What is performance management?
Performance management is an excellent method of helping organisations deliver lasting improvement. It
does this by ensuring individuals, teams, and ultimately the organisation, know what they should be
doing, how they should be doing it and take responsibility for what they achieve.
It is about placing the emphasis on managing, supporting and developing staff at all levels within the
organisation. An integral part of this is the need to monitor performance, reward staff that perform well,
and challenge those who do not.
For performance management to work well it's crucial that senior management is able to communicate
effectively across the organisation and ensure that employees fully understand the council's key
corporate objectives and the reasons behind them
What are the benefits of performance management?
Having an effective performance management system has multiple benefits, ultimately resulting in better,
more efficient, services.
Firstly, it means everyone knows where the organisation is going, as there is a clear focus on key
objectives and priorities. This level of clarity helps to correctly direct resources, which means there are
less instances of over and under resourcing.
Secondly, it makes life more satisfying for employees because they know what is expected of them, and
how this fits into the bigger picture, but also that they can call on extra support to help them to perform
well.
Thirdly, because the whole emphasis is on meeting set criteria and meeting targets, it is easier to
monitor how services are performing and to take action to intervene and improve where necessary.
Finally it helps organisations to meet their legal responsibilities in employment in terms of health and
safety, equality and diversity. Employees and the organisation itself will be bound by implied and explicit
contractual terms, such as codes of conduct, the duty of mutual trust and confidence and the duty to
obey reasonable instructions, as well as health and safety and equalities legislation. Legal issues will
also arise in cases where the organisation seeks performance improvement or decides to terminate
employment on the grounds of the employee's incapability to do their job.
Equality and diversity are important aspects of performance management. Not only does the
organisation’s managing diversity approach impact upon its overall performance, it also impacts upon
how performance is managed within the organisation.
A performance management approach that recognises and promotes diversity, whilst supporting
fairness and equity will ensure that people are selected and developed on the basis of their
capability to do the job
Developing the right organisational attitude Effective performance management requires an ongoing
'dialogue' with staff. A number of simultaneous actions are needed to help develop an organisational
attitude where performance is managed well and really leads to service improvement.
They include:
Making sure employees know the key objectives and priorities, what they should focus on and how
they can contribute. Being given too many initiatives and plans tends to make employees feel
overloaded.
Justifying the benefits of really making an effort to manage and improve performance, as employees
need to know how it can help them deliver. You may wish to make these benefits service specific or more
general such as ensuring resources are targeted where they are most needed, improving services and
systems, better 'joining up' of activities across the organisation or helping develop employees to perform
their roles more effectively.
Ensuring that employees who perform well are rewarded and those who under-perform are
challenged. It is critical that organisations 'back up' what they say about performance by what they do.
Employees are then more likely to feel that the way they are dealt with is fair and open and will also take
the issue more seriously.
Clear, consistent systems and procedures are needed to support the ongoing dialogue with employees
on performance management and provide feedback on how this is impacting on service delivery. The
emphasis should be on developing an approach tailored to help the organisation and its employees to
perform well which is not too complex for the benefits it delivers. Whatever the approach, everyone
should know where to find information about performance management and be able to access it
whenever they need to.
Performance management needs to operate at organisational, team and individual level if it is to be
effective. This means that organisational objectives inform the development of team and individual
objectives, but also that individuals and teams are able to feedback issues from the front-line in order to
support the development of future organisational objectives and plans. Using this approach helps to
ensure that support and development opportunities are appropriate, gives a wider perspective on service
issues, helps to identify any barriers to implementation and can assist with determining better measures
of effective performance.
The performance management process is cyclical, consisting of three stages:
Defining and Planning: identifying what type of performance is required and how it can be met.
Delivering and Monitoring: providing appropriate support and development and checking progress.
Evaluating: assessing whether or not performance is to the required standard, recognising where
standards have been met and seeking improvements where they have not.
The diagram below illustrates the links between organisational, team and individual performance and the
cyclical performance management process.
The ten steps - There are ten basic steps your organisation needs to take to develop and implement an effective
performance management system. The emphasis should be on developing a strategy tailored to help them perform
well which is not too complex for the benefits it delivers. The ten steps are:
Develop business plans - Business planning must take account of what can realistically be delivered within the
resources available and consider the people management implications.
Establish what aspects of performance need to be measured - Any performance indicators being used must be
clearly communicated to staff along with other measures being used to define performance. The focus should be on
measuring what matters and trying to keep these measures to a reasonable number.
Set up systems to monitor and evaluate - Systems need to be set up to ensure that performance can be
monitored and evaluated throughout the year to ensure that it is improving service delivery. It is therefore, essential
that the performance management approach supports the organisational development and people management
strategies, so that it helps rather than hinders progress.
