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The end of the performance management cycle gives management and staff one last chance to provide feedback on the entire process and asks for ideas and feedback for the planning phase for the next annual cycle. One of the first steps in this process is to ensure that there are robust job profiles, as they serve as the basis for a performance agreement (PA), although a performance agreement tends to be more specific and targeted. Nevertheless, the position profile will help you with respect to the key performance areas (KPA) that will be included in the agreement. Professional profiles are part of what we call organizational design and are essentially the most important elements of each organization. The whole process of developing a performance agreement is also demonstrated here: performance agreements are a one-way street. If you simply decide what the person is going to do, you may be disappointed with the result. If the objectives are agreed upon, you are more likely to see progress. Take the time to develop goals together and be prepared to discuss the „why“ in detail. It is a common process — both parties have to agree to make it work. To remove a performance agreement for an employee, you can simply press the small „x“ next to the period. These meetings should focus on coaching solutions and opportunities rather than penalizing performance without a bang. However, in certain circumstances (perhaps in high-risk situations or in the event of a significant lack of unsupervised work), it may be worth entering into performance agreements with all members of your team.

If you think about it, make sure your team members are familiar with the approach and make sure you don`t rely solely on them to manage performance. Everyone needs a good level of trust, respect and communication from their boss! That`s really what you have to do with good performance — to make people understand that they need to do a good job and get the results that are expected of them. By identifying this information and creating a contract, you can create a system of success. In the absence of an agreement based on the organization`s objectives, you may have to rely on yourself to defend your policies with „Because I am the boss.“ It probably won`t do anything to build trust and respect with the person you`re trying to improve performance. However, formal agreements can make it easier to manage and manage your employees. Once the order parameters and targets are set for the future, the next step in the performance management process begins. In any event, make it clear what will happen if the goal is achieved or not. This is especially important for performance improvement agreements, as you need to take the next step if the person does not improve within an agreed and appropriate time frame. Whether you are looking at the performance agreement of a CEO or another employee in this matter, the same key elements are needed.

Performance agreements are an excellent complement to a performance management system. They improve accountability to both employees and executives and present clear expectations that employees can use to take responsibility for their own performance. Because performance agreements are designed to help employees grow, at least another opportunity is created to meet expectations. Agreements that are too hard may seem inappropriate and may contradict the spirit of supporting staff efforts to improve your organization and add value. Management should provide staff with achievable feedback so that they know areas where they can improve future performance. One of the most effective ways to do this is through a performance agreement. This defines the responsibility for certain personal and organizational objectives.