An Overview of Performance Management Systems and Review Process

An Overview of Performance
Management Systems and
Review Process
By: Urvashi Singh

Jumpstart-hr.com | twitter.com/jumpstarthr | 301-910-8660

What to Expect
 Definition
 Elements
 Roles and Responsibilities
 Types
 Review Process
 Supervisor’s responsibilities
 Problems
 Suggestions
 Audit
 Q and As


Performance Management
System

Performance management is the process
of creating a work environment or
setting in which people are enabled to
perform to the best of their abilities.
Performance management is a whole
work system that begins when a job is
defined as needed. It ends when an
employee leaves your organization.

Elements of a Performance
Management System
 Pre Employment Interview
 Employee Orientation
 Objective Setting
 Documentation
 Feedback
 Appraisal
 Development Plan
 Compensation and Promotion Decisions
 Succession Planning


Roles and Responsibilities
Top Management
 Support the system
 "Walk the talk"
 Recognize/reward managers who practice
performance management
Managers/Supervisors
 Implement and sustain the system
 Communicate system to employees
Employees
 Understand the system
 Operate within it


Roles and Responsibilities
Performance Management Committee
 Design system
 Plan for implementation, training, and communication of
system
Human Resources
 Perform day-to-day system management
 Train managers and employees in use of system
 Prepare and distribute appraisal packages and forms
 Track & audit utilization of system
 Manage compensation system
 Manage succession planning system
 Manage progressive discipline process
 Track & communicate job availability
 Provide counseling and support to managers and
employees

Types of Performance
Management Systems
 Ranking
 Forced Distribution
 360-Degree Feedback
 Competency-Based
 Management by Objectives
 Graphic Rating Scales
 Behaviorally Anchored Rating Scales


Performance Review Process

 HR designs the system with the input,
direction and support of all levels of
management
 HR trains appraisers about how to use the
system for evaluation and how to
communicate the appraisal system to
employees
 HR delivers the appraisal documents and
directions to all levels of management with a
timetable for the return of the completed
forms

 Employees may be asked to complete a self-
evaluation either before or simultaneously
with the supervisor’s evaluation
 Once the evaluation is complete, the
manager will typically review the rating with
his or her own immediate supervisor
 Managers at all levels schedule performance
discussions with each of their direct reports
 Both the supervisor and the employee retain
a copy of the written and signed performance
evaluation

Supervisor’s Responsibilities
in Review Process
 Communicate and clarify major job functions, priorities
and expectations
 Establish and communicate performance standards
 Monitor employees' performance through observation,
discussions
 Document good and unacceptable performance
 Provide continuous coaching and constructive feedback
in a timely manner
 Hold performance discussions at least once a year
 Reinforce good performance
 Help employees to develop skills and abilities for
improved performance
 Provide necessary information, resources and
opportunity to allow accomplishment of key results


Common Problems in
 Lack of top management support
 Perception of the process as time-
consuming
 Failure to complete on time
 Failure to communicate clear and specific
goals and expectations
 Lack of consistency
 Lack of differentiation
 Personal bias
 Inaccurate information

Suggestions to Make Reviews
Productive
 Be prepared
 Lead with the positive
 Don’t be confrontational
 Keep it real
 Be consistent
 Make it a two-way conversation
 Address what is important to the employee
 Discuss work/life balance
 Be a good listener
 Review regularly


Auditing Performance
Management System
 A good way to determine whether or not
the system is being administered fairly is
to conduct an independent audit of the
way the appraisal system is affecting
various groups of employees
 HR must take the responsibility of
monitoring the system outcomes so that
there is some assurance that all
employees are being treated in a
consistent and fair manner

Q and As
 How can an organization best realize the potential value of
its employees in cultivating its competitive advantage?

An organization establishes a powerful means of ensuring its own
success through a well-implemented performance management
system. When employees are motivated to perform up to and
beyond expected standards, they will contribute to shaping a
performance culture that can have a far greater and longer-lasting
impact than that which is possible through the individual
achievements of any one employee.


Q and As
 How does an organization's performance management
system influence the individual behavior of its
employees?

Employees need to know what is expected of them and
where they stand. An effective performance management
system provides a structure within which this knowledge is
communicated and this understanding is fostered. Each
employee can then focus his or her efforts on those
behaviors that have been identified as most important
through the establishment of goals and the identification of
relevant competencies.


Q and As
 How does a performance management system support the
overall attainment of organizational objectives?

A sound and effective performance management system ensures
that everyone's efforts contribute meaningfully to the
organization's success. Goal
setting, feedback, documentation, and the other steps in the
performance management process constitute interdependent
elements of an integrated system that as a whole supports and
reinforces the overall objectives of the organization.


Contact Jumpstart:HR

To request more information or consultation:
Joey Price, MS, PHR
CEO, Jumpstart:HR
www.jumpstart-hr.com
jprice@jumpstart-hr.com | 301-910-8660


An Overview of Performance Management Systems and Review Process

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An Overview of Performance Management Systems and Review Process