Performance management (PM) includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Performance management as referenced on this page is a broad term coined by Dr.
Aubrey Daniels in the late 1970s to describe a technology (i. e. science imbedded in applications methods) for managing behaviour and results, two critical elements of what is known as performance. Its application This is used most often in the workplace, can apply wherever people interact — schools, churches, community meetings, sports teams, health setting, governmental agencies, and even political settings – anywhere in the world people interact with their environments to produce desired effects.
Armstrong and Baron (1998) defined it as a “strategic and integrated approach to increasing the effectiveness of companies by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. ” It may be possible to get all employees to reconcile personal goals with organizational goals and increase productivity and profitability of an organization using this process. It can be applied by organisations or a single department or section inside an organisation, as well as an individual person.
The performance process is appropriately named the self-propelled performance process (SPPP). First, a commitment analysis must be done where a job mission statement is drawn up for each job. The job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with this analysis is to determine the continuous key objectives and performance standards for each job position. Following the commitment analysis is the work analysis of a particular job in terms of the reporting structure and job description.
If a job description is not available, then a systems analysis can be done to draw up a job description. The aim with this analysis is to determine the continuous critical objectives and performance standards for each job. The benefits Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs or software and improved business and organizational results.
For employee performance management, using integrated software, rather than a spreadsheet based recording system, may deliver a significant return on investment through a range of direct and indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in every employees work day (i. e. the time they spend not actually doing their job). Benefits may include: Direct financial gain * Grow sales * Reduce costs in the organization * Stop project overruns Aligns the organization directly behind the CEO’s goals * Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals Motivated workforce * Optimizes incentive plans to specific goals for over achievement, not just business as usual * Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals * Create transparency in achievement of goals * High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals Improved management control * Flexible, responsive to management needs * Displays data relationships * Helps audit / comply with legislative requirement * Simplifies communication of strategic goals scenario planning * Provides well documented and communicated process documentation In organizational development (OD), performance can be thought of as Actual Results vs Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone.
Performance management and improvement can be thought of as a cycle: 1. Performance planning where goals and objectives are established 2. Performance coaching where a manager intervenes to give feedback and adjust performance 3. Performance appraisal where individual performance is formally documented and feedback delivered A performance problem is any gap between Desired Results and Actual Results. Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results. Other organizational development definitions are slightly different.
The U. S. Office of Personnel Management (OPM) indicates that Performance Management consists of a system or process whereby: 1. Work is planned and expectations are set 2. Performance of work is monitored 3. Staff ability to perform is developed and enhanced 4. Performance is rated or measured and the ratings summarized 5. Top performance is rewarded Performance appraisals, performance reviews, appraisal forms, whatever you want to call them, let’s call them gone. As a stand-alone, annual assault, a performance appraisal is universally disliked and avoided.
After all, how many people in your organization want to hear that they were less than perfect last year? How many managers want to face the arguments and diminished morale that can result from the performance appraisal process? How many supervisors feel their time is well-spent professionally to document and provide proof to support their feedback – all year long? Plus, the most important outputs for the performance appraisal, from each person’s job, may not be defined or measurable in your current work system.
Make the appraisal system one step harder to manage and tie the employee’s salary increase to their numeric rating. If the true goal of the performance appraisal isemployee development and organizational improvement, consider moving to a performance management system. Place the focus on what you really want to create in your organization – performance management and development. As part of that system, you will want to use this checklist to guide your participation in the Performance Management and Development Process. You can also use this checklist to help you in a more traditional erformance appraisal process. In a recent Human Resources Forum poll, 16 percent of the people responding have no performance appraisal system at all. Supervisory opinions, provided once a year, are the only appraisal process for 56 percent of respondents. Another 16 percent described their appraisals as based solely on supervisor opinions, but administered more than once a year. If you follow this checklist, I am convinced you will offer a performance management and development system that will significantly improve the appraisal process you currently manage.
Staff will feel better about participating and the performance management system may even positively affect – performance. Preparation and Planning for Performance Management Much work is invested, on the front end, to improve a traditional employee appraisal process. In fact, managers can feel as if the new process is too time consuming. Once the foundation of developmental goals is in place, however, time to administer the system decreases. Each of these steps is taken with the participation and cooperation of the employee, for best results.
Performance Management and Development in the General Work System * Define the purpose of the job, job duties, and responsibilities. * Define performance goals with measurable outcomes. * Define the priority of each job responsibility and goal. * Define performance standards for key components of the job. * Hold interim discussions and provide feedback about employee performance, preferably daily, summarized and discussed, at least, quarterly. (Provide positive and constructive feedback. ) * Maintain a record of performance through critical incident reports. Jot notes about contributions or problems throughout the quarter, in an employee file. )