The trend toward reducing the number of management levels in organizations
is being
driven by the need of organizations to increase the speed and accuracy of
communication. Traditional organizations, with their many levels of management,
process information slowly. Plus the information gets filtered along the way,
often for political reasons which can conflict with the overall good of the
organization.
Processing information quickly
and accurately, then acting upon what is learned, is critical for the success
of an organization. Another key item is selecting relevant information for
measuring organizational performance relative to organizational goals. This can
be challenging in light of today's information rich environment. (Selecting the
wrong metrics, those which pull the focus of the organization away from what is
most important for its ultimate success, will harm an organization). After
selecting the appropriate metrics, organizational performance can be further
enhanced by linking the performance results to
individual or team
incentives.
Performance Management is a
process that can facilitate the flow of information in an organization.
Performance Management includes the following:
A flow-down of goals beginning with the organization's strategic plan, to
the annual organizational goals, to the President's or CEO's individual
performance goals, on down to all employees in the organization. Thus each
member of the organization can ultimately tie their individual performance
goals to the organizational goals
A formal feedback system in which individual performance results can
ultimately flow back and influence the organization's strategic plan. Feedback
must occur frequently.
A mutual (between the employee and manager) establishment of duties and
responsibilities and criteria for measuring success. Also, performance results
are mutually determined. The mutuality is what encourages the feedback.
A recent study by a large consulting firm revealed that Performance
Management makes a big difference. Companies with Performance Management had
significantly higher Return on Equity, Sales Growth, Sales per Employee, and
Income per Employee than those companies without. Also, the total shareholder
return for companies that adopted Performance Management systems increased an
average of 24.8% after the Performance Management System was installed.
360 Degree Performance Assessments
complement the Performance Management system by providing performance feedback
to individuals. The 360 degree performance assessment has an advantage over the
traditional manager assessment process in that the individual receives feedback
from multiple relevant sources, not just one. The probability of receiving
reliable feedback increases dramatically as you increase the number of
evaluators and evaluation perspectives. At its best, the 360 degree assessment can
encourage an environment of openness, where employees listen to feedback and learn to
grow. At its worst, the 360 degree assessment can be distracting and disruptive if it
is not done properly.
The steps in the 360 degree assessment includes:
Identify and define the key competencies for organizational success based
on the organization's vision, values, and goals.
Express the key competencies as attributes against which participants can
be assessed.
Select who to conduct the evaluation. Typically a number of peers,
customers, subordinates, if applicable, and the manager are selected.
Compile the results. Feedback is kept confidential.
Provide feedback to the individual.
Create an action plan to improve the individual's performance.
One important factor for the success of a 360 degree performance assessment
is to ensure that the right people are selected to provide the feedback. Both
critics and supporters of the individual should be selected. Another key to
success is avoiding punishment for bad results. Rather, assessment participants
must be positively encouraged to improve.
The recent trend is to link 360 degree feedback beyond development-only tools.
Commonly companies are linking the results to coaching and development plans and are using
the results in performance appraisals, promotions and pay increases. The reason for this shift
is the realization the feedback alone does not change behavior.
The 360 degree forms have become easier and faster to complete. The questionnaires typically cover only
a handful of issues that are business related, not psychological traits.
Avoid split personality work
environments. Communicate organizational vision, values, goals, and rules
of behavior frequently. Employees need to clearly understand what the
organization stands for, what kind of behavior is encouraged, and what kind of
behavior won't be tolerated. Otherwise, they will spend much more time and
energy discussing, fighting and/or worrying about these issues. The
organizational vision, goals and values should be communicated at employee
meetings and posted on company bulletin boards, etc. There's going to be a
strong temptation to excuse some "key contributors" or "prima
donna's" in the organization from following the rules, for fear that they
will leave if they are forced to follow the rules. Fight that temptation,
otherwise the credibility of the rules will suffer. Also, if you try to enforce
rules of behavior on some and not others, then you run the risk of lawsuits.
Interpersonal problems and
personality conflicts exist in all organizations and they take the
employees focus away from the goals of the organization. Several ways to reduce
interpersonal conflicts include:
Diversity training. Diversity training is
popular in organizations and was designed to foster better relations between
the various ethnic groups and genders. It grew out of the
Affirmative Action Plans.
Personality Assessment. Understanding one's own personality style
and behavioral tendencies and those of others in the organization, can help
foster interpersonal relations in the organization. The best teams are
comprised of members with diverse personality styles. These are also the teams
in which cooperation is most difficult to manage. Several systems of
personality categorizing are used in organizations. Two of the more popular
ones include Meyers/Briggs, and Enneagram.
Coaching. Coaching is typically used to help correct a significant
weaknesses in an individual who is otherwise valuable to the organization.
Correcting the weakness takes time, effort, follow-up, and a desire by the
subject of the training to improve. Coaches provide one-on-one counseling to
help encourage the development of the subject. Often the weakness is discovered
as a result of feedback from the 360 degree assessment (see above). Usually a
coach is referred by the individual's manager. Sometimes the use of a coach is
kept secret from the others in the organization to avoid possible
embarrassment, and other times not. A coach may remain in contact with the
individual for months or even years.
Training and development of
employees in an organization is very important. Training is needed to keep the
employees' skills current. Also insofar as it serves as a foundation for career
advancement, it plays an important role in the
retention of
employees.
Educational assistance is offered by most companies.
Typically reimbursable courses must be job related, career related, or required
for the degree. Reimbursement can vary based on grades attained or tuition cost. Many
companies set a maximum reimbursement amount.
Reimbursements typically include books, lab fees, and other required fees.
A mentor program can be an effective
development tool. In a mentor program, a more experienced employee dedicates
time to coach, counsel, and guide a less experienced employee, or just make
themselves available to answer questions. Counseling and feedback from a mentor
can be less threatening and, therefore, more frequent and constructive, than
from a manager. Usually those receiving the mentoring are new to the
organization or new to the field (e.g. new college graduates). The
mentor/mentoree relationship can continue for a few months or a few years.
Career counseling is another
effective developmental tool. Typically the manager is the best career
counselor for the employee since the manager can impact work assignments which
can foster career development. Employees should be encouraged to explore career
interests to help prevent "burn out" or frustration and surprise from
reaching a dead end in their career, and to enhance the employee's skills and,
therefore, value to the organization. However, the employee needs to understand
that he or she is primarily responsible for their career development, not the
manager or anyone else. The steps in career counseling include:
Evaluating the employee's interests. Books, workbooks and questionnaires to
help evaluate interests are available through libraries, book stores, and
consultants.
