Quick Guide to Employee Performance Management
Managing Performance through Planning, Appraisal and Development
Jan 23, 2009
Performance management is essential to business success and any employee performance management system will be based on a plan-do-review cycle like: setting objectives and planning the work, monitoring the employee performance against those objectives and developing their capacity to perform as needed, periodic performance evaluation and timely recognition or reward.
Performance Objectives and Performance Planning
Managing employee performance starts with setting clear and agreed performance objectives, which should clearly relate to business strategy and objectives. Tools such as the Balanced Scorecard are useful in helping strategy execution, linking objectives to operational performance. The employee performance objectives should be SMART objectives:
- Specific - clearly and well-defined objectives and tasks, including what support may be needed to achieve the objective, what quality and standards must be applied and how progress is reported
- Measurable - establishing success criteria for the objective by performance measures either process or result or both
- Achievable - ensuring that achieving the objective is possible, especially as it relates to individual employee performance or requiring team-work. Consideration of this may identify possible employee development objectives that need to be completed for the SMART objective to be achievable
- Results-oriented - some tangible outcome, deliverable or benefit is identified that may relate to the performance measures for result
- Time-bound - achieving the objectives in an agreed timescale as part of a plan
Managing Performance
Managing performance continues with monitoring progress against SMART objectives and any interim objectives. That monitoring can range from formal reporting mechanisms such as periodic written reports or via informal discussion. In practice it may be through a combination of mechanisms suited to circumstance and people's need for information. Part of the monitoring should include providing feedback, guidance or support as needed or appropriate.
Performance Evaluation
Performance evaluation is a continuous process that is assessing progress against performance objectives and potentially identifying employment development needs. Periodically this will be done as a formal performance appraisal, which will require line management feedback as well as 360-degree feedback (customers, colleagues, team members...). This is normally a written record that is both an objective assessment of performance and identifies areas of performance improvement or development opportunities for career progress or increased satisfaction and challenge. Ideally, the performance appraisal is linked to the recognition and reward system and sustained, excellent performance is rewarded appropriately.
Effective Performance Management
Effective performance management will include a plan-do-review cycle that is positively engaged in by the participants. Consequently, it is important when managing performance that the system is seen as objective, fair and transparent. Used well, an effective performance management system will be seen by management as an effective tool for business performance management, and by employees as a way to demonstrate superior performance and achieve personal career objectives. For more information see US Office of Personnel Management or Chartered Institute of Personnel and Development.
 |
 |
 |
 |
 |
