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PERFORMANCE MANAGEMENT PROCESS
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A. Purpose, Goals and Responsibilities
The purpose of having a structured performance management process (PMP) is to ensure that EVERY employee receives direction and communication about his/her performance. The intent is to have an ongoing dialogue between the manager and the employee that occurs throughout the year, to discuss mutually set performance/job goals, work expectations and targets. Performance management is a process to assist employees to be successful by:
- Aligning day to day actions and activities with the company’s mission and business philosophy;
- Clearly defining employees’ performance expectations;
- Identifying the training and coaching needs to ensure employees’ success and to provide career opportunities.
The fundamental goal of a PMP is to promote and improve employee effectiveness on the job and the contribution the employee makes to the company as a whole. More than an annual performance review, performance management is a continuous process of giving feedback, coaching and training to ensure employee meets both the company and his or her own goals.
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Reproduced with Permission by MEDA, Kitchener, Ontario from Human Capital
Orientation Manual, updated July, 2011 by Contact Coaching & Training
Services
Manager’s Responsibilities: Managers are responsible for creating and sustaining an environment that supports employees’ goals for successful performance. Managers lead the performance management process by:
- setting clear, measurable and attainable performance/job goals with input from employees;
- having regular check-in meeting with employees to discuss the progress on achieving their goals and providing guidance on issues employees might be dealing with;
- providing honest and timely feedback where performance needs to be improved and recognizing achievements;
- recommending and supporting training and development.
Employee’s Responsibilities: Performance management is a partnership. To get the most value from this process, employees need to:
- fully participate in setting yearly performance/job goals with the manager or supervisor;
- proactively bring forward issues or concerns and follow through on individual commitments;
- ask for, and listen openly to feedback from managers or supervisors;
- stay focused on achieving performance/job goals.
Setting performance/job goals allows for clear communication between the supervisor/manager and employee. Performance/job goals are usually developed at the start of a new fiscal year. This helps to ensure that the employee’s goals align with the targets the company sets for that year.
Performance goals:
- Describe
what the employee will be accountable for;
- Define
important outcomes that an employee is expected to accomplish;
- Derived
from the job description and business goals;
- Specify
the quantity, quality and/or timeliness of the goals:
- quantity:
numbers, percentages, levels of production;
- quality:
accuracy, effectiveness, usefulness;
- timeliness:
certain time period, by a certain date.
The SMART goal setting method is a clear and concise method that can be used to set the goals.
Specific: specify clearly what is to be done, when it is to be done, who is to accomplish and how much is to be accomplished;
Measurable: ask questions such as: how many? How will I know when it is accomplished? Multiple measures should be used if possible i.e. quantity, quality, time frame and cost;
Attainable: assure there is a reasonable opportunity for the employee to achieve the goals;
Results oriented: clearly state the end result desired rather than the activities necessary to get there;
Time-bound: set a specific time period in which the goal is to be achieved. Usually the goals are to be completed by the end of the performance review period.
Appendix VI gives
more detailed questions to ask when writing SMART goals. Appendix VII is a Checklist
to for Writing Effective Performance Goals.
Come prepared! Review the employee’s file, make notes and gather relevant data.
Before the appraisal meeting, the manager and employee would decide on the performance/job goals for the next year. The best performance discussion is a two way discussion where the employee evaluates him/herself as well as you evaluating the employee. A copy of the uncompleted appraisal form is given to the employee a month before the appraisal meeting in order for the employee to prepare a self-evaluation in preparation for the meeting. Since performance appraisal meetings are a once a year event, go through the form thoroughly to ensure the employee understands the rating system and your expectation in how information should be presented.
It is crucial that the manager/supervisor appropriates the adequate amount of time to thoroughly complete the appraisal form and to have ready concrete examples that are behavioural (observable, measurable or verifiable). Employees value clear communication about how well they have performed from their managers/supervisors. For employees to be successful, it is crucial that managers/supervisors share their picture of what constitutes successful performance through the information provided on the appraisal form and the dialogue in the appraisal meeting.
