New IDS study on performance management

PERFORMANCE MANAGEMENT

New IDS study on performance management

Organisations are increasingly advocating a higher degree of employee ownership of the performance management process, says a new report by Incomes Data Services.

Success criteria

IDS identifies five key elements of a successful approach to performance management:

1. Transfer responsibility to staff -- The IDS researchers found that organisations are increasingly encouraging employees to take greater responsibility for their own personal and career development by playing a greater part in establishing their own objectives and by taking the lead in review discussions.

2. Provide regular feedback -- Companies now encourage line managers to hold regular "one-to-ones" with their staff, says IDS, allowing them to monitor progress, amend targets where necessary and gain a better impression of performance over the whole year.

3. Train line managers to coach -- For IDS, the role line managers play as facilitators, advocates and coaches is essential in bringing the best out of high-potential staff, managing underperformers and motivating the vast majority of staff rated towards the middle of the performance spectrum.

4. Take a holistic view of performance -- Organisations are now seeking to gain a more rounded perspective of individual performance by including measures of how an objective is to be achieved (typically set in relation to a competency framework and/or the company's values) as well as what the objective should be.

5. Focus on development -- "Well thought-out development plans can play a key role in helping employees achieve their targets," says IDS. "Moreover, by committing itself to supporting employee's own aspirations and its expectations of them, an organisation can improve employee motivation and help build a high-performance culture."

What you will find in this 37-page report

Analysis The first part of the report highlights the current trends in performance management: provides analysis of the three key phases of a performance management cycle -- planning, tracking and coaching, and evaluating performance examines the performance planning process, including linking individual targets with overall business goals, establishing SMART measures and taking account of how, as well as what, objectives are to be met looks at how organisations track and support progress considers the role of 360-degree feedback tools discusses the final review and rating process and the link between individual performance, pay and career development opportunities.

Case studies Pages 9 to 37 of the report covers five company case studies: Intel Biogen Idec World Duty free Civil Service Motoring Association NFU Mutual.

 

Want to know more?

Title: "Performance management", IDS HR Studies 796, April 2005.

Availability: To order your copy contact customer services at Incomes Data Services in London, tel: 020 7324 2599.

IDS is a leading UK information and research service on employment issues, providing a range of publications for employers, unions, government departments and other agencies. To find out more visit www.incomesdata.co.uk

Posted 10 May 2005