By
Akindotun Merino
Performance management is not a company’s way of employing “micro-managing” techniques that stunt the professional growth of its employees. But rather, it is a strategic approach to ensuring the efficiency and effectiveness of an organization. Whether at the organizational, departmental or employee level, the goal of performance management is to make sure all business goals are being met in a satisfactory manner.
The effectiveness of an organization in terms of whether or not it is meeting its mission or goals can be determined by engaging in performance management. According to the U.S. Office of Personnel Management, performance management consists of five components: “Planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding.”
The phrase “Performance Management” was coined in the 1970s by Dr. Aubrey Daniels, a clinical psychologist. At the time, he used it to describe technology and the importance of managing behavior and the result of the behavior. Effective management would ensure proper behaviors are being executed, which would in turn produce favorable results. He later associated this approach to the interactions of people whether in a formal or informal setting.
With the proper training, management can manipulate the conditions of the workplace (e.g. policies and procedures, available skills to train and motivate employees) in order to measure the true success of the business – that is the financial standing of a company as well as the individual success of its employees.
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The drive to implement a performance management system is not sufficient. Management as well as employees must put forth the effort necessary to make it happen. With “all hands on deck” and the observation of the following, organizations can build a successful program by clearly identifying the job’s purpose as well as the duties associated with it; determine goals and how to measure outcomes; rank job priority; characterize the standard of performance for critical aspects of the position; and discuss employee performance and provide feedback. This should at least be done on a quarterly basis. Organizations should also keep track of performance records and if necessary, create an improvement plan to better employees’ performance.
It is unrealistic to expect employees to perform at an optimal level without providing them with the tools to succeed. The following tools are crucial to the achievement of the system.
Creating a model that clearly defines employee performance standards helps the company and employees avoid ambiguities in what is expected. It also enables employers to provide their employees with specific feedback, which is greatly beneficial because it potentially increases job satisfaction.
Whether in writing or delivered verbally, performance standards are enforceable. It is, however advisable that they are captured in writing to avoid questions in the future.
There should be a set standard for every aspect of one’s position. For example, an employee who is a customer service/sales representative may be expected to take and sufficiently answer the service questions of 10 customers an hour. This employee may also be required to upsell products to 50% of the clients he talks to.
There are several factors to keep in mind when developing this model. Performance standards should:
- Be realistic in terms of whether or not it can be attained as well as whether or not employees have adequate training.
- Be measurable with regard to quantity, quality, time, etc.
- Be clear in defining the proper method for gathering performance information and how it measures against the standard.
While employers monitor employees’ performance throughout the year and provide feedback and coaching during that interval, employers are also responsible for conducting an employee appraisal, which is generally done on an annual basis. The appraisal allows the employer to summarize the employee’s performance, gauge job satisfaction, as well as prepare for the future.
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Once the standard has been set and performance feedback has been provided to the employee, it is critical that the employer offer some type of coaching. The purpose of coaching is to strengthen areas of improvement as well as enhance areas where the employee is currently successful. In order to accomplish this, coaching must be done in a positive manner. The words used must build and not destroy. Diplomacy is important when providing coaching. Coaching promotes employee motivation as well as continued success.
Dr. Akindotun Merino is a Professor of Psychology and a Mental Health Commissioner in California. Share your successes and challenges:
Prof. Akindotun Merino
Jars Education Group
info@akinmerino.com
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Instagram: @drakinmerino: Twitter: @drakindotun
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