Strategy and goals are set at the top level of an organization.
Organizational goals are translated into department goals that are translated into team goals.
Individual goals are set by employees working with their manager. These are designed to align to team goals.
Goals are designed to be specific, measurable, achievable, relevant and time-bound or SMART.
Both the employee and their manager sign-off on performance goals.
Employees work toward their goals by participating in projects, managing relationships with stakeholders, completing daily work and delivering action items.
Managers provide regular feedback and immediately manage low performance.
Priorities change and new objectives constantly arise. It is an employee’s best interests to get these changes documented in their objectives.
Employees self-evaluate their performance at the end of a performance period.
Stakeholder & Peer Feedback
Employees may collect stakeholder and peer feedback to include in their evaluation.
Managers evaluate each of their direct reports.
Employees explain their self-assessment and managers explain their assessment of the employee.
Comments are added to the assessment from both the manager and employee. This gives an employee a chance to respond in writing to the manager’s assessment.
The final assessment is signed by the manager and employee.
The employee, manager and human resources retain a copy of the performance review.
Performance Improvement Plan
Where performance is low managers develop a performance improvement plan for an employee. Failure to improve may result in disciplinary actions or termination of employment.
Performance feeds into performance incentives such as an annual bonus.
Promotions, Recognition & Awards
Performance feeds into consideration for promotions, recognition and awards.