Performance Monitoring: Who Should Be Watching The Watchers?

Performance management is a continuous process that involves managers and employees working together to plan, monitor and review an employee's work objectives, overall contribution to the organisation, and efficiency. While the manager focuses on expected deliverables in terms of performance, the HR team should outline the expected performance in terms of attitude and other social criteria. There are several ways to monitor employee performance, including regular one-on-one meetings, self-monitoring tools, and periodic reviews of work in progress. Performance management is a shared responsibility between managers and HR, with both parties working together to evaluate employee performance and provide feedback.

Managers and the HR Team

Performance management is the responsibility of the entire organisation, and managers play a crucial role in monitoring employee performance. While the HR team focuses on attitude and social criteria, managers are responsible for noting down expected deliverables in terms of performance.

• Watch employees work: Managers can gain valuable insights into an employee's customer service performance by observing them interact with customers. If an employee is struggling with a particular task, managers can "shadow" them to provide guidance and real-time corrections.
• Ask for an account: During one-on-one conversations, managers should ask employees to account for their actions since the last meeting. This helps hold employees accountable and allows managers to make informed judgments.
• Help employees use self-monitoring tools: Managers can encourage employees to use self-monitoring tools such as project plans, checklists, and activity logs. These tools enable employees to track their progress towards goals and deadlines and provide regular updates to the manager.
• Review work in progress regularly: Managers should periodically check their employees' work, whether it's a database, reports, phone calls, or any other ongoing projects. This allows for timely feedback and ensures that employees are on the right track.
• Gather intelligence: Managers can gain additional insights by asking customers, vendors, coworkers, and other managers about their interactions with specific employees. This helps in understanding an employee's performance from different perspectives.

The HR Team also plays a vital role in performance monitoring, focusing on the softer aspects of employee performance:

• Tracking Employee Efficiency: HR is responsible for measuring and evaluating employees' efficiency in meeting their Key Responsibility Areas (KRAs). By regularly checking in on performance, HR can identify if employees are consistently meeting benchmarks and accomplishing objectives.
• Establishing Training and Development Needs: HR identifies skill gaps by evaluating employee performance and then bridges these gaps through training and development programs.
• Measuring Effectiveness of Enrichment Programs: HR monitors the success of enrichment programs, such as training modules and coaching sessions, to determine their impact on employee performance and identify areas for further improvement.
• Engaging in Constructive Feedback: Regular monitoring of goal achievement enables HR to provide constructive feedback to employees, fostering a healthy relationship between employees and management.
• Implementing Rewards and Recognition: By keeping track of employee performance, HR can identify deserving candidates for rewards, certificates, monetary compensation, or other forms of recognition. This promotes transparency and healthy competition within the organisation.
• Motivating Employees: HR theories highlight the link between motivation and employee productivity. Performance management serves as a motivator, challenging employees to improve and providing them with insights into their areas of improvement.
• Performance Appraisal: HR is responsible for evaluating yearly performance based on predefined parameters and determining increments and salary structures accordingly.
• Creating Performance-Based Pay Structures: In industries with hybrid pay structures, HR relies on accurate performance monitoring data to determine the flexible component of employees' compensation.
• Deciding the Career Path: Continuous performance monitoring helps HR make informed decisions about employees' career paths and plan their human resource requirements effectively.
• Recruitment, Retention, and Termination: HR considers performance as a critical factor in recruitment, retention, and termination decisions, ensuring that only talented and efficient employees are retained.

Tracking employee efficiency

To effectively track employee efficiency, managers can employ various strategies and tools:

• Regular one-on-one meetings: Holding regular, ongoing, individual meetings with employees is an excellent way to stay updated on their progress and hold them accountable for their work. During these meetings, managers can ask employees to provide an account of their recent work, the challenges they faced, and the steps they took to overcome them. This practice fosters a culture of transparency and accountability.
• Observation: Sometimes, the best way to evaluate an employee's performance is to observe them in action. This can be done by watching an employee interact with a customer, "shadowing" them while they perform a task, or utilizing video calls and screen-sharing technology for remote workers. This provides valuable insights that surveys and feedback forms might miss.
• Self-monitoring tools: Managers can encourage employees to use self-monitoring tools such as project plans, checklists, and activity logs. These tools enable employees to track their progress toward goals and deadlines and provide a reference for managers to refer to during performance evaluations.
• Work-in-progress reviews: Checking an employee's work at various stages of a project is essential, especially if the work does not result in a tangible end product. Spot-checking databases, reports, phone calls, or any other work-in-progress helps managers identify potential issues and provide guidance as needed.
• Gathering feedback: Managers can gain valuable insights into an employee's performance by asking customers, vendors, coworkers, and other managers about their interactions with the employee. This feedback should focus on the employee's work rather than their personal traits, and it should be specific and detailed.

Additionally, there is a wide range of employee productivity tracking software available that can aid in tracking employee efficiency. These software tools can provide real-time data on employee efficiency, task completion times, and software application usage. Examples include time tracking software, project management software, employee monitoring software, communication and collaboration tools, and performance management software.

Overall, tracking employee efficiency is a continuous process that involves collaboration between managers and employees. It is a key aspect of performance management and helps organizations optimize their operations and improve overall productivity.

Training and development needs

Identifying Skill Gaps

Training needs arise when there is a gap between the current skills of employees and the skills required to perform their jobs effectively. By regularly monitoring employee performance, organisations can identify these skill gaps and design targeted training programs to address them. This ensures that employees have the necessary technical skills, as well as soft skills such as leadership, innovation, and teamwork.

