Leaders continue to rate poorly in the essential skills of performance management
A recent survey by Development Dimensions International (DDI) reveals that a staggering 96% of senior HR leaders in Singapore believe managers in their organizations lack the skills to effectively implement performance management in the workplace. While previous studies and research[1] support this finding, it once again raises the question, what can be done to enhance the application of this important process?
“Performance management must be seen as a critical business process, not a discretionary HR activity,” says Mark Busine, DDI’s Managing Director for Southeast Asia. “Effective performance management systems ensure the efforts of teams and individuals are aligned with the organization’s strategic priorities. They ensure that employee’s behaviors are aligned with the organization’s cultural priorities and values. Further, they provide a platform for supporting the growth, development and performance of team members.”
DDI’s survey of senior HR representatives explored key factors that contribute to an effective performance management system. These included the:
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Skills of managers and employees to effectively implement the system and the interpersonal skills to enhance effectiveness
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Process for ensuring alignment with business goals
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Level of collaboration and accountability
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System support
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Involvement of senior leaders
More than 70% of senior HR leaders felt that managers in their organizations still needed much development in the appropriate interpersonal and process skills to set performance expectations, coach for improvement, deliver sensitive feedback, review goal progress and guide the development of others. Another 26% said these skills were still a “work-in-progress”. As a result of these gaps, 50% feel that there is a lack of objective data used to evaluate employees’ performance. More than two thirds say that managers do not conduct meaningful discussions with their team members around their performance.
“One of a managers’ greatest fear is having to give a performance review when they know there will be disagreement or when ratings will affect the individual in some negative way, such as for a salary or promotion,” shares Busine. “A greater focus on enhancing the skills of managers in performance management can have a significant positive impact on the quality of these interactions and ultimately the organization’s performance.”
According to Busine, “Companies can do a lot more to support the development of their leaders in performance management. Having a system in place is one thing. Having the skills to use it is another. Research and experience shows that many managers are not naturally gifted and skilled in the key process and interpersonal elements of performance management. These skills do not automatically come with a management position.”
An effective training system for performance management should help managers to:
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Set and document effective goals and objectives that are specific, achievable, realistic, measurable and time bound
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Set behavioral expectations that are clear, understandable, and actionable
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Conduct a “gaining agreement” discussion on the first two items
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Track performance during a business cycle
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Provide coaching and feedback
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Rate performance in both results and behavioral expectations
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Conduct a periodic performance review discussion
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Create a personal development plan and plans for his or her direct reports
- Conduct a salary increase discussion
“Organizations that take the time to train their leaders get repaid a thousand times over—every time a fruitful and meaningful feedback discussion occurs rather than one that results in damaged trust, poor communication, or reduced commitment from their direct reports,” says Busine. “And in today’s current economic environment, it is even more imperative that leaders manage performance more closely to ensure clear alignment and accountability, continued engagement of employees and management of non-performance.”
[1]A study published in Singapore’s
Human Resources in April 2008 cited that only 24% of managers receive training on how to conduct performance reviews. A 2002 study by Mercer revealed that only 26% of associates say their manager provides them with timely and helpful feedback. An earlier 2000 SHRM study show that half of managers and supervisors are not trained in providing feedback; a larger percentage (66%) were not trained in coaching skills.