Define the general performance expectations of employees - This may be done through a combination of
approaches such as the use of competences, policies and procedures. Line managers should be given specific
responsibilities for managing performance. Effective ways of doing this are making it an explicit part of their job role
and incorporating how to manage performance into management training programmes. In return there should be
clear and consistent expectations of what is expected of employees while they are working for the organisation.
Agree specific performance objectives – organisational plans and priorities need to be translated into service,
team and individual performance objectives. Agreeing individual performance and employee development needs is
normally carried out using a combined performance appraisal and staff development process. This approach
provides the framework for helping managers to translate service and team plans into individual plans and
objectives and agree how these will be met. Individual plans and objectives are most effective when both manager
and employee agree them. Objectives should be Specific, Measurable, Agreed, Realistic and Time bound [SMART].
Develop an internal communications system - It is normally accepted that to be effective messages need to be
communicated in a range of different ways that really target the group of staff you are trying to reach. There is a
wide range of different approaches that can be adopted to ensure staff are kept in contact with key performance
issues e.g. staff briefings, meetings, lunch time seminars, use of the intranet, mini articles or stories in staff
magazines, posters, bulletin boards, email alerts, line management/supervision meetings. Conducting regular staff
surveys and running a suggestion scheme are also important ways of ensuring that employees have opportunities
to feedback on a wide range of issues that will impact directly or indirectly on organisational performance.
Ensure the performance appraisal system is in place, is well understood and working effectively. - A
performance appraisal system is traditionally used to set objectives, identify support needs and measure progress
against objectives. For it to work effectively it needs to be clearly understood by both managers and employees.
This means ensuring that managers have access to guidance and training to ensure that they manage performance
effectively throughout the year and employees at all levels within the council have the necessary support, guidance
or training to enable them to actively engage in the performance appraisal process. The performance appraisal
system should also be regularly reviewed to ensure that it is achieving what is required.
Support employees to help them perform well - Effective induction and probation processes for new employees
are extremely important in setting the right expectations for performance on both sides. If this early stage is
managed well it may be possible to intervene to prevent or minimise individual capability issues later on through
personal development or redeployment. Feedback from this process may also highlight problems with job design or
recruitment processes, which then need to be rectified. Developing employee capacity to deliver objectives is likely
to be achieved in a variety of ways. In some cases these needs will be adequately met through attending training
courses but there are many other possibilities, such as job shadowing, mentoring, e-learning, working on projects or
reading manuals.
Seek performance improvement - Of course, there will be circumstances where performance does not meet the
required standard. At organisational level, this will mean identifying what the barriers are to effective performance
and putting in place a plan to deliver improvement. At team and individual level the principles will be the same, but it
may be more difficult to manage, as individual sensitivities and complexities may be at the fore. Having in place a
clear process for dealing with inadequate performance is important. However, it is essential that the process does
not take over from the desired outcome, which is to seek performance improvement. Identifying the reason for
inadequate performance is the first step.
Recognise and reward good performance - This is the part that many organisations forget; instead they take
good performance for granted and focus on those who have not met the standard. However, to retain motivation
and continuously improve, it is essential that good performance is recognised and where appropriate, rewarded.
Recognition and reward will mean different things to different people; for some financial reward in the form of pay
rises or bonuses may be important, whereas for others recognition that their contribution has made a difference will
be enough. When determining what will be the most appropriate reward the organisation will need to understand
what motivates their workforce and how they can meet this need. Recognising performance is also about sharing
success stories across the organisation and highlighting how good performance helps the organisation as a whole.
This may also help with sharing good practice and learning about what works.
The essence of performance measurement is to determine how well ‘somebody’, or ‘something’, is doing although
it should be noted that the ‘something’ will always, ultimately, be ‘somebody’s’ responsibility. Performance
measurement is a vital part of the control process because; as Tom Peters put it “what gets measured gets done”.
There are three important questions:
 What are the key aspects of the organisation, or of each separate part of the organisation, that should be
measured?
 What is the appropriate measure of performance for each key aspect?
 What is the appropriate benchmark, in each case, against which to evaluate performance?
Almost anything can be measured in some way. Something should be measured if it is meaningful and useful for a
particular organisation at a particular time. The same principles apply to all organisations, whether manufacturing or
service, whether public or private, whether profit or non-profit. The practice is likely to be more difficult in some
organisations than others (not just what to measure but also how to measure and how to benchmark performance)
and for some aspects more so than others.
This article seeks to address each of the above three questions in turn and then goes on to make reference to past
examination questions in the area of performance measurement.
What to measure
Traditionally, the focus of performance measurement has been on financial outcomes (effects) because:
the profit motive is a driving force for commercial organisations,
financial outcomes (in terms of sales, costs and profit) are very measurable.