Selection of Appropriate Training Programs

Performance monitoring helps organisations select the right training programs to bridge skill gaps. For example, if an employee struggles with customer service interactions, a training program focused on communication skills and customer service techniques might be appropriate. Monitoring performance before and after training helps evaluate the effectiveness of the program.

Continuous Improvement

Performance Appraisals and Career Development

Performance monitoring is crucial for conducting accurate performance appraisals, which can impact compensation, promotions, and career development opportunities. By evaluating employee performance against predefined parameters, organisations can identify high-performing employees who are ready for additional responsibilities or promotions. Performance monitoring also helps identify employees who may benefit from further training or coaching to improve their skills and advance their careers.

Employee Motivation and Engagement

Organisational Productivity

Ultimately, training and development needs are aimed at improving organisational productivity. By investing in employee training and development, organisations ensure that their workforce has the necessary skills and knowledge to perform their jobs efficiently and effectively. This leads to improved individual and team performance, which contributes to the overall success and growth of the organisation.

Performance appraisal

Identifying opportunities for improvement based on predetermined goals and metrics is a key goal of performance appraisals. For example, employees or departments might need specific training or updated equipment to perform better. Performance appraisals can also help determine if additional staffing, equipment, or budget adjustments are needed for optimal performance.

There are several methods for conducting performance appraisals, and the most suitable method depends on the company's size, goals, and culture. Here are some common methods:

• Management by Objectives (MBO): Managers and employees work together to establish objectives and goals. They periodically discuss progress and identify areas for improvement. While employees appreciate being involved in the process, this method can be time-consuming and may neglect other aspects of work, like employee conduct.
• 360-degree feedback: This method involves gathering performance ratings and feedback from coworkers, managers, vendors, and even customers. Managers then use this information to assess employee performance. It improves communication and performance and is an excellent leadership development tool. However, obtaining feedback can be challenging, and there may be a lack of follow-up or alignment with the company's strategy.
• Peer review: This method relies on feedback from fellow coworkers who work closely with the employee and know their strengths and weaknesses. While peers may have the best understanding of an employee's strengths and weaknesses, personal feelings may interfere with objective feedback.
• Behaviorally Anchored Rating Scale (BARS): BARS uses a predefined set of performance standards with specific behaviours describing each level of performance. Employee performance is then rated against these standards. This method provides clear standards and is consistent and impartial. However, it can be expensive and time-consuming to develop and implement.
• Graphic Rating Scale: This method uses a list of desired behaviours for each role and rates employees on each trait, such as teamwork, time management, accountability, and job skills. It is easy to use and cost-effective, but it can be subjective and challenging to weigh which traits are more valuable than others.

To ensure a successful performance appraisal process, HR departments should consider the following:

• Create a clear outline: Develop a form or outline for performance appraisals to alleviate discomfort and provide a structure for the meeting.
• Involve employees: Maximise employee involvement by allowing them to answer questions, explain actions, and provide insights on improving their performance. Research shows that employee participation leads to a more positive reaction to the appraisal process and increased motivation to improve.
• Adapt communication style: Educate managers on adapting their communication style when giving feedback. Provide guidance on delivering negative feedback effectively to ensure employees remain motivated.
• Encourage more feedback: Provide opportunities for more immediate "in-the-moment" feedback outside of annual performance appraisals through regular 1-on-1 conversations, department meetings, emails, or performance appraisal apps.
• Meticulously document: Implement a process for thorough documentation of performance appraisal sessions to facilitate better decision-making in the future.

In conclusion, performance appraisals are a valuable tool for organisations to evaluate and improve employee performance, facilitate employee growth, and make informed decisions regarding promotions, rewards, and terminations. By following best practices and choosing suitable appraisal methods, organisations can optimise their performance appraisal processes to achieve these goals.

Improving organisation's productivity

Improving an organisation's productivity is a key aim of performance monitoring systems. Here are some ways in which organisations can improve productivity through effective performance management:

Set Clear Objectives and Expectations

It is important to set clear objectives and expectations for employees and communicate these to them. This provides a foundation for performance monitoring and evaluation.

Regular Check-Ins and One-on-One Meetings

Team leaders and managers should regularly check in with employees. Scheduling regular one-on-one meetings is an effective way to monitor employee performance in a casual format. These meetings help maintain transparency, foster positive working relationships, and ensure employees and managers are aligned.

Utilise Performance and Employee Monitoring Software

Performance management software streamlines the process of setting goals, tracking progress, and monitoring employee performance. It provides a centralised system with data to support decisions. Employee monitoring software provides hard data to guide conversations about performance and identifies roadblocks hindering productivity.

Peer Reviews and 360-Degree Feedback

Confidential peer reviews and 360-degree feedback provide valuable insights into employee performance from multiple perspectives, including colleagues, subordinates, and managers. This holistic evaluation approach helps identify areas of strength and improvement for individuals and management.

Constructive Feedback and Performance Appraisals

Regular monitoring of employee performance enables HR to provide constructive feedback and conduct performance appraisals. Positive feedback builds healthy relationships and motivates employees. It also helps identify areas where coaching, training, or other interventions may be needed.

Rewards and Recognition

Implementing a rewards system linked to performance can motivate employees and encourage healthy competition. Recognising and rewarding employees for their achievements boosts morale and productivity.

Continuous Performance Management

Continuous Performance Management (CPM) is a feature of advanced performance management systems. CPM informs employees about their performance and enables management to provide ongoing feedback and guidance, fostering a culture of continuous improvement.

By implementing these strategies and utilising appropriate tools, organisations can effectively monitor and improve employee productivity, driving the success and growth of the company.

Frequently asked questions