Improving Performance Management: 8 Factors to Consider

It’s not surprising that many property management sonoma ca are continually updating and revising their performance management systems in an effort to achieve better results and improve fairness and accuracy. However, many of you who work in the public or private sector are most likely painfully aware that these efforts do not have the desired impact.

We’ve identified eight of the most common changes and enhancements and why each may-or may not-add value.

1. Web-Based Systems

Web-based systems facilitate the collection of data which, in turn, facilitates cascading goals. It also provides a common framework for managers and employees and prompts for participating in the various components of performance management, thereby increasing consistency in application.

A well-developed Web-based performance management system will help improve consistency of application across the organization, and it will likely enhance perceptions of fairness and accuracy. However, technology does not address manager skill or commitment to developing people; nor does it help clarify the link between pay and performance.

2. Rating Scales

One of the most common changes organizations make to their performance management systems centers on the rating scale used to evaluate performance.

If you are using a scale as part of your appraisal process (either numeric or descriptive), make sure each rating point is clearly defined and managers have a common understanding of how to apply the scale to differentiate levels of performance. This is critical because it addresses consistency and enables managers to differentiate levels of performance.

If the scale exceeds five points, be sure that the descriptors do, in fact, clearly capture distinctions in ratings. In our experience, clearly defined five-point scales (that include numbers and labels) are easiest for people to interpret and apply.

3. Forced Distribution

A forced distribution requires managers to evaluate a person’s performance relative to other people (rather than against clearly defined individual goals and performance expectations). This can negatively impact teamwork and collaboration if employees know that their performance is being “judged” against their peers.

Furthermore, because it prevents managers who do not want to deliver “bad news” from inflating ratings, we believe a forced distribution is frequently used as a “work around” for managers who are unwilling or unable to address poor performance. The problem is that once poor performance has been addressed, a forced rating may result in an employee with acceptable performance receiving the lowest performance rating.

4. Skill Training

Manager competence across all four elements of performance management-goal setting, coaching, development planning, and performance evaluation-is essential for the success of a performance management system. Without these fundamental skills in place, no form, rating scale, or technology will make the system work.

Training increases consistency, which is one of the key drivers of people’s perceptions of fairness, accuracy and overall value to the business. Training in coaching and development planning also increases the likelihood that managers will provide feedback on performance and work with their direct reports to put development plans in place. This, in turn, has a positive impact on a direct report’s perception that the performance management system helps employees build their skills and competence.

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