Categories

Performance Management

Performance Management

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Blueprint Summary

The Performance Management process is aimed at the development of constructive and open relationships between Managers and Employees, enabling individuals to develop their abilities, increase their job satisfaction and achieve their full potential- thereby creating a mutually beneficial relationship for all parties involved in the employment relationship. Operationally speaking, the process aims to clarify and log existing work done against a measurable, predetermined outcome for each core area of an Employee’s functions, and then either taking steps to reward excellent performance, or to address inadequate employee performance as a remedial measure.

After laying a solid foundation- based on data- of:

  • what employees are supposed to be doing with their time
  • defining the technical aspects of what a “good job” looks like
  • comparing the employees’ evidence of work done against an ideal standard

The employer either chooses to reward the staff member- typically by an agreed-upon increase in remuneration- or help the staff member devise a plan to address the shortcomings present which lead to substandard work being performed.

To do this, a great deal of preparation has to be done prior to rolling out the process. Two key factors need to be kept in mind when applying these principles at all times:

  • Performance management is Corrective, not Punitive. This means that the purpose of this activity is to correct low-performing behaviour, not to penalize staff for low performance.
  • Actionable items and targets need to be clarified with staff prior to evaluating them against them.

Process flow

Process Specification

Process Owner

Stakeholder(s)

Recording Requirements

Storage Requirements

The person that is accountable for this specific process.

All parties that have a vested interest in this process.

Requirements that need to be recorded during this process. What, How, Where.

Requirements that need to be reported on during this process. What, How, When, Where.

Reporting Requirements

Audit Requirements

Notifications

Reminders

Requirements that need to be stored during this process. What, How, When, Where.

Requirements that need to be met in to comply with Auditing Regulations.  What, How, When, Where & Type of Audit Requirement.

Any Notifications that need to be Generated and/ or Actioned During this Process.

Any Reminders that need to be Generated and/ or Actioned During this Process.

Transparency & Communication

Knowledge & Skills

System

Workflows

 Any Transparency, Communication & Distribution Requirements needed for this Process.

 Any Knowledge & Skills required to successfully complete this process.

Links and Process within a system that directly relates to this Process.

Are there any Workflows that drive this Process? This can be Manual or NFE Workflows.

Legislation & Governance

Templates, Forms, Guides and Work Instructions

S.A. Board for People Practices

Any Legislation, Bodies, Processes, Policies that Govern this Process.

Links to Templates, Forms Guides and Work Instructions that are either to be used for application or as Guidelines to meet minimum requirements for this Process

Does this Process Align with SABPP. This can either be Fully, Partially or Not at All.

The Process

Inputs are all of the Elements deemed necessary to complete the process successfully.

Tasks are the Step-by-Step Actions to be taken to complete the Process.

The Preparation Phase

  • Top Management and Line Management – Awareness Training needs to be conducted for Top and Line Management. From an employee’s perspective, these parties are the drivers behind business performance, and if the respective manager cannot answer basic questions pertaining to Performance Management, staff are likely to lose buy-in. Inform Line and Top Management of the reasons, actions, responsibilities and timelines pertaining to this process.

  • Policy Development – The Developing of a Performance Management Policy needs to take place prior to the implementation of the system. This document should entail the reasons or purpose for implementing performance management, the frequency at which it occurs, which factors are taken into consideration when rating performance, the two potential outputs of performance management, and the key stakeholders involved with the process. In this document, the two possible outcomes and their consequences should be very detailed- i.e. the calculations for a quarterly performance bonus (if applicable) or the steps to be taken should the performance improvement plan need to be implemented.

  • KPA and KPI Definition – By examining the Position Management Register, which contain Job Titles, Descriptions & Global Job Grading where these are applicable, a skilled HR Practitioner would identify subject matter experts across each department of the organization to use in the definition process. These would typically include line management, heads of the respective departments and high performing employees. After consultation with them, a list of important deliverables / outcomes/ tasks applicable to each position in the company should be generated. Think of this as “What would Management like to see on a performance scorecard.”

  • Task Identification – After a collection of rough data has been generated, the HR Practitioner would peruse the documentation and identify suggested tasks, per position, that need to be completed. To ensure accuracy and relevancy of tasks, the HR Practitioner would meet with line management to further define, clarify and list tasks within Identified Key Performance Areas. Think of this as a “detailed but short list of tasks that staff complete on a regular basis.”

  • Define Key Performance Indicators – In order to measure outcomes of tasks that were done correctly, the HR Practitioner would examine each task identified in the previous step, and match this with a corresponding outcome that is indicative of the task being successfully completed. These should be measurable (it should be able to attribute a realistic numerical value to each of them.) Think of this as “What would a one-line statement of success for this task look like?”

  • Define Targets for each Indicator – the HR Practitioner and Line Management would agree on the respective ratios and/or numbers that must be attributed to each task in order for it to be considered successful. Anything higher than these targets are deemed as “exceeding the target.”

