MANAGING PERFORMANCE THROUGHOUT THE YEAR
Pur Dwi Asmoro : 241170041
Perhaps one of the most important concepts of performance management is that it is a continuous process that reflects normal good management practices of setting direction, monitoring and measuring performance and taking action accordingly. To ensure that a performance management culture is built and maintained, performance management has to have the active support and encouragement of top management who must make it clear that it is regarded as a vital means of achieving sustained organizational success. Importantly, the rhetoric supporting performance management must be converted into reality by the deeds as well as the words of the people who have the ultimate responsibility for running the business.
THE CONTINUING PROCESS OF PERFORMANCE MANAGEMENT Performance management should be regarded as an integral part of the continuing process of management. This is based on a philosophy that emphasizes:
the achievement of sustained improvements in performance; the continuous development of skills and capabilities; that the organization is a ‘learning organization’ in the sense that it is constantly developing and applying the learning gained from experience and the analysis of the factors that have produced high levels of performance.
UPDATING OBJECTIVES AND WORK PLANS Performance agreements and plans are working documents. New demands and new situations arise, and provision therefore needs to be made for updating or amending objectives and work plans. This involves: discussing what the job holder has done and achieved; identifying any shortfalls in achieving objectives or meeting standards; establishing the reasons for any shortfalls, in particular examining changes in the circumstances in which the job is carried out, identifying new demands and pressures and considering aspects of the behaviour of the individual or the manager that have contributed to the problem; agreeing any changes required to objectives and work plans in response to changed circumstances; agreeing any actions required by the individual or the manager to improve performance.
MANAGING CONTINUOUS LEARNING
Performance management aims to enhance learning from experience – learning by doing. This means learning from the problems, challenges and successes inherent in people’s dayto-day activities.
REVIEWING PERFORMANCE
Although performance management is a continuous process it is still necessary to have a formal review once or twice yearly. This provides a focal point for the consideration of key performance and development issues.
THE PERFORMANCE REVIEW MEETING
The performance review meeting is the means through which the five primary performance management elements of agreement, measurement, feedback, positive reinforcement and dialogue can be put to good use.
PERFORMANCE REVIEW DIFFICULTIES
In traditional merit rating or performance appraisal schemes, the annual appraisal meeting was the key event, in fact in most cases the only event, in the system. Line managers were often highly sceptical about the process, which they felt was imposed on them by the personnel department. Michael Beer and Robert Ruh (3) identified three main sources of difficulty in conducting performance reviews: the quality of the relationship between the manager and the individual – unless there is mutual trust and understanding the perception of both parties may be that the performance review is a daunting experience in which hostility and resistance are likely to emerge; the manner and the skill with which the interview is conducted; the review process itself – its purpose, methodology and documentation.
PERFORMANCE REVIEW ISSUES The main issues concerning performance reviews are: Why have them at all? If they are necessary, what are the objectives of reviewing performance? What are the organizational issues? On whom should performance reviews focus? On what should they focus? What criteria should be used to review performance? What impact does management style make on performance reviews? What skills are required to conduct reviews and how can they be developed? How can both negative and positive elements be handled? How can reviews be used to promote good communications? How should the outputs of review meetings be handled? To what extent is past performance a guide to future potential? When should reviews take place? What are the main problems in conducting reviews and how can they be overcome? How can their effectiveness be evaluated?
WHY HAVE PERFORMANCE REVIEWS? The answer to this question is, of course, that managers have no choice. Reviewing performance is an inherent part of their role. The argument for a formal review is that it provides a focal point for the consideration of key performance, motivational and development issues.
It answers the two fundamental questions of ‘Where have we got to?’ and ‘Where are we going?’ It gives managers with their teams and the individual members of their staff the opportunity to pause after the hurly-burly of everyday life and reflect on the key issues of personal development and performance improvement.
OBJECTIVES OF PERFORMANCE REVIEWS The objectives of reviewing performance are as follows: Planning Motivation Learning and development Communication
ORGANIZATIONAL ISSUES
To have any chance of success the objectives and methodology of performance reviews should either be in harmony with the organization’s culture or be introduced deliberately as a lever for change, moving from a culture of management by command to one of management by consent. Performance management and review processes can help to achieve cultural change but only if the change is managed vigorously from the top and every effort is made to bring managers and staff generally on board through involvement in developing the process, through communication and through training. In short, when introducing performance management you cannot work against the culture of the organization. You have to work within it, but you can still aspire to develop a performance culture, and performance management provides you with a means of doing so.
CRITERIA The criteria for assessing performance should be balanced between achievements in relation to objectives; the level of knowledge and skills possessed and applied (competences); behaviour in the job as it affects performance (competencies); the degree to which behaviour upholds the core values of the organization; day-to-day effectiveness.
PERFORMANCE REVIEW PROBLEMS The main problems that arise in conducting performance reviews are: 1. identifying performance measures and criteria for evaluating performance; 2. collecting factual evidence about performance; 3. the existence of bias on the part of managers; 4. resolving conflict between reviewers and the people they review; 5. defensive behaviour exhibited by individuals in response to criticism.
Ensure that the criteria for evaluating performance cover agreed objectives (quantified wherever possible), competences based upon proper role analysis and measures of dayto-day effectiveness, preferably stated as standards of performance.
Monitor performance throughout the year in relation to performance plans and agreed objectives, performance standards and behavioural requirements (competencies). Ensure that there is feedback at the time based upon and record any critical incidents as they occur to assist in an overall assessment of performance.
Take steps to minimize bias (blue-eyed boy/girl syndrome), although gender, racial or other bias is difficult to eliminate. If the review process does not involve the delivery of judgements in the form of performance ratings, bias may not appear so obviously but it can still exist in subtle ways.
Ensure that both managers and their staff understand the positive nature of the process. Train managers in the virtues of building on positives as well as how to make constructive criticisms (not more than two or three at a time) that are based on fact and not opinions about the employee’s personality traits.
Encourage a positive approach by managers so that, by using constructive criticism rather than attaching blame, they can reduce defensive behaviour. Briefing for all those involved on the benefits of the process to both parties should also help. Getting individuals to assess their own performance is another way of reducing defensive behaviour.