Operating a credible Performance Management Regime is a real achievement
Whether your performance management system is newly introduced or has been operating for some years, a common issue for many organisations is whether or not it is credible with employees, stakeholders and customers.
Gaining credibility is absolutely vital if your performance system is linked to pay and reward particularly. The following 7 steps give an example of how you can gain the trust and confidence of all.
1 Ensure that managers know the difference between a performance review and a performance rating
In terms of reviews, managers might wish to evaluate a number of different aspects of performance such as giving an individual feedback on their skillset, their ability to apply knowledge, or how they do their work.
A performance rating, on the other hand, is based on their contribution or whether they have achieved pre-determined objectives or specific tasks that are linked to business objectives.
2. Clarify the difference between objective and subjective feedback
Make certain that managers understand the difference between subjective and objective feedback. Objective feedback is about facts, data and evidenced information. Subjective feedback tends to be based more on relationships and individual opinion.
A lot of performance management systems lose credibility because too many managers rate their staff based on subjective criteria and not everyone agrees with their opinion.
3. Define psychological types
Managers benefit from being aware of their own and others different psychological types. This understanding is vital as people respond differently to differing styles of giving and receiving feedback depending on their individual needs.
4. Focus on conflict resolution
Managers need to understand their own conflict resolution style and be aware of when and how to prevent, identify and resolve conflicts.
5. Ensure effective quality control
A credible quality control system must be in evidence. Such a system can include:
- Ensuring that HR or third party managers undertake independent reviews of findings
- Requiring a second signature on all documents and/or that senior managers confirm results
- Introducing focus groups that can anonymously challenge results and ratings on behalf of both teams and/or individuals.
While some of these ideas may be time-consuming, they will prove worthwhile if individual or legal challenges are eliminated.
6. Sell the benefits
Sell the benefits of measuring and rewarding performance and celebrate success when the performance management system works, making it clear that the objective is to boost performance and results.
Conversely, be careful not to let the system become identified with a hire-and-fire mentality. If you have big performance issues, sort them out separately and immediately, but not through the performance management system. It should be seen as a tool to improve performance rather than to get rid of people.
7. Provide clear guidance
Make sure that your guidance, policies and procedures are simple and transparent so that everyone can understand and sign up to them.
If you would like to find out more about performance management why not contact me, we can help to drive up results by making sure you pay attention to what is important.
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