Applying A Performance Management System
...and are generally willing to work hard at improving their ability to play them. However, work is generally associated with negative feelings and people normally only look to improve when they are told it is necessary to keep their job. Taking this information into consideration, the goal of any responsible supervisor or manager should be to make work have many of the same positive characteristics found in playing sports. First, the manager would have to determine where the enjoyment comes from in the sports. Generally, the pleasure experienced when playing a sport does not come from the actual behaviors involved. In fact, these behaviors are typically strenuous behaviors that are repeated the same way time and again in a very repetitive fashion. It is all of the irrelevant environmental factors that create the good feelings attributed to playing a game. Elements like the well defined rules that provide direction for the participants, immediate feedback provided through the scoring systems and the support provided by fans and teammates when a player tries to perform all contribute to the fun of sports. They are also the main reasons why people want to constantly improve. These same elements can be developed in the business world the hard part is implementing them. This implementation is called performance management. To be successful, a performance management system should be instituted at all levels of the organization and the first step towards doing this is to define the performance that is needed to produce the desired effects. In the example used of the basketball player, his performance or behavior was simply to shoot a ball through a basket that was fifteen feet away. This is a task that is relatively easy to define. Unfortunately, the behaviors that are needed to make an organization run smoothly and productively are not as easy to define. Defining the performance is like the foundation of a cheerleading pyramid. If it is not done correctly, all of the other aspects of the performance management system will take a hard fall. One of the keys to defining the performance is to be sure that it is in line with the needs and mission of the organization as a whole. Other factors involved in defining performance in an organization are establishing a role and direction for a performer, clarifying the needs of stakeholders, setting goals and objectives, developing a system for measuring the effects of the performance and developing a means of maintaining the desired performance and the behaviors that make up the performance. The first step, setting the direction, involves aligning the performance of the individual or team with the rest of the organization. This is key, because no matter how well a person or team performs, if the performance is not in line with the mission of the organization it is just a wasted effort. Also, the role of the individual or team must be set and to describe how their performance will add to the direction that has been set and the performance that is being defined. For instance, the direction of Kerry’s team is to win basketball games and the role that Kerry plays on his team is to score baskets and in this case, make his foul shots. The stakeholders of an organization include all of the people or groups of people who maintain an interest in the manufacturing of products and delivery of services within the organization. Stakeholders may include customers, executives and middle management. All parts of the organization must keep in mind the needs of the stakeholders when defining their performance. The organization itself must be concerned with the needs of its customers, as well as the needs of its employees. The individual employees must remember the needs of the organization and their coworkers when defining their performance to ensure that their behaviors enhance the final product or service. The middle management are there to act as liaisons to ensure that the needs of both the organization and its individuals are in line and are met. As each level defines its performance and sets its direction, the levels start to build the foundation for identifying and satisfying the needs of each of the other levels in the organization. The setting of goals is probably one of the most important aspects of defining performance within an organization. Each level of the organization should be responsible for setting its goals and objectives and these goals should reflect the definition of performance and directions that have been set to this point. The goals must be specific in order to establish the proper behaviors that will stay in line with these directions and definitions. It is important to keep in mind that these goals, objectives and even the behaviors needed to attain them will most likely change as measurement tools are implemented and as needs of the stakeholders change. When setting goals, the teams, must be sure to set them so that they are both challenging and attainable. The best way to set a goal is to first establish a baseline of performance and then establish the goal so that it is just above that level. It is important to take small steps when starting a performance management system. After employees and managers have become accustomed to setting these small goals, they can start making them more challenging, if it is needed. When performance is being maintained properly, through positive reinforcement, people will not be motivated by meeting only past levels of production and each time that the goal is obtained, a new baseline is established. This allows the goal to be increased and performance will increase until this new goal is reached. This ongoing process will eventually lead to optimum performance. Organizations have to realize that just setting the goal is not enough to improve performance. For goals to truly be effective they must be paired with constant feedback related to the desired performance and the attaining of goals should be paired with some form of reinforcement. To do this, the organization must establish some form of measurement system. Peer reviews are an