quality assessment of a performance management system
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Performance management quality
Quality assessment of a performance management system.
With more than 2000 different performance management systems in use worldwide, with various degrees of being an ideal system, here are a few questions forming an assessment questionnaire, covering some minimum requirements for an integrated performance management system. It can hopefully help to get an idea of how an existing system compares to an ideal system, which can be described as the “right way”.
Definition of an integrated system:
A definition of “integrated” can be clarified as follows: “To make into a whole by bringing all parts together; unify and combining or coordinating separate elements so as to provide a harmonious, interrelated whole; organized or structured so that constituent units function cooperatively”.
Try to answer the following questions:
1. Is strategic planning part of the regular business processes?
2. Is the PMS in support of the overall strategic plan or in isolation?
3. Is performance measurement a continuous process or at certain longer intervals only?
4. If there is a strategic plan, how is the successful execution of plans monitored on a regular basis?
5. Is employee performance measurement, review or evaluation ending up in the same universal factors being evaluated for all positions?
6. Is employee performance measurement based on different factors for different job tasks?
7. Is employee job objectives coupled to cascading job objectives from the top tiers and broken up into sub-objectives down through the ranks?
8. Is short interval control part of the PMS so that self-control can take place for immediate corrective actions on the level where deviations from standards are first detected?
9. Is the PMS following the rule of shortening control intervals for consecutive lower operational levels?
10. What would you say is the main purpose with your performance management system? Is it perhaps only window dressing, to pacify shareholders or to boast its existence in the annual report?
11. What is the secondary purpose with your performance management system?
12. Apart from the main purpose and secondary purpose, is the PMS also serving more purposes?
13. Can you list proven benefits derived from the existence of your PMS? What are they?
14. Is the PMS inspiring enthusiasm, initiative, problem-solving, creativity and the urge for continuous improvements in employees?
15. What effects do your PMS or lack of it have on employee morale, attitudes and feelings?
16. What are your employees’ opinions on the fairness of merit ratings and salary increases?
17. Does the system make provision for short term employee performance feedback and combined with identification of meaningful future employee development areas?
18. In case your organisation also has longer term projects, which may not be ideal for fitting into the normal shorter term business environment for the PMS – Is the performance management system making provision for longer term projects to be planned and measured along the lines and methods in use for engineering projects? We are referring for instance to the critical path method (CPM) for analysis and planning and project evaluation and review technique (PERT) for evaluations. Histograms can also be used to display actual progress against planned progress in the shorter term. We believe the methods used in engineering can make just as good a fit for other types of projects.
19. If you do not have a PMS, how does your organisation ensure cohesive co-operation by and between all role players to perform harmoniously together and in tune like a top symphony orchestra?
20. If you do have a PMS in place, list the beneficial and positive outcomes for your organisation.
21. List the deficiencies and negative outcomes for your organisation.
22. Are the positive outcomes outweighing the negative outcomes?
23. What will be your recommendations for improvement of your performance management system?
24. Are worker trade unions hampering or boycotting the implementation of a proper PMS? What possible tactics can be employed to make them part of the solution?
25. If you do not have or do not want a PMS, what are the possible benefits that the non-existence of it, can have for your organisation in the long run?
1. Performance Management as a system, if done correctly, is not intended for an annual review event only. With more than 2000 PM systems in use worldwide, each with its own interpretation of what is the right one, it is no wonder that some say cascading objectives end up in the same factor being evaluated for all jobs. We fully agree that it cannot be. Each job title has its own objectives, differing from the next one. A PM system can have more benefits than negatives if done correctly. It should daily encourage people to do what they are supposed to do. It can also function as automatic self-control and immediate corrective actions on the lower level where it is first identified, making life easier for higher levels. It should focus on continuous future organisation improvements and human capital talent development, instead of solely for the purpose of a once per year merit increase.
2. The intention with the right performance management system is to get organisation-wide support for the organisation strategic plan and specifically to get rid of subjective opinions and evaluations.
3. Not all organisations are in need of a performance management system. When an organisation is still small enough, the top man can control task outcomes of employees by means of direct contact and communication. When an organisation expands and the quantity of employees outgrows the attention span of the top leader, it can become more and more difficult to stay updated on how well the performance of all employees is. Then it can become time for a performance management system to come in handy as rescue mechanism for the top leader.
4. The first and main purpose with a performance management system should be to serve as a mechanism for more successful achievement of strategic plans and objectives. The possible other purposes and benefits will then follow automatically or more easily, with some adjustments.
5. To see a video of how to use the Critical Path Method (CPM) as analysis and planning tool for planning change in organization culture, go to this post.
See our design of a performance management system here in this post. Free download a bundle of six e-books, compiled as a combined effort by several Universities, for use by the USA Government Departments, on that page.
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The necessity of a formal performance management system can become less important, when the majority of the workforce of an organisation becomes mature enough to replace the formal system with a personal self-driven informal monitoring system. In other words, it can be abandoned, when individuals have received ample internal/external training to apply all the elements of a performance management system automatically themselves on an individual basis, without being officially forced to do so. However, how many can lay claim to this type of knowledge and maturity?
Persons who buy membership also get the following six videos with PDF transcripts:
Video 1 – Key objectives and standards:
The other five:
Video 2 – Critical objectives and standards:
Video 3 – Specific objectives and standards:
Video 4 – Action plans:
Video 5 – Control reports:
Video 6 – The sergeant stripes principle:
Persons who buy membership also get this e-book titled:
“The science of conducting effective meetings”: