Performance management is a systematic process for improving organisational performance by developing the performance of individuals and teams. It is a means of getting better results from the organisation, teams and individuals by understanding and managing performance within an agreed framework of planned goals, standards and competence requirements. Processes exist for establishing shared understanding about what is to be achieved, and for managing and developing people in a way which increases the probability that it will be achieved in the short and longer term. It is owned and driven by line management.
HR and reward people generally believe that performance management is a good thing as a means of improving performance, developing and rewarding people and aligning individual and corporate objectives – line managers are not always so sure. And whilst it’s a common people management process, it’s also one of the most difficult to implement effectively. E-reward has therefore undertaken an in-depth, case-history research project, covering five very different organisations, on every aspect of performance management to find out more about its application in today's organisations.
Our research is published in three parts. Here, in part one, we examine the experience of Hitachi and the Royal College of Nursing. The concluding parts in this project will be published in forthcoming issues of our research report series.
Hitachi Europe
Employee nos. (UK): 450.
Location(s): Maidenhead.
Business activities: Primarily a consumer electronics manufacturing company but UK operations solely concerned with sales and marketing.
Royal College of Nursing
Employee nos. (UK): 800.
Location: Head office in London, regional offices nationwide.
Business activities: The Royal College of Nursing (RCN) is the representative body for nurses in the UK. It has 380,000 members in England, Wales, Scotland and Northern Ireland.
REPORT CONTENTS
INTRODUCTION
CASE STUDY 1: HITACHI EUROPE
The performance management cycle
Performance planning
Objectives
Development Planning Discussion
Training not always the best option
Interim reviews
Consistency
Line managers and training
Link to bonus scheme but not directly to pay
Evaluating effectiveness
A final word
CASE STUDY 2: ROYAL COLLEGE OF NURSING
New HR director impetus for change
Performance management annual cycle
What appraisals cover
Preparing for appraisal
The appraisal meeting
Objective setting
Identifying development needs
Career planning and succession planning
After the appraisal
New online system trialled
Training
Performance management masterclasses
Management development
Future and other new measures
Early signs of improvement
A final word
LIST OF DOCUMENTS
Document 1: Hitachi Europe – Introduction to the Performance and Development Planning Process
Document 2: Royal College of Nursing - RCN Appraisal: Guidance
Document 3: Royal College of Nursing - Appraisal Preparation Form
Document 4: Royal College of Nursing - Appraisal Form
LIST OF BOXES
Box 2.1: About the RCN
Box 2.2: RCN annual cycle
Box 2.3: RCN appraisal process
Box 2.4: Diagram of RCN online appraisal process