Performance Management System

The Performance Management System is a way of life in an organization when:

Which do you have?

Yes/No
______	1.	Senior management provides the leadership, commitment, and ownership along with the appropriate modeling to the rest.
______	2.	The Performance Management System’s four main components — goal setting, progress views, yearly appraisals, and career development are effectively executed within the context of the Corporate Mission and yearly goals.
______	3.	A Performance Management Audit Program is in place and operating successfully to ensure the Performance Management System is operating properly.
______	4.	The Corporation successfully meets its goals, is very profitable, and has a one team concept and style.
______	5.	The entire Corporation understands and properly perceives the Performance Management concept, system, and definition of “rewards”.
	6.	Total rewards, both financial and non-financial, are applied appropriately based on the performance achieved both in terms of:
______		a. job results at three levels of the organization (individual, team, and corporate); as well as
______		b. Corporate behavior and values in the Corporate Philosophy, Management Principles, and Customer Service Creed.
______	7.	All management personnel demonstrate the skills necessary to actively manage their employees according to these performance management practices.
______	8.	Employees are aware of and meet their targeted and measurable goals and are satisfied with their performance and rewards. They are also motivated to achieve future results.
______	9.	All poor performers have their performance confronted and corrected, or else removed from the jobs they perform poorly.
______	10.	Employees and management have joint responsibilities for individual careers.
______	11.	Our organization is known both internally and externally as a performanceoriented one that attracts, motivates, and retains people with this orientation.

Source: Imperial Corporation of America and Stephen G. Haines, 1986

Question: What actions should we take as a result of this analysis?

A Rewards System Should Be Strategic

In an unhealthy organization the strategy lays out one agenda, but the
culture reinforces another.

In healthy organizations, the Rewards System reinforces the
desired culture and vision.