Managing People – Is Your Performance Review Really Necessary?

Managing People – Is Your Performance Review Really Necessary?

Lots of organizations carry out “performance appraisals.” Most people consider them a “good thing!” And there is lots of information around to help you do them well.

But there is more to encouraging and managing good performance than carrying out the annual performance review. Some people even question whether carrying out annual performance reviews does actually impact on the quality of performance.

Let us think a little about what the person being assessed usually thinks about when a review is due.  Here’s what it likely to be

  • How is this review going to affect my bonus/performance related pay?
  • How am I being assessed and is it fair?
  • Is my contribution really going to be recognised and acknowledged?
  • How does this review affect my chance of promotion?
  • How well am I doing compared to my peers?

But if you think about it – this isn’t why as a manager you carry out a performance review. What you are concerned about is?

  • How will you help the person understand what you think of their performance?
  • What evidence is needed to support your view?
  • If they are not meeting the standard, what advice should you give?
  • What action should follow on from the review?

You are looking to do an assessment that helps your member of staff become more committed to your objectives and more motivated, accountable, reliable, creative, dedicated, and, yes, happy in the job!

Given the difference in perspectives, holding one annual performance review doesn’t really seem to meet either purpose really, does it? Surely what you need instead is a relationship and structures that support an ongoing dialogue?

No you don’t want spend every day discussing performance. Although there is much to be said about commenting very quickly on exceptions in performance – be they good or bad. Giving praise is as important as giving criticism.

Having a performance stock take once a month works for many! Certainly, having a more formal review quarterly where the question of the bonus isn’t part of the mix has worked for me. And then, at the end of the yea,r it is an agreed summary of those quarterly reviews that feeds into the financial reward system.

Developing an effective relationship and an open discussion about the quality of performance is much more likely to help you and your staff member achieve your goals, both corporate and personal.

Remember performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.

With a performance management system that works and a well developed relationship, it becomes much easier to discuss career development and the opportunities for progression.  And guess what in this climate potential threats to good performance can be seen off before they become real issues and so everyone benefits.
Wendy is the Happiness Coach and author of  The Wolf Project and a new novel, Blood Brothers, to be published in Summer 2013.  As a life and career coach and blogger, she helps people reach their goals and aspirations. As a novelist she hopes to entertain. Oh and she writes poetry too! To find out more email, find her on Skype at wendymason14, or call +44 (0) 2081239146 (02081239146 for UK callers) or +1 262 317 9016 if you are in the US.

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