"Getting Serious About Performance Management"
Compensation & Benefits Review
November/December 2005, pp. 18-26
This article takes the perspective that although there are serious, ongoing problems with any performance evaluation system, the development of a more complete performance management system will be a better bet to improve performance.
The most valuable piece of this article is a list of best practices in performance management developed by Edward Lawler:
- The performance management system should be owned by line managers instead of HR staff
- Both managers and those being appraised should receive training so they understand the process, their roles, and the skills and behaviors important to the process
- Top management needs to lead the effort and show their strong commitment to high performance and the performance management system
- Performance goals are driven by, and explicitly tied to, the business strategy
- Employees should receive regular, ongoing feedback on their performance from managers throughout the year
- Feedback should focus on competencies, development planning, and assessments of how individuals achieve their results
- There should be ties between performance ratings and financial rewards
- Managers should hold meetings to compare and level their ratings amongst themselves
- Web-enabled systems should be used to help integrate performance data with performance plans and ratings
Back to top of page
