Performance Management Review

Performance review is an ongoing process to document expected results, standards of performance and
evaluation of the employees’ performances.

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It can help in developing both the individuals and the organizations. ©

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Performance review requires organization and so also its employees to adapt and adjust to the changing
environment of business, to compete, sustain and grow.

Performance Preview and Review

Performance reviews and performance previews are not the same.

Performance previews do not look back but forward.
It focuses on retention of high-performing workers relying on collaborative teamwork.

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Performance review focuses on following aspects of employees’ development:
 Develop employees’ capability to master the job-specific skills
 Make employees’ aware about the organizational policies and workplace regulations.
 Help employees’ to deliver the results meeting the deadlines.
 Culminate the employees’ willingness to volunteer for new job responsibilities.

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 Develop employees’ ability to take initiative
 Make employees’ to work well with others.
 Develop employees’ communication skills ©

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 Help employees’ to master the time-management skills.

Performance review can also unearth some negative factors in organization as under:
 Dissuading employees’ to frequently remain absent from duties.
 Persuading employees’ to reduce the absence from workstations, either by leaving the work place early or by stretching the lunch breaks.
 Restricting miss-utilisation of organizational resources.
 Straightening employees’ to refrain from misbehaving with others, etc. (discipline)

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Scope of Performance Review

Depending on the nature of organization, scope of performance review varies. Commonly, however, scope of
performance review encompasses following aspects:
 Job performance - considers meeting of goals and developing of mutually decided standards.

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 Working relationships — focuses on maintaining good and professional relationships with co-workers, subordinates, and
managers.
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• Core Job Skills — emphasizes on the normative aspects of job, including its skill and competencies

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Types of Performance Review

Approaches to performance review widely vary in organizations. Various types of performance review are:
 Probationary review to validate recruitment.
 Rehiring review for confirmation.
 Self-review
 Peer-review

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 Performance Review Meeting
This meeting takes place between the managers and the employees to assess employees’ performance.
Both the managers and the employees work together in such meeting.

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Steps in Performance Review ©

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Stage-wise steps of performance review are documented below:

Before the performance review

 Develop the time schedule and the venue for review discussion.
 Understand the job descriptions of
 Study the employees’ self-assessment reports.
 Study the supporting documents for employees’ performance.
 Make sure two-way communication channel.
 Advice employees to come prepared with all supporting documents during the review process.

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During the performance review
 Guide employees’ with specific feedback on the performance.
 Help them to prioritise with performance goals.
 Make sure that the employees are able to share their self-evaluation and get clarity where they are right or where they are wrong.
 Make employees’ understand their development needs.
 Ensure mutual agreement on setting the targets for future performance improvement.

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 Ensure mutual agreement on development goals.
 Provide clarity in explaining the performance review process, answering any question from the employees, if any. ©

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 Understand the degree of organizational support and identify the areas, where it went wrong.
 Complete the performance review process, obtaining signature from the employees.

After the performance review

 Ensure that the employees’ get a copy of their performance review report.
 Keep record of the performance review report.
Thus effective performance review process requires strict adherence to certain steps at different stages.

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Benefits of Performance Review
Some of the important benefits of performance review can be listed as under:
 Helps in strategic improvement of employees’ performance
 Facilitates in compensation design and planning
 Validates compensation increase or decrease (particularly in cases of incentives, etc.) in employee specific cases

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 Validates decisions on promotion, demotion, transfer (with or without relocation), etc
 Helps in identification of training and development needs of employees ©

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 Helps in employees’ career planning and development
 Helps in succession planning
 Provides valuable inputs in reviewing HR policies, procedures and strategies
 Helps in reviewing the job description
 Guards against legal battles on employees’ claim
 Keeps check on wrongful HR decisions pertaining to dismissal, demotion, transfer prejudicing to employees’
interest.
 Extends support for resource planning for the future.
 Gives inputs to competency mapping

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Performance Counseling
Performance counseling helps employees to analyze their performance objectively.
 It helps in identification of training and development needs.
 It helps an employee to understand his/her own strengths and weaknesses.

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 It believes in giving feedback information about the employees’ behavior.
 It sets goals and formulates action plans.
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 It helps employees to identify different alternatives for dealing with problems.

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 It encourages employees to openly discuss their aspirations, conflicts and problems.

Conditions for Effective Performance Counseling

Conditions for effective Performance Counseling may be listed as follows:
 A climate of mutual trust, confidence and openness need to be ensured at the outset.
 Climate of free participation in the review process.
 The focus on employee and Employees’ development.

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Different phases of Performance Counseling
There are different phases of performance counseling processing, like;
 Rapport Building: Establishing a climate of acceptance, support, openness, etc.
 Exploration: Helping the employees to understand their strengths, weaknesses, opportunities and threats.

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 Action Planning: Specific plans and actions for the development of employees are identified at this phase of performance
counseling.
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Performance Counseling Process
The effectiveness of performance counseling session depends on number of factors as under:
 Efficiency in asking questions
 Communication of feedback to the subordinates in a manner that evokes constructive response from them
 Focussing on the behavioural attributes
 Data based and suggestive feedback
 It should be continuous and verifiable.

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 Difference between Performance Appraisal and Performance Review

Performance appraisals examine an employee's performance both now and in the future; however,

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Performance reviews are strategic because they regularly monitor employee performance and build employee
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development strategies

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Performance appraisals focus more on achievement of objectives; while,

Performance reviews tend to have a development bias

– in reality we need to balance both

Sample 1; Sample 2; Sample 3

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