How can performance management systems be improved?

Performance Management System is one that is normally designed to strengthen good relationship between supervisors and employees in order to attain the organisation goals and objectives. However, the road to success is not always smooth and easy; improvements should be regularly reviewed so as to achieve to an effective performance management system. When this happens there is a need to have a look at the system and set up some guidelines that may help the organisation in improving the system. Several guidelines that follow should help to develop an improved performance management system:

Continual analysis of performance data
The appraisal system is recommended to be an ongoing evaluation process to achieve organisational success. By brainstorming or making audits staff and supervisors can developed their concerns and problems that exist within the performance management system and find effective solutions to these problems, they want to avoid with a new appraisal system. Hence, with feedback from different perspectives, they will re-evaluate performance scopes and set goals they want to achieve. By implementing a thorough Performance Management System review process this will help in establishing and maintaining a successful performance-based culture in the organisation.

Automation of Performance Management System
For long, organisations have been using a paper based system to take care of performance appraisals. However, the system has often proved its inefficacity as sometimes it was difficult to keep all these records appropriately. The tendency goes to a technology based solutions because of its rapidity in conducting appraisals and it is relatively low in cost. It gets appraisals done on time and can be monitored continually. It will also help in delivering structured evaluations that will contain more professional feedback. And last but not least it will eliminate all manual work associated with filing, analysing and accessing performance review documentation; it will collate performance data in a greater capacity and leave managers to access these data’s more easily to analyse and use it efficiently.

Defining performance indicators
The first challenge that an organisation face is in clearly defining the performance indicators also known as goals or measures. The challenge lies in finding the quantifiable parameters for many tasks. The effective way to reach to this analysis is through discussions among top management and managers to be able to decide what parameters or guidelines should be set up at all levels of employees. It is absolutely crucial that key employees be consulted before setting targets for them and for their peers. Once the guidelines are set, a goal setting exercise engaging all employees should be conducted to ensure mutual consent of employees and their managers to set and define performance indicators.Managers should also ensure that a balance between quality of delivery and quantity of delivery is maintained in order to keep up standards and hence, achieve desired performance.

Focus on observable behavior
The most important part in the appraisals process is the interview between supervisors and employees. Normally, all supervisors are trained accordingly to be able to handle these interviews as the key outcome of these interviews is to employees to understand and use the feedback develop themselves and improve their performance. For sure employees won’t be able to do so if the feedback from their superiors isn’t clear to them.

For feedback to be useful it should be behavioral and not personal. It has to be specific, directly observable and clearly job related to meet the two important criteria’s which are performance and results. Also, supervisors should keep regular records of the results employees achieve. This will show whether employees are above or below expectations and if the equipment provided to them meets their needs to perform well. By observing employees working, supervisors can also see how employees perform specific job responsibilities, if they communicate well, if they follow safety policies, if they argue with co- workers or customers and the poor performers as well.

Consequently, these observed behaviors can be discussed and both supervisors and employees can make plans to improve both performance and results. Based on normal reports supervisors can easily categorize their employees in broad categories like Outstanding, Excellent, Good and Average. However, for the succession planning of the organization; promotions, rewards there is a need to find the leader among performers.

Appropriate Reward System
Once identified, immediate steps should be taken to reward the performers. Rewards should be appropriate and matching the performance, and to extent the expectations of performers. It can be in terms of cash bonus, promotions, vacations etc. Sometimes HR can ask the performer to give their preference among a variety of chosen awards. The more satisfying the reward is, the more it will create an environment of competition among peers to perform better than others. A poor reward system, on the other hand, will create an indifference of employees towards your performance management system. Linking performance with pay helps organizations to satisfy the performers and motivate the non- performers.

Finally, to meet best practices in Performance Management System, organizations need to continually develop opportunities to make plans for improvement. However, those employees who can’t improve with all possible efforts from the organization’s part must be moved to some other department or be graciously asked to look for other opportunities outside as no organization can afford to carry “dead wood”.