Effectively
and coaching areas.
“PMP is expected to be a living part of our daily coaching and partnering for performance activities, which should be done both ways, from team leader to team member and vice versa.” The PMP system clarifies responsibilities, sets targets and expectation standards, helps to monitor progress, ensures ongoing dialogue, feedback and coaching and focuses on current and future development of both the team member and company.
Galli says that to institutionalise the same PMP standards across the whole organisation and strive for high quality of delivering this process on all levels, Hilti prepared a “cook book” as a support tool for team leaders and members. The company also has a very specific performance bonus structure that is linked to its profitability.
Dimension Data initially has employees do a self-assessment before their managers assess them, says Fine. To eliminate any scores being affected by personality conflicts, Dimension Data continuously does two-way performance discussions so there are no surprises, she says. Occasionally, however, there are disagreements that require mediation and team feedback also ensures a balanced view.
Galli notes that Hilti sets at least three business and two development targets at t he beginning of the year. These targets are captured on the PMP system, she says.
The target-setting process requires the employee to sit with their manager at the beginning of the year to establish and agree upon set targets before entering these onto the system, says Galli. All targets need to be specific, measurable, attainable, relevant, measurabable and time bound. All the targets are determined in line with its Champion 2020 strategy.
Galli says Hilti finds the PMP to be the fairest way of measuring performance, as there will not be any disputes in agreements, or previous conversations regarding targets, such as increases not being as good as they should be, accusations of a certain manager of being biased, etcetera.
Ongoing development
Hilti monitors career development through its strategic manpower development process, adds Galli. This is a forum where every employee is discussed in terms of talent potential.
A separate develop- ment discussion meeting should also happen during this step, notes Galli.
“The discussion is based upon a potential assessment of the team member within the current role, considering their tenure and experience in the position. It allows the team l eader to understand the team member’s motivation, future interests, strengths and devel- opment opportunities.
“Team members get a chance to vocalise interests and receive constructive feedback based on the potential assessment. Every team member has the right to have a discussion with the team leader annually.”
Hilti also measures aspects like leadership and uses a motivation system to recognise outstanding achievers based on their leadership and other soft skills during its annual awards process. In addition, annual training is done so all staff understand the measurement process.
“Measurement is key to any leadership role as this could make or break you as a leader. Measurement is not only vital in leadership, but will also have an impact on the business if not conducted in the correct manner.”
To measure itself internally, the company also runs an employee satisfaction measure, adds Fine. She says this allows the company to rate employees’ perceptions to ensure they are deriving value from HR, and are satisfied with the people practices.