More On Performance Management
Introduction
The evolution of performance management systems is a way of documenting behaviour ,ie both good and bad.
Every organisation has a performance management system that can range from loosely organised approach in smaller organisations to detailed, documented and bureaucratic functions in larger organisations.
In many organisations the performance management system is problematic, ie disliked by staff and seen as unnecessary by management.
Performance basics
Performance chain of impact
|
Level
|
Measurement Focus
|
Typical Measures
|
| 0. Input*i | input into work including indicators representing resources scope, efficiency and costs | access to tools, technology, materials number of people involved, hours and involvement and budget |
| 1. Reaction*ii | reaction to work, including perceived value of the work | relevance common port's, usefulness, fairness, appropriateness, useful motivation and necessity |
| 2. Learning*iii | learning to do the job including confidence to be successful | skills, knowledge, capacity, competencies, confidence and contacts |
| 3. Application and Implementation*iv | the actions taken, use of tools, knowledge, materials and system in the work environment | extent of use, task completions, frequency of use, actions completed, success with use, barriers to use and enablers to use |
| 4. Impact*v | the consequence of action, use of the tools, materials and systems expressed as business impact measures of output, quality and time | productivity, customers serve, revenue, accidents, incidence, quality, errors, cycle times, costs, project completions, efficiency, customer satisfaction and employee engagement..." Patti & Jack Phillips, 2022 |
Notes
i) refers to work environment; has the necessary resources, etc to do the job
ii) staff need to believe that their work is important, relevant, necessary and hopefully motivating and/or inspiring, plus well designed and communicated; otherwise adverse reaction can result in unsatisfactory performance.
iii) learning can come from formal and informal training (including on-the-job); inadequate learning will result in unsatisfactory performance
iv) involves taking action like managing projects, using technology, following procedures, etc
v) "...team members are busy, but are they getting results? Impact of each individual's work includes personal productivity (output), mistakes made along the way (quality), the time it takes to do the work (time) and costs accumulated in the process (costs). Output, quality, time and costs are four major categories of impact..."
Patti & Jack Phillips, 2022
Shifting Performance Management Systems
|
Issue
|
Traditional
|
New Approach
|
| Executive view |
necessary process |
a business driver |
| Purpose |
documentation, managing poor performance |
performance enhancement |
| Goals |
rigid and specific |
smart and flexible |
| Review frequency |
once or twice per year |
frequently |
| Rewards |
closely guarded, rare |
routine, transparent, based on performance |
| Design focus |
top down |
bottom-up |
| Documentation |
bureaucratic and extensive |
simplified and flexible |
| Evaluation focus |
measure the process |
specific business measures at the individual level |
| Preparation |
training for managers |
training for managers, employees and teams..." Patti & Jack Phillips, 2022 |
Comments
- too often executives see performance measurement as necessary rather than as an essential business driver for good performance
- the system has morphed into a documentation process in case there is a challenge to the organisation over alleged poor performance of staff, ie a process of managing poor performance and a tool for documenting the rationale for pay decisions. It should be perceived as a way to build the performance of staff in the organisation
- sometimes there is too much emphasis on low and high performers, rather than making the average performance better
- goals should be flexible to handle the changing situation and be reviewed regularly (informally and formally)
- more powerful if system is co-developed with staff, ie bottom-up
- need to keep documentation simple and informative
- align with key organisational objectives and measures so that staff see how they fit into the organisation (including the difference they can make and their contribution)
- needs to be more than ticking boxes, following the process, completing the forms, etc
- be prepared to train all staff in how to use performance measurement
A checklist to ensure a good performance measurement system
"...- identify reasons for previous failures
- start over with a blank page
- explain the importance of performance measurement
- align performance to the business
- obtain input from employees and managers
- define roles of managers and employees
- secure executive commitment and support
- secure support and involvement from managers
- define/describe performance
- define and measure with precision
- make the process flexible......
- requires mutual agreement on level of performance
- document with simplicity in mind
- teach managers, teams and employees..."
Patti & Jack Phillips, 2022