The overall success of an organization and how well its employees perform are directly related. Performance appraisals are often key to substantiating merit-related pay increases. They are a good opportunity for managers to have a discussion with employees, track progress, hone job responsibilities, and address performance concerns. Performance management is practiced almost universally among Canadian organizations.
Although organizations make substantial investments of time and money in their performance management systems, less than half are confident their systems are effective. They struggle with subjectivity, consistency, and fairness.
This report looks at current practices in performance management based on data from The Conference Board of Canada’s 2012 Compensation Planning Outlook survey of 381 predominantly large and medium-sized organizations. It features five case studies of organizations that have challenged themselves to improve their performance management systems. Finally, it discusses potential roadblocks to and tips for creating an effective performance management system.