Are the Performance Management Practices Just a Bluff?

As the effectiveness of performance appraisals has come under scrutiny recently, there is reason to question whether other performance management processes really improve performance. Staff meetings must be a fluid unit that governs how employees work and the quality of their work.

Like many other ideals, it has missed the mark and stagnated. Performance management processes are not just something you tick off the list, but something you have to take into account. It is the way organizations choose to manage performance management that is the problem.

What is broken?

The idea that performance management as a whole does not work is simply not true. There is a lot of information that suggests that processes such as employee interviews, coaching, recognition etc. are necessary for the employee and the organization to succeed - these are performance management processes. But these aspects of performance management do not always work as they should, or they under perform in relation to the company's needs. 58% of company managers believe that their current performance management process is not performance-enhancing.

Although some managers believe that performance appraisals are unnecessary and irrelevant to improving performance, employees want them. In fact, 72% of employees believe that their performance would improve if managers gave them corrective feedback. The employee interviews should not be used as a yardstick for reprimanding, but as a yardstick for development. After all, negative feedback can improve performance when given appropriately.

It makes some professionals uncomfortable

It makes us feel well-organized, but it prevents us from unleashing the power that our talented employees bring to work every day.

86% of the 96% of companies that have a performance management system dislike it. The ideal performance management system has the freedom that is so important to the company's and the organization's growth, but that's simply not how it works today. That is what is unpleasant, not the performance management itself.

There should be a basis for assessing the employees' performance. It is not only about assessing the work and how it fits in with the company's expectations, but also about understanding where the company may have performance problems. For example, if a new hire has been introduced through what the organization believes is a robust system, but still has performance issues (and they're not the only ones)... Is it really their fault?

The answer is no. It is the management of the organization that has not given them the tools they need to succeed from the start. If a team member does not understand the basic tasks and company standards, he or she simply cannot stretch beyond what is necessary to be innovative. Millennial employees are statistically more likely to give performance feedback, and most of them want feedback every month. They need guidance and feedback to achieve their preliminary goals before integrating their own abilities into special projects.

Performance management IS necessary

The question is not whether companies should get rid of their performance management processes to unleash a certain level of genius in the team... rather, the question is how to change performance management to match the needs of the team. The current stagnation in performance management has created a negative connotation around employee performance measurements.

A majority of companies understand the need to change their performance management processes, with 89% already changing or planning to do so in the next 18 months. You need processes that enable the performance management system to be a fluid measurement unit based on changes that occur as employees move through different work cycles.

You cannot avoid the need for performance management. Large organizations will always need such a mechanism to ensure compliance and orientation throughout the company. It's a necessary (if sometimes unpleasant) process, but it can be changed. It should actually evolve with your team. If the performance management system does not work, it does not mean that the performance management is not effective. You just have to find specific processes that work for your organization. Take a demo to see how IceHrm can get your performance management process on track.