Performance Management for Small Businesses

Of the 22 million small businesses in the United ·states, more than one-third cease operation annually - most within five years of opening. Many failures are attributed to location and product, but there are other contributing variables. Employers frequently neglect to address the connection between the company\u27s strategic goals and the employees\u27 human goals. Owners rarely communicate the company\u27s strategy when that knowledge would provide employees with concrete reason to be productive. Business success is directly connected to the productivity of its workforce and workforce productivity is directly connected to employee satisfaction. Performance Management is a process of aligning corporate goals with employees\u27 human goals. It involves goal setting, performance appraisal, and reward systems. This specific concept of performance management takes into consideration the time and resource constraints that often prevent small businesses from aligning corporate goals with employees\u27 human goals, thus supporting organizational success