excellent way to obtain information about individual performance in relation to the objectives of their team and the organization. The information that is gathered on the peer assessment comes from the co-corkers, so the individuals with the closest and most frequent interactions with the persons being reviewed provides it. Normally, employees are allowed to choose a group from their peers to complete the peer review forms. These forms are then given to a team leader, facilitator, or manager so that he or she can interpret the data and provide valuable feedback to the employee. It is important that the teams and individuals be allowed to help formulate and conduct the review. One key aspect that helps decide whether or not a team is well suited for a peer assessment is to look at the team's maturity level. Mature teams have a tendency to be more dedicated to enhancing team performance. As the team matures, it develops a level of confidence, knowledge and camaraderie that will benefit the review process. Instituting the peer review will add to this level of confidence by giving the team members the opportunity to evaluate their own performance, both within the unit and toward the goal of the whole organization. The mature team has also developed a sense of trust among its members and with management. This sense of trust is key in performing a peer review. Once trust has been established, the members of the team will feel confident enough to provide real, honest answers that are objective and will best serve the future performance of the team. By establishing trust with its managers, the team becomes aware that the information they are providing will be used in a fair and productive manner, which will further promote honest and objective answers. Much of what makes a peer review system successful is the way in which it is implemented. It should be used more as a developmental tool than a grading tool. It should have a predetermined procedure that is followed and the team leaders or managers should provide feedback to the team and the individuals. By first using the peer assessments as a developmental tool more than as a measurement device, the employees will be given an opportunity to familiarize themselves with the concepts and skills needed to complete the surveys. As the employees become more confident in working with the reviews, the assessments can start to evolve into sources of information for feedback. Then eventually be used as a means of setting performance criteria and developing compensation plans. In addition, a definite process can be developed for administering the assessments. The information that is recorded in the assessment should be used for more than just measuring performance. It should also be used as a learning tool for both the manager and the individuals on the team. Once the assessments have been completed and then reviewed by the management team, the results should be discussed with the team members. This feedback will provide the foundation for reshaping the way in which work is performed and improving production within the teams and the organization. It is important for the organization to remember that the definition of performance and the behaviors that constitute performance are going to continue to change based on the measured performance levels and the problems that are identified by the measurement. This is why the more frequently a team, or organization can use these peer assessments, or any other form of reliable measurement, the more they will benefit from its results. Now that a direction has been established, the needs of the stakeholders have been identified and performance goals have been set. A means of measuring progress toward these goals has been developed. The organization can focus on the final component of defining performance and that is rewarding the performance. Without defining how the performance will be rewarded, the other steps in the defining process will be meaningless. Because without the reward system working in conjunction with feedback provided by performance metrics, behaviors that make up performance will not be maintained within the organization. For most organizations, the first thought that comes to mind when the word reward is used is money, but this does not always have to be the case. Take Kerry and his basketball team as an example. Kerry’s direction has been defined to help his team win the game. His goal is set to score points and his performance can be measured with instant feedback by putting his points on the scoreboard. Nevertheless, it may not be clear what is maintaining his behavior. Neither Kerry nor his teammates are being paid, yet they still enjoy performing the task and are willing to work at improving their performance, so money must not be the only type of reward that can be used. For Kerry and his team, it is simply the presence of positive reinforcers. Like the cheering crowd and the intrinsic reward of knowing that they have performed well that maintains and improves their performance levels. Positive reinforcement is anything that causes an increase in behavior. In Kerry’s case, the setting of a basketball game is full of positive reinforcers. The cheering of the crowd, encouraging words from his coach, medals and trophies that are handed out if they win the games and the support of his teammates all act as positive reinforcers. There is also the pride that Kerry feels in accomplishing his goals and benefiting his team and this can be the strongest of all the reinforcers. In business, the use of positive reinforcement has been shown to cause many positive side effects. The use of positive reinforcement to reward improved performance has been shown to improve the employee-supervisor relationship. The majority of the performance problems that are found within the organization are due to motivation. It is the job of the performance management system, along with the management teams and supervisors, to provide motivation and positive reinforcement. The good feelings that are linked to positive reinforcement also contribute to an increased feeling of accountability in ...