Performance management processes need to be introduced with great care. Too many ambitious schemes fail because this seemingly obvious requirement has neglected. When planning the program of introducing the following points need to cover: Where and how should performance management be introduced?
105 When should reviews take place?
What sort of reviews should be held? What use should be made of pilot tests? What briefing arrangements should be made?
This performance management planning and review form should be completed jointly by the manager and the individual. It contains sections for planning performance and development and for reviewing outcomes. It covers three areas: (1) whatis to be done - the expected results, (2) howit is to be done the expected behavior by reference to the Trust's generic competence framework, and (3) what further development the individual needs.
Name of manager: Job title Date of review: (1) WHAT IS TO BE DONE
(2) HOW IT IS TO BE DONE Key
result
Agreed results to be achieved Joint review of results achieved A B C D E F G H I J
Competency area Profile *
Joint
assessment
Development need Knowledge and skills
Manage performance Manage oneself
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*Indicate level of competency expected for role by reference to competence framework.
(3) PERSONAL DEVELOPMENT PLAN Key result area/compete nce Developme nt need Method of meeting need
Target date Review of achievement
COMMENTS: Line manager:
Senior line manager:
Individual: Manage others
Manage relationships Manage communications Manage customer service Manage continuous improvement
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Signed (line manager): Date:
Signed (senior line manager): Date:
Signed (individual): Date:
Figure 5: continued
Where and how should performance management be introduced?
Performance management is usually introduced in an organization-wide basis, starting at the top. In many cases the philosophy, principles and key procedures and processes are developed centrally.
In a highly decentralized organization, separate business units may be allowed to decide for themselves whether or not they want performance management and if they do, develop it on their own.
An intermediate approach adopted by some decentralized organizations is for the centre (top management) to require all divisions and business units to introduce performance management in accordance with certain general principles, which have been discussed and agreed with local management and, preferably, staff. The business units proceed to develop their own processes, but the Centre provides help as required and may monitor the introduction of performance management on each division to ensure that it is happening according to plan and in line with corporate principles and values.
The most common and best method of introduction is to set up a project team or working group for this purpose with management and staff representatives. This provides for different opinions and experiences to be considered, serves as a base for wider consultation and communications to take place and generally helps to achieve understanding and acceptance of the process. More general consultation is very desirable. As many people as possible should be brought into the discussions. Workshops and focus groups can be used to develop and discuss ideas. The aim is to get the maximum amount of Imy-in' to the new process as possible.
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Who should be covered?
Another important decision to be made at the outset is who should be covered by performance management. At one time, most schemes were restricted to managers, but performance management is now more generally being extended to all professional, administrative, technical and support staff. Some organizations also include shop-floor workers, especially high-tech firms, those that rely on pro- duction by high-performance work teams, companies with integrated pay structures and terms and conditions of employment (often high-tech and/or international firms) and companies with performance-related pay for manual workers. There is much to be said for having a universal scheme as part of a completely integrated terms and conditions of employment policy and as a means of increasing commitment by demonstrating that all employees are regarded as important.
While some organizations believe that it would be invidious to differentiate between levels so far as the essence of the approach is concerned, they might Ac that different performance measures may be used.
Some organizations do distinguish between roles were quantified and updated short-term objectives will be set and those where continuing performance standards are more usual. In the former case they may refer to the key result areas the job as 'principal accountabilities'; in the latter they may use terms such as 'main tasks' or 'key activities'.
It may also be recognized that the objective setting and review process in: routine jobs may not need to be as exhaustive as for those in managerial or professional roles (Armstrong, 2005).
When should reviews take place?
The usual practice is to have an annual formal review with interim reviews, organizations require development reviews to be conducted on or about the anniversary of the day on which the employee joined the organization, they believe, spreads the load on managers. If there is performance pay, the review is carried out at a fixed time in the year and can be treated as a separate case (this is highly desirable if the pay review is not to contaminate the development review).
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What sort of reviews should be conducted?
For the reasons given above, organizations frequently arrange for separate reviews; one that is concerned only with agreeing objectives and personal development plans and, if they have performance pay, one that is solely concerned with making pay decisions.