are policies that HR teams must complete. These practices can include staffing, development, people management, and payroll.

What are the three stages of workforce planning?

The three main stages of workforce planning are pre-hiring, training, and post-hiring. Pre-hiring is when you recruit for a role, including deciding on what you need from the role.

The training phrase is onboarding the new hires. And getting them acquainted with the work and team members.

Post-hiring refers to when the initial introduction has been completed, and the employee is fully integrated with their role.


Alan Price

CEO, BrightHR and Group Chief Operating Officer

Share this article

Have a question?

Ask away, we’ve got lightning fast answers for Canadian business owners and employers powered by qualified experts.


More on culture and performance

A employees enthusiastically applauds at work, showcasing high employee engagement.

How to increase employee engagement

A strong workforce is the greatest asset at any company’s disposal, but a successful recruitment dive is only half of the battle. If you truly wish to unlock the full potential of your staff, and business, embracing employee engagement strategies could be the secret to your success. ...

Read more about How to increase employee engagement

Whistleblowing

Whistleblowing can happen in any workplace. It may not happen often with small businesses, and as an employer, you may think your business isnt at risk of having a whistleblower. But its still important to know what it is and what to do if an employee ever decides to engage in whistleblowing against your business. What is a whistleblower? A ...

Read more about Whistleblowing
Staff member giving a team meeting with a list of core values

Core Values in Business

Core values In an increasingly competitive market, your businesss core values are vital to its success and longevity. A businesss core values are the main beliefs, priorities, and rules guiding its work. They act as a compass, steering it through challenging times and helping it stand out. What are core values? Core values shape the companys ...

Read more about Core Values in Business

Change management

While change can be challenging, its necessary for growth in todays fast-paced business environment. To stay on top of new technological developments, the economy, laws and regulations, businesses must be willing to change and ...

Read more about Change management

Employee engagement survey

Engaged employees are more productive and provide value to your workforce. The more productive your workforce, the more successful your business will ...

Read more about Employee engagement survey
Man with his head in his hands.

Unfair Treatment at Work

Treating someone in your workforce unfairly can lead to sever consequences. It is your duty to maintain a healthy and safe work environment for everyone. That’s why you must address unfair treatment at work amongst coworkers. Employees being treated unfairly can result in harassment complaints or even discrimination lawsuits. Additionally, you ...

Read more about Unfair Treatment at Work
Group of employees celebrating achievements

Employee recognition

Employee recognition can help you with employee retention, reduce turnover and improve your workplace ...

Read more about Employee recognition

Why use an tracking hours app to track hours worked

Keeping track of time can elude the best of us. Whether your team is working from home or they’re back in the office, its difficult to stay on top of your team members’ ...

Read more about Why use an tracking hours app to track hours worked