your business plans and strategies into a framework of balanced
performance indicators (or KPI's). Indicators that focus you and
your people on what makes your business tick.
Management (the successor of Management By Objectives
or MBO) is the essence of managing, and the primary "vehicle"
for getting the desired results through employees at all levels
in the organisation. In the absence of such a system, staff members
are unclear as to the employer's expectations regarding performance
objectives and standards/targets, leading to low productivity, costly
mistakes, stress, de-motivation, and conflict. A sound Performance
Management Process/System subscribe to the crucial Principle:
"What gets measured gets done".
The days of having a "one-set-of-measures-fits-all"
Performance Management System are long gone and inherently
flawed. Performance objectives and measures need to be specific
to job categories and individual roles.
They should also clearly link to
Organisational Strategic Goals. We subscribe to the Balanced
Scorecard KPI technology to ensure a proper balance in the types
of measures (based on four perspectives of the business) used at
corporate level, and cascaded down to the lowest position. This
ensures vertical and horisontal alignment and integration of the
key performance measures throughout the organisation to ensure optimal
productivity and bottom-line results.
Performance Management Cycle involves Four Stages:
Formulating Objectives, Key Performance Indicators
(KPI's: Input and Output-based), and Performance Standards (Quantitative,
Qualitative, Behavioural) and Targets for each position/employee,
using a suitably designed Performance Agreement Form.
PERFORMANCE: Performance observation, measurement, recording,
feedback and coaching, as well as managing the performance environment.
This stage includes Performance
Coaching and Counselling whenever employee performance or
behaviour is not up to standard/expectation.
Linking actual performance to appropriate rewards/remuneration
to reinforce excellence in performance. (We assist organisations
in designing suitable reward/incentive systems or schemes for
SETTING THEORY SAYS:
Specific Goals/Objectives increase performance,
and challenging goals, when accepted by jobholders, result
in higher performance than easy goals
Pay / Bonuses
While probably the most widely used
approach to reward employees for excellent performance, merit pay
is also fraught with dangers if not applied properly.
Specific problems include perceived inequity, lack of fairness and
transparency, bias, stereotyping, subjective judgements, rating
errors, favouritism, etc.
Reasons for this typically include poorly identified and formulated
performance measures, poor performance tracking and reporting, lack
of performance feedback, coaching and training, poor timing of merit
rewards, poor linkage between merit pay and actual performance,
and a host of other factors.
The result is frequently conflict during Performance Appraisals.
No small wonder that both line managers and staff members generally
hate Performance Appraisal time!
One thing managers will always tell you they
need is to have a Performance Appraisal System where the subjectivity
regarding actual performance is largely removed. HR and line also
crave to have a system where the calculation of merit bonuses for
all staff is easily understood, perceived as being fair, and devoid
of potential unhappiness and conflict.
Organisations have to be very
careful in deciding what performance or behaviour they reward,
and be acutely aware of potential unintended consequences.
Behavioural psychology says that you will get what you reward,
even that which you did not foresee at the time (e.g. negative
behaviour of some sort). The timing of rewards also forms
part of this equation, as do many other performance-related
factors that affect human behaviour.
We have many years experience working
with these Performance Management and Human Behaviour principles,
and can assist you in the design of a Performance Management System
that addresses all the issues mentioned above - reinstating its
main purpose, namely to increase staff performance and motivation,
and to impact on the organisation's bottom line.
serve as the primary vehicle for implementing organisational goals
and strategies (cascaded from top to bottom throughout the organisation)
align and integrate the objectives and key performance measures
(KPI/s) of the organisation vertically and horisontally 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 following
as a matter of course ("What gets measured gets done").
facilitate continuous performance improvement, organisation development
and culture change
achieve quality and efficiency, i.e. to meet the customer's needs
as precisely, quickly and cheaply as possible
ensure clarity regarding work expectations and performance standards,
reducing job holder anxiety/stress, resource wastage and conflict
continually enhance employee competence through the identification
of output-related training and development needs and strategies
reduce Line Manager reluctance and fear to do Performance Appraisals
with their staff
facilitate performance-based remuneration and rewards, so employees
can see and experience a clear link between their performance
and the rewards they receive
Zealand Herald, 4 October 2004
Steward Forsyth pointed out that eliminating role ambiguity
- giving workers clear instructions about what was expected
of them - would rid the workplace of major sources of stress"
only is the existence of a sound Performance Management and Appraisal/Review
System an OPERATIONAL PREREQUISITE for achieving organisational
goals, but also a LEGAL REQUIREMENT to prove that proper/due process
was followed (backed by sound documentation) when eventually disciplining,
and especially dismissing, a staff member for persistent poor performance.
are specialists in designing Performance Management Systems customised
to the specific operational needs and requirements of organisations.
It is done through an in-house task force (2-5 key decision makers
and specialist contributors) who are facilitated through a needs
assessment and design process to produce the eventual system.
present Performance Management System may just need to be assessed
and adapted to optimise the results you wish to achieve.
Contact Us for a FREE ASSESSMENT of
your present system, and a NO OBLIGATION QUOTATION in respect of
upgrading it if necessary.
I would like to express my appreciation
on behalf of the Regency Duty Free management team for all the work
and effort you have put in to develop a Performance Management and
Appraisal System for us. It is great to have a system that has been
specifically designed for our company. Our managers have found the
KPIs and sales tracking system easy to use and sales staff have
commented that the monthly "on-track" coaching meetings
enable them to get regular feedback on their performance and progress,
which is very positive. Our goal to create a culture of performance
within Regency has been greatly enhanced by your efforts! Lesley
Beacham - HR Manager - Regency Duty Free Stores Ltd
The Performance Measurement/Management
and Appraisal System you have designed for us is the best I have
seen in all my years in retail. Lynette
Richards - National Retail Manager - Just Kids Ltd
Management System Training
is highly recommended that line management and general staff
be trained in the correct "technical" application
of their newly designed/upgraded Performance Management/Appraisal
System (e.g. the organisation's Performance Management policy
& procedures, formulating Objectives/KPI's & Performance
Standards, Performance Appraisal documentation, etc. - i.e.
the "HARD" part of the system). Half-day sessions
are normally sufficient for this purpose.
Also, once a Performance Management System has been designed,
it will not automatically provide line managers with the "SOFT"
interaction skills to conduct the Performance Appraisals/Reviews
effectively, or to address poor Performance or Behaviour throughout
the year. Our following training programmes address these