"Performance Management Lacks Consistency"

Kevin Oakes

T&D

April 2007, pp. 50-53

This article summarizes the findings of a recent survey on the Keys to Performance Management, conducted by the Institute for Corporate Productivity.

Some of the key findings were:

• Only 8 percent of respondents said that their performance management program contributes in a significant way. Forty-seven percent said they are not sure if their performance management process makes any contribution at all.
• Only 40 percent of respondents said that a large majority of their employees receive quality performance appraisals.
• Thirty-six percent of organizations consider performance management "essential".

Nine key management practices were identified as critical for program effectiveness:

• The performance management process includes developmental plans for the future. The study found that 69 percent of responding organizations use developmental planning.
• Training is provided to managers on how to conduct a performance appraisal meeting. Two-thirds of responding organizations reported that they do this training.
• The quality of performance appraisal is measured. Only 28 percent of respondents said they do this.
• There is a system in place to address and resolve poor performance. Seventy-one percent report they have a system in place.
• The appraisal includes information other than that based on the judgment of managers. Sixty-one percent include other information, but only 27 percent do so for all appraisals.
• The performance management process is consistent across the organization. Forty-three percent said performance management is consistent across all units.
• Employees can expect feedback on their performance more than once a year. The survey results found that the more feedback the better, up to monthly feedback as the ideal. Weekly feedback was considered less effective overall.
• 360 degree feedback is used to support the performance management process.
• The performance management process includes ongoing goal review and feedback from managers.

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