Business success is built on strong individual and team performance. Performance Management can be practiced in different ways. The traditional method was for the “Boss to appraise the “subordinate”. Many organisations have found the traditional approach very stifling. Instead, Performance Management begins with joint Performance Planning, where the team leader and the team member plan together to achieve the results expected at the corporate level.
This leads to Performance Contracting where the team member agrees to a set of objectives and standards of performance which is supported by the Team Leader.
In this mode of operation, the agreement process is a continuous monitoring of results against the set targets by both the Team leader and Team member. Issues and obstacles to achievement are jointly managed.
Guiding Principles for Performance Management
Individuals will work more effectively and with greater motivation:-
- If they are aware of the organisation’s mission and it’s strategic plans and can see how they contribute to achieving the mission and executing the plans.
- If they know what is expected of them
- If they are involved in establishing the objectives they are required to achieve
- If they are given challenging and attainable goals
- If they understand how their performance is measured
- If they are fairly rewarded for their achievement.
Objective of Performance Management
The major objective of performance management is to achieve the corporate plan objectives and standards set.
The sub objectives of the Performance Management Process are to provide: –
- Clear understanding of results, measurement criteria, objectives and performance levels expected of the jobs
- Accurate, objective and timely feedback to staff members to maximise employee performance.
- Effective and candid performance appraisal for all staff members.
- Personal development planning to promote performance improvement.
- A fair basis for other personnel decisions on matters such as compensation, promotion, training and development.
- A process that reinforces continuous improvement, teamwork and motivation.
Performance Management is a systematic process that is made up of the following major interrelated components that feed into each other:
Performance Planning and Contracting (Balanced Scorecard approach), involving:
- Understanding of the organisation’s vision, mission and its underlying guiding beliefs and values
- Determination of goals set, objectives, tasks, and performance standards
- Development of performance plans (feeds into Performance Development below)
- Discussion and agreement on task schedules and output standards
- Review of targeted financial results
Performance Development, involving the following:
- Development of performance plans
- Discussion and agreement on roles for coaching, counseling and mentoring
- Seeking coaching and providing feedback on performance
- Monitoring of results (feeds into Performance Appraisal and Recognition below)
Performance Appraisal and Recognition, involving the following: –
- Monitoring of results
- Evaluation of results
- Discussion of appraisal decisions
- Discussion and agreement on task schedules and output standards (feeds back into Performance Planning and Contracting above)