1
Module 3: Continuing the Performance Management Process
1. Concluding the Performance Management
Process
In the last module, we explored the links between leaders and employees by
examining the role of job analysis. You gained insights into the performance
management process and considered how mission and vision statements inform
individual goal development. You also explored the first three steps in the
performance management process and learned how the links between the steps
work together to make a complete performance management system.
As we begin to explore the last steps in the process, flip through these cards to learn
more about each step:
1
Performance management is an ongoing and circular process
It never ends
Once established in an organization, it becomes part of an
organization’s culture
2
The performance management process includes five closely related
components
Prerequisites
Performance planning
Performance execution
Performance assessment
Performance review
2
3
The five components of the performance management process play
an important role.
If any of these components are implemented poorly, then the entire
performance management system suffers.
A performance management system is only as good as its weakest
component.
4
The links between the various components must be clearly
established.
Performance planning needs to be closely related to performance
execution.
It is a futile exercise if the execution does not follow the
performance plan.
5
The performance planning includes the consideration of results and
behaviors as well as the development plan.
A discussion of results needs to include key accountabilities,
including specific objectives for each key accountability,
performance standard, and competency.
The development plan includes a description of areas that need
improvement as well as goals to be achieved.
The fourth step in performance management is performance assessment.
Employees and leaders evaluate individual performance in meeting organizational
objectives. This joint approach allows employees to be actively involved in the
process of determining the value of their work to meet organizational objectives and
helps clarify both the employees’ and leaders’ understandings of expectations
(Aguinis, 2019).
3
Employees cannot meet performance expectations or organizational goals without a
clear outline which makes the need to complete the prerequisites from step one
even more evident. Leaders and managers should not assume that employees are
clear about their goals or company objectives and should not assume that
employees will come forward to ask follow-up questions when they are confused or
unclear about something.
A culture of openness and communication will assist with this important element of
implementation.
Keeping track of organizational and performance results can be accomplished with a
goal-tracking software or with a chart that is shared throughout the department or
organization. This communication should extend to discussions in meetings and
informal interactions during the workday. Discussing goals and objectives daily is
best in some situations and repeating the message will ensure that it is considered
important and makes checking on progress easy, so assistance can be provided as
needed (Mone, 2017).
The Deloitte Global Human Capital Trends survey found that the most important
trend for 2019 was related to employee learning. The recurring need to learn new
skills is apparent in the current business environment. Introducing continuous
learning into the organizational culture through training and development is the
responsibility of the HR department. Assessment of learning further broadens the
role of performance management from, “how are you doing your job?”, to “how you
are continuously learning your job?” Assessment becomes more dynamic by
identifying and developing new skills to remain relevant and aligned with
organizational objectives (Volini et al., 2019).
Watch this video to learn more about the necessity of connecting the organization’s
mission with the work of its employees:
https://www.youtube.com/watch?v=-0VX4m2Ys6o&feature=emb_logo
The video explores how a performance management system creates a work environment
that encourages staff to perform to the best of their abilities and holds every employee
accountable for results.
The fifth step in performance management is the performance
review or appraisal. This formal process is an extension of the performance
assessment process and provides employees and leaders with documented
employee achievements and feedback on leader perceptions of employees’ past
work. From this step, leaders and employees can determine the plan for moving
forward with any necessary changes in work behavior or organizational goals to
ensure alignment and goal achievement for both the individual and the organization
(Aguinis, 2019).
Performance appraisals have a bad reputation as not worth the time in many
companies, but the appraisal process should be an opportunity for leaders and
4
managers to ensure that employees are meeting the job role and organizational
requirements and help if they are not meeting the set standards. To improve the
appraisal process, it needs to be reframed as a learning process and managers need
to be trained to handle this well. The Deloitte 2019 Global Human Capital Trends
survey points to a need for meaningful work and the appraisal process is the perfect
opportunity to improve the employee experience. When the appraisal process is
finished, employees see how their work impacts the organizational outcomes and a
system view of shared meaning can be reintroduced to work. Assessment is also
related to reward systems and when a clear appraisal is made of performance, and
then rewards can be appropriately given for the value created (Volini et al., 2019).
An appraisal, when done well, will fortify the individuals and the organization.
2. Leading the Performance Management Process
It is important for leaders to oversee the creation and implementation of the
performance management system. Leaders have the responsibility to provide
resources and modify organizational goals and strategy. They are also responsible
for providing the support and motivation that employees seek to help them meet
organizational needs. Sharing of information between workers and leaders
encourages efficiency as well as satisfaction when goals are attained.
Review this table to learn more about the five components of the performance
management process.
5
(Aguinis, 2019)
Watch this video to explore the relationship between performance management and
employee behavior and attitudes:
https://www.youtube.com/watch?v=QABiQevlKkk&feature=emb_logo
Performance management involves two related activities: evaluating the performance of
your employees against the standards set for them, and helping them develop action plans
to improve their performance.
