Sections of this topic
Performance Management for any Application: Benefits and Concerns
© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Adapted
from Field Guide to Consulting and Organizational Development
Suggested Pre-Reading
Overview
of Performance Management Process for any Application
Sections of This Topic Include
4 Key Benefits of Performance management
15 Other Benefits
Concerns
4 Key Benefits of Performance Management
1. PM focuses on results, rather than behaviors and activities
A common misconception among supervisors is that behaviors and
activities are the same as results. Thus, an employee may appear
extremely busy, but not be contributing at all toward the goals
of the organization. An example is the employee who manually reviews
completion of every form and procedure, rather than supporting
automation of the review. The supervisor may conclude the employee
is very committed to the organization and works very hard, thus,
deserving a very high performance rating.
2. Aligns organizational activities and processes to the
goals of the organization
PM identifies organizational goals, results needed to achieve
those goals, measures of effectiveness or efficiency (outcomes)
toward the goals, and means (drivers) to achieve the goals. This
chain of measurements is examined to ensure alignment with overall
results of the organization.
3. Cultivates a system-wide, long-term view of the organization.
Richard A. Swanson, in Performance Improvement Theory and Practice
(Advances in Developing Human Resources, 1, 1999), explains
an effective performance improvement process must follow a systems-based
approach while looking at outcomes and drivers. Otherwise, the
effort produces a flawed picture. For example, laying off people
will likely produce short-term profits. However, the organization
may eventually experience reduced productivity, resulting in long-term
profit loss.
4. Produces meaningful measurements
These measurements have a wide variety of useful applications.
They are useful in benchmarking, or setting standards for comparison
with best practices in other organizations. They provide consistent
basis for comparison during internal change efforts. They indicate
results during improvement efforts, such as employee training,
management development, quality programs, etc. They help ensure
equitable and fair treatment to employees based on performance.
15 Other Benefits of Performance Management
Performance Management (PM):
1. Helps you think about what results you really want. You’re
forced to be accountable, to “put a stake in the ground”.
2. Depersonalizes issues. Supervisor’s focus on behaviors and
results, rather than personalities.
3. Validates expectations. In today’s age of high expectations
when organizations are striving to transform themselves and society,
having measurable results can verify whether grand visions are
realistic or not.
4. Helps ensure equitable treatment of employees because appraisals
are based on results.
5. Optimizes operations in the organization because goals and
results are more closely aligned.
6. Cultivates a change in perspective from activities to results.
7. Performance reviews are focused on contributions to the
organizational goals, e.g., forms include the question “What
organizational goal were contributed to and how?”
8. Supports ongoing communication, feedback and dialogue about
organizational goals. Also supports communication between employee
and supervisor.
9. Performance is seen as an ongoing process, rather than a
one-time, snap-shot event.
10. Provokes focus on the needs of customers, whether internal
or external.
11. Cultivates a systems perspective, that is, focus on the
relationships and exchanges between subsystems, e.g., departments,
processes, teams and employees. Accordingly, personnel focus on
patterns and themes in the organization, rather than specific
events.
12. Continuing focus and analysis on results helps to correct
several myths, e.g., “learning means results”, “job
satisfaction produces productivity”, etc.
13. Produces specificity in commitments and resources.
14. Provides specificity for comparisons, direction and planning.
15. Redirects attention from bottom-up approaches (e.g., doing
job descriptions, performance reviews, etc., first and then “rolling
up” results to the top of the organization) to top-down approaches
(e.g., ensuring all subsystem goals and results are aligned first
with the organization’s overall goals and results).
Concerns About Performance Management
Typical concerns expressed about performance management are
that it seems extraordinarily difficult and often unreliable to
measure phenomena as complex as performance. People point out
that today’s organizations are rapidly changing, thus results
and measures quickly become obsolete. They add that translating
human desires and interactions to measurements is impersonal and
even heavy handed.
Learn More in the Library’s Blogs Related to Performance Management
In addition to the articles on this current page, see the following blogs which
have posts related to Performance Management. Scan down the blog’s page to see
various posts. Also see the section “Recent Blog Posts” in the sidebar
of the blog or click on “next” near the bottom of a post in the blog.
Library’s
Human Resources Blog
Library’s
Leadership Blog
Library’s
Supervision Blog
Also consider
Related Library Topics
Employee
Performance Management
Group Performance
Management
Organizational
Performance Management
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