Q: Is there anybody in the room who thinks their performance management system is perfect? But PER-FECT!
Q: Did you receive an open feedback last year where you came knowing exactly what you have to do to improve and what you do well in your role? *
Welcome to the most criticized subject in HR world!
Just to be clear, what are we talking about?
Performance appraisal Performance management
Let’s take a closer look...
HR Functions Wheel
When we talk about performance management Wider scope Wider time line Continuous process More proactive Instant feedback Coaching Can take corrective action Covers appraisals too
Linked to other HR functions... ... and to your HR strategy!
But the thing is.... Either you have a performance management system in place... Or not... Nobody seems happy.
A performance appraisal is one of those special human encounters where the manager gets no sleep the night before and the employee gets no sleep the night after. Thomas B. Wilson
Managers think they do a good job.
But o nly 3 5% of employees agree that their managers co m municat e performance standards and provide fair and accurate feedback to help them do their jobs better . 2002, the Corporate Executive Board’s L & Development Roundtable S urvey / 20,000 part.
These goals, I can never reach! I have the meanest manager when it comes to rating! He told me I was not cooperative, but didnt give me any examples! Her phone didnt stop ringing during our performance appraisal! I got the best rating, but nothing happens! Performance mgt in our company is nothing but a myth!
When used in a constructive and motivating way... ...employees get to know what they do well and where they need to improve.
When things go wrong...
... as they sometimes will
All is affected
A performance management system will cost your company money if not handled well. And, in many cases, performance management systems are not handled well.
So, do performance systems do more harm than good?
There are two schools of thought: FOR the performance systems AGAINST the performance systems
Now that I’ve given you a general framework of the performance management systems... Where do we fail?
Most of the performance management done for years and years and years...
Has one base theory...
...which does not work anymore! Algorithmic vs Heuristic Extrinsic vs Intrinsic Motivation 3.0 When the reward is the job itself
Maybe we need to change something?
There are 3 major pillars of performance management systems.
Your company culture Your expectations from the system The involvement of all your employees
If you want to make a quick check...
Does our system really measure our company values? ... 3 questions you need to ask yourself: Does our system get implemented with sincerity? Do people really learn what they must do to improve their performance?
If you say no to any of these, you can well do without your existing system Or you need to do something to improve it NOW
What does typically go wrong?
Performance appraisals Performance management system itself
The performance management system itself The misfit > Company culture and the system Low credibility > Losing people’s TRUST in the system No link to other HR functions > Leaving it ALONE and ISOLATED. SHALLOW > Only done via appraisals 1-2 times a year. No follow up. Forgetting that it’s all about HUMAN Failing to make it CLEAR and SIMPLE Failing to explain the employee the WHY and WHERE
No preparation for the appraisal interview Leaving it to the last minute, postponing it, cancelling it. Making it a monologue, not listening. Not recording, failing to create a performance history. Using old fashioned methods. Confusing future potential with current performance. Failing to provide examples. Criticisizing the person, not the job done/performance. Having hard time delivering difficult messages. The performance appraisal
Too kind > Overrating a bad performer. Taking a blaming attitude. Making it only about salary increase. Oscillating between the best and the worst ratings. OR > Rating everyone as «average». Surprises! Failing to agree upon the objectives. Comparing the employee with other employees. Forgetting the legal aspect. The performance appraisal
Jack Welch, Winning Make your system a rigorous, nonbureaucratic evaluation system. Very few companies have meaningful evaluation systems in place. That’s not just bad, it’s terrible!
To improve what we currently do:
Consider your culture and your industry. One size does not fit all.
Prioritize RECOGNITION. Show what’s really valued.
Clearly explain the place of performance in the FUTURE and the STRATEGY of the company. Not just how the employee performs but also why and where.
Get participation. Listen to your employees to improve your system.
Launch 360 degree evaluations. They decrease the subjectivity of the system substantially.
Do a calibration: It increases objectivity, balances out and creates a better sense of fairness.
Tie it to the rewards: Promote superior performance by monetary and non monetary rewards.
Tie it to talent management.
Don’t miss feedback opportunities thoroughout the year. Instant feedback works best.
Make sure the appraisals done well!
Don’t focus on forms and procedures. Stay away from the mechanic of the system. Forget the traditional, focus on the essential.
But first and foremost.... Remember Motivation 3.0! Create a work environment where everyone feels the HUMAN element where the job is the REWARD itself where a good performance management system HELPS YOU BUILD THE FUTURE
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