You are here: Home / latest, Management Study Materials / Characteristics of an Ideal Performance Management System

Characteristics of an Ideal Performance Management System

Posted by Ripon Abu Hasnat on Saturday, June 13, 2015 | 0 comments

The following is a set of characteristics that is likely to allow a performance management system to be successful. Practical constraints may not allow for the implementation of all these features.

However, we should strive to place a check mark next to each of these characteristics, as the more features that are checked, the more likely it is that the system will live up to its promise.

Strategic congruence

The system should be congruent with the unit’s and organization’s strategy. In other words, individual goals must be aligned with unit and organizational goals.

Thoroughness

The system should be thorough regarding four dimensions. All employees should be evaluated; all major job responsibilities should be evaluated, the entire review period, and not just the few weeks/months before the review, on positive aspects as well as those in need of improvement.

Practicality

Systems that are too expensive, time-consuming, and convoluted will obviously not be effective. On the other hand, good systems are available and easy to use (e.g., performance data are entered using user-friendly software), and are acceptable to those who want to use them for decisions.

Meaningfulness

The system must be meaningful in several ways. First, the standards and evaluations conducted for each job function must be considered important and relevant. Second, performance assessment must emphasis only those functions under the control of the employee. Third, evaluations must take place at regular intervals and at appropriate moments. Fourth, the system should provide for continuing skill development of evaluators. Finally, the results should be used for important personnel decisions.

Specificity

A good system should be specific, meaning that it should provide detailed and concrete guidance to employees about what is expected of them and how they can meet these expectations.

Identification of effective and ineffective performance

The performance management system should provide information allowing for the identification of effective and ineffective performance. That is, the system should allow for distinguishing between effective and ineffective behaviors and results, thereby also allowing for the identification of employees displaying various levels of performance effectiveness.

Reliability

A good system should include measures of performance that are consistent and free of error. For example, if two supervisors provided ratings of the same employee and performance dimensions, ratings would be similar.

Validity

The measures of performance should also be valid. In this context, measures are relevant (i.e., include all critical performance facets), are not deficient (i.e., do not leave any important aspects out), and are not contaminated (i.e., do not include factors outside the control of the employee).

Acceptability and fairness

A good system is acceptable to and perceived as fair by all participants. Perceptions of fairness are subjective, and the only way to know whether a system is seen as fair is to ask the participants.

Inclusiveness

Good systems include input from multiple sources on an ongoing basis.

First, the evaluation process must represent the concerns of all the people who will be affected by the outcome. Consequently, employees must participate in the process of creating the system by providing input regarding what behaviors and/or results will be measured and how.

Second, employee input about their performance should be gathered from the employees themselves before the appraisal meeting.19

Openness

Good systems have no secrets. First, performance is evaluated frequently, and performance feedback is provided on an ongoing basis. So employees are continually informed of their performance. Second, the appraisal meeting consists of a two-way communication process, where information is exchanged and not just delivered from the supervisor to the employee. Third, standards should be clear and communicated on an ongoing basis. Finally, communications are factual, open and honest.

Correct ability

The process of assigning ratings should minimize subjective aspects. However, it is virtually impossible to create a completely objective system because human judgment is an important component of the evaluation process.

Standardization

Good systems are standardized. This means that performance is evaluated consistently across people and time. To achieve this goal, the ongoing training of the individuals in charge of appraisals, usually managers, is a must.

Ethicality

Good systems comply with ethical standards. This means that the supervisor suppresses her personal self-interest in providing evaluations. In addition, the supervisor evaluates only performance dimensions for which she has sufficient information, while respecting the privacy of the employee.