UPDATE 2019!! We have created a new performance management feature Real Time Reviews, book a call and we can show you!
The mention of Performance Management stirs up different emotions among employees and managers and mostly these feelings are negative.
In 2015 Microsoft and Dell abandoned performance reviews – according to Fortune “Microsoft and Dell are ditching employee performance reviews” by Geoff Colvin @geoffcolvin OCTOBER 29, 2015, 12:16 PM EDT.
Sensational headlines like this spark conversation around the people management world. The number of times I have heard recently from HR Consultants, “”””Our clients are considering moving away from performance management” is now in its hundreds.
If this is the case what are they moving towards ? I agree with the Geoff Colvin article, who asked Dave Calhoun about it, a former GE executive, he was CEO of Nielsen and a fan of the system, (GE’s Session C’s I presume?) which he used at Nielsen. His response was simple: The whole point of performance management “is to force a conversation,” he said. “Many managers absolutely hate to tell employees, rigorously and honestly, where they stand”. I totally agree with David Calhoun performance management tools no matter what they may be, should be designed to force a conversation between the Manager and employee.
So does that mean the emphasis of performance management should be placed on training the managers on how to communicate with each other using the tools that they are prescribed as to force a performance conversation? I think the answer to this question has to be yes.
Personal performance is only one of the factors of company success there are other factors;
So, let us presume the product/service is good and the economic environment is also good. Once these have been established we can then start looking at 3 & 4
When you begin to look at the culture, companies objectives and employee and managers performance you now need to include a few more areas;
These in many companies are rarely looked at or when looked at they are, they are looked at once and very rarely reviewed on an ongoing basis.
Culture is a completely different topic that I won’t go into here, (but will come back to it in a later blog) culture is predominantly driven by management and employee behavior.
Let’s take items 2-6 and look at these in the context of company and employee performance.
What does 2-6 mean (or now 1-5)
3.Skills education and training
5.Employee and management motivations
So in my opinion in short for the most effective management system you should have ; yearly review objectives, training needs, job specifications and company behaviours. ; Quarterly review team and individual objectives and ;Monthly review individual behaviours (against your framework) and personal motivations against company objectives.
So I still agree with Dave Calhoun performance systems at a minimum need to force a conversation between an employee and their manager at least once a month, the content of this conversation will differ depending on the level and job type.
On the subject of ratings and how that might be deal with I will talk about in later blog!
In short performance management is really about the ongoing management of people. If you think you can rollout a successful performance management ecosystem in a company by just adopting a prescribed automated system and have it working effectively after one year you are kidding yourself.