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Performance Management Sings the Blues - It's Broken, the way to Fix It

Most companies and their employees sing the performance management blues. Employees hate it, few CEOs support it, fewer managers roll in the hay well and it doesn't necessarily improve performance. Then, why do it? it is time for a change.

 

The Problem-it doesn't work

 

Here are a couple of startling statistics from the WorldatWork: Study on The State of Performance Management.

 

Only 10% of employees feel middle management champions it

Only 12% of employees feel top management view it as business critical

Only 30% of employee trust their company's system

58% of employees give their company's procedures a C grade or lower

And, Reuters says, 80% of employees are dissatisfied with their performance reviews.

 

Studies don't tell the entire story. Here are a couple of samples of what I even have heard from working in companies across four continents and a spread of industries.

 

My boss doesn't know what I do, but once a year he's getting to rate me?

Why bother, for a 2% increase? We didn't do ours this year. Everyone received a price of living increase and a gas gift card.

Too much work online with our performance management tools, and it doesn't relate to the work .

It is really about whether or not the boss likes me. If she does, I'm good.

Employees and managers alike tend to hate performance management and therefore the reviews that accompany it, mostly because people hate giving and receiving feedback.


 

One executive liable for $500 million in business shared with me that the simplest rating his boss gave him was a 3.2. He told his boss, "If you cannot give me 5's you ought to fire me." His boss responded that "he was just a troublesome grader." I say, that's bogus! the main problems with performance management is that it comes right down to the review, the rating and therefore the reward.

 

The WorldatWork study said, "The top goal of performance management... is differentiated distribution of rewards supported individual performance." i feel that's bogus, too! Shouldn't it's about increasing performance?

 

According to SHRM Foundation, Building a High-Performance Culture: A Fresh check out Performance Management, "Performance management is that the "Achilles' heel" of human capital management-often viewed as ineffective by employees and managers alike. Despite the time, effort and resources dedicated to it, performance management rarely achieves its intended purpose-improving performance." Today, managers are focused more on completing their performance management procedures online or filling out the shape , than in having a high-value conversations with their employees. In other words, they see it as another administrative task that they need to check off! The system is broken; few people value it and it must be fixed!

 

The Solution-use it today!

 

To begin: communicate, communicate, communicate. this suggests start together with your team planning by including your employees' involvement and input. Follow this up with one on one conversations with each employee. roll in the hay informally, without a form, or an evaluation, or a pay increase looming on the horizon. Just discuss the employee's job and have a dialogue, not a monologue. Review job priorities, strengths, areas to enhance , key goals and plans. The manager should begin by asking the worker well thought out questions on the key areas identified above. The manager should listen, add feedback and provides guidance because the conversation moves forward. The manager and therefore the employee should each take notes on the discussion. This process alone will begin to enhance performance. Why? the worker and manager will begin to return together and develop clarity about key goals, priorities and expectations. it'll allow them to collaborate through an easy , straightforward and sustainable approach.

 

In fact, no matter the sort of performance management system your company has, any manager can begin to enhance it today. This Performance Coaching methodology has power through regular one on one communication conducted monthly throughout the year.

 

The Corporate Leadership Council's report, Driving Performance and Retention through Engagement shows that the leadership approaches that help employee engagement also are important in performance management. These are: "setting clear expectations, helping employees accomplish work, providing regular feedback, and finding new opportunities for workers to succeed and develop." consistent with a McKinsey global survey, these sorts of practices are simpler than financial incentives but less employed by managers. Pat Riley, author of The Winner Within, said it well,"A coach must keep everyone on the team in-tuned with present-moment realities - knowing where they stand, knowing where they're falling in need of their potential, and knowing it openly and fairly."

 

To be effective, managers must be trained and mentored to ask good questions, to offer and receive feedback, to teach and to write down an efficient plan. These are already issues. Why not invest less within the technology of performance management, and more within the people that supervise the employees--and make the most important impact on their results?

 

By the way, does one want to find out proven approaches for becoming a far better leader and increasing employee engagement? If so, I suggest you inspect this complimentary eBook: the way to Motivate-No-Inspire Employees: 10 Keys to Employee Engagement. [http://wcwpartners.com/how-to-inspire-people-ebook-download/]

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