Designing A Performance Management System
Designing A Performance Management System
job-related
practical
have measurable standards
Perhaps the most important design consideration is to develop a process that is practical and easy to understand and use. The focus should be on the results of the performance management process - effective and motivated staff - not the steps of the process.
When developing a new performance management process, use a committee made up of employees and managers. A collaborative approach will increase employee buy-in, understanding and support of the process.
Once the process has been developed, communicate with all staff about the purpose and the steps in the performance management process.
You should be prepared to make adjustments to your new system as necessary.
Different Types of Performance Management Systems
There are a variety of ways to measure performance including:
Self Appraisal: the employee is asked to evaluate his/her own work
Peer Appraisal: staff of equal rank within the organization are asked to evaluate the employee
Team Appraisal: similar to peer appraisals; employees who work as part of a team are asked to evaluate the team's work
Assessment Centre: the employee is assessed by professional assessors using several types of evaluation such as work simulations and actual activities
360-Degree or Full Circle Appraisal: the employee's work is reviewed by gathering input from representatives of all the groups the employee interacts with such as supervisor, peers, subordinates and clients.
Management-by-Objectives: the employee's achievement of work objectives that are set in collaboration with his/her supervisor are assessed.
Combination of Methods: Some organizations combine different methods into their performance management process. In particular some organizations include an evaluation of competencies - the knowledge, skills and abilities that distinguish superior performance. Establishing competencies for performance management in an organization requires careful thought. Without careful preparation, evaluating competencies can be very subjective.
In the voluntary sector, 360-degree appraisals are sometimes used for evaluating the Executive Director. Management-by-objectives is an effective approach to performance management for all other employees.
Because it's the most practical system for most non-profit organizations, we will be focusing in this section of the website on Management-by-Objectives.
Management-by-Objectives
Performance management using a management-by-objectives (results-based) approach has three phases:
Phase 1 - Planning
a work plan for the next year is developed;
measures for assessing progress are established.
Phase 2 - Monitoring
progress toward the goals identified in the work plan is monitored;
the plan is adjusted if required;
corrective action is taken if necessary.
Phase 3 - Reviewing
at the end of the performance management cycle the manager and employee meet to document the work of the past year;
accomplishments and shortfalls relative to the work plan are summarized using a performance management form;
a new performance management cycle begins.
Each of these phases is discussed in detail in the section below.
Designing A Performance Management System - To learn more about this author, visit Dr. Fathi El-Nadi's Website.
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Your performance management system should be:
job-related
practical
have measurable standards
Perhaps the most important design consideration is to develop a process that is practical and easy to understand and use. The focus should be on the results of the performance management process - effective and motivated staff - not the steps of the process.
When developing a new performance management process, use a committee made up of employees and managers. A collaborative approach will increase employee buy-in, understanding and support of the process.
Once the process has been developed, communicate with all staff about the purpose and the steps in the performance management process.
You should be prepared to make adjustments to your new system as necessary.
Different Types of Performance Management Systems
There are a variety of ways to measure performance including:
Self Appraisal: the employee is asked to evaluate his/her own work
Peer Appraisal: staff of equal rank within the organization are asked to evaluate the employee
Team Appraisal: similar to peer appraisals; employees who work as part of a team are asked to evaluate the team's work
Assessment Centre: the employee is assessed by professional assessors using several types of evaluation such as work simulations and actual activities
360-Degree or Full Circle Appraisal: the employee's work is reviewed by gathering input from representatives of all the groups the employee interacts with such as supervisor, peers, subordinates and clients.
Management-by-Objectives: the employee's achievement of work objectives that are set in collaboration with his/her supervisor are assessed.
Combination of Methods: Some organizations combine different methods into their performance management process. In particular some organizations include an evaluation of competencies - the knowledge, skills and abilities that distinguish superior performance. Establishing competencies for performance management in an organization requires careful thought. Without careful preparation, evaluating competencies can be very subjective.
In the voluntary sector, 360-degree appraisals are sometimes used for evaluating the Executive Director. Management-by-objectives is an effective approach to performance management for all other employees.
Because it's the most practical system for most non-profit organizations, we will be focusing in this section of the website on Management-by-Objectives.
Management-by-Objectives
Performance management using a management-by-objectives (results-based) approach has three phases:
Phase 1 - Planning
a work plan for the next year is developed;
measures for assessing progress are established.
Phase 2 - Monitoring
progress toward the goals identified in the work plan is monitored;
the plan is adjusted if required;
corrective action is taken if necessary.
Phase 3 - Reviewing
at the end of the performance management cycle the manager and employee meet to document the work of the past year;
accomplishments and shortfalls relative to the work plan are summarized using a performance management form;
a new performance management cycle begins.
Each of these phases is discussed in detail in the section below.
Designing A Performance Management System - To learn more about this author, visit Dr. Fathi El-Nadi's Website.
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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