Gradually, but increasingly, there has been a recognition, in both the literature and in practice, that focus needs to
be placed on the wide variety of underlying factors (causes) that influence financial (and other) outcomes. This
should encompass the external as well as the internal environment in its scope, and in such a way that recognises
the importance of an organisation’s strategies and objectives.
Thus, for example, if the quality of customer service is a key element of an organisation’s strategy then it should be
measured in some way and will be a key indicator of sales performance. Factors such as customer satisfaction,
competitiveness, product quality, order lead time, flexibility, resource utilisation, speed and degree of innovation,
quality of working life and employee satisfaction, and technological support may, for example, be seen as important
in an organisation as indicators of financial performance.
As a result of this broader approach a wide variety of performance measures have developed which need to be
tailored in each separate case according to:
 the nature of the organisation;
 the competitive environment within which it operates;
 the organisation’s strategies.
The concept of the ‘balanced scorecard’ is now commonly used to help direct attention to, and collect together, a
range of performance measures that consider customers, suppliers and competitors as well as the internal
environment of the organisation itself. It is important at the same time not to overwhelm the organisation with too
many measures. At each level of management in the organisation, and for each separate part of an organisation
(e.g. market, division, function, department) critical success factors, i.e. key drivers of success, need to be
identified. It is vital that measures at one level, or in one part, of an organisation are consistent with, and support,
those above/in other areas.
Quality in all aspects of an organisation’s activities should be seen as vital to efficient and effective operations and
ultimately to customer satisfaction. A Total Quality Management philosophy and environment supports, but certainly
does not replace, the focus on, and measurement of, key aspects of organisational performance.
How to measure
Measures used to assess performance in relation to the key aspects identified may be:
 quantitative or qualitative;
 financial or non-financial;
 absolute or relative.
Quantitative (rather than qualitative) measures are most common and should be used wherever possible because
they are more objective. However, not everything can be easily quantified, for example standards of customer
service or quality of working environment. Qualitative measures are more subjective and thus more open to
interpretation/bias on the part of both, for example, customer and supplier or employee and employer.
Qualitative measures will be non-financial. Quantitative measures may be financial or non-financial. Both financial
and non-financial measures have an important part to play in performance measurement. Direct measures of sales,
costs and profit are obviously financial measures. Many supporting quantitative measures of key aspects of
organisation performance will be non-financial, for example
Measures to assess:
 customer service (e.g. complaint response time);
 customer satisfaction (e.g. no. of customer complaints; complaints per customer);
 competitiveness (e.g. % sales growth);
 product quality (e.g. no. of customer complaints; customer returns % of total sales);
 delivery/lead time (e.g. no. of deliveries on time; % of deliveries on time);
 resource utilisation (e.g. hours worked % of capacity);
 employee satisfaction (e.g. labour turnover);
 innovation (e.g. new ideas).
Relative measures are frequently more useful than measures in absolute terms because, by relating one aspect of
business to another, they add meaning to absolute numbers and thus help to put performance into
context/perspective. Thus, for example, complaints per customer may be more useful than simply the number of
complaints; gross profit per unit (or as a % of sales) may be more useful than total gross profit; departmental costs
in relation to an appropriate measure of activity/output may be more useful than simply total costs on their own; and
cost control ratios may be more useful than standard cost variances in absolute terms.
The key question always is whether the measure used is the most appropriate, fair and useful way of assessing
performance in relation to the critical success factors identified. If measurement leads to improvement in
performance in relation to a particular aspect then it is important that this is positive for the organisation as a whole
i.e. that actions taken enhance organisation performance overall in relation to strategy and objectives.
Benchmarking performance
The measurement of performance requires, in addition to each measure itself, a basis for assessing whether
performance is below, above or in line with that reasonably expected. A benchmark is required which may be based
upon:
the trend of performance over time;
the performance in a similar organisation (internal or external) or similar part of an organisation;
a budget, target or standard (e.g. standard cost) set by management;
where performance is monitored over time, indices are a useful way of measuring the degree of change and of
helping to assess what might be achievable.
Inter-business/inter-departmental comparisons can also be useful where similar measurements are available and
reasonably comparative.
Budgets, and/or targets arising from the strategic planning process, are also used extensively as a performance
yardstick.
Standards can be set at different levels of achievement (basic, ideal, attainable, current).
A basic standard is a standard established for use over a long period, rather than simply in a single budget period,
where gradual but sustained improvement in performance against the basic standard may be expected and
achieved.
An ideal standard is a standard that can only be achieved under the most favourable operating conditions. Ideal
standards are also established for use, without change, over a long period of time to measure progress towards the
ideal.
