Performance Management Implementation & Strategies

Performance management is a strategic process and an integrated approach. The process involves an ongoing dialogue between the supervisor and the employee for setting goals which are achievable and contribute in the direction of fulfilment of the organizational goal. The main objective of performance management approach is to proactively manage employee’s performance for accomplishing organizational goals by attaining a desired level of performance. It believes in linking the performance plans of an organization with the strategic vision and identifying the major performance indicators and KRA’s for enabling the employees to achieve the expected outcomes for their organization.

Any performance management process broadly involves three stages and these are:

• Goal Setting and Motivation which is normally done in the beginning of the session.
• Encouraging Stage which is normally undertaken when the employees get involved in the process of pursuit of the assigned task.
• The final stage is the Stage of Rewards and Consequences which is applied after the completion of a task.

Performance management is always a forward planning process which is developmental and facilitative in nature as it involves the team leaders and the employees in a joint process of decision making for fixing smart targets. It aims at breeding performance orientation in the employees for developing high performance organizations. The entire process involves identification, evaluation and development of the work performance of the employees through effective management practices like continuous coaching, feedback and regular communication. The process includes the following stages:

• Work Planning and defining expectations
• Monitoring performance
• Developing the weak performance areas
• Performance rating
• Rewarding good performance

Step 1: Set expectations

Performance management starts with meeting with each employee to discuss which results and behaviors are expected of them. Don’t list off what you want and expect your team members to quietly obey. Instead, ask your employee to participate in deciding what is realistic for them to achieve. Be as specific as possible to ensure everyone is on the same page. This avoids an “I didn’t know I was supposed to do that” situation a few months down the line.

Step 2: Observe

Laid out expectations, and team participated in setting their objectives. Now take a step back and observe how the plan takes shape, helping out as necessary and maintaining regular communication.

• Give ongoing feedback: Rather than waiting until the review period is over, be sure to give feedback and coaching on a regular basis. This ensures the employee develops and helps them reach their objectives. Give advice or constructive criticism as needed.
• Reinforce: Likewise, make sure he maintains good performance by making it clear it is being noticed. If good performance is not praised, employees will lose motivation. This is especially crucial when an employee exceeds their performance standards or expectations. If you don’t acknowledge it, they might wonder why they’re working so hard.
• Give updates and resources: As your project goals change, so might the employee’s objectives. Be sure to update them on any such changes immediately. Provide them with all the resources they need to facilitate goal-setting or to maintain their performance during the shift. Whether it’s training, tools, or readings, make sure they have what they need to do the job.
• Observe and collect performance info: Keep track of examples of good and bad performance on a daily basis. These examples will be used during the performance review process to highlight what improvements are needed, and what they’re already knocking out of the park.

Step 3: Assessment

It may be appropriate to evaluate results, for others behaviors, and for some, both. To help you figure out what to assess for what employee, consider this:

Assess results if: Effort will always lead to results; results show consistent improvement over time; or if there are several different ways to do the job right and get good results. 

Assess behaviors if: Effort and results aren’t connected in an obvious, very direct way; results take months to develop; or if bad results can come from factors outside of the employee’s control.

Self-appraisals:

Let the employee do a self-appraisal as well, or give them a chance to explain how they think they did. Self-ratings pinpoint discrepancies between how a team member views themselves, versus how others view them. These discrepancies provide teaching moments, and highlight areas needing development. Self-evaluations also minimize defensiveness, help team members learn, and ensure they feel the performance management process is fair.

Appraisal forms:

A valuable way to assess performance is to fill out a template or complete an appraisal form. You can also invite an employee’s peers to complete one, as this can be a great way to assess teamwork or how the person acts when you aren’t around. However peer evaluations can be subject to bias and context, so don’t rely on them as your sole source of information.

Step 4: Review

The final step of performance management is to sit down with the employee and discuss their performance during the review period. Share your observations, assessments, and feedback, and ask the employee for their opinion on what they did well and what they need to improve on. Then brainstorm ways to improve performance during the next term. You should also discuss their development and plans for the future.