Structured methods of performance review(insert organization / logo)

Hereissomeinformation onanumberofstructuredmethods ofperformance reviewthatmaybeusedbysmallbusiness.

Process / Whatisit? / Bestused…
Management byobjectives (MBO) / Acollaborative method, theMBOdefinesgoals andfuturetargetsbyconsultation. Futuretasks, behaviour andproductivity,forexample, are discussed andaSMARTplaniscreatedsothat boththemanager andstaffmember areawareof whatneedstobeachieved, towhatstandard and bywhen. / Wherepeopleareresults driven.
Wherethebusiness uses formalprocesses tomanage performance andwhere outcomes canbemeasured accurately.
360-degree appraisal (recognised best practice) / Oftenusedformanagers andsupervisors, this methodgathersfeedback fromdifferentpartiestogiveanall-round pictureofperformance. Itcan giveavaluable insightintohowtheperson’swork andbehaviour isseenbyarangeofotherbusiness stakeholders, notjustbythemanager.
Whiletheprinciples ofthismethodareveryuseful, itcanbeadministratively overwhelming forsmall businesses. Ifthismethodwouldbeusefulforyourbusiness, consider takingthe principles and implementing alessformal 360-degree.0….process.whereinformal feedback canbeused. / Wheretime,effortandfunding isavailable.
Whereitisimportant toget severalperspectives ona person’sperformance,for example incustomer service rolesorwheretheperson worksacrossteams.
Self assessment / Justasthenamesuggests, theindividual assesses theirownperformance tosetcriteria.Thisisagood methodforidentifying wherethebusiness’opinion ofperformance andtheindividual’sopinionare different. / Wherethereisaninterview-style performance management process.
Competency based assessments / Components ofcompetency (skillsandabilities) areassessed inthismethod.
Competency canbehardertodefineinjobswitha highlevelofambiguity orwhereoutcomes arenot clearlyidentifiable, suchasmanaging relationships withstafforcustomers. / Whereskillsandabilitiescanbereadilyidentified and quantified.
Wheretherearetask-orientatedjobswithlittle ornoambiguity ordecision-makingresponsibility.

For more information on this topic, refer toChapter 4. Motivate, Manage and Reward Performanceof Your Workforce – a guide for Northern Territory Employers.

Department of Business
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