An attainable standard is a standard that can be achieved under reasonable expectations of operating conditions
whilst a current standard is a standard that relates to current conditions. Both attainable and current standards are
short-term standards that would be used solely to measure current performance.
There are motivational aspects to consider. Also, the level at which standards are set influences the performance
expected in relation to standard, and thus the interpretation of the measure that results. The principles of setting
standards on different bases can be more generally applied in target setting, for example should targets be set at a
level that is very difficult to achieve or at a level that is more easily achieved?
Summary
Performance measurement is vital to organisational success. Organisations need to consider the three important
questions that are involved (what to measure, how to measure and benchmarking performance).
How do I measure performance?
There is no universally accepted way to measure the performance of an individual, a work team or an
organization. Depending on the type of work, the measurement of performance typically includes
measures of:
Productivity: This is usually involves counting the numbers of 'outputs' and 'inputs' of a person or an
work team and expresses the two as a ratio. Generally, the ratio is expressed as output to input, for
example, customer orders per staff-day.
Effectiveness: this concerns the relationship between a person's or a person or work team's outputs and
their aims - what it is they intended to accomplish.
Quality: This examines an output or the process by which an output is produced. Quality is indicated by
attributes such as accuracy (or error rate), thoroughness, and complexity of the work.
Timeliness: This evaluates the time involved producing an appropriate output.
Different performance measures supplement each other. Most work-related activities are complex so
multiple measures of performance are usually much more informative than single measures.
Concerns about performance measurement
Despite the good reasons for trying, there are many difficulties inherent in measuring performance in
technology-based work environments. Most people will not react positively when you say something like,
"I'm sure we can find a way to measure your job."
Denial is a common initial reaction: "My work can't be measured. It's too creative. Besides, I'm the only
one in this organisation who does this."
Fear is also widespread. In the experience of some people, performance measurement comes just
before punishment.
How to Create Performance Standards Measuring
The kinds of work performed in a work environment can be broken down into three steps: identifying
results, defining measures, and setting standards.
Identifying Results - You have two options when deciding what to measure in a job: behaviour or
results.
Most people try to identify the results of their work position by listing their responsibilities and asking what
product each activity generates. This process can take several hours and usually ends up with a very
long list of results. A faster and better method involves drawing a 'customer diagram'. Identifying your
'customers' and what you provide to them will more quickly identify the "short-list" of results for a given
position.
The figure below shows an example of part a customer diagram for a customer service representative.
The individual drew his job in the centre and added boxes for each of the customer types with whom he
communicates within the organization. In this example a customer within the organisation is anyone to
whom an employee provides information, products or services, which they need to do their job.
Customers can be inside or outside the organization. If you are a team supervisor, your employees and
your boss are also your customers.
Customer diagram for a customer service representative
The customer service representative has four customers: a middle manager, colleagues in the customer
service team, his supervisor, and a marketing director.
His next step was to identify the products and services each of the customers customer needs from him
to do their job. These results were written on the arrows leading to each customer.
The diagram gives us a first draft list of some of the important results to measure for this position: advice
and options on solving problems and status and schedule information.
Defining Measures
Measures are the factors used to evaluate how well a result has been done. There are two kinds of
measures, numeric and descriptive.
You want measures that can be used to verify whether a standard was met, exceeded, or not met.
Numeric measures are easily verified, so they meet the criteria. When measuring with numbers doesn't
make sense, describe the performance in a way that can be verified.
In general, any result can be evaluated from the standpoint of quantity, quality, cost or timeliness, or a
combination of these four. When you have difficulty identifying a measure, begin by asking, "When I
evaluate this result, am I concerned with quantity, quality, cost or timeliness?"
The next step is to identify a more specific measure for each general measure. If you can measure the
result with numbers, write down the units you would count or track the percentage of. If you can't
measure an aspect of performance with numbers, such as the quality of advice given to a customer,
you'll need to describe the performance by: (i) identifying a judge and, (ii) the factors this judge will look at
when evaluating the quality of the results.
Setting Standards
The last step is setting standards. Each performance measure is a yardstick. The employee needs to
know what point on the yardstick represents meeting expectations. Most employees are also interested in
knowing what level performance will be interpreted as exceeding expectations, and thus will earn them
an extra measure of reward or recognition.
For numeric measures, you could set the standard by asking, "For this measure, how many would
represent 'meeting expectations'?" You can establish a range by identifying the point below which a
supervisor or customer will want to sit down and discuss the problem, and the point above which the
employee might receive special recognition.
For descriptive measures, you'll need to set the standard by asking a question such as: "For each factor
the judge will look at, what would this person see that means I have done a good job?" Describe what the
person would see in a way that can be verified.
