Improving employee performance

Citation

(2001), "Improving employee performance", Work Study, Vol. 50 No. 5. https://doi.org/10.1108/ws.2001.07950eaf.005

Improving employee performance

Improving employee performanceKeywords: Appraisal, Employee development

Performance measurement is important in ensuring effectiveness and efficiency. In the absence of more structured forms of measurement, organisations often rely on performance appraisal – but, in most, this is simply an annual "chat" between supervisor and employee – not really much good as a performance measure, or as a motivating force. Although it is most often not effective, it appears to suit the traditional command-and-control style of organisational leadership. Now with many organisations adopting alternative forms of organisation such as autonomous team working and shared leadership, it is a concept that is fast falling out of favour.

In a recent US survey conducted jointly by the Society for Human Resource Management and Personnel Decisions International, 32 percent of the HR professionals surveyed indicated that they were "unsatisfied" or "very unsatisfied" with their organisations' performance appraisal and management systems. It was suggested by 22 percent that there was a lack of strategic thinking in this area and 42 percent reported that senior managers do not even bother to review the performance-appraisal systems that are currently in place.

Performance management – rather than appraisal – is the new thinking. It rests on the following basic principles:

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  goals are set and agreed by both the manager and the employee;

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  metrics for measuring success in meeting those goals are clearly articulated;

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  the goals themselves are flexible and can adapt to changing conditions;

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  employees consider their managers as coaches who help them achieve success.

This reflects a major cultural shift for most organisations. It is based on measuring success, not apportioning blame; on improvement and fine-tuning, not identifying failings. The aim is to use poor (system) performance as indicators of areas that need (system) improvements.

Review must move from an annual (mechanical) cycle to regular, ongoing review based on the tasks being performed, the projects on the go, and on the current business cycle. The outcome is not an appraisal report – but ongoing effective, and improving working. There does have to be some record keeping (there will still be exceptional cases that result in disciplinary action – and these need proper supporting documentation) but this can be minimal and (relatively) unobtrusive.

This does not need clever or sophisticated systems support – just a will to move from the old, plodding, mechanical review of performance to a dynamic use of performance as the means of a dialogue and a diagnostic tool. Try it!