Top Performance Management Pitfalls and How to Avoid Them

What is Performance Management?

We define performance management as a continuous process by which performance improvement, either by an individual or a team, aligns with the long-term and strategic goals of an organization. In operations, it helps set performance expectations and let everyone in the group know where they stand regarding their performance in their respective responsibilities within the organization. 

Leaders in general, be it a CEO, CMO, Supervisor, or you as an individual, your performance significantly shapes organizational success.

Here are the four most common performance management risks you may encounter and how to avoid them.

Managing Performance as a Once-A-Year Appraisal

In companies, the number top performance management mistake is treating the performance management process as a one-time event instead of an ongoing process to let employees know where they stand and develop their careers. The performance review should be only a tiny component of an overall performance management program and not be an event but a continuous process.

Fear of Behavior Change

The organizational performance will not evolve without changing individual performance. How do we change our performances when we fear change? We fear the unknown. Sure! That’s because Our brains are designed to find peace in knowing. However, we get to welcome new possibilities.  

So in a business set-up, it is only when managers understand and apply the core principles of high-performance environments and behavioral science that they will unlock their direct reports’ full potential. So they have to set a logical behavior projection that aligns with your organization’s values.

Not Setting A Performance Standard

It is challenging to do a performance appraisal, let alone in the absence of a standard on how to do it. It makes the process unfair. Employees may not understand what justifies poor performance, or they will not know what is expected from them. Create a benchmark for good management.

The Blame Game

Leaders sometimes fall short, especially when they place the blame instead of seeing the chance for improvement, forgetting that their job as a leader is not fault-finding but to help their direct reports learn from mistakes. Performance management is about accountability, rewards, recognition, clarity, and improvement, so taking ownership of actions as a leader rather than blaming people improve performance.

The Bottomline

Fair, transparent and relevant performance expectations let individuals, teams, and functions know where they stand, set the stage for performance coaching, and inform professional development—three critical ingredients of an effective performance management process.

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