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Appraisal Smart covers more than the Performance Appraisal or Review - it covers Performance Management in substantial detail...
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What is Performance Management?
Performance Management is a system and process that link the organization's goals and strategies to individual and team performance so as to increase organizational effectiveness.
It is a joint process that involves both line managers and their direct reports ("subordinates") who jointly identify common goals/objectives which correlate to the higher goals of the organization. This process results in the establishment of written performance expectations (a Performance Agreement) - later used as measures for feedback and performance appraisals/reviews.
Performance Management is THE WAY to get OVERALL GRIP on what should be happening at all levels in an organization, and then measuring whether it is indeed happening the way intended. And where this is not materializing, to identify the cause/s and implement corrective action/s.
It is a much wider concept than the Performance Appraisal/Review. The latter is only one part of Performance Management (stage 3 in a 4-stage process)
Performance Management consists of FOUR STAGES:
Performance Management Model
This model is aligned with the WORK NEEDS of individual employees, which are as follows:
Expanded Performance Management Model
To provide for the above needs of an employee, let's consider what should happen at each stage of the Performance Management Cycle:
1. Planning Performance: Performance Measures (Goals, Objectives, Targets, KPIs, Competencies, etc.) for individual employees (at all levels) are jointly discussed and agreed during one-on-one, face-to-face meetings with their direct line managers. These are put into a formal, written Performance Agreement for each staff member. (Performance Agreements can also be drawn up for entire work teams in organizations where teamwork is paramount.)
2. Managing Performance: During this stage, employees implement/execute their agreed Objectives/KPIs. They manage their own performance, assisted by line managers who should aim at removing performance obstacles in the work environment and providing the necessary resources, training and coaching. Line managers are also responsible for integrating and coordinating (horizontally and vertically) the Objectives/KPIs of all their employees/units/teams, monitoring their performance, taking corrective action, and doing joint problem solving as and when necessary. The leadership, motivation, feedback, reinforcement and support they need to provide throughout are of utmost importance.
Managing Performance is an ongoing activity that actually runs through all phases of the Performance Management Cycle. It is the Golden Thread of Performance Management.
3. Reviewing Performance: During formal Performance Appraisal/Review Interviews, employees and their line managers discuss (and assess) how well the agreed Objectives/KPIs had been achieved and specified Competencies demonstrated. Problem areas are identified and corrective measures put in place, including possible coaching and training that the jobholder needs. Depending on the type of organization and its management philosophy, the frequency of Performance Appraisals may be any of 1-, 2-, 3-, 4-, 6-, or 12-monthly (Appraisal Smart caters for all these options).
4. Rewarding Performance: The actual RATING of performance (how well each Objective/KPI had been achieved and Competencies demonstrated) forms part of the Performance Appraisal/Review Interview. Rewarding people for good performance takes the form of monetary incentives or rewards (performance-based pay such as bonuses and/or salary adjustments). However, the power of non-monetary rewards, such as praise and recognition, should not be ignored and need to enjoy much more emphases than it generally does.
It is important to note that Performance Management is not an additional responsibility for line managers. Rather, it should be seen as an EFFECTIVE WAY of managing. In fact, managing employee performance in the way described above, is the essence of a manager's job, and not something that keeps them away from it.
Crucial Performance Management Principles
"What gets measured (monitored, rewarded, emphasized) gets done"
"What you don't measure, you can't (effectively) manage"
The most important objectives and benefits of having a sound Performance Management System in place:
To serve as the primary vehicle for implementing organizational goals and strategies (cascaded from top to bottom throughout the organization).
To align and integrate the goals/objectives and Key Performance Indicators (KPIs) of the organization vertically and horizontally through all job categories and levels, including management. In this way the entire system works together in pointing towards the critical bottom line MEASURES, with bottom line RESULTS generally following as a matter of course.
To facilitate continuous performance improvement and organization development - the perfect Change Management and Learning Organization tool.
To achieve quality and efficiency, i.e. to meet the customer's needs as precisely, quickly and cheaply as possible.
To ensure clarity regarding work expectations and standards, reducing jobholder anxiety/stress, resource wastage and conflict.
To continually enhance employee competence through the identification of output-related training and development needs and strategies.
To reduce Line Manager reluctance and fear to do Performance Appraisals with their staff.
To facilitate performance-based remuneration and rewards, so employees can see and experience a clear link between their performance and the rewards they receive.
Not only is the existence of a sound Performance Management and Appraisal System an OPERATIONAL PREREQUISITE for achieving organizational goals, but also a LEGAL REQUIREMENT to prove that proper/due process was followed (backed by a sound documentation and process audit trail) when eventually disciplining -- and especially dismissing -- a staff member for persistent poor performance.

Read more about Performance Management Systems and their linkage with Staff Performance Appraisals/Reviews

Performance Management Best Practice Principles                                                                                 

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