Evolution of Performance Management Systems: From 1800s to Modern Day
Explore the evolution of performance management systems from the primitive methods of the 1800s to the modern focus on employee motivation, individual development, and effective performance improvement strategies. Discover insights on managing different types of performance, aligning with overall strategies, and addressing common challenges in today's dynamic work environments.
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Presentation Transcript
PERFORMANCE MANAGEMENT SYSTEMS Brighter Monday, HR Forum 28thSeptember 2018
C o n t e n t A definition 1 Evolution of performance systems 2 Real life performance management 3 Essentials of a good performance management system 4 Common Challenges & Possible Solutions 5 Trends Current & Future 6
Alignment to overall strategy, mission and values Individual Performance Communication Systematic process Measurement of performance What is a performance management system? Team/organizat ional performance Feedback Documenting performance Relative Performance Objectives/goal s/KPIs Cyclical, yet continuous Performance Improvement It isthe process of systematically assessing the performance of an employeeand using the assessment to better the performance over time.
The evolution of performance systems 2000s to Modern Day: Greater focus on employee motivation and engagement. Measurement of how metrics alongside the what . Focus on development of the individual, i.e., managing gaps. Refinement of the objectives and key results concept. Multiple feedback systems /360 degree feedback. Use of technology and social networks. Mid 1900s: The era of Management By Objectives (MBOs) thanks to Peter Drucker. More formal systems widely adopted. Focus on self appraisals and future focus on performance. Introduction of rating scales to bring in more objectivity. Greater linkage between individual and team performance (Concept of objectives & key results). Early 1900s: Gradual invention of more formal systems. Focus on operational efficiency and effectiveness hence the development of the ROI concept. Therefore focus was on getting the most out of company performance and revenues. 1800s: Primitive systems e.g., observations in plantations and cotton mills. Focus on individual performance rather than overall organisations performance.
Real life performance management Managing non performance Managing Star and Good Performance Managing Under Performers Tend to be ignored until something goes wrong! Keep them engaged through continuous feedback, spot recognition and rewards. Show them the bright future ahead career growth & opportunities Develop them build their skills & capabilities-expose them to higher levels of growth & responsibility Tend to take a lot of management time! Have a system that is effective in identifying & quickly addressing performance issues. Provide clarity & constant coaching & supervision. Have a robust performance improvement process that is fair and positive. Recognise improvement and reward good performance. Coach Line Managers in having difficult conversations. Have a legal proof performance exit process. Document and store/archive properly. Be Consistent & Be Fair
Essentials of a good performance mgt system Does your system allow for and ensure completeness of performance records? Do you have an archiving system? How quickly can performance reports be turned around? How fast are appeals and escalated issues resolved? How well is your system integrated with your talent and reward process? Is feedback from such processes incorporated? Is there a framework to provide overall feedback to senior management? How promptly do you plan for the new performance cycle? Are the annual plans, goals & priorities cascaded effectively and promptly? Does each employee in your organization understand these priorities & how they contribute to them? Is there a framework in place for individuals to set and align goals with their LMs? How are new employees on-boarded from day 1? Planning Are your managers trained on how to coach their teams on a day to day? Are managers and employees clear on what it actually takes to deliver on agreed goals? Are employees getting all the necessary support to deliver? Is their continuous conversation and feedback on performance? How flexible is the organization and employees to change? (Speed!) Acting Ultimately, an effective performance management system is one that meets the following essential characteristics: fair (& seen to be fair), aligned, continuous, jointly owned & documented. Monitoring Reviewing Documenting/Closure Is there a formal review framework in place? How fair and reliable is this framework? e.g., self assessment, incorporate multi- feedback processes? Is the review wholesome KPIs, developmental and career growth wishes, reward outcomes? Is there an escalation or appeal process? Is there a framework in place for spot recognition and celebration of milestones? Is there a framework in place to quickly identify & manage performance issues?
Common Challenges Lack of management commitment &/or Understanding. Lack of alignment to overall organizational goals, organizational culture, values and other fundamental organizational processes that may feed into and/or impact the performance management process, e.g., annual operating plans, budgeting process. Poor goal setting Unclear goals/Goals with no measurement or success criteria/ Goals that are not aligned to departmental ones or organizational ones/Lack of robust data collection or measurement systems Inability to quickly flex goals and priorities to changing business environment In a volatile and uncertain world, business goals and individual goals should reflect the reality of any significant environmental changes that may impact business delivery. Lack of line manager capability and/or commitment Line Managers being unable to or unwilling to hold ongoing and honest conversations. Poor documentation/record keeping
& Possible Solutions Minimize form filling/Use technology to make it simpler Train line managers in coaching skills Performance Reports to senior management Reporting on other people metrics at senior level e.g., attrition, probation fails, performance exits etc Benchmarking reports what are other similar or bigger organisations doing? Integration and timing/wholesome HR ad business planning processes. Regular performance cascades Co-ownership & accountability. Gather post-process feedback from employees through surveys. Show WIIFM Growth & development, reward & recognition. Measure not just the what but also the how of delivery. Build people management effectiveness into individual line manager goals.
Trends in performance management Focus on quality rather than quantity Continuous conversations Employee experience Frequent & real-time feedback Measuring impact rather than completion rates Simplicity Strip out what isn t necessary e.g., formal reviews at mid-year, ratings, calibration sessions Robust performance improvement process Intuitive technology Change in Pay for Performance Approach Less pay grids & guidelines for line managers Basing pay on market rates and level of responsibility Focus on outliers for differentiation i.e., your stars & your under-performers
Closing thoughts All organisations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things. Tom Northup In business, the idea of measuring what you are doing, picking the measurements that count like customer satisfaction and performance you thrive on that. Bill Gates Research indicates that workers have three prime needs: Interesting work, recognition for doing a good job, and being let in on things that are going on in the company. Zig Ziglar Curious that we spend more time congratulating people who have succeeded than encouraging people who have not. Neil deGrasse Tyson Performance Management isn t dead, the old way of thinking about it is Anita Bowness In most cases being a good boss means hiring talented people and then getting out of their way. Tina Fey Don t tell people how to do things, tell them what to do and let them surprise you with their results. George S. Patton Jr. What gets measured gets managed Peter Drucker
