Line managers are key to good performance management

Over 95% of employers see the performance management process as an essential tool in the management of organisational culture. It can make the difference between a good company and a great company. But organisations must ensure line managers have the tools, skills and understanding to manage performance effectively, according to Performance Management, a new book from the Chartered Institute of Personnel and Development (CIPD).

Performance Management, by Angela Baron and Michael Armstrong, shows how attitudes have changed, since 1991. Performance management is no longer simply a tool to determine pay or measure objectives. It is now being used to address a variety of organisational issues from talent management to management style and facilitating change. However, it is still true that good performance management is about ensuring managers manage their staff well and, in particular that ensure people understand how they fit into the organisation, regularly communicate what is expected of them and support their development.

Angela Baron, author of Performance Management, says, Performance management is a powerful tool that can raise the performance of individuals and the organisation as a whole. But success, or failure, depends on the line managers. If they recognise the value of performance management in enabling them to manage their staff well and meet their targets and objectives, they are likely to be more positive about it.

In the decade we have been tracking performance management we have seen a clear shift away from a polarised divide between pay led and development led performance management. There has been much blurring of the lines between performance management and other HR practices and most managers now recognise that an integrated approach to the management of performance is likely to be most successful. Reward may still be an issue but increasingly organisations are aware that financial rewards are not the only motivational tool open to them. It is also apparent that the architects of performance management are becoming aware of its role in improving business performance, and are therefore aligning its aims and objectives much more to business needs.

Other key research findings:
*87% of respondents operate a formal performance management process.

*71% agree that the focus of performance management is developmental.

*75% believe performance management motivates individuals.

*62% use objective-setting and personal development plans.

*61% of line managers believe that performance is effective.

Angela Baron, author of Performance Management, will address key issues raised in the report today, at the CIPD National Conference, in Harrogate. The National Crime Squad and Centrica plc will discuss how they have made performance management work within their organisations.

Dave Hays, HR Manager at the National Crime Squad, says, We use performance management to show how HR has a direct impact on the front line, helping to tackle serious and organised crime. We introduced a competency framework with a set of role profiles focusing on behavioural skills and individual role accountabilities. These encourage managers to interact with their team and discuss what is expected of them. Instead of linking pay to performance, we base reward on individual contribution.