Managing employees is one of the most challenging aspects of any manager’s role. It requires a careful balance of personalities, behaviors, and skills while striving to achieve specific goals and outcomes. Organizations often use strategic plans, performance reviews, and key performance indicators (KPIs) to measure an individual’s performance. But what do we really mean by “performance management”?
TSNE describes performance management as an ongoing partnership between an employee and their supervisor aimed at:
- Optimizing performance
- Building effective feedback and communication
- Enhancing employee growth and development
- Developing goals that are consistent with department/organizational strategic plans
Through this approach, TSNE ensures that performance management is equitable and supportive of all employees’ success.
Perceptions and Motivational Aspects
Employees often perceive performance management tools as punitive in nature or merely driven by compliance. While there may be truth to some of this, organizations can transform their performance management practices to be more motivational, incorporating elements like bonuses, recognition, additional time off, and more to reward excellence. Effective performance management not only informs retention strategies but also positively impacts the overall organizational culture.
Integrating Performance with Organizational Culture
How are organizations tying performance to their overall culture strategy? Some nonprofits establish standards that managers and employees are expected to follow, whether set by leadership or the human resources department. Increasingly, organizations are embedding equity and inclusivity into performance management to ensure consistency across the board. This can be achieved through proper training, clear definitions, consistent guidance, and regular supervision meetings.
Equity has become a cornerstone in nonprofit organizations, both internally and externally. However, it’s essential that equity is not just a buzzword, but a shared understanding embedded into all aspects of the work, especially performance management. At TSNE, we strive to use equity as a tool to empower individuals, making them feel included and integral to any process.
TSNE uses many avenues in performance management processes:
Four Competencies Model
We engaged leadership, supervisors, and staff in an inclusive process to identify competencies within four key areas:
- Organizational: Competencies applicable to every role at TSNE
- Departmental: Competencies specific to each department
- Supervisory: Competencies for those supervising staff
- Senior Team: Competencies for leadership roles at TSNE
This model helps staff understand expectations within their roles, both as part of their teams and the broader organization.
Clear Job Descriptions
Every couple of years we complete a revision of job descriptions, including supervisor and staff members. Job descriptions clearly outline functional areas and objectives. We also identify collaboratively the estimated time associated with each functional area so that there is a shared understanding of how staff may spend their time on specific tasks.
Performance Reviews
TSNE conducts annual performance reviews based on the four competencies model and each staff member’s job description. This process also includes a 360-degree review where staff provide anonymous feedback to their peers, which is then shared with both the employee and their supervisor. TSNE’s HR department reviews all feedback and performance reviews to ensure consistency across the organization. As part of this process, merit increases may be determined based on a rating matrix that equitably distributes funds according to review scores.
Annual Performance Management Training
TSNE provides training each year prior to the annual performance review process around performance management. This training consists of:
- Defining performance management
- Alignment of ratings on a five-point scale
- Overview of the process
- Mitigating biases
- Giving and receiving feedback
In addition to this training, TSNE has held workshops with managers to assist in writing effective performance evaluations with an equity-lens.
Supervision Meetings
TSNE encourages staff and supervisors to meet at a minimum for one hour bi-weekly. We provide managers with guidelines on how to best structure these meetings to be able to maximize impact and to build strong relationships. Feel free to reference our Structuring Supervision document for some tips and tricks on how to best setup these meetings.
Continuous Improvement
At TSNE, we are always innovating and refining our performance management practices. Whether it’s creating new spaces for feedback or maintaining an open-door policy for all staff, we remain committed to continuous improvement. We invite you to reflect on your own practices:
- How do you involve your staff in the performance management process?
- How do you empower managers at your organization?
- In what ways are you ensuring alignment and fostering a positive, equitable culture around performance management?
Performance management is a powerful tool for cultivating a thriving, inclusive workplace where every employee feels valued and empowered to contribute their best. By embedding equity, clear communication, and continuous development into our performance management practices, we can ensure that our organizations are not only meeting their goals but also nurturing a positive and supportive culture.