The Main Objective of Performance Management
The main objective of performance management is to promote and improve employee effectiveness. It is a continuous process of setting objectives, assessing progress, and providing ongoing training and feedback to ensure that employees are meeting their objectives and career goals.
Components to Consider Before Implementation
1. Performance Planning
Performance planning is a crucial component of any performance management process, forming the basis of performance appraisals. It is conducted by both the appraisee and the reviewer at the beginning of a performance session. They decide on targets and key performance areas, finalized after mutual agreement between the reporting officer and the employee. Well-designed job descriptions are essential.
Things to follow during this process:
- Develop clear and well-designed job descriptions.
- Objectives and indicators need to be SMART:
- Specific: Specify clearly what is to be done, when it is to be done, who is to accomplish it, and how much is to be accomplished.
- Measurable: Ask questions such as: How much? How many? How will I know when it is accomplished?
- Attainable: Ensure there is a reasonable path to achievement and feasible odds that you will get there.
- Realistic: The objective should match the level of complexity with the employee's experience and capability.
- Time-bound: Be clear about the time frame in which performance objectives are to be achieved.
2. Performance Appraisal
Appraisals are typically performed twice a year in an organization, in the form of mid-reviews and annual reviews at the end of the financial year. In this process, the appraisee first offers self-filled ratings in the self-appraisal form and describes achievements over time in quantifiable terms. After the self-appraisal, final ratings are provided by the appraiser for the quantifiable and measurable achievements of the employee. The entire review process seeks active participation from both the employee and the appraiser to analyze performance gaps and how they can be overcome.
Things to follow during this process:
- Implement performance appraisal where individual performance is formally documented and feedback delivered.
- Be practical and easy to understand and use.
- Provide an accurate picture of each employee’s performance.
- Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager.
- Include both positive feedback for a job well done and constructive feedback when improvement is needed.
3. Feedback
Feedback and counseling are given significant importance in the performance management process. Here, the employee learns about areas for improvement and whether they are contributing at expected performance levels. The employee receives open and transparent feedback, and training and development needs are identified. The appraiser takes all possible steps to ensure that the employee meets expected outcomes through effective personal counseling, guidance, mentoring, and representation in training programs that develop competencies.
Things to follow during this process:
- Provide constructive and continuous feedback on performance.
- Feedback from peers and direct reports.
- Self-assessment.
- 360-degree feedback.
4. Rewarding Top Performers
This is very sensitive for an employee as it may directly influence self-esteem and achievement orientation, determining work motivation for public recognition of good performance.
Things to follow during this process:
- Awards like Employee of the Month/Year, GEM Award, Best Employee Award.
- Support administrative decision-making about promotions, terminations, compensation, and rewards.
- Performance bonuses, etc.
5. Performance Improvement Plans (Training)
The employee is clearly communicated about the areas in which improvement is expected, with a stipulated deadline for showing this improvement. This plan is jointly developed by the appraisee and the appraiser and is mutually approved.
Things to follow during this process:
- Comprehensive employee orientation and training.
- Identify areas of poor performance and establish plans for improvement.
- Support staff in achieving their work and career goals by identifying training needs and development opportunities.
6. Potential Appraisal
By implementing competency mapping and various assessment techniques, potential appraisal is performed. This provides inputs for succession planning and job rotation.
Things to follow during this process:
- Techniques like the Bell Curve and 9 Box.
- I would suggest the 9 Box, also called the 9 Box Performance-Potential Matrix.
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