Part 2: The Employee-Management-Organisation Triad and the Basis of Balance: why is the Performance Control System important?

Part 2: The Employee-Management-Organisation Triad and the Basis of Balance: why is the Performance Control System important?

In the first section I mentioned that the effectiveness of the cooperation between employees, managers and the organisation is largely determined by the systems and processes in place. A well-established performance control system not only makes work transparent, but also facilitates decision-making and the management of responsibilities.

In this post, we’ll show why such a system is vital and how it can help align employees, managers and the organisation.

What is a performance control system?

The performance control system is a comprehensive framework based on the following elements:

1. Clarify roles and responsibilities: all employees and managers need to know exactly what their role is in achieving the organisation’s goals.
2. Structured meetings: regular meetings to facilitate communication, monitor progress and evaluate results.
3. Ensuring information flows: fast and accurate information exchange within the organisation so that everyone can make the right decisions.
4. Metrics and benchmarking: clearly defined targets and indicators that allow for objective assessment of progress and results.

Why is this system important?

1. Keeping employees motivated
When employees know exactly what they are doing and get feedback on their results, it increases their engagement. In addition, clearly defined responsibilities reduce stress and conflict.

2. Making the work of managers easier
A good system helps managers to focus on strategic tasks and not waste time coordinating small details. A clear structure supports effective decision-making and team management.

3. Increasing organisational efficiency
Transparent processes and measurable goals ensure that the organisation can adapt quickly to a changing environment, while strengthening collaboration at all levels.

How to build your own performance control systemed?

1. Setting clear objectives: break down organisational objectives into teams and individuals.
2. Establish communication channels: make sure that information flows freely.
3. Introduce metrics and assessments: regularly analyse results and provide feedback.
4. Provide opportunities for development: ensure that staff and managers have continuous development opportunities.

Concluding thoughts

An effective performance control system is one of the most important tools for employees, managers and the organisation to work together. It not only facilitates work, but also creates a stable, transparent environment where everyone knows their role and how they can contribute to the collective success.

It is the harmony of the three – the motivation of employees, the leadership of managers and the functioning of the organisation’s systems – that together determine how effective and sustainable the organisation will be. It is therefore important to see these systems not just as technical tools but as an integral part of the organisational culture.

Attila Jezsó

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