However, defining what would meet expectations isn't enough. Any employee who asks, "What do I have
to do to 'exceed' your expectations?" deserves a better answer than "I'll know it when I see it." Defining
performance ranges for numeric measures - such as dealing with more than 50 telephone queries per
day - gives you a clear definition of "exceeds." For descriptive measures, you'll need to answer the
question, "What would I see happening that would be considered 'exceeding' expectations?"
Why measure performance?
There are many uses for performance measures. In order to improve our personal performance we
require reliable, objective feedback on what we have achieved. This is particularly so in environments
where employees usually have fewer opportunities to receive ongoing feedback and their work
procedures are less visible to others.
To run their organisations successfully managers must have certain key items of information available.
Ongoing monitoring systems can help track and improve results over time. Performance measurement
can help identify promising areas, helping to select as targets those functions continually faced with large
backlogs, slipping deadlines, high turnover, or many customer complaints.
What is a key performance indicator?
A key performance indicator (KPI) helps a business define and measure progress toward its goals. KPIs
are quantifiable measurements of the improvement in performing an activity that is critical to the success
of a business.
KPIs should complement a business' overall targets and relate to its core activities. As a result, they will
differ depending on the business. In a telesales business, for example, answering customer calls before
they ring off will be a key business activity. The percentage of calls answered within one minute may be
one of its KPIs.
There must be a way to define and measure KPIs if they are to be useful. For example, a business that
wants to increase sales needs to consider whether to measure this by units sold or by value of sales, and
whether to deduct returned goods from sales in the month of the sales or the month of the return. You
also need to set a target, such as increasing sales by five per cent per year.
Financial KPIs focusing on sales, costs or working capital are popular as they enable businesses to
monitor and control the profitability and cashflow of the business. For example, a KPI for monthly sales
enquiries will warn you about peaks and troughs that will affect cashflow.
KPIs can also be used as a performance management and improvement tool by focusing your
employees on achieving the business' goals. KPI monitoring enables management to spot and correct
weaknesses in the business, for example in terms of cashflow.
How to use key performance indicators - Once you've identified your key performance indicators
(KPIs) for the overall business, you'll be ready to filter these down to your managers.
Motivate managers and staff - Where possible offer incentives linked to targets, and encourage
managers to involve staff in the setting of their targets. For example, a sales manager may set the sales
team targets of a certain number of new contacts per week or visits per month. A production manager
might set targets for output, reject rate or work breaks.
Review the figures regularly - Set review dates and compare against previous figures, your business
plan, budget or other agreed standard. If you spot an anomaly or problem, your departmental KPIs will
help you backtrack and pinpoint the cause.
For example, if your targets for increasing sales volume are being met, but your pre-tax profits are down,
departmental figures will indicate whether the problem lies with inefficiency, error, increased costs - or
even fraud.
Report regularly - Communicate performance figures regularly. Keeping employees updated will
encourage them to focus on meeting or exceeding their KPIs.Update staff using the most appropriate
means for your business - via progress meetings, newsletters or formal reports, or using the company
Intranet. For a fast-moving business, updates might be weekly, or even daily. For other businesses they
may be monthly
First-line Manager Tasks- A first-line manager has to:
inform staff what to is expected of them and where their job fits into the overall picture
lead by example and give their staff honest, constructive feedback
manage their staff through open and honest application of agreed standards
plan and manage resources to make sure jobs are stretching and reasonably loaded
provide the wider organisation with the management information it depends on to be effective
support their staff in developing skills they need-both for their current job and their future
The Role of the First-line Manager
First-line managers are the keystone of any organisation. Their quality and competence make a significant
difference to its performance. They need to take a balanced approach to their work. Without this they can add to the
separation that can occur within an organisation and the poor or non-existent collaboration with others.
 They manage the primary tasks and activities of the organisation.
 They have a key role in determining whether standards of practice are consistently maintained.
 They support staff engaged in complex, personally demanding practice and ensure that staff are continually
developed in knowledge based practice
 First line managers are in a special position:
 They are have made the first step into management and is a major transition from the role of a direct
practitioner.
 They look in two directions at once, combining a daily contact with direct practice and a contribution to the
strategic work of the wider organisation.
 They need to integrate the skills of strategic management with the knowledge and judgement of an expert
practitioner
 They operate in a highly charged environment, managing a staff group in daily contact with the public.
Although the post is often the first experience of managing the collective effort of a team as well as individuals'
performance, it can be the transition least supported by formal training or professional development
First-line manager skills Clarifying the task.
