19 October 2016

Organisations perform better with performance management

Performance management is fundamental to the effectiveness of organisations. Each person can make a difference. Collectively, a workforce that performs at high levels can help the organisation survive and prosper. Performance management consists of two parallel processes:

1. The informal day-to-day management of individuals and teams by their immediate line manager
2. The formal framework that allows the performance of those individuals and teams to be assessed and improved.

The two processes are mutually supportive and depend on the same factors for success. These involve:

• Monitoring individual or team performance against accepted benchmarks or standards
• Ensuring that negative feedback is delivered in an objective manner and is accompanied by an explanation of why the performance is unsatisfactory, affording an opportunity for the employee to provide an explanation as well as the means to improve
• Coaching, training or other supportive measures to address poor performance
• Follow up reviews to check that the performance has improved, with the improvements reinforced with positive feedback
• Recourse to formal procedures such as the disciplinary or capability procedure where the poor performance continues and represents serious cause for concern

Performance management success factors

Effective performance management depends on the quality of the line management and people management skills of those responsible for managing people. Their active cooperation in engaging in both informal and formal performance management is vital. A combination of persuasion (making the case for the importance of performance management as part of their duties, and providing some form of reward for doing so), and discipline or supervision is likely to be necessary to ensure conformance.

The active cooperation of managers requires constant effort on the part of the organisation. Even performance management processes that are well established can decay over time as individuals and managers take them for granted.

Training in performance management

Without effective training, those responsible for managing staff may be reluctant to become involved in performance management. Where they do become involved, they are unlikely to possess the necessary skills and knowledge to undertake it to their full potential.

The provision of training sends out a message to managers and the staff whose performance they manage that the organisation considers that performance management is important. Senior managers should facilitate the attendance of the managers they supervise, ensuring that their immediate responsibilities and objectives are adjusted or that extra resources are provided so that they are free to attend. The aims of the training should include:

• Persuading managers of the importance of performance management
  
• Ensuring that managers have a good working knowledge of the organisation's performance management processes
• Imparting an understanding of the relationship between performance management and the organisation's procedures, including its disciplinary and capability procedures
• Helping managers to develop the skills required for effective performance management, including active listening, assertiveness, note-taking and leadership
• Equipping managers with the skills and knowledge to conduct performance management in an objective way, compliant with the organisation's equal opportunities principles and commitment to diversity

The BPIF are running workshops in performance management in all regions on 10 November. For more information, contact your regional office on 0845 250 7050.