Keeping the Right People Performance Management

Performance management is a process by which managers and employees work together to plan, monitor and review an employee’s work objectives and overall contribution to the organization. More than just an annual performance review, performance management is the continuous process of setting objectives, assessing progress and providing on-going coaching and feedback to ensure that employees are meeting their objectives and career goals. 

The fundamental goal of performance management is to promote and improve employee effectiveness. It is a continuous process where managers and employees work together to plan, monitor and review an employee's work objectives or goals and his or her overall contribution to the organization.

Before you embark on the development of an effective performance management system, you should take a moment to consider whether or not your organization has HR management practices in place to support the performance management process. These include:

•     Well designed jobs and written job descriptions
•     Effective supervision
•     Comprehensive employee orientation and training
•     A positive and supportive work environment

An effective performance management system will:

•     Be job specific, covering a broad range of jobs in the organization
•     Align with your organization’s strategic direction and culture
•     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
•     Monitor and measure results (what) and behaviors (how)
•     Include both positive feedback for a job well done and constructive feedback when improvement is needed
•     Provide training and development opportunities for improving performance
•     Ensure that employee work plans support the strategic direction of the organization
•     Establish clear communication between managers and employees about what they are expected to  accomplish
•     Provide constructive and continuous feedback on performance
•     Identify and recognize employee accomplishments
•     Identify areas of poor performance and establish plans for improving performance
•     Support staff in achieving their work and career goals by identifying training needs and development opportunities
•     Support administrative decision-making about promotions, terminations, compensation and rewards
•     Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious liability (an employer can be held liable for the acts or omissions by its employees during the course of employment)

The establishment of an effective performance management system requires time and resources and therefore, the support of the board, the executive director and other senior managers. When developing a new performance management process, an organization can strike up a committee made up of employees, managers and board members to increase buy-in, understanding and support for the process.

Management support to act upon the outcomes of the performance management process is also necessary to ensure that good performance is recognized, inadequate performance results in the necessary support and/or training to improve performance and consistently poor performance results in a change of responsibilities or termination, as appropriate.

Whether you are introducing a new performance management system or if you are modifying an existing process, it is critical that you communicate the purpose and the steps in the performance management process to employees before it is implemented. Also remember to review your new performance management system after the first year and make adjustments as necessary.

The performance management cycle

There is much more to performance management than the annual performance review meeting. As mentioned in the introduction, performance management is a continuous process of planning, monitoring and reviewing employee performance.