Expanding and maintaining knowledge of methods of practice and service delivery includes:
- how the job is being done by others
- evidence supporting different approaches to practice
- feedback from all service users, clients and other key players
Use of management information on workload and deployment of resources, for example:
- referrals: numbers - sources- patterns
- nature and incidence of local problems
- staff resources
- devolved budgets
- other team resources
- identification of local resources
- agencies and voluntary organisations
Supervision skills and strategies including:
- professional consultation
- monitoring performance
- staff support
Managing change and innovation including:
- change agent skills and knowledge
- service development
- practice innovation
- surviving reorganisation
Managing collaboration and partnerships including:
- work with other agencies, commissioning/contracting services
- team working, dovetailing services and interventions with others
- work with service user groups, constantly reviewing the task and way that it is performed.
Developing courage and integrity through:
- giving usable feedback to staff on their actions and behaviour to improve their performance
- seeking and receiving feedback from staff, collaborating agencies, and service users to improve the effectiveness
of the team and the first-line manager's own management performance
- acting in counter intuitive ways when working with people. Managers and practitioners have to engage with
problems involving confusion, anxiety and personal pain.
GET SMART - GET SMARTER!
Objective setting really works.
Rule number one of management is 'Set Objectives'
Objectives should specify exactly what is required from a member of staff, product launch, training event,
development opportunity or whatever. Without objectives we cannot measure success. This is common
knowledge, but it never hurts to remind ourselves of the basics now and again.
Objectives should follow the commonly seen formula SMART, or the revised SMARTER formula:
S = Specific – the objective needs to provide a clear definition of the outcome required
M = Measurable – the objective must include a yardstick against which it will be possible to identify when
it has been achieved.
A = Achievable – the objective should be both challenging and testing but the resources and capability
must be in place to tackle it. Individuals have to believe that their objectives are capable of being reached
so that they will be motivated to try.
R = Relevant – the objective must be appropriate to the individual and linked to departmental objectives
and organisational strategy. Individuals need to understand not only what the objective is, but also what it
means to them and their role in contributing to the bigger team/departmental/organisational picture.
T = Time Bounded – a time should be specified at the outset by which the objective has to be achieved. It
is also important in terms of time to identify where the time is going to be found to work on the objective,
especially if it is in addition to the existing workload. If no time limit is given, objectives tend to meander
on while other priorities crop up
E = Evaluated – the objectives should be evaluated against departmental objectives and organisational
strategy. Dates should be set for progress evaluation so that help can be provided or direction given.
This should all form part of ongoing performance management.
R = Reviewed - once the objective has been achieved, it should be fully reviewed to extract any learning
from the activity. This can then be used to help plan future success.
WHY MONITOR AND EVALUATE SERVICES?
There is an ever-growing body of international research that underpins the 'what works' agenda. The
need to know that what you are doing is actually effective means that neither monitoring nor evaluation
can be considered standalone activities, somehow divorced from the actual delivery of services.
Monitoring: The process of routinely checking that the organisation is managing its inputs, processes,
and outputs as intended.
Evaluation: Assessing whether the outputs are achieving desired outcomes.
Monitoring and evaluation are primarily about attaining and maintaining excellence in the delivery of
services, and excellence in the results of those interventions.
HOW TO MONITOR AND EVALUATE SERVICES
Both monitoring and evaluation should feed straight back into practice, in turn creating a positive impetus
to correct problems and incorporate new learning to improve efficiency.
Monitoring helps to ensure that the organisation is functioning well in the practical matters of delivering
the programme as intended. It checks that attendant processes in the organisation, such as discipline
and compliance, are satisfactory. Routine monitoring allows practitioners and managers to fine tune
organisational processes to ensure that any problems in this area are corrected.
Broadly, there are three kinds of monitoring. These are:
Input Monitoring - refers to the resources committed to delivering the service Process Monitoring - monitors the processes used in delivery of the intervention or programme Output Monitoring - monitors the final product delivered by the organisation
Monitoring exercises may use performance indicators to sample and record the efficiency of the service
at key points. For example, all of the following could be routinely gathered as part of a monitoring regime:
 attendance at meetings
 number of reviews held
 failure s to attend
 compliance with Standards.
Evaluation leads to conclusions about how outputs translate to outcomes. This usually involves analysis
of information gathered from monitoring, from structured assessments. There are two main types of
evaluation. These are:
Process Evaluation - involves finding out how and why something works and provides a context within
which to understand outcomes. Information gathered from interviews and questionnaires, will be the
major source of data used.
Outcome Evaluation - is what is generally considered by most when discussing evaluation, and is
focused on the final result.,
Again, performance indicators can be tailored to outcome measurement.
The information necessary in evaluation is likely to be derived from various sources.
Managing Employee Performance
The following information gives guidance on how to deal with situations where the performance of a
member of staff is unsatisfactory. It suggests ways to avoid such situations arising in the first place and
how to deal with performance difficulties if they do arise.
