Performance Management - Getting The Most From Employees
Performance management is the process of mentoring employees every step of the way, throughout
the year, to ensure they keep focused on the targets, objectives and assessment criteria for the year. And, thus, ensure
they deliver on the set objectives.
||Performance management (PM) is not the same as performance appraisal or performance development review (PDR).
Surprised? Don't believe me? Not sure what the difference is?
Well, here's the difference.
Performance appraisal is exactly what it is . . . an appraisal of performance against pre-defined
criteria. On the other hand, PM seeks to guide employees during the year to help them focus on the
objectives and ensure they deliver acceptable levels of performance by year end.
In simple terms, effective leadership seeks to help subordinates succeed by conscientiously helping them manage their performance.
Here's how it works.
At the beginning of the new year (or the close of the current year), each employee sits with his boss to
have a one-on-one session to discuss the objectives for the new year. At this meeting the leadership and the
subordinates agree on the specific targets for the new year.
||Good targets are SMART. That is . . .
For example, a common assessment criteria upon which targets are based in manufacturing outfits is called QCDSM. That is . . .
SMART targets are then set for each of the performance assessment criteria.
For example, the targets for cost could be to . . .
Reduce edible waste by 20% in 2009
Reduce irreworkable waste by 10% in 2009
Reduce give away (or percentage over weight) by 30% in 2009
Cut stationery waste by 50% in 2009
Reduce overtime costs by 50% in 2009
Cut corporate car cost by 15% in 2009
. . . and more.
Now that the targets have been agreed upon, the role of an effective leadership is to create an atmosphere
that makes it possible for subordinates to achieve the targets.
Hey, it's not funny if 60% of your subordinates cannot achieve their targets for the year. Remember, if your
subordinates under-perform, so do you. Your success is tied to their success. If they lose, you lose.
How does performance development review fit into the picture?
Well, as the name suggests, it encompasses performance appraisal. It involves . . .
assessing the performance of employees at the close of the year
identifying areas where improvements are required
identifying training needs and
developing employees in line with the needs or gaps identified
All of these roles fall under performance management.
In effect, performance management is about helping subordinates succeed.
Unfortunately, a large number of bosses do not see performance management in this light. They see
themselves as people who set targets and then 'AX' subordinates who cannot meet the targets.
I will tell you this without mincing words . . . that is archaic management.
Want to grow as a leader?
Then help your people grow. Stop focusing on firing subordinates. Stop focusing on using performance
appraisal as a means to nail non-performing subordinates.
Instead, adopt modern management approach to performance measurement. Help your people succeed so you too can
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