Three Essential Ways to Fix Your Performance Management Approach

By Kristen Bakalar

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5 Responses

  1. Gosse says:

    I support what is written. I just wonder HOW remuneration is determined if you state that “It doesn’t matter if your organization relies on ratings to determine compensation”. And also if you take into account that for complex work, performance will go down if you reward with bonuses.

    • Hi Gosse,

      I think you ask a really good question here, and thanks for posting! I think the point of the referenced sentence was more to state that the performance management system doesn’t really matter, per se, as long as there are regular feedback/coaching conversations being held throughout the year. If the company relies on performance management data points, ratings, or metrics to determine compensation, that’s fine…we’re more suggesting that regular coaching happen throughout the year (as well as career conversations, etc.) in addition to whatever the system is. That said, there are some companies that are moving away from connecting compensation and performance management, and they are giving managers a budget, training them on how best to use it, and allowing them the freedom to allocate bonuses, increases, etc. on their own. As for your last point, our viewpoint is that bonuses aren’t enough to keep employees engaged; whether the work is complex or not. People want purpose – they want to be doing work that means something to them. Money plays a part, but it’s definitely not the only part…to your point.

  2. Glenn Douglas says:

    Like your response that some are moving away from remuneration focus. Hooray – having this contingent on the dreaded once a year review places the emphasis on that aspect alone. It is often not about performance at all… it becomes a debate on why or why not and without any validation check throughout the year it is almost impossible to be objective.
    The other interesting point is regarding development. In a perfect world this should be a totally separate discussion based on content from the performance review and discussion about personal aspiration. As can be expected some reviews are contentious in flavour and hence have the ability to place staff in a defensive position (conflict). When that is the case is is incredibly difficult to be objective about development planning. Personally I have never been able to solve an emotional discussion with my wife by applying logic. The two spheres are as far apart as North and South.
    Hence a big part of the success chain of the performance review is not process, not measurement but rather the philosophy held by the delivering manager and their ability to recognise changes from logic (rational) to emotional (conflict) – i.e. The first question managers need to ask is “Do they really appreciate the significance and the importance of this function?” Sadly many see it as a just another process that needs to checked off. A changed philosophy will bring about a changed outcome. Keep up the good work.

  1. May 28, 2015

    […] [2] – BlessingWhite – Three Essential Ways to Fix your Performance Management Approach […]

  2. November 6, 2015

    […] review. Frequent conversations can be used to improve and balance a performance review – 77% of employees who have a positive view of the performance review process have regular feedback […]

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