Creating An Effective Employee Performance Management System

If your employee performance management system issubordinates need to submit self-appraisals or sign off
not effective - in other words, your managers aren'tafter an evaluation has been written and discussed.
meeting their responsibility of getting their employeeAn online system can be set up to automatically send
performance appraisals written, approved andmanagers (and their subordinates) regular reminders
delivered on time - here's the first question to ask:every time an action date is approaching and email
What happens to the manager who doesn't turn in allred-flag notifications if a deadline is ever missed. Finally,
of his appraisals on time?a good online system can track the current status of
Too often it turns out that the answer is "Nothing," oremployee performance appraisal completions for
at least nothing sufficiently disagreeable to get thedifferent organizational units. Having this information will
manager to act. Managers often discover that it'sallow you to let the head of the sales department
easier to put up with toothless gripes from theknow that the completion percentage in his
personnel department about not getting employeedepartment is only 84 percent, while manufacturing
performance appraisals done than actually evaluatingand accounting are at the 100 percent level.
subordinates. As a result, appraisals get pushed asideLighting A Little Fire
so that "real work" can be done, and your employeeThough HR's role in creating an effective employee
performance management structure is broken.performance management system. Senior managers
Initiating Hardball Consequencesalso own some responsibility to make sure the
Make sure that there are some real consequences forcompany's expectations for employee performance
not getting employee performance appraisals in onappraisal quality and timeliness are followed.
time. For example, withholding salary increases untilEvery senior manager should review each appraisal
paperwork is up-to-date creates a powerful incentivewritten by a subordinate manager before that
for getting them done on time. This is particularly true ifmanager reviews it with the employee. This
the human resources department has the clout toone-over-one review procedure will ensure a level
refuse making salary increases retroactive to rescueplaying field, since the senior manager can make sure
managers who just didn't get around to submittingthat all of his juniors are applying similar standards and
them on time.expectations to their subordinates. He also will learn
No manager wants to be in the position of explaining awho's taking the responsibilities of employee talent
subordinate's delayed salary increase to them -management seriously as he reviews the appraisals
especially if the boost in pay is being held up simplyand sees how honestly they're written.
because the manager failed to submit their employeeRemembering the Power of Shame
performance appraisal on time. This strategy is calledShame is a powerful motivator that is often
"building accountability." It's a tough-minded approach,overlooked. There's nothing wrong with shaming
but all you're doing is insisting that managers play bymanagers into doing what they're supposed to do.
the rules.How do you do it? The easiest way to make shame
Establishing Deadlineswork for you is to ask a senior executive if he'd like to
A gentler measure is simply to make sure thatbe updated on the status of employee performance
managers know exactly what they're supposed to do,appraisal completions - he will invariably say yes.
and when they're supposed to do it with a checklist(Senior executives always want to know the status of
that provides key dates of the employee performanceeverything). That's your license to report on exactly
management cycle. And make it easy for them to dowho has their employee performance appraisals in on
what you want - make sure forms and proceduraltime and who's not performing.
instructions are readily available, and there's someoneProvide a short report beginning, "As you requested, I
on hand to answer the inevitable questions that arise.have listed below the current status of appraisal
Both approaches establish shared responsibilities. Notcompletions," followed by nothing but two columns of
only are line managers required to get their employeenames - one labeled "On time" and the other labeled
performance appraisals written, but HR must make"Overdue." Send copies of your report to everyone on
sure the employee performance managementboth lists. You can probably count on an immediate
process is models for best practices. Forms shouldreaction from those managers on the overdue list to
reflect the reality of people's jobs; managers must befinish their appraisals and move to the list of good
able to assess all of the subtle elements of bothguys.
results and behaviors; training and other support mustAgain, an online system can provide executives with
be available in a just-in-time basis; and what isup-to-the-minute information about the status of all
expected should be made crystal clear. Without all ofemployee performance management activities without
these elements, HR bears the lion's share of theHR having to feed it to them. And senior managers
responsibility for not creating a system thatcan have a powerful influence of creating the
encourages employee performance managementenvironment where one hundred percent appraisal
excellence.completions is the norm.
Sharing the HoneyCreating Fool-Proof Accountability
But consequences aren't the only area where HRAt one major oil company, the CEO and his VP of HR
drops the ball. We've talked about arranging negativedeveloped an employee performance appraisal
consequences for those managers who don't doprocedure that was a model of simplicity: a
what's expected. But remember - honey influencesrequirement that each manager discuss 13 open-ended
behavior better than vinegar does. How often doesquestions about performance with each subordinate in
HR provide positive consequences to managers whoMarch of each year.
are doing a good job of meeting their employeeThe only writing the system required was a memo
performance appraisal responsibilities?from each manager to the CEO every year no later
A simple email from an HR rep to a supervisor sayingthan March 31. The memo indicates whether or not the
that in reviewing the employee performance appraisalsmanager had conducted all his discussions - if the
she wrote, he was impressed by how seriously shediscussions had not been conducted, the memo
took the responsibility and the fact that they were allneeded to explain why. And the reason had better be
submitted before the deadline. Copy her boss on thegood, the VP-HR explained, because on April 1 the
email, too.CEO picks up the phone and starts calling. "Why didn't
Providing Gentle Remindersyou do what I asked you to do?" he asks each
It's important to have some mechanism to remindmanager who didn't complete the
managers when key dates are approaching. That'sperformance-discussion assignment. As the VP-HR
one of the great advantages of online systems.explained with a sly smile, "You don't ever want to get
Well-designed online systems greatly complementthat call from Roy."
employee performance management efforts, providingEmployee performance management is a necessary
managers with at-a-glance information about tasks totool in making sure your company's employees are
be completed.putting their best foot forward. Your managers are the
For example, a dashboard screen can let them knowcatalyst for this, and they need both incentives and
which employee performance appraisals need to beconsequences to make sure the job's getting done.
written and when they're due, which appraisals writtenHaving a checks and balances system in place helps
by subordinate managers have been submitted andkeep the process focused and effective.
are awaiting their review and approval, and which