Performance Management Programs

Performance Management is a cyclical process aimed at improving performance. Performance Management is an organised approach for managing individuals and groups. It entails processes such as planning, measurement, appraisal, action (rewarding, developing and improving) and monitoring.

Performance management processes will differ from organisation to organisation, according to the strategic objectives or targets set by the organisation and in accordance with the organisation’s overall core business such as providing a service, manufacturing a product, etc.

The research and the writer’s personal experience in dealing with numerous organisations’ have shown that any people equity interventions such as performance management and performance incentive bonus schemes, etc. will only achieve a modicum of success if the organisation’s internal and external equity measures are not perceived as transparent, fair and understood by all employee levels. The writer is of the opinion that the scheme should be reviewed and be based on the following guiding principles:

  • Targets should be based on the achievement of all annual organisation targets in order of priority or urgency
  • Seek to enable participants to retain a clear view of their remuneration opportunities, i.e. for the annual remuneration review salary increases and / or short term performance incentive bonus payments
  • The scheme should dovetail with the organisation’s reward strategy, i.e. the performance incentive bonus scheme ceiling or “cap” is to be pitched to complement the organisation’s competitive compensation or market strategy
  • The scheme should be self-funding and will not be at the expense of the organisation viability, growth or longer term strategic objectives
  • There must be a defensible differentiation: this means that where employees stand to gain differing amounts that these are based on clear evident pre-determined performance measures and contribution levels or targets
  • The design of the scheme should reflect good corporate governance principles
  • The design of the performance targets needs to be reviewed annually to effect continuous improvement in line with market conditions and the organisation business strategy
  • There needs to be clarity around which performance targets and measures need to be managed as part of the day to day performance contracts or key performance areas and which targets and measures are those against which the performance incentive bonus will be paid.

Averile Ryder Global Reward Specialists have developed a Performance Management Self Tuition or Workshop Manual. The contents of the workshop or self-tuition manual are as follows:

  1. Glossary of Contents in the Manual
  2. Getting to Organisation Strategies
    1. Organisation Mission Statement;
    2. Values; and
    3. Targets / Objectives
  3. How Performance Management fits into an organisations “total reward strategy”
  4. History of Performance Related Pay and Market Trends
  5. What is Performance Management
  6. Measuring Human Capital through variable performance based pay
  7. Performance Management Objectives
  8. Steps involved in the Performance Management Process
  9. People Equity and Valuing Individual Employee Contributions
  10. Target setting for rewarding employees in terms of the organisational annual remuneration review and / or short term performance incentive bonus scheme
    1. Types of Targets
    2. Target Achievement Categories
    3. Number of Targets
    4. Quality of Targets
    5. Four Aids for Setting Targets
    6. Examples of Organisation Targets
    7. Target Setting Process
    8. Changing Targets Mid-Year
    9. Target Setting Examples
    10. Taking the Target Setting Process further for each performance rating
    11. Responsibility for Agreeing Targets and Standards and for Assessing the achievement of targets against standards
  11. Administration procedures
  12. Performance by individual employees
  13. Calculation of the Annual Remuneration Review percentage Increase and the annual incentive bonus pay-out
  14. Communication Skills : the cornerstone of performance management:
    1. Always maintain and / or advance an employees’ self esteem
    2. Listen and respond with empathy
    3. Ask for help in solving the problem
  15. Periodicity of performance Appraisal Interviews / Discussions
  16. Steps for successful performance management
  17. Ten most common mistakes managers make with performance appraisals
  18. What is a Manager’s job?
  19. Employee Growth
  20. Different Types of Intelligence
  21. Pitfalls to Employee Growth
  22. Coaching and Mentoring

If you want to order a copy of our “The Nuts and Bolts of Implementing a Performance Management Program” manual or require any additional information you can telephone or e-mail Averile Ryder on 0027(11)453-0080 or 0027(83)293-2037, This email address is being protected from spambots. You need JavaScript enabled to view it.

National CPR association
National CPR association