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Performance Management

Performance Management

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Published by: Mohammad Shahbaz Alam on Jul 13, 2010
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10/17/2010

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PERFORMANCE MANAGEMENT
Performance appraisals of Employees
are necessary to understand each employee’sabilities, competencies and relative merit and worth for the organization.
Performanceappraisal
is necessary to measure the performance of the employees and the organization tocheck the progress towards the desired goals and aims.The latest mantra being followed by organizations across the world being – "get paid accordingto what you contribute" – the focus of the organizations is turning to performance managementand specifically to individual performance. Performance appraisal helps to rate the performanceof the employees and evaluate their contribution towards the organizational goals. If the processof performance appraisals is formal and properly structured, it helps the employees to clearlyunderstand their 
roles and responsibilities
and give direction to the individual’s performance.It helps to align the individual performances with the organizational goals and also review their performance.Performance appraisal takes into account the past performance of the employees and focuseson the improvement of the future performance of the employees
PREPARATION FOR PERFORMANCE REVIEW
Theperformance review meeting should not be strictly formal nor should it be completely informal in nature. Ideally, the
review meeting
should be structured, semi – formal meetingwhich needs prior preparation by the appraiser as well as the employee for it to be effective.Following are some points that need to be prepared before the review meeting of Performance appraisal:
Inform the concerned employees the date, time and place for the review meeting well inadvance.
Review and be prepared with each and every employee’s
o
Job description
o
Performance standards
o
Planned performance goals
o
Performance measures collected throughout the time period
o
The critical incidents details
o
Past appraisals of the employees.
Be ready with all the important dates
Give the employee a copy of the appraisal form
The appraiser needs to completely understand the standards for the employees at samelevel to maintain the consistency in the process.
Prepare what to say and how to say it calmly.
The feedback should be prepared in quantifiable measures where ever possible.
The appraiser should be familiar with the performance review form and the details
 
The employee and the appraiser both should be prepared to discuss and figure out thefuture goals and training needs
They should be mentally prepared for constructive feedback
Collect as many evidences to support your point as possible like the monthly, quarterlyprogress reports.
PERFORMANCE REVIEW MEETING
The three key elements of performance review meetings are:
1.
Feedback -
Providing information on how a person has been doing.
2.
Measurement –
assessing results against agreed targets and standards.
3.
Exchange of views -
Ensuring that the discussion involves a full, free and frankexchange of views about what has been achieved, what needs to be done to achievemore and what employees think about their work the way they are managed and their aspirations.
PERFORMANCE APPRAISAL TRAINING
Every organisation conducts performance for assessing the performance of the employees andthe organisation. But if not conducted properly, they can give a false impression about the
performance of the employees
and affect the overall performance of the organisation;therefore, there is a need to train the appraisers to ensure the maximum effectiveness of theprocess.Studies have revealed that appraisals are often conducted by the managers and the supervisor who sometimes, are themselves not aware of the procedures to be followed. They should beexplained the importance and the implications of the
Performance appraisal
to theorganisations, the methods to be followed, the principles and theprocessesof the appraisal.All managers and supervisors who consult
performance appraisals
should be given trainingfor the following:
Methods, techniques and guidelines for setting goals and objectives
How to evaluate the performance and rate the employees
Standards for performance documentation
How to complete a performance appraisal form
How to maintain objectivity in the appraisal
Questioning techniques for appraisals
Responding to employee reactions
Improves rapport and communication
Building morale and motivating employees
Observing and measuring performance
Tracking results
Structuring the interview with the focus on improving performance
Feedback techniques
(providing constructive feedback)
How to deal with non-performers and people who refuse to co-operate
 
Post review actionsThe training can be given by conducting special workshops by professional HR consultants or qualified and experienced HR professionals of 
human resource management
. The venue for the purpose can be a suitable seminar hall, training room, conference hall, boardroom, or atsome place away from the workplace like some hotel etc.
HOW TO MEASURE EMPLOYEE PERFORMANCE
The most difficult part of the performance appraisal process is to
accurately and objectively
measure the employee performance. Measuring the performance covers the evaluation of themain tasks completed and the accomplishments of the employee in a given time period incomparison with the goals set at the beginning of the period. Measuring also encompasses thequality of the accomplishments, the compliance with the desired standards, the costs involvedand the time taken in achieving the results.Measuring employee performance is the basis of thePerformance appraisalprocesses andperformance management. Accurate and efficient performance measurement not only forms thebasis of an accurate performance review but also gives way to judging and measuringemployee potential.For the purpose of measuring employee performance, different input forms can be used for taking the feedbackfrom the various sources like the superior, peers, customers, vendors and the employee himself. All the perspectives thus received should be combined in the appropriatemanner and to get an overall, complete view of the employees’ performance. Observation canalso be exercised by the superior to obtain information. Some suggestions and tips for measuring employee performance are:
Clearly define and develop the employee plans of action (performance) with their role,duties and responsibilities.
Organizational outcomes or the achievement of organizational goals should also be keptin mind.
Focus on accomplishments and results rather than on activities.
Also take note of the skills, knowledge and competencies and behaviors of theemployees that help the organisation to achieve its goals.
If possible, collect the feedback about the performance of the employees through multi-point feedback and self-assessments.
Financial measures like the return on investment, the market share, the profit generatedby the performance of the team should also be considered.For an organisation to be an effective organisation and to achieve its goals, it is veryimportant to monitor or measure its’ and its employee performance on a regular basis.Effective monitoring and measuring also includes providing timely feedback andreviewstoemployees for their work and performance according to the pre-determined goals andstandards and solving the problems faced. Timely recognition of the accomplishments alsomotivates the employees and help to improve the performance.
Measuring the performance
of the employees based only on one or some factors canprovide with inaccurate results and leave a bad impression on the employees as well as theorganisation. For example: By measuring only the activities in employee’s performance, anorganization might rate most of its employees as outstanding, even when the organisationas a whole might have failed to meet its goals and objectives. Therefore, a balanced set of 

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