Performance Management Systems
A Performance Management System should be designed to clarify objectives, assist in the management of individual employee performance, and plan relative training and development programs.
It should make provisions for the four key elements.
1. Induction and Socialisation
Induction and socialisation begins after commencement of employment.
Induction is the process of the socialisation of individuals into the organisation.
New employees are encouraged to determine the match of their values to that of the organisation.
A consultative approach from management enables employees to understand how their work supports the overall organisation strategy and direction.
2. Reviewing and Appraising Performance
Reviewing and appraising performance can be strategic. It signals to managers and employees what is really important.
Performance appraisal includes two factors:
- The appraisal acts as a coach, which identifies any training and development plans.
- The appraisal acts as a judge, which identifies if there should be any pay adjustments, promotions, transfers and demotions.
In some performance management methods (e.g. Management By Objectives [MBO]), employees participate in the goal setting process.
3. Reinforcing Performance Standards
Standards and objectives need to be measurable. A good model to use when setting objectives is the SMART-C model:
- Specific
- Measurable
- Achievable
- Relevant
- Time bound
- Challenging.
It is important to note that some jobs are more difficult to quantify than others. For example, it may be easy to measure the number of sales, but not so easy to measure the level of customer satisfaction.
4. Counselling and Support
In order to provide counselling and support it is important to listen to your employees.
Professional counselling services may be part of an HR role, or they may be outsourced.
Employee Assistance Programs to alleviate organisational and individual problems such as absenteeism and health and well-being may also be part of the HR role.