Performance management is defined as the process of continuous communication and feedback between a manager and employee towards the achievement of organizational objectives. It includes formal, semi-formal, informal means or channels of communication like grapevines and gossips.
The following are some key elements that can improve the quality of your performance management system.
Application of perfect and unbiased system:
A manager does not always see an employee’s performance perfectly or comprehensively. Only by obtaining multiple perspectives can the system achieve fairness and perfection. Individual performance is always a combination of the skills and capabilities of the performer.
Efficient system selection:
If the available system or systems take an inordinate amount of time. These systems score negatively in terms of evaluation. The system must be as easy as accepting the terms in online documentation “Tick and Go”. It should always improve the way that people perform.
Selection of Progressive performance meter:
Finding the points to correct others is simpler than correcting them and directing them to improve and direct towards improvement. The system should add values to the performance; not just measure against minimal line of performance. Traditionally systems used to measure whether the performance is above the lower limits or not, while this approach is a progressive approach so as to push to the higher benchmarks. It should emphasize a culture of taking responsibility, which goes beyond making people merely feeling accountable.
Compensation decisions :
Compensation decisions should not be the main reasons for its existence, nor should compensation be in the driver’s seat. We would argue that only one discussion each year should deal with compensation. Furthermore, the reality is that the great bulk of salary increases are driven by the changes in cost of living. The differences in increases for the great bulk of people in the middle of the curve are miniscule. Yes, there are a few people at the extremes whose compensation will be strongly influenced by the performance management system. A few poorer performers will get minimal or no raises. At the other end, a few top performers will get large raises. Organizations are beginning to realize that many groups of people inside their firm are not neatly distributed on a normal curve.
Systems should use Multiple Data sources:
Every system should use some form of multi-rater feedback. Managers who rely solely on their perceptions of a person’s performance will introduce a certain amount of “rater bias.” The manager can informally collect multiple inputs. The manager can also use some instruments to collect this data. When the manager’s view is augmented with two peers and two subordinates, rater bias is erased, allowing the system to evaluate performance accurately.
Process should include formal Development on Coaching:
The process should include formal development on coaching skills. The common element in the great majority of recently implemented performance management systems is frequent coaching conversations. However, coaching and providing feedback to others are skills that don’t come naturally to everyone. The good news is that managers can acquire these skills through formal learning methods that include.