Effective performance management requires a balanced approach to employee performance evaluations and assessments. With the help of the proper performance evaluation tools, employers have the opportunity to take a closer look at each team player’s contribution to the department and the organization as a hole, and how their potential can be maximized for the good of the company. Too many organizations don’t take performance evaluations as seriously as they should, putting the process way down their priority list when it should be one of the main driving forces of policy and system reforms.
Effective performance management is only possible through sound performance assessments and evaluations-and this requires the development of the right performance evaluation tools and systems along with guidelines on proper delivery of feedback, disciplinary procedures, and performance incentives. Here are 5 basic but major steps to building a performance management system that works:
- Developing the appropriate performance evaluation tools – This can be in the form of a standard evaluation sheet that contains basic performance assessment areas tailored for each department’s and individual employee’s KPIs. This will help you gain more relevant and meaningful insights that you can use to improve your overall working system and in turn, organizational performance.
- Identifying performance measures – These are standard performance measures that help objectively evaluate each team member’s job performance and cut down the time wasted in filling out evaluation forms. The identification of performance measures is often the most time-consuming aspect of developing an effective performance management system, but it is also one of the most vital. An employee’s job description alone can be a good basis for this.
- Setting guidelines for feedback delivery – Good managers know how to deliver feedback well, be it negative or positive. When it comes to performance evaluations, balanced feedback is necessary so good qualities are highlighted and expectations for improvement can be outlined and at the same time stressed for the betterment of the person, the team, and the organization in general.
- Creating termination and disciplinary procedures – An effective performance management system requires actionability, without which all other performance evaluation tools developed will be futile. Disciplinary measures like verbal and written warnings must be created and implemented along with termination guidelines to ensure proper enforcement of performance management.
- Create a set evaluation schedule – A performance evaluation system shouldn’t be complete without a set period of assessment and implementation of disciplinary procedures. This allows improvements and adjustments to be made in each worker’s performance to help ensure improvements in the organization’s bottom line.