Performance Management - Part 1

The economy seems to be picking up; however the news on the employment front continues to forecast more downsizings and higher unemployment. When a company is in a position where it has to downsize staff, it can be more difficult if the company does not have a credible and valid performance system.

What constitutes a performance system that can be useful in making employment decisions? In our experience a company that uses a performance management process is well situated to identify and differentiate among performance levels.

Performance management starts with setting performance expectations so both employee and manager agree on how good performance will be recognized. Unlike the once-a-year performance appraisal, performance management systems have built in touch points throughout the year. A keystone of performance management is “no surprises.” At year end, both employee and manager participate in developing the year end assessment and setting expectations for the next year.

If you would like to learn more about developing a performance management system for your organization, call Martha Glantz at Total Compensation Solutions at 914-730-7300.

Martha Glantz is a senior director at Total Compensation Solutions (TCS) http://www.total-comp.com/ TCS is a full service compensation consulting firm specializing in Executive Compensation, Board Compensation, Performance Management, Bonus/Incentive Plan Design and Broad-based Compensation.