Expectations

An employee must have a clear understanding of what is expected of her in her current job before performance feedback is given. This may include reviewing, revising or developing a job description. Ideally this is done with the employee, the line manager and a human resources representative.

Evaluation & Feedback

Feedback about performance should be immediate and ongoing. If an employee is unable to meet his job requirements, don't wait until the year-end evaluation to provide that feedback. To be the most effective, good or bad comments should be given to the employee as soon as possible. Feedback should be as objective as possible and include specific examples.

Employee Input

Evaluations should also include the employee's input. If she doesn't have the skills or information to perform her job, she should take the initiative and work with her manager to acquire the necessary tools.

Rewards

Tie salary increases and merit awards into employee development for best results. Employees who see the benefits of their development by an increase in salary or a monetary award are even more likely to realize the benefit of the performance management system.

Caution

Don't confuse a performance management system with performance appraisal, which is typically a once-a-year event where communication is only one-way.

More Information:

Small Business Solutions: Setting Up a Performance Management System