Performance Management is NOT an Annual Appraisal
Performance management begins when a job is defined and ends when an employee leaves the company. Performance management should be an ongoing process that involves providing regular feedback to employees, not something that happens just on one occasion. These steps will help you to build an effective performance management process:
Develop clear job descriptions
Creating a clear job description is the first step in selecting the right person for the job and setting that person up to succeed. Job descriptions provide a framework so applicants and new employees understand the expectations for the position.
Select appropriate people using an appropriate selection process
People have different skills and interests. Jobs have different requirements. Selection is the process of matching the skills and interests of a person to the requirements of a job. Finding a good job ‘fit’ is exceptionally important. Include input from potential co-workers and the person to whom the position will report in your selection process.
Negotiate requirements and accomplishment-based performance standards, outcomes, and measures
In his long-lasting book Why Employees Don’t Do What They’re Supposed to Do and What to Do About It, Ferdinand F. Fournies states that the first reason people sometimes fail to meet your expectations is that they (employees) don’t know what they’re supposed to do. It’s important that you set clear expectations for all new recruits right at the outset of their employment.
Provide effective orientation, education, and training
Before anyone can do the best job, they must have the information necessary to perform. This includes job-related, position-related, and company-related information, an understanding of product and process use and requirements and complete knowledge about customer needs and requirements.
Provide ongoing coaching and feedback
People need ongoing, consistent feedback that addresses both their strengths and the weaker areas of their performance. Effective feedback focuses more intensely on helping people build on their strengths. Feedback is a two-way process that encourages the employee to seek help. Feedback is usually more effective when requested. Create a work environment in which people feel comfortable asking, ‘How do you think I’m doing?’ 360 degree feedback can be a valuable performance management tool that helps people understand how their behaviour affects and is viewed by the people around them.
Conduct regular performance development discussions
If supervisors are giving employees frequent feedback and coaching, performance reviews can change from negative, evaluative, one-sided presentations to positive, constructive meetings. 360 feedback, which includes feedback from a range of peers, co-workers and supervisors, can help to make these performance management discussions even more effective.
Design effective compensation and recognition systems that reward people for their contributions
The power of an effective compensation system is frequently overlooked and downplayed. It is often not so much about the money as it is about the message any reward or recognition sends to an individual about their value. Money has become a metaphor for value. Take the time to understand what really motivates your workforce and design your compensation system accordingly.
Provide promotional/career development opportunities for staff
Supervisors play a key role in helping staff develop their potential. Growth goals, cross-training, changing and challenging job assignments and responsibilities can all contribute to the development of a more effective staff member.
Use exit interviews to understand WHY valued employees leave the organisation
When a valued person leaves the company, make an effort to understand why the person is leaving. This feedback will help the company improve its work environment which will help to retain staff in the longer run.
Healthy organisations use performance management processes to ensure the best possible organisation performance. 360 degree feedback can contribute greatly to this process.
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