Through this medium the writer extends a most cordial invitation to directors, managers, heads, and leaders of organizations, agencies, and entities at the public sector, private sector, and community levels, who have not yet done so, to give most active consideration to introducing a formalised Performance Management System, if they are serious about getting the best out of their workforce.
Such a system is integral to the overall process of Human Resources Management, as it enables managers to continuously identify, measure and develop the performance of individuals and teams, as well as align performance with the strategic goals of the organization.
Further, it involves a never-ending process of setting goals and objectives, observing performance, as well as giving and receiving coaching and feedback. In this way, managers and employees alike can ensure that their work-related activities and outputs are in congruence with the organization’s goals.
Key Purposes of Performance management systems are the following, namely
Strategic purpose: helping top management achieve strategic business objectives by linking the organization’s goals with individual performance;
Administrative purpose: furnishing valid and useful information for making administrative decisions about employees, for example, decisions re salary adjustments, promotions, employee retention or termination, recognition of high performance, and identification of poor performance.
Informational purpose: informing employees on how they are doing, providing them with information on specific areas that require improvement.
Developmental purpose: providing the kind of feedback that will be used by managers or /supervisors to coach employees and so improve performance on an ongoing basis.
Organizational Maintenance purpose: providing information that can be used in workforce planning i.e. putting in place a set of systems that enable the organization to anticipate and respond to needs emerging within and outside.
Documentational purpose: enabling organization to collect and document information that will assist in validating selection processes and to support/justify key administrative decisions…useful in case of litigation.
The foregoing key purposes taken altogether make it imperative that any viable Performance Management System has such critical elements as Performance Planning, Performance Execution, Performance Assessment, the Appraisal Form, Performance Review, Performance Standards, Personal Development Plan, Giving Feedback and Coaching.
Performance Planning
The Manager or Supervisor and employee will meet at the beginning of the agreed performance cycle to discuss and agree on what needs to be done, how it should be done, the desired results, the required behaviours, and the necessary development plan.
The agreement arrived at as it pertains to Results will have as its focus areas the measurable outcomes the employee must produce; specific objectives the employee must satisfy; and the performance standards or yardsticks that will be used to evaluate how well the employee achieved the objectives
The agreement reached pursuant to Behaviours will point to the Competencies necessary to achieve the Results – such competencies as would relate, for example, to Customer Service, Written or Oral Communication, Creative Thinking, and Dependability
The agreement arrived at relative to a Development Plan will include identification of areas that need improvement; and the setting of goals to be achieved in each area.
Performance Execution, however, is treated with from two perspectives.
On the part of the employee it includes
- Commitment to goal achievement: The employee must demonstrate commitment to achieving the agreed goals that have been set
- Commitment to goal achievement: The employee must be committed to achieving the goals set.
- Ongoing performance feedback and coaching: the employee needs to take a proactive role in soliciting performance feedback and coaching from his/her supervisor.
- Communication with supervisor: The onus is on the employee to communicate openly and regularly with the supervisor.
- Collecting and sharing performance data: the expectation is that the employee will provide the supervisor with regular updates on progress towards goal achievement.
- Preparing for performance reviews: the employee should engage in ongoing and realistic self-appraisals so that immediate corrective action can be taken if need be.
On the part of the manager or supervisor, performance execution includes
- Observation and documentation: Supervisors must observe and document employee performance on a daily basis.
- Updates: As organizational goals may vary from time to time, it is important that the supervisor in conjunction with the employee update and revise the initial objectives, performance standards, and results.
- Feedback: The supervisor needs to provide regular feedback to employees, reference progress towards goal achievement as well as coaching to improve employee performance.
- Resources: The supervisor should provide employees with resources i.e. supplies, and funding, necessary to perform the job, as well as opportunities to participate in developmental activities, such as training, classes, and special assignments.
- Reinforcement: supervisors must let employees know that their outstanding performance has been recognized. Supervisors should also provide feedback regarding negative performance and how to remedy the observed problem. Performance problems must be diagnosed early and appropriate steps taken as soon as the problem is discovered.
At this juncture, it must be pointed out that the imperatives of an effective Performance Management System make for a most enabling work environment in which relations between manager/supervisor and worker are greatly enhanced.
But then, the success of performance management processes requires also that our trade unions, for example, while focusing on protecting workers’ rights and ensuring the best possible working conditions, should attach equally high premiums to collaborating with manager and worker on promoting excellence and high productivity on the job.
The next issue will touch on the relevance of the other critical elements of the System.
[The writer, Mallet Edwards aka HAMMER, is a former Lecturer in Human Resources Management in affiliation with the Australian Institute of Business (AIB) and the London School of Management (LSM) through St. Lucia’s National Research and Development Foundation (NRDF)]