Years ago, I was learning how to do my job in a new position. I had little supervision and support, but I did a respectable job overall. I gave myself an average rating in all areas of performance except for initiative and resourcefulness. I did better than average, given my challenges and the results I delivered. However, my boss addressed my 10/10 right away in the performance meeting and remarked, "You believe you're a 10 or 11, but you're nothing more than a six or seven!" For the remainder of the meeting and the remainder of my time under his direction, I disengaged. I was devastated! Who would have thought that a performance evaluation could be so damaging personally? Not only did I learn that my initiative and resourcefulness were lacking, but I also felt that I wasn't good enough. The remark went to the heart of who I was and how well my work had been done. I'm sure I'm not the only one who has had a terrible performance review.
According to Gallup, only 14% of employees are inspired by their performance reviews. This is a startling statistic, but it speaks to the critical need to take meaningful action on educating leaders and managers and engaging employees in the performance management process. Let's discuss how to improve!
So, what is performance management?
Performance management sets clear employee goals and objectives, provides ongoing feedback and support, and evaluates their performance against those goals. This process is important because it helps organizations align their employees' efforts with the company's objectives and ensures that individuals contribute to the organization's overall success. In today's world of continuous disruption, performance management is even more critical, as it enables organizations to adapt to changes in the market quickly and stay competitive. Leaders can drive innovation, improve productivity, and ultimately increase profitability by effectively managing employee performance.
Poor performance management can negatively affect employees, teams, and the whole organization.
Employees without clear goals or adequate support and feedback may become disengaged and unmotivated, leading to decreased morale. Employees may feel like their efforts are not recognized and valued. It can also lead to reduced productivity, as employees may need a better understanding of what is expected or more tools and resources to succeed. In some cases, poor performance management can lead to turnover, as employees may leave an organization that does not provide them with the support and guidance they need to succeed. All these effects can adversely impact an organization's overall performance.
When it comes to teams, poor performance management is also an issue. If individual performance isn't managed well, team members might not work toward the same goals, making it harder for them to produce collective results. This can create silos within the team, hindering the team's ability to work together and share information and resources. Additionally, if individual team members are held accountable for their performance, the overall team performance may be compromised.
From an organizational perspective, employees may become disengaged and unproductive if they are not provided with the direction and support they need to succeed. This can make employees less likely to come up with new ideas or solutions to problems, slowing innovation. It can also make an organization less competitive, as employees may not perform at their best and may be unable to keep up with competitors. In the end, this can make the business less profitable because it might fail to reach its goals or be able to compete in the market.
What are some of the benefits of effective performance management?
Employees are more likely to be engaged and motivated when provided with clear goals, ongoing support and feedback, and regular evaluations. This can increase employee satisfaction, as employees feel valued and supported in their roles. It can also lead to improved productivity, as employees clearly understand what is expected of them and have the tools and resources they need to succeed. Additionally, effective performance management can enhance organizational performance, as it ensures that all employees are working towards common goals and that the organization can adapt to changes in the market.
Common challenges in managing performance
One challenge is setting clear goals and objectives. This can be hard because an organization's goals and objectives can change quickly in response to changes in the market. Leaders must ensure that their employees are on the same page with these goals. Another challenge is providing ongoing feedback and support. This cannot be easy because leaders and employees may not have the time or resources to review and discuss performance regularly. Also, when employees need to do their jobs better, it can be hard for leaders to find the right balance between helping them and holding them responsible for their actions.
A note for leaders and managers
Leaders and managers play a critical role in creating the conditions for their employees to thrive. This means setting clear goals and expectations, giving ongoing support and feedback, and making the workplace fun and interesting. By doing this, leaders can create a culture of collaboration, innovation, and accountability, which leads to happier employees, higher productivity, and better overall performance for the organization. Leaders can also help employees get the skills and knowledge they need to do their jobs well and adapt to changes in the market. Leaders can help their employees do their best work and help the organization succeed by making the workplace supportive and interesting.
Here are some tips and strategies that leaders can use to manage the performance of their employees effectively:
- Setting clear goals and objectives: Leaders should work with their employees to set goals and objectives that align with the organization's objectives.
- Providing ongoing feedback and support: Leaders should regularly review and discuss employees' performance with them, providing both positive reinforcement and constructive feedback.
- Creating a positive and engaging work environment: Leaders should foster a culture of collaboration, innovation, and accountability and provide their employees with the tools and resources they need to succeed.
- Developing employees' skills and knowledge: Leaders should provide opportunities for employees to learn, grow, and support their professional development.
- Managing underperformance: Leaders should address underperformance promptly and constructively, providing support and guidance to help employees improve.
In summary, performance management is a very important process that helps companies ensure their employees' efforts align with the company's goals and help it succeed. Poor performance management can negatively affect employees, teams, and organizations, including decreased morale, reduced productivity and decreased competitiveness. On the other hand, effective performance management can lead to increased employee satisfaction, improved productivity, and enhanced organizational performance. Leaders play a crucial role in creating the conditions for success and can take many actions to manage employee performance effectively. By prioritizing performance management, leaders can drive success for their employees, teams, and organizations.