Purpose of Performance Management
Managing staff performance is one of the most critical responsibilities for managers. Effective performance management is an important tool in capitalizing on employees’ skills and competencies. It emphasizes two-way conversation between the manager and the employee, resulting in a complete understanding of what is required, when it is required and how the employee’s contribution measures up. Everyone benefits:
- The employee knows exactly where he or she stands in relation to achieving goals and reaching performance milestones that contribute to career development, promotions, etc.
- The manager gains insights into the motivations of the people working for him or her through the conversations.
- The University retains motivated employees who understand their role and the roles of others in contributing to the overall success of the University.
Elements of Performance Management
Major underlying elements of a performance management are as follows:
- Manager Responsibility - The appraisal of a subordinate’s job performance is a part of the normal day-to-day responsibility of every manager and relates directly to the manager’s responsibility for planning and assigning work.
- Performance Criteria - Criteria for job performance must be set to reflect accurately and realistically the unique requirements of different positions, levels of assignment and operating conditions. Managers should evaluate both work behaviors and results.
- Communication - Managers should communicate job standards, goals and other expectations to employees before the evaluation period begins. Employees thereby learn what constitutes good performance and managers then can more objectively assess performance.
- Continuous Feedback - Employees are inclined to accept suggestions for improving and/or maintaining their performance when they receive feedback continuously (e.g., daily, weekly or monthly). This also assures that employees are not surprised by negative feedback during the formal appraisal, and it helps to maintain their focus throughout the year.
- Developmental Coaching - A key responsibility for all managers is to coach and collaborate in the development of their subordinates.
- Link to Compensation - A primary objective of a performance management system is to motivate performance. If compensation or other rewards are made contingent upon performance, then employee motivation to achieve high performance is increased.
- Career Path - Working toward the development of a clear and structured career path, along with counseling the employee about his or her future, should also be a part of the performance review cycle.
- Performance Appraisals - Employee performance should be documented at least annually so that the University can make informed and accurate decisions regarding an employee’s contribution, career development, training needs, promotional opportunities, pay increases, etc.