There are a lot of claims about what determines success in an organization. Some assert that managerial communication is key, other say it is the drive for results, and still others say it’s driven by innovation.1 Taken as a whole, regardless of the claim, success lies in individual performance – whether individuals are communicating, producing results, or innovating, it is people that are driving the system. A well designed and implemented Performance Management System (PM System) will help enhance this vital individual performance.
So how do you ensure that your PM System works well and actually enhances individual performance? You could order a few of the 46,152 books on performance management from Amazon.com, or you could read a few of the nearly 5,000 scholarly articles on the subject. Either way, make sure you pick the right ones – which will require you sifting through hundreds of reviews, abstracts, recommendations, and… feeling unmotivated yet? Not to worry, you can forego the headache by reading on. This article contains the Top 10 critical factors in an effective PM System. The following recommendations can serve as a baseline and a measure for where your system is now, and can also serve as a guide for becoming even more effective.
The reality is that no matter what you do, there will always be some employees who won’t like what you do. And thanks to the fundamental attribution bias, everyone will assume that they are above average performers anyway.31 Nevertheless, implementing these Top 10 critical factors can help you create a system that the majority of people are going to appreciate and truly benefit from. There are, of course, other details to consider beyond these ten recommendations, so go out and read what you need to read and gather the information you need to gather, just don’t forget, Performance Management is about the people doing the work – make it work for them.
If you have more questions about effective performance management systems feel free to call one of Ergometrics’ consultants at 425-741-0103.
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5 Kleingeld, A., Van Tuijl, H., & Algera, J. A. (2004). Participation in the design of performance management systems: A quasi-experimental field study. Journal of Organizational Behavior, 25, 831-851. doi: 10.1002/job.266
6 Cawley, B. D., Keeping, L. M., & Levy, P. E. (1998). Participation in the performance appraisal process and employee reactions: A meta-analytic review of field investigations. Journal of Applied Psychology, 83, 615-633. doi: 10.1037/0021-9010.83.4.615
7 Beer, M., Ruh, R., Dawson, J. A., McCAA, B. B., & Kavanagh, M. J. (1978). A performance management system: Research, design, introduction and evaluation. Personnel Psychology, 31, 505-535. doi: 10.1111/j.1744-6570.1978.tb00460.x
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17 Woehr, D. J., & Huffcutt, A. I. (1994). Rater training for performance appraisal: A quantitative review. Journal of Occupational and Organizational Psychology, 67, 189-205.
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23 Mezulis, A. H., Abramson, L. Y., Hyde, J. S., & Hankin, B. L. (2004). Is there a universal positivity bias in attributions? A meta-analytic review of individual, developmental, and cultural differences in the self-serving Attributional bias. Psychological Bulletin, 130, 711-747.
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27 Cataon, Darr, & Campbell, 2007
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29 Beer, M., Ruh, R., Dawson, J. A., McCAA, B. B., & Kavanagh, M. J. (1978). A performance management system: Research, design, introduction and evaluation. Personnel Psychology, 31, 505-535. doi: 10.1111/j.1744-6570.1978.tb00460.x
30 Kleingeld, A., Van Tuijl, H., & Algera, J. A. (2004). Participation in the design of performance management systems: A quasi-experimental field study. Journal of Organizational Behavior, 25, 831-851. doi: 10.1002/job.266
31 Mezulis, A. H., Abramson, L. Y., Hyde, J. S., & Hankin, B. L. (2004). Is there a universal positivity bias in attributions? A meta-analytic review of individual, developmental, and cultural differences in the self-serving Attributional bias. Psychological Bulletin, 130, 711-747.