The Poor Performance of Performance Management

Annual Performance Appraisals have always had mixed reviews. Managers do not like it because of the time consuming process and employees do not like it because of its perceived unfairness. The entire exercise loses the original intention of improving employee learning and performance and becomes a dreaded process.

In a survey by New York based On Point Consulting, only slightly over 40% of line managers and HR Managers think there is value in a performance management process. While the tool by itself might be useful, the prevailing culture in an organisation is critical for its success.

One way to improve is not to just do the annual appraisal but schedule quarterly meetings to discuss performance and make the meeting a feedback event. This requires managers to be coached.

A successful performance management system should:

1. Help employees build their skills and competencies
2. Is consistently applied across the organisation
3. Uses a rating scale that enables differentiation of performance
4. Helps to build a performance culture
5. Provides data for succession planning
6. Drives Leadership development initiatives


One Response to The Poor Performance of Performance Management

  1. smrgroup says:

    Effective performance appraisal is not just to do it yearly but the trend is changing by doing it monthly.

    Since there is a review of personal, department, project and team objectives monthly after all, incorporating the performance appraisal against the KPIs monthly together with the rewards associated to it, even on monthly basis would not seem tedious if it is part of a review or project management process.

    Thank You and Have A rainbow Day!
    “The world will smile with you when you start smiling first!

    Robert Lim

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