Managing performance

Here is a definition of Performance Management:

“an integrated set of planning and review procedures which cascades down through the organisation to provide a link between each individual and the overall strategy of the organisation.”

Out of Performance Management has arisen the need for Performance Measurement.

Why measure performance?

The main reasons for measuring performance can be summarised under three main headings:

ACCOUNTABILITY
CONTROL
DEVELOPMENT

An increasing emphasis on performance and on the achievement of results is leading to the adoption of performance management schemes by more and more organisations. These schemes may vary in their design and application but nearly all are based on the simple premise of reviewing an individual’s (or a team’s) performance against previously set and agreed targets. The traditional idea of an annual appraisal interview where a form was completed and then forgotten until the next year is disappearing, as performance management is accepted as a key part of the manager’s responsibility in developing their staff.

Performance appraisals

From the point of view of an organisation or a manager, performance appraisal provides an opportunity to assess the value of each individual’s performance over a period of time. It is a learning opportunity for both managers and the individual being appraised

  • if performance was good (i.e. agreed objectives were met or exceeded), what made it so and how can these contributing factors be maintained?
  • if performance was merely acceptable, what could the organisation or manager or individual do to improve it in the coming appraisal period?
  • if performance was below the agreed standard, what were the reasons?

Thus, the emphasis in well-designed performance management schemes is not to punish “below-par performance” but to help people to reach a better standard of performance in the future (or maintain an already high standard).

Schemes not designed and applied in this way rarely benefit individuals or the organisation for which they work. Performance cannot be appraised without the existence of an explicit standard. So the other major benefit to both organisations and their staff is that it forces discussion and agreement on an objective standard of performance which staff members are supposed to reach.

Conducting a performance management interview

10 Point Checklist

  1. Set a clear agenda and objectives for the meeting and prepare thoroughly.
  2. Use specific examples rather than generalities when describing performance, good or bad.
  3. Listen!
  4. Motivate - balance positive and negative feedback.
  5. Focus on behaviour that can be changed rather than on more vague aspects of personality or attitude.
  6. Discuss development needs and performance improvement.
  7. Summarise to ensure clarity about what has been agreed.
  8. Don’t avoid emotive issues if they important.
  9. Set SMART objectives. SMART = Specific, Measurable, Achievable, Realistic, Time-bound.
  10. Be prepared to receive feedback on yourself as a manager.

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