Managing Employee Performance

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What is Performance Management?

“Per­for­mance man­age­ment is the continuous process of improv­ing per­for­mance by set­ting indi­vid­ual and team goals which are aligned to the strate­gic goals of the organ­i­sa­tion, plan­ning per­for­mance to achieve the goals, review­ing and assess­ing progress, and devel­op­ing the knowl­edge, skills and abil­i­ties of peo­ple.”

 

The Performance Management Cycle




1.     Plan


    Plan­ning should involve:

  1. Agree­ing on SMART objec­tives
  • Specific, clear and understandable.
  • Measurable, verifiable and results-oriented.
  • Attainable, yet sufficiently challenging.
  • Relevant to the mission of the department or organization.
  • Time-bound with a schedule and specific milestones.
    2. Actions to be tak­en in the com­ing months
    3. A Review of the employee’s job require­ments, updat­ing the role pro­file where necessary.


    Act & Track


“Act” and​“Track” stages are the most impor­tant points in this cycle. These stages are where per­for­mance and results are actually achieved. Employees need to be encour­aged to sched­ule in reg­u­lar time to work on achiev­ing their tasks and per­son­al devel­op­ment plans. Also man­agers need to check­ in with their staff continuously. They must give continuous, effec­tive feed­back and coach to help their followers to over­come chal­lenges and iden­ti­fy oppor­tu­ni­ties for learn­ing and per­for­mance improve­ment. If this is left until an end-of-year review, it is too late — objec­tives and devel­op­ment plans may end up only par­tial­ly achieved.


    Review


Performance review is the process of evaluating an employee's progress toward goals. Strengths and weaknesses of all employees are recorded in order to be informed and take accurate decisions regarding an employee's contribution, career development, training needs, promotional opportunities, pay increases etc. Performance review and evaluation involve the objective and subjective consideration of how to measure and evaluate employee performance results.


Effective performance review process includes:

  • A feedback process that is continuous and timely throughout the review period so that employees know how they are doing and what is expected.
  • A dialogue that includes performance feedback measured against clear and specific goals and expectations established at the outset of the performance management cycle.
  • A process for acknowledging the outcomes of the performance review process that is documented between the manager and the employee.
  • A two-way individual conversation between the manager and the employee (preferably face-to-face) at least once a year.

Common types of performance review systems

  1. Ranking. Ranking systems list all employees in a designated group from highest to lowest in order of performance.
  2. Forced distribution. The ratings of employees in a particular group are disbursed along a bell curve, with the supervisor allocating a certain percentage of the ratings within the group to each performance level on the scale.
  3. 360-degree feedback. This process collects information from the employee's supervisor, colleagues and subordinates about an individual's work-related behavior and its impact. Other names for this approach include multirater feedback, multisource feedback or group review.
  4. Competency-based. This type of system focuses on performance as measured against specified competencies (as opposed to specific tasks or behaviors) that are identified for each position.
  5. Management by objectives. Management by objectives (MBO) is a process through which goals are set collaboratively for the organization, various departments and each individual member. Employees are evaluated annually based on how well they have achieved the results specified by the goals. MBO is particularly applicable to nonroutine jobs, such as those of managers, project leaders and individual contributors.
  6. Graphic rating scales. Graphic rating scale (GRS) appraisals list several factors, including general behaviors and characteristics (e.g., attendance, dependability, quality of work, quantity of work and relationships with people) on which a supervisor rates an employee.

 

    Common Performance Rating Errors

    Regardless of the review system used, a variety of common rater errors exist. HR should        take the lead to train managers on recognizing and ameliorating their effect on the system.     Common errors include:

  • Lack of differentiation.
  • Recency effect.
  • Halo/horns effect.
  • Personal bias/favoritism
  • Inaccurate information/preparation.


References

    

    1.Clear Review (2020). What is an Effective Performance Management System[online]. Available at https://www.clearreview.com/resources/guides/what-is-effective-performance-management/. Accessed on 17th July 2020.

 2.SHRM (2020). Managing Employee Performance [online]. Available at https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingemployeeperformance.aspx. Accessed on 17th July 2020.

 3.UC Berkeley (2020). Performance Management [online]. Available at https://hr.berkeley.edu/hr-network/central-guide-managing-hr/managing-hr/managing-successfully/performance-management/concepts. Accessed on 17th July 2020.

 


Comments

  1. Buddima BandaraJuly 17, 2020 at 9:52 AM

    What are the modern criteria to improve the employee performance.

    ReplyDelete
  2. Eranga PrabhashanaJuly 18, 2020 at 9:22 AM

    Hi Hasangani,
    What is your opinion about current performance evaluation system ?

    ReplyDelete
  3. Ajith NishanthaJuly 18, 2020 at 1:22 PM

    Do you agree with the performance appraisal system of your company? Is it appraising the real performers ?

    ReplyDelete
  4. Sajitha EkanayakeJuly 19, 2020 at 2:59 AM

    Hi Hasa, how is the current performance evaluation system in your work place, do you happy with it?

    ReplyDelete

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