Effective Performance Management System: 10 Key Design Principles

In this era, labour force reduction, budget cuts, small pay rises or no pay increases are all very common phenomena. Therefore, increasing productivity is probably the only way to achieve growth and is, of course, a way that enterprises can control.

However, many employers have not received much support in the performance management plan. This performance management plan is related to the performance management system of employee performance planning, feedback, evaluation and development.

Only 1/3 (33%) said its performance management system had a very large effect in achieving its expected results, while only 1% thought its performance management system was effective.

The problem is how to improve the practice of performance management.

Too many businesses have gone astray and want to increase profits simply by modifying the "evaluation form" or by copying the "best practice" company's rating system.

But in practice, performance management practices applied to an enterprise do not necessarily produce value in another business, even if they belong to the same industry.

The effectiveness of any human resource practice depends to a large extent on the wider enterprise system that is suitable for the practice.

The most effective human resource practices must be clear and specific, and consistent with the unique business and human capital background of the enterprise.

Once the "right" performance management practices are implemented, it can act as a coherent system and generate enormous economic benefits, making it difficult for its competitors to stand out.

Research shows that the following 10 design principles will achieve better results.

What kind of performance management principles do you want everyone to understand?

Clarify the company's position on priorities, such as:

The enterprise should convey all kinds of information about its business, talents, performance, reward, development and career to its employees, and the performance management process should emphasize these information.

To make the company value a guideline for employees, it is necessary to convey them clearly, and senior leaders should set an example in their daily activities.

This method of performance management may be applicable to some companies, but it is not suitable for the company's strategy and culture.

The result of such a system is to reduce the risk of mental decline, and the mindset of worrying about personal gains and losses is a great departure from the original intention of the company.

Administrators can set an example at all levels of leadership and contribute to efficient performance management.

Administrators must set a good example and publicize the deeds of performance culture.

To ensure that executives understand the economic benefits of excellent performance management practices and give them good reasons for performance management.

In the process of performance management, the more active leaders are at all levels, the more successful the performance management will be.

This obvious practice has made some expectations of other managers of the company, and prompted them to seriously carry out performance evaluation and fulfill their guiding training responsibilities.

Identifying performance goals, these performance goals can drive value and impact on the whole business.

The central purpose of performance management is to make employees concentrate on doing the right thing.

The employee performance model is unified with the business model.

To ensure that individual and team expected performance is aligned with enterprise value, goals and actions, these enterprise values, goals and behaviors are essential to the success of an enterprise.

We should focus on formulating key performance measures.

In an environment that calls for ever higher and faster development, we must properly prioritize priorities and prioritize them.

A sound personal performance management plan should clearly stipulate a series of results and actions that can be critical to business success and are aligned with company value.

Ensure that performance standards are simple and clear so that managers can successfully use and use them.

Performance standards should be supported by job performance, which can be collected through available source of employee performance information.

Ensure that leaders at all levels have a common way of expression and consistent feelings for successful performance management.

If there is a lack of uniform performance standards, employees' confusion about expected performance will be confused and the employees' confidence in the fairness of performance management process will be destroyed.

Although the performance standards must conform to the relevant laws and culture in different geographical areas and business sectors, managers should ensure the implementation of unified performance standards in the entire business sector.

Performance standards are unified to ensure consistent success criteria among different evaluators and produce consistent results.

4. let managers take responsibility for performance feedback and differentiation.

Having a clear performance goal and receiving regular performance feedback can make the task better.

Therefore, providing and obtaining performance feedback should be a core competency of those managers.

Managers should be selected, evaluated, rewarded and developed on the basis of the quality of performance feedback.

Provide managers with guidance methods, resources and tools to enable them to distinguish the performance level of their business segments or business departments.

So that managers can accurately distinguish employees' performance can be distinguished from absolute sense (e.g., relative standard of performance), and can be distinguished from relative meaning (such as relative contribution compared with others).

For senior leadership, direct managers and human resource experts to teach skills necessary for decision-making and process operation.

If the forced ranking system is adopted, we must use reliable and effective methods to set up a comparison group, compare the relative contribution of the employees, and finally determine the ranking evaluation.

There are many factors that affect managers' effective performance evaluation.

Managers usually set some unclear performance goals, they hardly received any training, and in order to win their employees' preferences, they usually avoided serious and tough communication with their employees.

If managers have the corresponding capabilities and means to collect effective performance data, and they have the responsibility to make effective performance decisions through appropriate measures and feedback, they will be motivated to carry out effective performance evaluation.

A large business technology company automatically runs the process of providing feedback to managers as part of its performance evaluation process.

Before the manager evaluates his employees, the company provides a scorecard. The information in the card includes how the managers, departments or units carry out the key indicators and the grading allocation recommended according to these indicators.

After evaluating employees (and maintaining those grades beyond the rating allocation), the manager will receive feedback indicating what his or her evaluation is compared to other managers and more widely used company standards.

Therefore, the company does not merely formulate evaluation rules, but provides a chance for managers to learn, so that managers can continuously improve the performance management process.

Take steps to ensure that employees and managers share responsibility for performance management.

Employees are required to participate in goal setting and track and monitor performance management.

Encourage staff to regularly evaluate their performance process.

Employees and managers should not be allowed to become victims and victims.

Performance management is a core business process that can help an enterprise manage its workforce effectively through planning, development and incentive performance.

Human resource functions should provide the workforce with the necessary performance, development, training and incentives to effectively implement performance management.

Adjust the company's business and personal performance management cycle.

Integrate business performance planning with individual and team goal setting.

Talent recruitment, talent development, performance management and reward system should be coordinated and unified.

In order to maximize performance and encourage employees at all levels to work together, the talent management process should emphasize the same information about excellent performance.

If the talent management process is not united enough, it will not be a coherent system or high quality performance expected.

Make clear the rules of the game and pass them clearly to the staff.

Ensure that managers and employees understand what aspects of performance can determine salary (e.g. incentive bonus is only linked to the economic benefits created by employees, and raises are based on the overall performance rating).

Moreover, the relative contribution or comparison of employees.