Management Observation Program Best Practice 9 – Feeding the Performance Management Program

Most companies employ a periodic employee review program, typically comprised of a major annual review and sometimes complimented by a formal mid-year feedback session. Examination of these programs reveals most performance ratings are based on those individual behaviors, events, and accomplishments occurring within a few weeks of a review’s development. Consequently, employees achieving great success throughout the year, particularly those with significant achievements earlier in the period, feel cheated by a process that frequently overlooks these accomplishments.[wcm_restrict plans=”41942, 25542, 25653″]

A well-executed management observation program dramatically improves the formal performance review process. By implementing StrategyDriven’s recommended best practice of documenting management observations (See StrategyDriven article, Documented and Signed Observations), managers make available the evidence of both commendable and deficient employee performance spanning the entire evaluation period. Drawing from this repository to develop formal performance reviews provides a semi-homogeneous picture of performance complete with employee acknowledgements; significantly bolstering the review’s credibility.

Key to enabling performance management input from the management observation program includes:

• Documentation of management observation program findings with conclusions of individual performance supported by specific examples
• Individual observations collected and stored in the employee’s performance file
• Executives, managers, or supervisors performing an observation review the results with the employee at the time of performance
• The individual signs for acknowledgement of the performance observation at the time of performance
• Performance observation conclusions reference established performance standards
• Observations document the significant accomplishments of individuals as well as the shortfalls; sometimes at the individual’s request. This includes follow-up reviews/interviews to ascertain the individual’s performance quality if direct observation did not occur

Note that observations performed by executives, managers, and supervisors external to the employee’s work group should also be collected and filed within the individual’s performance file for use during annual review development. Such a practice adds breadth to an individual’s performance evaluation; enhancing the credibility of the overall review because of the added substantiation of performance conclusions. Additionally, it helps align performance ratings across the organization; further enhancing the program’s credibility because of the increased equality in performance ratings between work groups.

Final Thought…

In the author’s experience, it is helpful to tell the individuals observed that the documented observations will contribute to their overall performance appraisal. This communication tends to further enhance the individual’s day-to-day performance as the consequences of complacency have significant ramifications beyond the one-off observation itself.[/wcm_restrict][wcm_nonmember plans=”41942, 25542, 25653″]

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