Human Resource Management – Raising Performance through Performance Agreements

These days, a new practice is being undertaken, the manager will reach agreement with each employee on the required level of performance, and how it is to be measured. This agreement should be reached by a series of stages:

  • Ensure corporate goals and values are shared. An employee’s performance objectives should always be aligned with those of the organisation goal as a whole. This is best explained in terms of the objectives for the sales department in any organization.
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  • Agree an individual performance plan. The plan for each employee needs to include a number of key features to be followed;
  • It must be integrated with the plan of the department.
  • It must go towards helping the individual to improve his / her performance.
  • It must address any areas of concern regarding past performances.
  • It must clarify how the performance is to be measured in the organization.
  • Agree on how the performance is to be monitored, measured and evaluated. The most important part of this process is choosing the most appropriate form of measurement out of the many, both quantitative and qualitative. The role of the manager, the employee and any third parties will need to be agreed as will the timing of meetings, both formal and informal, during the period.
  • Agree on help and assistance to achieve the targets set out in the plan. Training and development will be important here and this can include internal as well as external courses, mentoring and coaching, periods of secondment to another department or role, work shadowing of senior colleagues and attendance at crucial meetings.
  • Agree on the nature of the rewards available. The plan will need to be clear on how the individual’s pay will be influenced by the outcomes from the plan, whether promotion or any other career issues are affected and if it is so, then, in what way. Motivation towards achieving a successful outcome to the plan is dependent to a large extent upon how valuable are the rewards to the employee, how they will be assessed by an employee as an individual, including both extrinsic and intrinsic types of rewards.

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