Tips for Implementing a Performance Management System

The basic theory behind a performance management strategy is that if employees know what is expected of them, they are more likely to excel at their jobs. This is also a vital aspect of employee engagement.

By implementing a system like this you will see improved individual performance, greater employee engagement and overall better organisational performance.

Here are some keys steps to implementing a successful performance management system.

1. Clarify Objectives

An important first step is identifying some major objectives for the program and refining the need for a performance management system. What should be included within the system? You can choose to get input from your employees when trying to define the parameters of your performance management system or you can delegate it to your HR department. A good place to start is to use the definition of improving performance and satisfaction.

Some helpful things to include in a performance management system are:

• A clear company vision
• Documented and communicated core competencies
• Formal and Informal rewards which are seen as consistent and fair

2. Support of Your Managers

Once your objectives have been identified along with your expected business outcomes, you have to ensure that your managers are on board. The agreement of the senior management team is needed before any implementation steps are taken. Many systems fail because they are not seen to be included in a managers basic day to day responsibilities. Senior Managers must be seen to be actively supporting the process.

When training your managers in the implementation of a performance management system it is important that they understand:

• How much time is required to implement the system and maintain it on an ongoing basis?
• How the system works and what it will deliver if its implemented successfully
• And developing the skills necessary to carry our effective performance management often take time – more time than expected.

3. Prepare system and supporting materials and documentation
                            
Develop a process and documentation to support the system. Ensure core competencies are defined with associated behaviours and are communicated to all staff.

Included in the documentation should be:

• Review performance against the key parts of the job
• Review performance against any specific goals or objectives which have been set
• Review performance against the organisation’s core competencies if they have been defined
• Identify any learning and development needs for both short and longer term
• Allow for feedback on progress on an ongoing basis
• Ensure job descriptions are current and in a form that provides clear and measurable results required