Performance reviews are a great mechanism for senior managers to cascade targets across the organisation. For many organisations, year-end is a time to review performance and set plans and targets for the coming year.
Often, particularly as organisations grow, performance reviews provide an essential and effective mechanism for communicating targets and objectives. It also provides a mechanism to share and secure accountability for achieving those targets throughout the organisation.
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The performance review is the perfect forum to explain the corporate objectives and to agree on a plan as to how these translate at the individual level. By this means, it enables each member of the team to understand what activities are the priorities, and it facilitates them to give greater focus to those. It also means that each member of the team is enabled to apply effort in the same direction.
Work lives are hectic. An issue occurs. The issue gets resolved. Time rushes on. The lessons to be learnt are lost. The performance review provides a perfect mechanism to stand back and complete that analysis and forge a much deeper constructive understanding of the learning opportunity. This process in turn fosters a culture of continuous improvement.
In addition, the review should focus on gathering a deeper understanding of the impediments to greater performance and the strategies necessary for greater success. Managers with this better understanding can then take actions to overcome those barriers.
Most importantly, performance reviews, if done correctly, are a valuable tool to reinvigorate and refocus both employees and managers. Target setting and objectives may be set annually with regular follow-up and adjustments occurring throughout the year, perhaps each quarter.
It is important that performance reviews are documented in writing. In addition, it is vital that the discussion be a fair, objective, and constructive appraisal of the employee’s performance.
Both employees and managers should prepare for the review discussion and enter the review with an open mind. The review should be a two-way meaningful discussion. To support this aim, ideally both the employee and manager may find it beneficial to refer to examples. This reinforces meaning and context and depersonalises areas which might be contentious.
Are you considering performing an end-of-year review? HR First can help you instigate reviews with guidance and training as well as legal advice about managing performance.
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