Only 8% of organizations drive high value from enabling effective performance management practices. Infact, having effective performance management practices is an absolute pre-requisite for any aspiring or ‘to-be’ high performance organization. To add to the woes, It has been found that 30% of performance reviews end up in decreased employee performance and 2/3rd of performance management systems misidentify high performers.
Performance management is like budgeting: It’s required in every organization, it’s cumbersome and onerous, it never comes out exactly as you planned, and managers always whine, but you would never get rid of budget planning just like you should never get rid of performance appraisal – because no matter how flawed the process is, it’s good business practice.
What constitutes effective performance management practices ??
From our learnings, the performance management practice should typically go beyond formal ratings, & compensation determining exercise to focus on 4 key objectives (& most of the organizations, around 82 – 90% of all, don’t look beyond 1st & 2nd objectives):
- Enable employees to grow & develop their competence, capabilities & potential
- Ascertain effectiveness of communication & alignment of Organizational Goals, Objectives to teams & individual goals
- Help understand employees & teams best practices to perform at their highest potentials
- Gives a snapshot & health check of existing Organizational Competence, Capabilities, Change Management readiness & Execution effectiveness
The Brew’s nudge to design/redesign effective performance management practices
With Performance Management Effectiveness Index, we strive to enable organizations with the above insights, in addition to following key features, arising out of Performance Management Practices:
- Create a more clear delineation between satisfactory performance and truly outstanding performance
- Defining performance measures for every position that are directly connected to the organizational goals and values, creating management reviews that are directly linked to the organizational strategic goals
- Create a performance feedback culture where the role of the manager is that of a coach or counselor providing feedback that guides employee development rather than critical judges of past task outcomes and behaviors – which can be accomplished by allowing the review to evolve out of the employee’s own self-evaluation.
About The Brew
The Brew, enables high impact solutions on levers of human capital, enhancing organizational performance – capability – effectiveness yield, basing to build high performance teams & sustainable high impact workplaces, with ultimate objective to create competitive advantages. Be it building high performing workplaces, or high potential teams, improving organizational effectiveness, or organizational trust, engagement, embedded-ness, culture or to improve business outcomes, human capital ROI – we leverage our demonstrated competence in these outcomes to transform organization. Check out The Brew & The Brew Store for further info.