If you have ever been a manager, you must have notices one thing: at some point or other, performance management becomes a disaster. There is something about having to assess people that gets everyone all tied up in knots. And I don’t mean just their typical nervousness about not wanting to hurt someone’s feelings, but a deeper disaster for the process.
One cause of this is that there are at least two kinds of performance management: formal and informal. It is common to confuse them because most companies have some kind of form you fill out every six months or so, but I am going to define these two terms carefully here.
Informal performance management happens every day. When the boss tells a subordinate that his work has been sloppy lately, or when a co-worker says to another “you were a real jerk on the phone with client X”, that is informal performance management. It works well. We all do it, and we have been doing it for centuries, so it is best not to mess with success.
Formal performance management, on the other hand, happens at least once per year (and usually every six months) and is designed to be objective. It requires you to list someone’s achievements for the past period, and then rate them according to a set of criteria that are supposed to be relevant to the job. There is only one thing wrong with the formal performance management, and it is a showstopper: you can’t do it accurately.
Methodical performance management is a key factor in unlocking the potential employees and supporting high performance. The methodical approach helps you stay on top of your team, know what they are doing and when, and how well they are doing it. There are many ways to assess and employee’s performance. it will depend on your business culture, the industry you are in, and even more on what you want to achieve.
Of course, there is no single answer for assessing employee performance, it is up to you to make an informed decision on how best to recognize excellence. In any case, you need to track your costs, such as time and money, associated with each employee and measure the outcome of their performance. measuring an employee’s performance is not limited to what they accomplish during work hours. It also includes how they behave when away from their desk, like while working on weekend or while attending a conference. You should know what happens outside office hours because extra effort and personal commitment counts.
Assessing an employee’s performance each month helps managers identify what they are doing well and what needs to change or improve on. To. Make sure this encourages employees to do more of the former and less of the latter, you need to tie it to reward, incentives and development opportunities.