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4 Issues in Performance Management

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Issues In Performance

Management
THE NATURE OF PERFORMANCE
MANAGEMENT

The many-faceted nature of


performance management was
commented on as follows by Wayne
Cascio:
‘It is an exercise in observation and
judgement, it is a feedback process, it is
an organizational intervention. It is a
measurement process as well as an
intensely emotional process. Above all, it
is an inexact, human process.’

Cascio, W F (2010) Managing Human Resources:


Productivity, quality of work life, profits, 8th edn,
McGraw-Hill Irwin, New York

2
The problems of performance management

‘The problems [of performance management] are …


not of ambition or intent, but rather practice and
delivery. Low rates of coverage and even more
frequently low-quality conversations and non-existent
follow-up are commonplace, in the wake of
uncommitted directors, incompetent line managers,
uncomprehending employees and hectoring HR with
their still complex and bureaucratic HR processes.’
Duncan Brown
Performance management problems
As reported by respondents to the 2014 e-reward survey

The lack of line


managers with the
skills required to
carry out
performance
management
effectively.
Line managers
Line managers
who were
who don't
reluctant to
discriminate
conduct
sufficiently when
performance
assessing
management
performance.
reviews.
Basic design issues

1 The extent to which the system should be forward-


looking.

2 The extent to which the system should focus on


performance enhancement.
Design issues

1. The form and content of the performance


agreement.
2. The problem of aligning individual and
organizational goals.
3. Whether or not ratings should be used and if
so, in what form.
4. The link between performance management
and performance pay.
5. How performance management should be
documented.
Operational issues

Performance management can


be modelled convincingly as a
system but in practice the acts or
failures to act of fallible human
beings prejudice the
effectiveness of the system.
How to deal with performance management issues (1)
As recommended by a respondent to the 2014 e-reward survey

• Train, communicate;
• Evaluate performance management through
employee engagement surveys;
• Have HR business partners work with line
managers;
• Organize round tables (calibration);
• Provide details of expected competency levels per
job type/level;
• Clarify that good is acceptable (not everyone can be
a star);
• Encourage ongoing performance management, it's
more than just an annual administrative hoop – it's a
powerful management tool.
How to deal with performance management issues (2)
As recommended by a respondent to the 2014 e-reward survey

‘Keep it very, very simple, be able


to translate strategy to individual
goals and give people a clear line of
sight. Ensure all people managers
are capable to deliver performance
management, ie have a
performance dialogue (this is the
key!) at any time and not just at the
annual review.’
How to deal with performance management
issues (3)
As recommended by respondents to the 2014 e-reward survey

‘It is the
conversation
‘Focus on the
between the
positives, create a ‘Ensure the system isn't
manager and
culture of continual hampered by
employee that is
bureaucracy and
performance most important.’
tedious paperwork.’
management rather
than restricting it to
an annual appraisal.’

‘Managers need to
be given the skills to
‘Make it about good ‘Clear line of sight
conversations, not just a between manage difficult
process.’ objective setting, conversations and all
performance staff need to know
review and
business goals.’
how to give and
receive feedback.’

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