In many cases, dealing with the matter as soon as difficulties arise, by means of informal discussions with
the member of staff can help to resolve the difficulty and prevent the need to take the matter further and
the use of the Disciplinary Procedure
Aspects of Performance where there can be Problems
These can relate to: Work Performance (Quality and/or Quantity)
Meeting Deadlines
Difficulties with specific aspects of the job, related to skills required
Relations with Managers / Supervisors
Relations with Colleagues
Attendance and Timekeeping
Setting Standards of Performance - Standards should be realistic and measurable. Measurement may
be based on quality, quantity, time or cost. They provide a means of determining whether or not the level
of performance is acceptable.
The Job Description should provide an accurate picture of the main purpose and scope of the job and the
tasks involved. The standard of work required should be explained to employees so that they are aware
of what is expected of them.
If you are not clear about what is expected of staff, then it is very difficult to make a judgement about
whether someone’s performance is satisfactory or not.
Factors Affecting Performance
These relate to the individual themselves, their manager / supervisor, their colleagues, the systems and
the context within which they work.
Personal Factors such as: Skills and level of training
Motivation
Personality
Leadership aspects such as: Clarity of instructions
Level of difficulty of goals
Type and frequency of feedback
Quality of support
Systems factors such as: Standard of facilities available
Organisational structures e.g.
communication channels
Contextual aspects such as: External demands
Internal pressures
Stable or changing environment
Overview of Performance Management
The evolution of the concept of performance management as a new Human Resource Management
model reflects a change of emphasis in organisations away from command-and-control toward a
facilitation model of leadership. This change has been accompanied by a recognition of the importance to
the employee and the institution of relating work performance to the strategic or long-term and
overarching mission of the organization as a whole. Employees' goals and objectives are derived from
their department's, which in turn support the mission and goals of the organisation.
The performance management process provides an opportunity for the employee and performance
manager to discuss development goals and jointly create a plan for achieving those goals. Development
plans should contribute to organisational goals and the professional growth of the employee.
How can I improve my performance?
 Be sure that you understand what you are expected to do.
 Solicit feedback from people who have observed your performance, first-hand.
Consider their comments rationally, without becoming defensive. Commit to
changing those behaviors that you believe truly need to be changed and are
counter productive for you.
 Understand the company's goals, objectives, mission and vision statements and
value structure.
 Determine what you can do to help others in your organization work towards
achieving the strategic objectives.
 Volunteer to work on team projects that will gain visibility and do the best job you
can. ASK for help when you feel like you can't do what your are expected to do.
S.M.A.R.T OBJECTIVES FOR PRACTICE
Organisations are complex, and the practical processes needed to deliver services are seldom linear in nature. This
complexity means that careful consideration is required in setting out what will be measured, and by whom. It is also
important to identify the stage at which measurement is to take place and when and what aims and objectives exist
for the programme or intervention. One useful approach that can help with thinking in this area is the acronym
S.M.A.R.T.
Specific - the aim or objective must relate to an explicit output or outcome
Measurable - that it is possible to measure the extent of attainment
Achievable - it must be possible to achieve the objective
Realistic - can be achieved by both target group and workers
Time-limited - time limits can be placed on the process
Setting aims and objectives at the start of the process provides an essential baseline against which the ultimate
performance of the programme and its results can be assessed. Aims and objectives (like monitoring and
evaluation) have slightly different meanings. Separate definitions for both might be:
Aims - the overall result that is seeking to achieve, which can be assessed by the evaluation.
Objectives - These are the component parts of aims, and are therefore more specific.
Stages where Poor Performance could be Prevented and/or Dealt With
RECRUITMENT - You should be clear about what the person will be expected to do (Job Description)
and the skills, abilities and experience (Person Specification) required to carry out the duties. Ensure that
the interview is of sufficient depth to provide evidence of whether the candidate is able to meet the
requirements of the job.
INDUCTION - There should be a planned and phased training programme to introduce the member of
staff to the department / organisation and the duties of their job. You should provide support, guidance
and training to ensure that the new member of staff is clear about the standards expected.
PROBATION - This is linked with induction. You should hold regular meetings to review progress and
provide a forum for you or the member of staff to raise any areas of concern and to consider how to deal
with these. Do not confirm the appointment, unless you are satisfied with the performance of the new
member of staff.
INFORMAL DISCUSSIONS AND FEEDBACK - These should occur as part of your normal day to day
supervisory / managerial role.
APPRAISAL AND REVIEW MEETINGS - These provide a forum for looking at future changes in job role
and for reviewing performance in general. However, any concerns about the level of performance should
already have been raised and discussed beforehand, not left until the appraisal meeting.
