Performance management is the process used by leaders to measure, develop, and motivate employee performance. It’s a continuous process, and it should be used to constantly monitor individual, team, and company-wide performance. With regular performance management, you can empower and engage employees to drive goals and objectives which are critical to business success.

Constructive Feedback: A modern performance management approach

Annual appraisals are no longer an effective way to manage employee performance. Several organisations are transitioning from the traditional appraisal process to feedback. Using feedback, staff needs are taken into consideration while implementing management methodologies, all in order to develop a culture of trust and transparency.

The diagram above illustrates that both organisations and employees value regular feedback. They feel valued and noticed in such performance based systems, and this encourages feedback as a dialogue between the employee and the People Management function. Open feedback is encouraged and learning opportunities are developed accordingly. It’s a win win for your business!

Best Practice

During the designing and implementation stage of performance management systems, some of  best practices that leading organisations follow are:

1. Facebook

Facebook has a process that puts a heavy emphasis on peer-to-peer feedback. In semi-annual reviews, they are able to use that feedback to see how well teams are performing and understand where collaboration is happening – and where it isn’t. It encourages peer to peer feedback as it provides a clear picture of the teams performing. It also highlight the gaps where cooperation and collaboration is missing.

There are a few points to consider before implementing the performance management system. These will provide the basis of open feedback with employees, and encourage communication based on the performance metrics.

Some of these points are mentioned below:

• Alignment of performance with organisation’s goals: A significant goal of performance management is ensuring your employees work toward the organization’s goals and objectives. The People Management function aligns performance management by analysing and understanding roles and responsibilities and how they are part of the bigger picture. 
• Focus on continuous accountability: Employees should be continually held accountable for their performance rather than purely relying on an annual review. Conducting regular check-ins and feedback sessions can assess qualitative and quantitative performance metrics. 
• Establish open and direct communication channels: Performance management should involve open and direct communication between managers and employees. This includes giving them clear instructions, providing timely feedback to the employees, and being open to hearing about concerns or issues related to their roles.
• Introduce performance management software: Numerous software programs can help HR with performance management by tracking employee goals and progress, providing feedback and coaching, and managing employee records.
• HR should set clear goals: Organisational team and individual goals must be clear, measurable, and achievable in order to be effective. The People Management function should also plan goals that align with the company’s overall objectives.
• Incorporate learning and development opportunities: In a holistic organization, a key to performance management is providing your staff with avenues to improve their skills and knowledge. These activities can include formal training programs, informal mentoring, and coaching relationships.

2. Accenture

Accenture employs 330,000 people, so changing their systems means a massive effort is required. When they switched to their new system, they got rid of about 90% of the previous process. This translated into using a more fluid management process where employees receive ongoing, timely feedback from management. A great example!

Keeping in view such examples of large organisations, we see that feedback is the key to effective performance management as it increases employee motivation and morale, aids in career development, increase in productivity and improves employee retention.

As you can see, modern people management has many benefits to both staff and the business as a whole!

For advice on people management or HR consultancy, talk to Oakwood today!