Performance management is one of the most challenging aspects of managing people.  It is an effective tool that strengthens rapport between appraiser and appraisee; helps improve performance of the appraisee; and ensures alignment of individual work objectives with those of the employer.  It should also link as directly as possible to reward management.  Performance management involves objective-setting, measurement, feedback and recognition as means of motivating people to realise their maximum potential.

Top management support

For performance management to be truly successful and fully appreciated by all employees, top management needs to provide leadership and serve as a role model to support performance management from time to time.

Open, fair and objective

n            Employers should have in place open and fair processes to assess and reward employees’ performance.

n            All employees should be assessed based on their abilities and job performance with impartiality and objectivity, irrespective of their gender, family status, disability, age, race, etc.

n            Employees should clearly understand the goals and values of their employers as well as their overall strategic objectives.

n            Employees’ performance should be measured against objectives and standards mutually agreed between the employees and their immediate supervisors at the commencement of the appraisal period, which are subject to periodic review and amendment during the appraisal period.

n            It is a good practice to document the appraisal discussion and require both appraisers and appraisees to sign the appraisal forms.  Please refer to Appendix III for useful tips on conducting performance review discussion.

n            A clearly defined channel for resolving disagreement between appraisees and appraisers should be established.

A continuous process

The performance management cycle is a continuous process for appraisers and appraisees.  The process involves initial performance planning, mutual agreement on goals and objectives for the coming appraisal period, ongoing performance coaching to provide guidance and support to appraisees with regular performance review, and annual appraisal discussion.

Linkage with reward and development

n            Employees who perform well need recognition (financial or otherwise) and to know that their performance improves their career prospects and employability.  Financial recognition refers to monetary awards during annual pay adjustments and variable bonus payment.  Non-financial recognition can be made, on the other hand, in the forms of an appreciation letter or certificate, an announcement in an in-house magazine or notice, a lunch with the CEO, etc.

n            Employers should identify employees’ training and development needs in the annual performance appraisal.

Handling employees with poor performance

n            Employers should provide employees whose performance is unacceptable with timely feedback, training or other remedial action to help them improve their performance.  They should have sufficient opportunity to improve.

n            Employers should arrange follow-up performance reviews with those employees with poor performance where possible.

n            As good practice, performance improvement and review plans and results of performance reviews should be properly documented.