Hi there, thanks for joining us again on our blog series about performance management. Performance management is often described as the Achilles’ heel of employee management. It can also be the most difficult and time-consuming system to incorporate into an organization. Today we are going to simplify the process and debunk the confusion around performance management to give you a five-step process for implementing a successful system into your organization.
Expert and author on performance management, Dr. Elaine Pulokus (2004) defined effective practices for each of the following five processes for performance management. These five processes will take you from the start to the finish of a performance management system.
Process One: Performance Planning
Getting a performance management system up and running starts with proper planning. An organization needs to ensure they have defined performance goals set in place before a performance period — that is, either after a performance appraisal or at the start of a new position.
In the planning phases, we need to guarantee that the goals are aligned with organizational goals. Once these goals are finalized they can be communicated directly to the employee.
One tip for creating goals is to include no more than three challenging, but attainable, goals. Defining three goals as the main focus is enough for employees to work toward. More than three challenging goals can be overwhelming and stressful. Although some positions will be an exception, try to remain fair and review the responsibilities of the position carefully before creating an employee’s goals.
The manager’s role is to encourage employees and ensure that they are provided with the resources and help needed to overcome any obstacles in the period of a performance review.
Process Two: Ongoing Feedback
Once the performance period has started, this is the time for organizations to provide ongoing support and monitoring to keep employees on the right track. Managers should be available to provide regular feedback about the behaviors and results discussed in the planning phase. To be effective, managers should provide candid feedback, focusing on behaviors rather than traits, along with productive discussions on how to improve. For further effectiveness, these conversations should take place routinely and informally through follow-up meetings. Employees should be encouraged to seek feedback and bring up any issues that arise during the performance period.
Process Three: Employee Input
As the performance period is coming to an end and prior to the formal performance appraisal process, ask employees for their input and their experience, achievements, and thoughts on their performance. These can be considered in the evaluation process. Good performance management is a joint collaboration between employees and the organization — including employees in the process will increase their participation, as well as their understanding of their importance and influence in the organization.
Process Four: Performance Evaluation
Conducting the performance evaluation is the key to the whole performance management process and should be allowed ample time and resources to be completed. The actual employee evaluation measure should focus on five to ten behavioral dimensions (or whatever appropriate number of dimensions, depending on the position).
Behavioral dimensions should follow this structure:
- Be related to organizational goals.
- Be derived from a review of the competencies needed to perform the specific job.
- If the competencies needed are unknown or unclear, you can conduct a job analysis.
- A job analysis involves systematically gathering information about the job through reviewing job descriptions, interviewing employees, observing employees doing the job and other methods.
Once the behavior dimensions to be included in the performance evaluation are established, performance criteria can be determined.
For example, in a customer service position, the competency of handling customer complaints may be evaluated on a scale, such as: 1 (exceeds expectations), 2 (meets expectations), and 3 (below expectations).
Descriptions of the specific behaviors associated with each of these would be provided to the manager rating the employees — meaning each level of performance should be clearly defined. While creating the performance criteria can be difficult, it’s important to focus on the results, whether the employees succeeded in delivering the bottom-line, and also how the employee performed to deliver this bottom-line.
Process Five: Performance Review
The last stage of the performance management process is where most of the hard work that has gone into the performance period can be seen and understood. During the performance review, results of the performance appraisal are discussed, and the manager and employee make plans for improvement through developmental strategies. Managers discuss the ratings with the employees, giving specific feedback regarding the rationale behind the ratings.
To facilitate development and increase employee performance, managers can use “Developmental Handbooks.” These handbooks consider each competency that is covered in the performance appraisal process. For each competency specific, developmental activities are described. These include formal training programs available to employees, books, websites, as well as on-the-job and other developmental activities that will help them to improve in that competency.
Finally, managers should not discuss consequences of the performance appraisal associated with compensation at this meeting. This meeting is solely for the purpose of review and discussing the employee’s performance and steps for future development. Instead, allocate a separate meeting to discuss any implications for pay, promotion, or other consequences.
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