Companies use performance management systems to evaluate employees’ efficiency at work and ability to perform certain tasks, either by automated or human processes.
These systems come in many varieties, and every company will tailor its performance management system to fit its specific needs. However, there are certain aspects common to all effective performance management systems:
1) Standardisation: If the evaluation criteria and methods are not standardized, managers cannot say that they use them to hold their employees to a “standard.”
The aspects of performance that the manager measures must be uniform, and they must strive to maintain a constant level of strictness.
Varying the level of strictness or their methods will only lead to their employees lacking faith in their managers and in the system itself.
2) Validity and Conciseness: Performance management systems should only measure what is valid to the tasks at hand. Less is often more when it comes to selecting evaluation criteria.
If the managers are evaluating customer-service representatives in a call center, they should not evaluate them on their ability to operate heavy machinery.
3) Legality: Managers should make sure that they are not evaluating the employees in an illegal manner. They should consult an attorney before employing a questionable method of evaluation.
4) Due Process: If employees receive sub-par evaluations, give them the chance to defend themselves.
The managers should make sure that management adequately informed them of expectations, that the company provided them with all necessary resources and that there is no mistake in the evaluation.
Even in cases where employees are performing at an unacceptable level, they should allow for redemption and reform.
5) Proper Training for Evaluators: No performance management system can succeed when those carrying-out evaluations are inadequately trained.
The managers should make sure that the evaluators fully understand the responsibilities of those whom they are evaluating. They should have them work in that capacity for a short time if necessary.
When possible, have those who have proven their ability to work well in that capacity perform the evaluations.
6) No Bias of Reward: The managers should not reward evaluators for finding negative or positive results, as this will skew their evaluations in either direction and lead to distrust between the employees.