An effective performance management system

Hand writing Performance Management, business conceptBe job specific, covering a broad range of jobs in the organization
Align with your organization’s strategic direction and culture
Be practical and easy to understand and use
Provide an accurate picture of each employee’s performance
Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager
Monitor and measure results (what) and behaviors (how)
Include both positive feedback for a job well done and constructive feedback when improvement is needed
Provide training and development opportunities for improving performance
Ensure that employee work plans support the strategic direction of the organization
Establish clear communication between managers and employees about what they are expected to accomplish
Provide constructive and continuous feedback on performance
Identify and recognize employee accomplishments
Identify areas of poor performance and establish plans for improving performance
Support staff in achieving their work and career goals by identifying training needs and development opportunities
Support administrative decision-making about promotions, terminations, compensation and rewards
Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious liability (an employer can be held liable for the acts or omissions by its employees during the course of employment)

The establishment of an effective performance management system requires time and resources and therefore, the support of the board, the executive director and other senior managers. When developing a new performance management process, an organization can strike up a committee made up of employees, managers and board members to increase buy-in, understanding and support for the process.

Management support to act upon the outcomes of the performance management process is also necessary to ensure that good performance is recognized, inadequate performance results in the necessary support and/or training to improve performance and consistently poor performance results in a change of responsibilities or termination, as appropriate.

Whether you are introducing a new performance management system or if you are modifying an existing process, it is critical that you communicate the purpose and the steps in the performance management process to employees before it is implemented. Also remember to review your new performance management system after the first year and make adjustments as necessary.

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