Performance management systems can be a big investment in both time and money
and many companies use thousands of staff hours to set annual performance goals,
complete evaluations, and conduct formal appraisals annually. In addition, some
companies use technology systems to systematize these processes, which adds even
more expense. Leaders know that performance management is needed to align
performance with strategic goals, but employees and managers can feel that it is a
waste of time. One of the reasons that performance management systems fail is that
they confuse many of the HR functions with the task of performance management.
Performance is the foundation of the organization and its functions. So, it is easy to
see how defining the lines of where performance management begins, and ends, is
challenging. Leaders need to return to the strategic management process as the
starting point and guide. Strategy informs organizational objectives. These objectives
may include a need to hire, which involves recruiting, an HR process, but hiring and
interviewing will frequently extend into the applicable department where the
employee will work. Performance management is not limited to HR. HR typically
develops the appraisal process and performs the administrative function of
prompting the review, but department managers typically conduct the reviews for
their own staff members. As the process moves between departments, it is easy to
lose sight of the strategic foundations that guide the process.
It is this disconnect between performance and strategy that leads to outcomes that
serve fundamentally different interests resulting in failed performance management
systems. The development of the performance management system must be
founded on rules of good behavioral science measurement. This considers that
totally different measures, assessments, and systems are required for different
departments, units, and individuals, yet most performance management systems try
to meet all purposes with a single approach.
Leading performance management means critically looking at the existing system to
see if it delivers the expected results. Organizations may delay in changing their
6
current approaches, dreading the need to change even though the systems are
broken. Consider a situation in which a company’s performance management system
is already judged poorly and that it has negatively impacted morale. Now consider
how difficult it will be to convince employees, managers, and other stakeholders that
changing the system is a good idea. However, organizations are always seeking
performance improvements, and without a well-designed performance management
approach, they will miss the opportunity to help employees perform to their
potential. It is a complex system, but research supports that good practices benefit
alignment of individual actions to organizational strategy and results (Dorsey &
Mueller-Hanson, 2018; Mone, 2017).
Think about a recent performance review you’ve had in the workplace. Did it include
the components you’ve been learning about? Did it align with the organization’s
mission and vision?
3. Productive Performance Reviews
A clear understanding of the performance management system with a focus on
linking the process steps will support the strength of the system. Fundamentally, a
good performance management system will have similarities to other methods, but
each system will differ from organization to organization.
Click through these tabs to review some guidelines for promoting a productive
review process:
Interactions:
•
•
•
•
Interact with the employee on a regular basis to discuss both positive and
negative concerns.
The performance review should not be full of surprises for either party.
No new information should be introduced, unless it recently happened and
there has been no time for prior discussion.
Regular feedback is a valuable performance indicator and some organizations
have quarterly meetings, but determining the right approach to performance
review timing will depend on the size of the organization and other
proprietary issues.
Transparency:
•
•
•
The format should reflect a thorough job analysis and align with
organizational goals.
Sharing how your organization will assess performance can align employee
thinking and actions with the organizational mission.
Feedback from the employee, supervisors, and coworkers can also support a
productive appraisal meeting.
7
Feedback:
•
•
•
•
•
•
•
Feedback increases the performance information available to both you and
the employee.
Sharing feedback and allowing the employee to digest the contents of the
feedback can improve the discussion and reduce stress.
Remember to focus on positive feedback.
Practice how to deliver negative feedback; poorly delivered feedback
generally doesn’t result in an improvement.
The majority of the discussion should consist of positive feedback and a focus
on continued growth.
No employee’s performance should be completely negative, as regular
discussions should address any problematic employees in actual time, rather
than waiting for the appraisal meeting.
If an employee is underperforming, speak directly and clearly address the
issues to ensure the employee understands the seriousness of the situation. If
the intention is to improve the situation, you should be comfortable with a
direct approach aimed at improvement.
The skills required by leaders and managers to be capable and motivated to use the
performance management system effectively should be examined. Experience in
conducting performance reviews will vary and previously negative experiences with
this process may impact the success of those involved in the appraisal.
Productive performance reviews rely on individuals believing the appraisal is
important and a company’s commitment to training supports this belief. One of the
areas that have been the most beneficial for productive performance reviews for
both managers and employees is learning how to provide and receive feedback
effectively. Feedback will increase the performance review process and can even be
provided prior to the review so the employee can consider the feedback before the
meeting. This can improve the discussion and reduce stress. Focusing on the
positive and learning how to deliver negative feedback will improve the process and
can lead to improved performance.
An overall healthy organizational culture will have an impact on the productivity of
the performance appraisal. Encouragement and confidence in the ability to improve
are needed to support productive reviews. An appraisal meeting is about clear
communications that align individual goals with organizational goals and this
message should be clear (Mone, 2017).
A formal training process for those who conduct performance reviews can be an
effective tool in promoting a successful process.
Purchase answer to see full
attachment