Managers have to deliver their business performance objectives set. And consequently, they expect the team to deliver their targets and goals. Managers will give people feedback on the performance and also receive feedback on their performance.
Generally, the performance management system would be set by the organisation and it's culture. But we can also as managers have to ensure that the employees deliver the performance and that's what we will be focusing here.
Managing performance of others is a challenge for managers. During change or during difficult times, conflict can occur which can make it difficult for them to achieve it.
There is main four steps of performance management:
* Plan - set goals and targets. Organisations leaders will deliver business strategy and set out what the organisation needs to deliver in the near future. The business has a clear objectives and goals that they need to achieve. Within this strategy, everyone in the organisation has a part they play.
* Act - provide support and help. People need to 'act' on what is required.
* Monitor - check and discuss performance. The achievement of organisational objectives can only be successful if the performance is regularly monitored. Generally, the performance is measured by KPIs (Key Performance Indicators).
* Review - maintain level of performance. The review may require changing the objectives. They could be less demanding or more demanding.
KPIs
The performance of business strategic objectives is generally measures using Key Performance Indicators (KPIs). The individual departments or indivu=idual employee targets should in theory be assigned linking the business goals and objectives and contribute to the overall strategy.
We already know that good targets need to be SMART: Specific, Measurable, Achievable, Realistic and Timely.
Employees need to understand specifically what is required of them. There also need to be an understanding whether the targets set are being achieved. Employees will also be demotivated if they see the objectives are not achievable.
One objective of setting structured targets is that everyone has a clear idea of what is expected and the vision is communicated through the organisation. One disadvantage is that the culture can become a 'blaming culture'. Therefore managers need to think carefully about their expectations.
Appraisals
Very often businesses use appraisals to measure employee performance. An appraisal is an opportunity for the manager to sit down with their employee and discuss how their work is progressing.
Appriaisals are helpful with:
* finding gaps with performance,
* discovering demotivated and dissatisfied employees who could potentially leave,
* directing the work into the right direction,
* encouraging and engaging people in focusing on the business goals,
* working with employees and plan their training, address competency needs,
* giving positive feedback and prise for successful work,
So what are the best tools to manage performance?
Let's review the options again.
It has to start with the goal framework. It is important to have the main strategic goals set for an organisation. The main business objectives become the communication tool that the business can understand.
The second step is to define the goals. It has to be a regular process, where you start at the top of the organisation. These objectives need to be clearly defined and than cascade through the organisation. Not necessarily, cascading directly from the top to the bottom. but sometimes it can become more of an organic process of separate department setting their own objectives which are aligned with the overall framework.
The third thing we need is metrics or KPIs. The KPIs help identify what you mean by your objectives and they let you find and see what success looks like. We have to ensure we do not fall into trap here into measut=ring something that is easy to count, rather than what really matters. The indicators they really need to help to track your objectives.
The fourth path of good performance management in the organisations is to have regular performance discussions. But in practice, this process is usually very broken. The organisations have the annual performance review meetings with employees where they read the script of predesigned questions. What has to happened is that these meetings need to be done more frequently. It should really be weekly or monthly check-in sessions where hopefully the goal framework comes out. It's where you look at your own objectives and you remind them. These discussions also have to be two way. Asking the employees questions how they can support the managers and its organisational needs. These discussions need to be meaningful and regular.
The last part is that we have a good reward and recognition structure. However, the indicators should not be aligned with the reward system. This doesn't generally work. What it is meant by good reward and recognition system is where you showcase good performance, we thank people for the good performance, celebrate success. And it is not only between the individuals, but also as a business celebrate that success. And the financial reward comes automatically. Employees should get paid well for their great work and not necessarily for hitting the KPIs.
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