Employee performance management is a process for establishing a shared workforce understanding about what the organization needs to accomplish to achieve success. One key aspect of employee performance management is aligning the objectives of the individual’s role with the goals of the organization. The purpose of performance management is to develop a high performance workforce to achieve the overall objectives of the business. We’ve definitely seen an increase in performance management in the enterprise in recent years, according to Gartner.
Often, performance appraisals are lacking in their ability to determine if the employee is helping the organization to meet its goals. A Key Performance Indicator (KPI) is a factor that can be used to evaluate the success of an organization. It is necessary for managers to define KPIs in terms of business performance, but also by how they directly affect individual team members. An inappropriate KPI could result in counterproductive behaviors. Every employee goal should be aligned with a KPI; this is a key link between organizational success and employee success.
In general, performance appraisals are disliked by both employers and employees; performance appraisals can result in arguments and create tension between managers and employees. Appraisals are time consuming and the appraisal may not truly measure the development of the individual. By meeting certain criteria with these performance appraisals, managers can alleviate some of the stress associated with this process and ensure appraisals are effective.
When developing a performance appraisal system, it is necessary to ensure whatever method of appraisal being used meets the appropriate criteria. When conducting a performance appraisal, incorporate the following:
- Define the steps in employee appraisal, including performance goals with measurable outcomes and the priority of each job responsibility.
- Identify KPIs for the individual’s role as a measure of appraisal. Identify the critical and non-critical areas of an employee’s role. Develop an employee appraisal program that accurately measures the performance of the individual.
- Include a means of self-assessment. Schedule the performance appraisal meeting, and identify the self-assessment documents the employee must complete prior to the meeting.
- Hold interim discussions and give feedback on employee performance prior to the formal appraisal. Prior to the meeting, gather the appropriate materials and information to conduct an appraisal of self-evaluations done by the employee, records of previous meetings with the employee, and a copy of the employee’s performance plan.
- Create an appraisal narrative. Take note of any ways the role of the employee has changed since the last appraisal. Has the employee’s performance changed since their last appraisal? Has the employee been assigned additional responsibilities?
- Utilize a 360-degree performance feedback system. Collect feedback from employee’s peers, customers, and subordinates.
- Create an individual development plan (IDP). If the employee is not meeting expectations implement a coaching plan to achieve employee success. If the employee is exceeding expectations, develop a coaching plan that will challenge the individual and encourage development.
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