RAISING CONCERNS INFORMALLY - Any concerns about performance should be discussed with the
members of staff by their manager / supervisor as soon as possible after the event occurs or the difficulty
is identified. Plan how you are going to approach the matter and make sure you are clear about the facts.
The discussion should take place in a supportive atmosphere and be a mutual exploration of what you
see as the difficulty or problem. Avoid jumping to conclusions and allow the member of staff to explain
how they see the situation before working together to consider how to resolve the problem.
FORMAL DISCIPLINARY PROCEDURE - If attempts to resolve the matter informally have not been
successful, you may need to move to the formal Disciplinary Procedure, the first stage of which is an
oral/verbal warning. You should discuss any proposed action with your manager who may wish to consult
the Human Resources Department.
Performance Analysis - With respect to the standards of performance for each aspect of the job,
consider the following: i) What is the member of staff doing well? And ii) In what ways could the member of staff improve?
From this, then consider: - Is this performance discrepancy important? Think about what would happen if
you took no action. If the discrepancy between the level of performance achieved and the level of
performance required is important, then look at the particular aspects where improvement is needed and
determine what would represent an acceptable level of improvement. Then consider how you will identify
whether the improvement has occurred and what your next step will be if the improvement does not take
place. Consider whether it is a skill deficiency and if the member of staff needs further training or
coaching. If the member of staff used to perform the task satisfactorily, look at what has changed.
Performance appraisal is a process of evaluating performance systematically and of providing feedback
on which performance adjustments can be made. Performance appraisal works on the basis of the
following equation
Desired Performance - Actual Performance = Need for Action
The main purpose of performance appraisals, are to
 Define the specific job criteria against which performance will be measured
 Measure past performance accurately
 Justify the rewards given to individuals/groups
 Define the experiences that an individual will need for his/her ongoing
 development
Managing Poor Performance
Examples of poor performance
Unsatisfactory performance is covered by competency/poor performance procedures: these examples
are given to illustrate the type and level of behaviour that you would be justified in finding unacceptable:
they do not, of course, provide an automatic mandate for action unless contained within a formal agency
procedure.
Unsatisfactory work performance can become apparent in a number of ways. This may include:
Poor standards of work, e.g. frequent mistakes, not following a job through, unable to cope with
instructions given.
Inability to cope with a reasonable volume of work to a satisfactory standard
Attitude to work, e.g. poor interpersonal skills, lack of commitment and drive.
Lack of apparent skill in tasks/method of work required
Through the Staff Review and Development process when an individual is consistently not achieving
agreed and realistic set targets/objectives.
Checklist of actions when managing poor performance.
Most formal procedures acknowledge that you may have already attempted to improve matters, and they
allow for an informal 'manager only' stage. Formal procedures will follow a timetable and set out who is
involved at what stage. Your organisation will or should have a similar chart.
In all cases where work or performance appears to be sub-standard, as manager, you should undertake
all of the following steps, where appropriate:
1. Investigate fully the reasons for poor performance
2. Discuss with the employee his/her shortcomings and the standard required
3. Provide a reasonable time to improve.
4. Advise on how improvement can be made and provision of training and supervision where appropriate.
5. Warn the employee of the consequences of not improving.
6. Monitor the employee's performance during and at the end of the trial" period while providing the
employee with feedback.
7. Where the required standard is still not reached consideration of other options before dismissal e.g.
transfer to alternative work,
premature retirement either in the interests of the efficiency of the service or on the grounds of ill-health.
8. In many cases improvement will not be instant and, depending on the nature of the job and on the
effect of sub-standard performance on the department, the informal process should continue for a
reasonable period.
9. This process is the concern of the manager and the employee and, although guidance and advice may
be sought, representation of the employee by a Union representative or fellow employee is not
appropriate at this stage.
Continuing Problem of Poor Performance - If the informal process does not succeed in raising work
performance to an adequate standard, you should arrange a formal hearing where he/she has the
opportunity to be represented by a Trade Union representative or fellow employee. The managers
present may be just you, you and a more senior manager or more senior managers without you: this will
vary and will depend on the procedures set out by your own organisation. At this stage, the formal
procedure is applied and all future management action will be according to this procedure.. The Manager
should normally be accompanied by a Personnel Officer. Each party may call witnesses" to attend the
hearing if they have information which may help an understanding of the position. The purpose of the
hearing is to establish as comprehensively as possible:
The nature of the sub-standard performance and the effect on the department.
The steps being taken to rectify the situation, their likely duration, and further options including alternative
duties. Any other circumstances, e.g. personal or health considerations which may affect performance.
Agreed written targets and objectives, including realistic dates for achievement, against which the
employee's performance can be evaluated.