How to manage performance

THE establishment of an effective performance management system requires time and resources and therefore the support of the board, executive and other senior management. When developing a new performance management system process, an organisation can set up a committee made up of employees, managers and board members to increase buy-in, understanding and support for the process.

Management support to then act upon the outcomes of the performance management process is also necessary to ensure that good performance is recognised in adequate performance results in the necessary support and/or training to improve performance and consistently poor performance results in a change of responsibilities or termination as appropriate.

There is much more to performance management than the annual performance review meeting. As mentioned before, performance management is a continuous process of planning, monitoring and reviewing employee performance. An important component of developing employees is a comprehensive and well executed performance management system incorporating elements such as regular one to one meetings, through to performance appraisals and processes to manage under performers.

Performance management is a much broader concept than performance appraisal or a disciplinary process. It aims to improve organisational, functional, team and individual performances. Effective performance management measures the progress being made towards the achievement of the organisations business objectives. It does so by planning, establishing, monitoring, reviewing and evaluating organisational performance. Holistically, performance management may incorporate job design, recruitment, training and development and compensation and benefits.

The components of the performance management system provide the framework within which managers and employees operate. A successful system should:

◆ Incorporate performance improvement, development of teams and individuals and behaviour management to ensure productive working relationships;

◆ Have structures which support the effective functioning of the system i.e. a performance management system, appraisals and disciplinary procedures;

◆ Ensure that employees know and understand what is expected of them in their job role (performance objectives and performance standards);

◆ Ensure that employees have the skills and knowledge required to deliver on these expectations through implementing development plans.

Why do we do it?

To maintain competitive advantage in today’s economic environment, it is essential that organisations invest the time to accurately reflect upon, evaluate and measure their performance at all levels against specific criteria.

This process not only ensures strategic objectives are achieved and stakeholder needs are being met, but will have a direct impact on an organisations bottom line and ability to grow in the future.

A well-structured and implemented performance management system provides a number of benefits including:

◆ Alignment of individual performance and benefits to organisational strategic objectives;

◆ Motivation of employees through performance evaluations and employee development;

◆ Improved productivity and efficiency;

◆ Increased monitoring of progress on strategy implementation;

◆ Identification of specific training needs; and ◆ Improved salary administration. Performance management is a well-established, all-encompassing term used to describe the practice that drives decisions about performance, remuneration, promotions, disciplinary procedures, terminations, transfers and development needs within an organisation.

The performance assessment or appraisal meeting is an opportunity to review, summarize and highlight the employee’s performance over the course of the review period.

Self assessment is a standard part of most performance appraisals. By using the performance plan and assessment form as a guide, employees can assess their performance in preparation for the appraisal meeting. This process can identify gaps between the employees’ self-perceptions and the views of the manager and can allow for more in depth discussion of these performance points during the meeting.

This is a research article compiled by Felix Kumirai, a transformational strategist and resource mobilisation consultant at Genesis Global Finance. The contents herein are for information purposes only, and GGF does not accept responsibility for any loss arising from the use of materials or opinions contained in this article. To contact Genesis Global Finance: Call us on: +2638644131515 or +263777352828; Facebook: genesisglobalfinance/privatelimited. Follow us on Twitter: @ggfafrica. LinkedIn: /in/genesis-global-finance-166908a3/