Good practice: Performance management

On this page:
Summary
Key references
Overview
The importance of managing performance
What is performance management?
Performance management success factors
Combating human nature
Training in performance management
Day-to-day performance management
Formal performance management
Measures of performance for formal reviews
Identifying the performance measures
Personal objectives
Towards rounded assessment measures
Personal development plans
Motivating employees and managers
Psychological and career rewards
Performance-related pay
Systems that ensure conformance
360° assessment
Renewing formal systems

Summary

• Successful performance management is fundamental to organisational effectiveness. (See The importance of managing performance, What is performance management? and Performance management success factors)
• Effective training is central to the success of performance management. (See Training in performance management)
• The day-to-day supervision of the performance of individuals and teams should run alongside a formal framework under which their performance is assessed and improved. (See Day-to-day performance management and Formal performance management)
• It is important that employers identify measures of performance that are relevant, objective and easily assessed. (See Measures of performance for formal reviews, Identifying the performance measures, Personal objectives and Towards rounded assessment measures)
• Individuals and their managers will need motivating to take part in performance management, and their compliance should be monitored. (See Motivating employees and managers, Psychological and career rewards and Systems that ensure conformance)
• Formal performance reviews are often linked to training and development provision. (See Personal development plans)
• Performance assessment can be broadened from just the views of the individual and his or her manager to include the perceptions of others who experience the individual's performance. (See 360° assessment)
• Despite its widespread use, performance-related pay is controversial. (See Performance-related pay)
• Formal performance appraisal systems usually require review and renewal every few years. (See Renewing formal systems)

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Overview

This section of the XpertHR good practice manual discusses performance management, including day-to-day and formal performance management systems, how employees and managers can be encouraged to treat performance management seriously, the ways in which performance management can be assessed and the use of performance-related pay.

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The importance of managing performance

Performance management is fundamental to the effectiveness of today’s organisations, dependent as they are on their people for the goods and services that they provide.