For several years corporations, small businesses and non-profit organizations have utilized performance evaluation systems to directly assess the individual performance and impact an individual has on an organization without establishing much autonomy or focus on the training, growth, and development within a work environment.
Within the last decade’s technological progression, many organizations have shifted their focus on the employee and leveraging the performance management systems to invest in the growth and development rather than perpetuating the much-dreaded management process focused on the overall organization’s ROI. In fact, companies like Google have been utilizing metrics to determine how employee treatment, training, and appraisals can directly affect retention/churn, profits and the overall net promoter score (NPS). To better understand this system, Google’s organizational structure as it pertains to performance appraisals is reviewed as an example.
Key Elements of Successful Employee Evaluation Process
Expanding on Google’s Culture from previous research, they have a management system based on a flat structure. The approach Google uses involves evaluating the systems in place, managing these stems and not the people. This mindset allows managers to feel confident that adequate methods, tools, knowledge, and training are provided, justifying negative evaluations. Minimal micromanagement is required under this structure.
With the teams primarily comprised of creatives, computer science engineers, artificial intelligence engineers, data science wizards, project managers and other technology development experts that lean on each other as team members to establish individual metrics they can measure performance against with departmental managers from day one. The system has been primarily successful due to Google having essential elements contributing to a fluid evaluation process: Clear Communication of Expectations, Proper Planning Execution, and Assessment Process.
Clear Communication of Expectations:
A performance management system for successful employee evaluation process must start with proper training, goal and value establishment and clear communication for expectations. The management teams are responsible for leveraging the collective genius of individual team members to increase effectiveness and reliability in the workplace.
The performance management system begins with the job scorecard; This is created within the hiring process and improves as the individual continues employment with the organization. Each scorecard is then updated as quarterly business reviews are conducted to focus on the strategic objectives and align with the organization’s mission and core values. From there, managers can create expected outcomes through well researched and planned KPIs that must be achieved.
Proper Planning Execution:
Research shows that performance management systems are complicated for managers when employees are expected to participate in activities and processes that go beyond their initial training and education. If the individual is performing poorly, it makes it difficult for managers to feel as fair judgment is placed.
Establishing KPI’s from the start allows for organization’s like Google to avoid the challenging decisions resulting in unfavorable activities when there are consistency and clarity in how the process is executed. To adequately prepare for performance evaluation, managers must gather precise documentation including the original job application description and iterations, education, training requirements, anonymous feedback from other employees and KPI data.
The assessment process consists of creating a clear set of actionable items from pre-established key performance indicators (KPIs) that can regularly be monitored and tracked by the individual before performance reviews even become a concern; this creates a system of accountability that can be observed daily. From there, management leverages the team members to develop their retrospectives to understand where they can improve on a personal level before the actual manager is engaged to provide individual feedback. If required, additional continuing education units (CEUs) may be necessary to develop further skills that aren’t present.
The performance evaluation systems are streamlined through daily, weekly and quarterly accountability metrics that allow everyone to assume autonomy in their daily activities
as well as recognized areas of inconsistencies management
must address it. It also allows for employees to seek help and receive coaching on strategies to meet targets and ensure they are staying on track or need to revise focus; this allows for managers to look at what does work, what doesn’t work and continuously improve the overall business model to account for inadequacies.
Management and Performance Evaluation Systems
Historically performance evaluation systems were disregarded by managers as a method for focusing on problems rather than attacking a solution. The performance evaluations are often seen as more of an emotional process that may introduce bias, and it’s hard to see a direct impact on performance and may result in a decline in moral if not performed correctly. If clear expectations are set, and the system removes any appeal to ethos and creates the intention of continual improvement and identifying areas for growth, the process would yield more productive results.
A manager that would prove useful in conducting performance evaluations is an individual that has practical leadership training, decision-making skills, can create and maintain systems of accountability and possesses a coaching mindset that shows empathy and flexibility. Leaders who can facilitate a team by using their strengths and focusing on how they can further develop personnel through constructive feedback can create the most productive of groups. Managers who can’t utilize data to establish objective-focused evaluations, suggest areas for improvement, are not emotionally intelligent or do not have proper planning can significantly reduce the effectiveness of a performance evaluation or appraisal system.
Directing focus on technology-driven work environments, the systems for accountability, alignment and evaluation are continuously changing. In addition to integrating an individual’s reflection of an organization’s mission and core values, maintaining high performance within flat structures becomes a growing trend in creating intricacies for reviewing productivity levels within an entity.
In realizing this, in addition to implementing employee satisfaction campaigns, it has become increasingly imperative to embody management styles that allow for performance to be linked directly to the investment organizations put into their employees. The investment is used as a baseline to create an acknowledgment that an organization has set employees up for success and then they can facilitate a system of evaluation with further education as a company perk. It makes assessments easier for managers knowing what has been provided using a growth mindset to coach and develop rather than judge performance.