The way of performance management and evaluation at organization

Performance management is a natural process of management: it is not an HRM technique or tool. As a natural process of management, the performance management cycle corresponds with plan-do-check-act model.

                                                               Figure 1.0 PDCA Cycle 



Performance planning and implementing – performance agreement

As an example, in our organization before recruiting the employee organization has designed the jobs for fulfilling different functions/duties. And HR department communicating and delivering job role through the job description to relevant employees after they recruiting. 

job description is a written document that clearly outlines the responsibilities, duties, skills, qualifications, and expectations associated with a specific role within an organization

As well as each and every department maintaining the competency matrix analysis implemented by HR department to identify the skills and experiences and knowledge of employees and that is the way to identify the employees whether fit to job or need to improve? As well as conduct the annual training need analysis for identify the requirement of trainings of employees. According to the training need analysis they design the annual training plan for employees. Annual training plan is the good way to improve the employee performance.

Monitor – Performance 

Key performance indicators (KPIs) are the metrics or other sources of information which indicate how outcomes can be measured or recognized.

As an example, there are departmental objectives to monitor the departmental performance at our organization.

Eg : Quality Assurance Departmental objectives 

•   Minimizing customer complaint by CPM
•   First time quality release 
•   Minimizing transactional error by 5%

Considering Factors when creating objectives

                                                          Figure 2.0 SMAT Goals

Review and Rating – Performance

 A performance review provides a focal point for the consideration of key performance and development issues. Review and rating of the performances of the team has to be done in a structured way.

  1.     Set clear objectives for the team or the department with the criteria

This is an important part of the performance review process to set up the team with right talents and to get the desired outputs.

2.      Define the job roles and responsibilities

Generally the job description of each team member is sufficient for this which should define their responsibilities, key activities, desired outcomes or deliverables. Employee has to be understood this clearly.

3.      Set the goals (SMART Goals)

Goals need to be set with Specific, Measurable, Achievable, Realistic and Time bound.

4.      Define core competencies (Technical and soft skills)

The employees need the competencies of problem solving, effective communication, independent decision making, innovative and deliver the team work.

5.      Select a review process

This is depending on the requirement. Some evaluations can be conducted by their own which is called ‘self-evaluation’ and others can be by their peers or managers depending on the project or specified task.

6.      Evaluation process (by the manager)

Generally, this is very common. Manager who assigned the role can review the performance after certain time with the defined criteria. This may contain a rating system from 1 to 5 or ‘Poor’ performance to ‘Outstanding’.

7.      Plan for future actions

After the evaluation process, the employee and manager or reviewer mutually agree on a plan to address the weaknesses and enhance the strengths. This includes documentation process. Example: action plan based on a SWOT analysis, Employee Development Plan.

8.      Periodical reviews

Periodical review of agreed action plan is important to make sue that employee is taking effective efforts to complete them and company is effectively creating the supportive environment. 

Example: is adequate training is provided?