In today's volatile economy, there are fewer employees doing the work of many. The main goal of the performance appraisal should be more than an opportunity to document specific criteria for salary increase, promotions and disciplinary actions. Performance reviews should also involve ongoing communication setting achievable goals with clear expectations and having a plan of action for the next period.
To ensure employees are performing to the organization's expectations it's important to conduct annual reviews of the work, efficiencies and attitude over the course of the employee's employment. This process benefits line managers and employees by identifying how to bring out their best performance.
Performance management is the systematic process of:
Setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization. What needs to be done, why it needs to be done, and how well it should be done.
In an effective organizations, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Monitoring includes weekly progress reviews with employees where their performance is compared against their roles and job descriptions.
Employee development means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job related skills and competencies, and helps employees keep up with changes in the workplace.
Some organisations find it useful to summarize employee performance with a rating. Through this quantitative approach, companies are able to compare performances of each employee over a specific time period more accurately.
In an effective organization rewards are used often and well. Recognising good performance should be an ongoing, natural part of day-to-day experience. a lot of the action that reward good performance, like saying thank you don't require a specific regulatory authority. Award regulation provide a broad range of forms that more formal rewards can take, such as cash, time off, vouchers, etc. Good managers don’t wait for their organization to solicit nominations for formal awards before recognizing good performance and managers should encourage behaviour in a constructive positive manner, in order to have better overall employee engagement.
The above framework is designed to develop a standard performance management structure, so that both employees and managers can get the most out of annual performance reviews. This framework helps managers and employees by focusing the employees efforts on achieving organisational goals.