The purpose of the appraisal form is to provide a written record for the employee and his or her manager/supervisor of how the employee is progressing in achieving defined performance/job goals. As performance management is a year long process both employee and manager/supervisor should be using the completed form. Appendix VI gives a template for a Performance Review form.
- Arrange a convenient time in a private area where you will not be interrupted � turn off cell phones/pagers!
- Put the employee at ease.
Help the employee feel comfortable. Ask the employee how his or week has been or give some general information about the company. Set a positive tone. Start with a general discussion and take the time to make a human-to-human connection. Smile!
- Explain the purpose and procedure for the discussion.
- Ask your employee to self appraise using the Performance Appraisal Form. Listen carefully.
- Give your appraisal. Support your written statements on the performance appraisal form with further examples and explanations. Seek input from the employee throughout the discussion. Ask open-ended questions. Deal specifically with predetermined job tasks and goals. Do not make vague personal statements, i.e.: “I am not happy with your performance”. Support your statements with specific data and examples. Identify points of agreement between the two evaluations.
- Discuss and reach agreement.
- Ask for reactions to your appraisal
- Focus on areas of agreement
- Pinpoint specific disagreements
- Ask if the employee has any back up information to support his or her ratings
- Provide your back up information to support your assessment
- Ask for agreement
- Note unresolved disputes and next steps If the employee strongly disagrees with or challenges a rating, consider arranging another meeting for further discussions to focus on specific performance areas. This will allow time for emotions to diffuse and for each party to gather further data to validate their assessment.
- Take unresolved disputes to next level of management for appeal
- Do not ask your employee to agree against their will
- Document disagreements in the employee’s file
- Personal Development Plan
Agree on a personal development plan for the employee. A personal development plan addresses performance weaknesses and plans for further job training and professional development. This step can also be conducted at a separate meeting. A personal development plan provides employees with an opportunity
to grow; enhances employees’ skills to optimize performance; and ensures
employees have the ‘right’ skills to
achieve business goals today and tomorrow.
- Set a date to develop the next year’s annual performance/job goals (soon after) and discuss preparation
Think about any new performance/job goals for the next fiscal year and make any required revisions to job description in preparation for this meeting. Review and analyze performance gaps and weaknesses, and develop ideas for actions to improve specific skills.
- Close the meeting
- Express appreciation for employee’s participation and confidence in the employee abilities
- Ask for any last questions
- Give the employee a copy of the final evaluation (or if there are changes/updates to make, inform the employee that you will forward him/her a final copy in the next couple of days)
- Remind the employee that she/he can add any personal comments on the form before she/he signs it
- Thank them
Once you and the employee have signed off on the performance appraisal, the employee and manager/supervisor should retain a copy; and a copy should go into the employee’s file.
In summary, there should be no major surprises in the annual performance appraisal meeting, and there won’t be if:
- Performance expectations have been clear, and clearly communicated;
- Performance monitoring has taken place regularly throughout the year; and
- Manager/supervisor feedback and coaching has been open, honest and consistent.
The annual appraisal meeting should be a “wrap-up” session, a summary or a conclusion to a year-long process of review. For this reason, it is important to understand that performance management takes place on a day-to-day basis.
Managers/supervisors will develop experience with performance appraisal meetings over time and, as with many skills, it is best to learn by doing. Following the process on conducting a performance appraisal discussion will help to avoid some of these common errors that can undermine the performance management process.
- Inadequately defined goals or standards of performance;
- Over-emphasis on recent performance;
- Reliance on gut feelings rather than using facts or specific examples;
- Misunderstanding of performance standards by employee;
- Insufficient or unclear performance documentation;
- Inadequate time allotment for the discussion;
- Too much talking by the manager; and
- Lack of a follow-up plan.
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