In EI-15 we looked at the issue of productivity with all the attendant systems. All these systems have anchorage on a Process of Employee Evaluation.
Performance Management System
“Every entrepreneur must therefore have a program in place that can be used to monitor and manage employee’s performance.”
One approach is Appraisal Checklist System. Appraisal Checklist System is simple and one dimensional. It requires business owner to develop a simple checklist of traits, behaviour and performance of an employee at a given time. This approach could be subjective, lacking in depth and inadequate to stimulate learning and productivity. It is however, suitable for a young business.
As a business grows, it is better to switch to a Performance Management System
In Performance Management System, the business owner engages the employee in developing detailed objectives and targets to be achieved by the employee in a specific period. This is called the Opening PMP.
As the employee works, he/she keeps populating his/her logs with results of how those objectives set with the business owner were met. At the middle of the period, the business owner calls for an Interim PMP Review to understand what the employee has achieved and advise on how performance can be realigned to meet set objectives.
At the end of the period, a Final PMP Review and Discussion will be conducted by the employee and the business owner. A rating will be given with appropriate reward.
The important features of a good PMP is that it must be SMARTER:
*S-pecific
*M-easurable
*A-chievable
*R-ealistic
*T-ime Bound
*E-thical
*R-egulatory Compliant
“When feedback is included as part of regular performance discussion, throughout the year, the employee, the business owner and the organization are all better off.” S.Mcknight