Time to put the "Management" back into "Performance Management"

By Shaun McCarthy, Chairman, Human Synergistics New Zealand/Australia

There's a real crisis facing HR managers in performance management.

Around the world, research is suggesting that performance management systems aren't working.

What this research is telling us is that, while we have captured the processes of performance planning and performance appraisal, we have not yet mastered the art of managing performance. In essence, the planning and review process isn't bad, but the execution part leaves something to be desired.

Research Outcomes

Analysis of our collected Organisational Effectiveness Inventory (OEI) data shows:

• 49% of employees say their managers do not even notice when they do good work

• A staggering 63% of employees report that their managers take little or no corrective action when someone is under-performing

• Only 36% say they get praised when they perform particularly well

• 60% report that their managers do not demonstrate how to improve their performance

• 71% report that their managers to do not help them plan how to actually get their work done at a high level

In short, managers are not managing performance. They may work with their people to set goals, establish KPI's and then measure the performance some time down the track, but they seem to provide little help to their people to support achievement of these goals.

That's why, right now, all around the world, commentators are questioning the process of performance management.

But we believe that it's not about the system - it's about the quality of individual leadership and management of performance.

Interpretation

In high achievement organisations, the pursuit of excellence is simply something that everyone does. At the individual manager level this means facing reality and dealing constructively with performance issues (both superior performance and poor performance) as they arise.

That's part of a culture of excellence. A performance management system is not the answer. It is part of a process. It's the quality of leadership that makes the difference. No system will support an unskilled leader, but a poor leader can certainly reduce the effectiveness of a great system.

Watch as momentum builds around this issue. It's going to be big.

Shaun McCarthy is the Chairman of Human Synergistics in New Zealand and Australia.