Approaches to performance management

Approaches to performance management

1. Performance management should allow for the development of a shared understanding about goals and targets

   • Feedback helps us to understand what we should bring forward within the organisation
   • We can't quantify all forms of performance
     • Creative leadership
     • Value of ideas
   • Managers want to unlock discretionary effort
   • Can put a lot of pressure on employees and managers
     • Form-filling exercise?

2. 4 stages to a performance management approach

   • Definition of business role
   • Planning performance
   • Delivering and monitoring
   • Formal assessment/reward

3. Hotel Chocolat

   • Happiness alerts
     • Don't always praise the right person
     • Gives recognition and rewards

4. Appraisals

   • Monitoring performance and motivating improvement
   • 360 degree appraisal
     • Considers the views of the line manager, peers and subordinate employees
       • Provides a fuller picture of performance
       • Gives deeper feedback
       • Highlights potential learning/development needs
       • Bias from peers
   • Gives employees a chance to air their views
     • Still formal enough that they may feel they can't be entirely honest

5. Goals setting

   • When we set goals for ourselves, this motivates superior performance
     • All goals need to be personalised and this might be hard when we also want to achieve organisational goals
   • Are SMART targets too restrictive?
     • DREAM targets
   • Too difficult to achieve with a big workforce?
     • Communication can get lost if an organisation is too bureaucratic

6. Underperformance

   • Reasons for underperformance includes lack of skills/knowledge, personal problems or poor engagement, commitment or motivation
   • Corrective action
     • Retribution, rehabilitation, deterrence
   • Informal warning, formal written, final written, dismissal