At Niche we assist organisations with the design of their performance management systems and provide training for managers and employees on performance reviews and appraisals.  

There are many benefits that arise from a well designed performance management system including:Performance management benefits the individual and organisation'

  • Better communication and enhanced manager and direct report relationships
  • Ensure priorities, goals and objectives are clear and agreed to
  • Manage career expectations and identify training needs
  • Improve employee and manager performance
  • Improve employee motivation

The Performance Management Cycle is shown below:

Performance Management CycleA Performance Management Process should:

  • Be more than an annual event
  • Include daily coaching and feedback
  • Culminate in a ½ yearly and yearly formal review
  • Include many informal catch-ups in between these reviews

When you ask employees if they have had feedback on their performance most will say “no” unless there is a formal performance review (appraisal) process in place. 

  • Contrary to popular belief, employees crave feedback, both positive and constructive negative feedback. 
  • Part of being able to do your role better is knowing what you are not doing and what you need to work on to improve, and this is where performance feedback is so important.
Performance is more than just meeting individual targets, there are contextual factors that need to be considered

The above model of overall performance shows that when setting performance objectives and standards you need to:

  • Set objectives around individual task performance
  • Set contextual performance measures - “how” they go about doing the role. 

Without contextual performance measures in a performance review you may have someone who meets all the role key performance indicators (KPIs) but who actually is under performing as their contextual performance is poor and this then impacts on others around them and the wider team’s performance.

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