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CIPD Highlights Performance Management's Role In Driving Sustainable Organisations

12/11/2009

By Lea Pachta

CIPD research highlights performance management's role in driving sustainable organisations but exposes a lack of full commitment from employers.

Performance management is re-evaluated today in new CIPD research helping employers to assess performance against fair and relevant measures and to focus effort on what really matters for business. The research, Performance Management in Action, draws its conclusions from a survey of over 500 employers and a number of in-depth practitioner interviews.

While employers indicated in the survey that they are aware of what constitutes best practice performance management, a different picture is painted in reality. Despite over 90% of respondents including regular review meetings as the main activity, in practice only six out of ten (63%) actually carry this out. The same with objective setting - while 85% recognise its importance, only 75% actually carry it out in practice.

On top of this, while almost half (44%) of respondents think that individuals are the primary beneficiaries of performance management, only one in five (20%) think it has a positive impact on individual performance with a similar number (21%) actually disagreeing that it has a positive impact.

And yet more divisions are exposed when looking at the role of line managers. Only one in five (19%) think that line managers benefit most from performance management, yet one in four (23% agree that performance management would help line managers to manage people better. More worryingly, almost four in ten (37%) disagree that performance management helps line managers to develop the capability to manage people better.

Angela Baron, Engagement Adviser, CIPD, says:

[i]"It seems that although the practice of performance management has not changed significantly over the years, there are still some issues with its implementation and in many instances it is not being used to its full potential. The practitioners we interviewed demonstrated... continued on page two >

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