Mastering Performance Management: Four Key Principles for New Managers

By Gerry Murray 

Managing performance isn’t just about giving feedback and conducting reviews — it’s about creating an environment where your team can consistently deliver their best work. The research is clear: the manager affects three key aspects of an employee’s life at work — performance, discretionary effort, and retention. Simply put, good managers = good jobs; bad managers = bad jobs. 

To be a good team leader, aim to provide a combination of challenge and support. The trick is to apply these four basic principles of effective performance management: 

1.   Align behaviour. 
2.   Time and influence. 
3.   Motivational assumptions. 
4.   Consistent accountability.  

How Do You Align Behavior with Organizational Goals? 

The first principle of performance management is ensuring that your team’s behaviour aligns with the company’s broader objectives. When employees know how their work contributes to the organisation’s success, they are more focused and motivated. 

•   Set Clear, SMART Goals: Ensure that every team member has goals that are Specific, Measurable, Achievable, Relevant, and Time-bound (SMART). These goals should directly connect to the company’s mission, helping employees understand the impact of their contributions. 
•   Tie Performance to Business Outcomes: Employees must see how their work fits into the bigger picture and that it matters. For example, if your team is in operations, show how faster processing can improve customer satisfaction and overall business growth. 
•   Communicate Regularly: Continuous communication helps ensure alignment. Regular one-on-ones, check-ins, and team meetings keep your team’s efforts focused on the right goals.  

By aligning behaviour with your organisation’s goals, you ensure that everyone understands how their daily work drives company success. 

How Do Time and Influence Play a Role in Performance Management? 

The second principle of performance management is recognising how you spend your time and influence your team. As a manager, your time is one of your most valuable resources, and how you allocate it can significantly impact performance.  

•   Focus on Where You Have Influence: Prioritise spending time with employees who will benefit most from your guidance. These aren’t always the highest or lowest performers. Often, your middle performers can benefit greatly from your time and can rise to higher levels of performance with the right coaching. 
•   Delegate to Develop: Instead of taking on every task yourself, use delegation to develop your team’s skills and confidence. This not only frees up your time but also increases your influence by empowering others.  

The time and influence you invest in your team have a direct impact on their growth and the overall performance of the group. 

What Motivational Assumptions Should You Be Making?

The third principle involves shifting your assumptions about employee motivation. Effective supervisors and managers turn the myth of employee motivation on its head. They don’t operate from the premise that “happy employees are productive employees.” Instead, they work from a mindset that productive employees are happy employees.  

•   Focus on Productivity First: Employees don’t need bribes or perks to stay motivated. What they need is a sense of accomplishment and contribution. They need to feel that what they do matters. When employees see the results of their hard work, their morale naturally improves. Morale is a by-product of success, contribution, and productivity, not the other way around. 
•   Encourage Skill Development: Giving employees opportunities to grow and develop their skills creates a deeper sense of engagement and achievement. When they feel their work matters, they become more productive and successful, and they’ll also feel happier in their roles. 

Rather than focusing on “making employees happy,” concentrate on fostering productivity, because productive employees are happy employees. 

How Can You Maintain Consistent Accountability Without Micromanaging? 

The final principle of performance management is consistent accountability. Employees need to be held accountable for their responsibilities, but that doesn’t mean you have to micromanage them.  

•   Track Progress Consistently: Use tools like performance dashboards or project management software to track your team’s progress. This ensures transparency and accountability without the need for constant check-ins. 
•   Conduct Regular Reviews: Regular performance reviews allow you to assess progress and provide feedback. These don’t have to be formal — they can be quick, informal reviews that help keep everyone on track. 
•   Address Underperformance Immediately: When someone isn’t meeting expectations, address it promptly using structured feedback models like DESC (Describe, Explain, State, Consequences). Consistent accountability reinforces the idea that everyone is responsible for contributing to the team’s success.  

By maintaining accountability in a structured yet balanced way, you allow your team to operate independently while still meeting their goals.

Master the Essentials 

The four key principles of effective performance management are: align behaviour, use time and influence wisely, understand motivational assumptions, and maintain consistent accountability. 

•   Good managers = good jobs; bad managers = bad jobs. By applying these principles, you create a high-performance team. 
•   Focus on productivity first, because productive employees are happy employees. Create an environment where success drives morale, not the other way around. 

This article is adapted from our Team Leader Essentials program. To learn more about this program, download our brochure or book a short call. 

Next Article: Mastering Performance Reviews: How to Provide Clear and Constructive Feedback 

Teaser: Performance reviews are a crucial tool for managing your team’s growth. In our next article, we’ll cover how to deliver feedback that drives improvement and supports development.