Performance reviews: Butteriss on human resources

 

Review of performance is an ongoing process, but managers should also schedule a formal process of review—either at the end of the year, the end of a project, or some other interval—to examine an individual’s performance in relation to the expectations that were set at the beginning of the performance period. This formal process, called a performance review, has several benefits. First, it provides a context for manager and employee to confirm that they have a common understanding of the company’s business plans and priorities and to assess the employee’s recent performance in relation to the overall company program.

It helps manager and employee to identify any problems that have hindered the achievement of performance objectives and encourages them to look together for solutions. For instance, an individual may not have been able to achieve a particular objective because promised training was not provided, the employee was not kept informed about changing objectives, or technology was not upgraded. The formal performance review also replaces vague appraisals such as,“You’ve done a really great job and here’s a bonus,” with a direct link between compensation and an employee’s contributions to company productivity during a performance period.

Finally, a performance review is useful for setting goals for the coming year, which is important both for guiding individual achievement and for realizing business goals and objectives.

Preparing for the review

Both management and employees should prepare thoroughly for the meeting. Just as with other formal meetings, managers must provide leadership to the company by treating the performance review as an integral part of operations. They must set a standard by their own level of preparation and by allowing time for the employee to get ready as well. Sufficient time should be set aside for conducting the review itself, and the meeting should take place in a room that is free from potential distraction such as telephones or computers. Frequent interruptions not only disrupt communications, but they often leave the employee feeling unappreciated and uncertain about what is expected for future performance.

Reviewer preparation

Reviewers should come to the meeting prepared to talk both about the performance period just completed and the one about to start. For an effective review of the past, the reviewer should:

• Verify the goals and objectives set for the individual at the beginning of the review period, using either the previous year’s performance review or the employee’s job description. These goals and objectives should have been set jointly between the individual and his or her manager and should be realistic in terms of what has been required of the employee for the past year. It goes without saying that these goals and objectives should have been achievable as well as realistic.
• Gather data from as many sources as possible, including input from the employee’s colleagues and co-workers, to develop a thorough, balanced assessment of recent performance.
• Document achievements and areas in which improvement is needed. Throughout the course of the year, or during the review period, the manager needs to note in writing the areas in which the employee did particularly well. This means keeping copies of reports as examples, as well as notes and specific examples of things in areas in which the employee did particularly well. It may also mean keeping notes of where there is need for improvement—for instance, achievement of results, timekeeping, etc. It is essential to keep a file on the individual throughout the year that can be used as the basis for the performance discussions. It’s very easy to forget things, both good and bad, that have happened over the course of a year or during the review period.
• List objectives for the upcoming performance period, including both productivity goals and objectives in skill enhancement. It is important that the manager doing the review list the objectives that are required of the employee for the coming period, or the business goals that have to be achieved. This then leads to the stage in which the individual and the manager need to agree and have a discussion in terms of what objectives can be achieved and what is feasible throughout the coming year.

Employee preparation

The individual being reviewed also needs to prepare. The checklist below suggests some areas employees should be encouraged to consider before coming to the meeting.

• What did you achieve during the performance period?
• Did you meet the objectives set for the period?
• If you fell short, what obstacles prevented you from achieving your goals and objectives?
• What can your supervisor or manager do to help improve your performance?
• What training and development do you need, and do you know where you can get it?
• Do you want to stay in your current position? How would you like to see your job change?
• What are your goals for the future? What path of advancement within the company would you like to follow?

The performance review meeting

1. Review Performance during the Review Period—whether it is a particular project, the previous quarter, or the past year—and discuss compensation for that performance. The manager and the employee first need to verify that they agree on the goals and results that were expected over the defined period. If there was no review or goal setting over the past review period, the reviewer and the employee need to agree on what expectations were implied. In the absence of specific goals for a time period, the original job description may be useful in characterizing objectives for a position.

2. Set Objectives and Goals for the Next Period—whether it be a defined time span or a specific project—and include the required measurement steps for those objectives and goals.

• formalize what has to be accomplished
• identify who is responsible for reaching the set goal
• give a timetable for completing a project
• focus on the costs that will be incurred in achieving the set goal

SMART GOALS
For each goal, specific objectives and measures should be set. These need to be SMART:

Specific: Be very clear in terms of what is required (for example, 500 sales or new customers signed up within the year).
Measurable: The measurable part would be a specific number such as 500 customers.
Action-Oriented: Determine how you’re going to get those customers, and set action plans to do that.
Realistic: Would getting 500 customers be realistic? If not, perhaps the number should be reduced to 300. If it’s far too easy, perhaps it should be increased to 700.
Time- and Resource-Constrained: Set a specific time period, such as within the coming year.

3. Assess the Development Needs of Individuals in relation to performance and to make development plans to meet those needs. The course of development should take into account both shortcomings identified from the review of the previous period and the skills and knowledge requirements to meet the key goals set for the new period. The manager and employee working together should agree on the employee’s current level of skills and knowledge, define the new levels towards which the employee should be working, and determine how the gap between the two is to be filled.

Copyright© 1999 by Margaret Butteriss. All rights reserved. Published by John Wiley& Sons Canada, Inc.
http://www.amazon.ca/Help-Wanted-Complete-Resources-Entrepreneurs/dp/0471643882

 

References

Butteriss, M. (1999).Help Wanted: The Complete Guide to Human Resources for Canadian Entrepreneurs.Toronto: John Wiley& Sons. pp.147-157

Tags: management, performance