In today’s workplace, performance improvement and the role of performance management is an increasingly popular topic. Why the intense focus on performance management now? Business pressures are ever-increasing and organizations are now required to become even more effective and efficient, execute better on business strategy, and do more with less in order to remain competitive.

While human resources professionals clearly understand the importance of optimal performance management, they often face significant internal obstacles. When someone mentions performance management or reviews at ABC organization, what is the typical response? Do employees and managers alike cringe? Do they avoid performance management related tasks? Do visions of tracking down incomplete appraisal forms come to mind? This can be changed.

Overall Performance Management system of ABC System

ABC Company’s performance management system is very effective but there are still a lot of factors which can be improved. The performance management system look at 4 major areas:

  • performance management
  • performance review
  • performance counselling
  • performance improvement
  • All of these areas are explained very well and clearly however there are certain policies and procedures which need to be included. For example in performance management, there is no explanation of termination of employees and the steps including warnings and suspensions.

    Performance reviews are also very vague as the policy does not go through all the expected performance areas such as team work, improvements, etc.

    Alignment between business goal and performance management system

    To be effective, goals must serve both the needs of ABC company and those of ABC employees. For ABC company, goals must contribute directly to ABC short- and long-term business strategies. For ABC employees, goals must be clear, objective, and understandable or they will quickly become disengaged.

    Additionally, many employee objectives are not entirely under the control of one individual. Enabling and even mandating that individuals assign some goals to two or more people increases engagement and shared accountability throughout the organization. Goal sharing also helps departmental heads find ways to better support each other, as well as identify areas where they may be inadvertently working against each other.

    Once company-wide goals have been established, managers can then set goals for their individual departments which clearly support ABC overall business strategies. Major job functions and responsibilities can serve as a general framework when writing employee goals. Managers must remember to communicate to staff members not only what is expected of them, but how each task is to be completed. For example, a customer service rep might be given the goal to boost customer retention (the “what”) by improving customer service (the “how”). To be most effective, goals should also pass the S.M.A.R.T. test and be specific, measurable, attainable, relevant and timely. This provides clarity up front to employees who will ultimately be evaluated against these goals.

    How performance management was conducted in the company



    Last updated: Sep 2023

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  • Managers provide clear statement of goals and performance standards to all their respective staff
  • Both managers and other staff should work together to set performance goals according to company’s goal
  • Work allocation would be based on qualification and experience of staff
  • Performance standards should be documented, and employee performance rated on a scale that clearly shows whether performance is acceptable.
  • Staff should be notified about required performance for each job prior to the commencement of the work.
  • Managers would provide support services to all their staff collaborating with HR department.
  • Resources must be allocated with the consultation of staff during work allocation.
  • A well-structured and implemented performance management system provides a number of benefits to the organisation, management and employees. These benefits include:

  • establishing group and individual performance objectives to ensure that their performance is aligned with the organisation’s strategic and operational objectives
  • linking performance evaluation and employee development and rewards to motivate individuals
  • assisting the organisation in improving its productivity and efficiency
  • regular monitoring of progress toward achievement of performance objectives
  • identification of specific training needs across the organisation
  • improved salary administration
  • improved communication and relationships between managers and staff members
  • improved guidance and assistance in developing capabilities and potential of staff members.
  • Formal and informal feedback procedure

    Formal Feedback

  • Appraisal forms
  • Appraisal forms are great ways to provide feedback to employees about their performance. These appraisal forms will describe their key skills, behaviours and attitude. This will help give them an idea of their performance, and the improvements that they must make to reach a satisfaction level of performance.

  • Interviews
  • Formal interviews are also great ways to provide feedback, as they can be great discussion tools. An interview is when the manager discusses certain performance issues with the employee.

    Informal Feedback

  • Team meeting
  • Team meetings are not as formal and can occur more regularly. Team meetings can be good for getting feedback from multiple workers, and is also good for providing feedback to a team as a general, rather than targeting individual workers.

  • Casual discussion with workers
  • Sometimes it is better not to be formal with staff, and just provide casual feedback when you see them in the workplace. This can also help build relationships stronger.

    Performance documents for individual staff in ABC Company

    To document performance documents and feedback, I would firstly ensure that appraisals are created for workers. Both self and train appraisals must be to get a better understanding of everyone’s thoughts.

    Last updated: Sep 2023

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