Effective Management of Staff and their Performances

17th September 2021

Effective performance management has become the buzzword these days in organizations across the globe. But it is easier said than done. How can organizations initiate a solid performance management system that will foster excellence in all employees including those who hold leadership positions? Researches are rampant in this area but more than following the researches it has been seen that adhering to the best practices gives out positive results. Today we will be reviewing the Performance Management System to come up with the techniques that actually work.

Experts are suggesting that when it comes to performance management you should dig into the psychology of your employees more than anything else. Organizations are actually changing their appraisal system by discarding the traditional annual performance reviews and just focusing on engaging in meaningful conversations with employees like e.g. Google who has started experimenting with their performance management system. However, there is no guarantee that these latest trends will work but potent psychological principles seem to almost hit the bull’s eye. These psychological principles put emphasis on the feedback on performance and the ability to have employee voice in the process. Creating a performance appraisal system that is dependent on ratings seem to be beneficial. However, some traditionalists are not in favour of giving up the progress that has been made. Performance management aids in aligning individual and teamwork to meet the strategic objectives of an organization.

Organizations that are wobbly with their performance management are sure to stumble and cannot survive for long. Therefore, an effective system is essential where performance review has a positive impact on the employees and they actually accept and not react but respond positively to feedback, even it includes constructive criticism. More than the performance feedback it is the employees’ reactions to the feedback that matter.

An effective performance management system must be a blend of annual performance evaluation and ongoing discussion with employees as this seem to strengthen relationships between management and employees. And discussion means year-round conversations with employees.

When managers actively engage in conversations, this prepares the employees for performance feedback and they are more likely to accept the feedback that they receive as they seem to discuss about this with their manager.

Usage of more than one rater within the system is always a good move; e.g. bringing in an external reviewer to assess performance tends to motivate employees to perform well mainly because assigned goals are more effective than self-assigned goals. According to the principles of procedural justice, employees must be provided with a feedback as they are always eager to know what their employers think of them. Moreover, feedback gives the employees a chance to voice their opinions.

Another vital feature of an effective performance management system is to employ efficacious rating scales that can cover the full range of employee performance. Ratings scales with five categories are the best. Forced categories is the performance management system where the reviewer is forced to make a choice and that is not always helpful.


Written By : Dr Sanjib Chakraborty

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