  • Finalise Performance Matrices – all the above information should be put on an individual performance rating template, per position, and shared with the relevant line managers or other staff responsible for facilitating the performance management contact sessions- often called performance appraisals, evaluations, or reviews. Should any discrepancies remain during the first phase of implementation, this is the last chance for line management to affect changes to the initial rating mechanisms.

  • Presentation of Performance Management System to Top Management & Line Managers – a workshop should be held with key stakeholders whereby training on the contents of, policies relating to and the procedure of chairing a performance evaluation is discussed. It is suggested that live role-plays are used, inclusive of common pitfalls and struggles pertaining to the entirety of the performance management process.

The Implementation Phase

  • Staff Awareness – Each Line Manager should inform the applicable employees of the Performance Management Policy, the procedure and documents that would be perused during the performance evaluation reviews. It is advised that live role-plays are used. The purpose of this activity is to make staff aware on how their performance will be viewed in future, how the system works, the particulars surrounding the review meetings like frequency, how often it will be held, etc

  • Booking of Performance Reviews – The line manager would schedule all the respective Performance Evaluation sessions as normal meetings- with sufficient time, at a time that is convenience to the employee, and inform the staff of the meeting dates and times well in advance. This is done so that the staff members have enough time to prepare their evidence for the performance evaluations.

  • First Round Performance Reviews – This refers to the initial performance appraisal meeting held between line manager and employee. Working on the respective Performance Management Matrix, the line manager would typically examine each Key Performance Area’s evidence and weigh this against the corresponding Performance Indicator’s targets. The formula is simple- weigh the Actual figure versus the Target figure, and complete the respective parts of the performance evaluation matrix. In the event that special consideration needs to be applied to the formula, scoring or any aspect of the rating process, the Line Manager assumes responsibility for these exceptions and amends the figures on the respective Performance Management Review Matrix accordingly. It is important to note that there might be exceptions to why goals and targets are met, and that Line Management should exercise discretion with this process, so as not to cheat the (standardized) system. This session also affords the employee a chance to raise any concerns or queries pertaining to the process. The staff being evaluated and the manager need to agree on a finalized score, which will then be communicated to the HR Department.

  • First Round Performance Reports – After conducting the review, the outcomes (completed Performance Matrix for the period being measured) should be sent to the HR Department. The HR Department then has the responsibility of logging/ tracking this on the applicable performance management software, or additional databases, identifying possible training needs identified where applicable and logging of same, and ultimately communicating with the finance department to indicate the corresponding activities that need to happen (eg Quarterly Bonus to be paid out, increase in salary after 12 months, etc) as per the Performance Management Policy. In the event that performance is not up to standard, as defined in the policy, the employee and line manager in question would engage in a performance improvement plan.

  • Conduct overall Quality Control – Line Management would identify any shortfalls or suggested areas for Improvement within the defined system, including but not limited to discrepancies in the performance matrix, or possible changes that make business sense. This would be communicated to the HR Department for review. Regardless of whether Line Management identifies any aspects of improvement, the HR Practitioner should drive this quality control exercise.

The Post Implementation Phase (Quarterly Cycles)

  • Second Review – Occurs as per normal an in the same way that it was conducted during the Implementation Phase’s First Round Performance Reviews. Depending on the Performance Management Policy, the frequency of these reviews can be weekly, monthly, quarterly or bi- annually. Working on the respective Performance Management Matrix, the line manager would typically examine each Key Performance Area’s evidence and weigh this against the corresponding Performance Indicator’s targets. This time, however, the previous progress identified would also be compared against the current score or rating, in order to identify whether the employee’s performance is improving or declining. The formula is simple- weigh the Actual figure versus the Target figure, and complete the respective sections of the matrix. In the event that special consideration needs to be applied to the formula, scoring or any aspect of the rating process, the Line Manager assumes responsibility for these exceptions and amends the figures on the respective Performance Management Review Matrix accordingly. It is important to note that there might be exceptions to why goals and targets are met, and that Line Management should exercise discretion with this process, so as not to cheat the (standardized) system. This session also affords the employee a chance to raise any concerns or queries pertaining to the process. The staff being evaluated and the manager need to agree on a finalized score, which will then be communicated to the HR Department.
  • Second Round Performance Reports – The HR Department then has the responsibility of logging/ tracking this on the applicable performance management software, or additional databases, identifying possible training needs identified where applicable and logging of same, and ultimately communicating with the finance department to indicate the corresponding activities that need to happen (i.e. Quarterly Bonus to be paid out, increase in salary after 12 months, etc) as per the Performance Management Policy. In the event that performance is not up to standard, as defined in the policy, the employee and line manager in question would engage in a performance improvement plan.
  • Repeat Cycle as necessary – The performance management process would continue as per the performance management policy. If it was determined that quarterly evaluations are to be conducted, then a Third review, corresponding Third Performance Report and corresponding Third Overall Quality Control exercise would be conducted and issued. Due to the nature, importance and financial impact of the activity, the Quality Control Exercises will facilitate change as the positions and measurement tools change over time.

END OF PROCESS