According to the U.S. Office of Personnel Management (OPM), federal employers have been required to utilize merit systems in the workplace since the inception of the Civil Service Act in 1883. This means that organizations in the United States have been utilizing some form of performance management for at least 135 years.
Obviously, performance management is a valuable tool for the companies that use it. We know this to be true because performance management has continued and evolved into what it is today – a cyclical, open-ended process that generally includes the following actions:
- Strategic goals and objectives are set by the organization.
- Managers and employees work together to set future goals and expectations for the employee that are in line with the strategic goals and objectives of the company.
- Managers document events and provide feedback to employees over the review period.
- Managers complete a formal performance review for each employee to discuss results; including rewards for success and/or opportunities to improve future performance.
The performance management process is repeated over time and, when applied appropriately and consistently, it enables employees to improve their performance and, ultimately, the performance of the company.
But what if your organization does not do Performance Appraisals? Over the past decade there has been a significant movement to “Dump The Appraisal” and shift away from formal performance reviews. Having a strong performance management process does not necessarily require a performance appraisal, but it does require that managers have very strong coaching skills. Should you decide to eliminate performance appraisals, managers must be trained to pay extra attention to the ongoing need for documentation, coaching, daily management, and communication/feedback across the organization. All of this is to fill the void in the process of Performance Management that comes with the removal of the appraisal document and the meeting that normally takes place at the end of the review period
Constant improvement is extremely important to the companies of today because organizations that do not improve over time cease to exist. Are the leaders of your company utilizing performance management in a way that improves the success of your organization?
If you feel your organization can benefit from improving its performance management process, consider enrolling in one of the following upcoming courses:
- Performance Appraisal Design: A Strategic Approach for Improving Results /Colorado Springs, July 31/ Denver, October 30
- Coaching: Partnering for Performance / Denver, September 24-25 / Colorado Springs, December 11-12
- Performance Documentation Skills / Denver, August 8 or October 9 / Loveland, October 3 / Glenwood Springs, September 20 /Colorado Springs, November 13
- Performance Management: Setting the Stage for Success /Denver, September 19 or November 14 / Colorado Springs, August 14 / Loveland, November 1