|
Managing performance is one of the more difficult and complex activities within organizations. It is also one of the most important activities to undertake. The potential impact of the performance management process cannot be underestimated. The right performance management system will nourish and unleash human potential, while an inadequate one will have a negative effect on productivity.
Good performance management cannot be reduced to a "magical form," but instead is a process that provides feedback, accountability, and documentation for performance outcomes. It also helps employees to channel their talents toward organizational goals. Investing the right amount of time, effort, and resources in performance management can yield untold returns.
Getting Started
The impetus for creating a better performance management system is the recognition that the current system or process has not met organizational objectives. Human resource professionals should start the process by reviewing current practice to ask key questions, the answers to which will determine how to proceed in developing a system that works for the organization. The next step is to involve the entire organization in the transformation. The third is to design a solution that specifically meets the needs of the organization at this point and time. The final step is to remove barriers to effective performance management, or put another way, 'make it easy' to use. Therefore, the steps to create a better performance management system are as follows:
1. Review current practice
2. Engage the entire organization
3. Design a tailored solution
4. Eliminate barriers to participation
Review Current Practice
Key Considerations:
- Interview key constituents - Critique current practice - business objectives
Before implementing any new performance management system, HR professionals should determine the goals of the new system. Most often the primary objective is productivity improvement. At minimum, the system must help supervisors better manage the contributions of individual employees. Yet, oftentimes there are other organizational ends that can be addressed in such systems like guiding the growth and professional development of employees, establishing core competencies across departments, or providing a framework for future succession planning efforts. Effective performance management systems provide useful tools to help manage the people enterprise in a number of ways.
The review process is nothing short of the traditional gap analysis. What is the current state of performance in our organization? How well is our current performance management system regarded? How and where does current practice fall short of our expectations? Therefore, what intervention should we consider to meet our objectives? A system better aligned with organizational needs can elevate the collective performance across an organization.
The review process involves gathering and analyzing information from a variety of sources: senior leadership, managers, employees, and HR professionals. It also involves a thorough critique of the current system, being careful to identify the advantages and disadvantages of using it and where past practice was less than desirable. Before introducing a new way of doing business, the business objectives that will be met using the new system must be defined. Implementing a better performance management process can save employees and managers considerable time and effort, but it is a major change management evolution. So clearly defined business objectives, such as improved productivity or reduced labor costs, must be linked to the process in order to create the business imperative to move the organization forward.
Engage The Entire Organization (The Village)
Key Considerations:
- Senior Leader Commitment - HR Leadership - Supervisor Engagement - Employee Involvement
In addition to having the support of senior leadership, the entire organization must be engaged in the performance management process for it to succeed. There is an old African proverb that states, it takes a village to raise a child. The same idea can be adapted for the performance management process; it takes an entire organization to manage individual performance. The culture of an organization affects how performance is managed. For example, in some organizations overtime is an exception and in another it is an expectation. In some organizations cutting corners is acceptable-in others going the extra step to exceed customer needs is the standard operating procedure. Simply defined, culture is "the way we do business around here;" or the personality of the organization. Therefore, engaging the entire organization is necessary in the performance management process.
|
