Executive Human Resource Program The Promise of Performance Management Hay Group Boston 1 0109-9271-HAYG Lemaire The Current Challenge of Performance Management The HR process— pletely unrelated to other key business processes Is dreaded by managers and employees alike Does not result in any meaningful feedback Does not differentiate performance or pay Is a focus for only one or two days—or hours—per year 2 0109-9271-HAYG Lemaire The Promise of Performance Management Imagine a system that could— Increase the likelihood that your strategy is effectively executed Harness and direct the 10–60 minutes a day of discretionary effort that every one of your employees has Rationalize and focus the number of goals that anyone in anization has Improve the decisive dialogue that occurs in anization Reward performance in a way that it is motivating and engages people Differentiate performance in ways that make line managers feel good about their decisions 3 0109-9271-HAYG Lemaire Performance Number of Employees Source: Hay/McBer Optimizing the performance of your people will have a positive impact on business performance Improving Performance Management Improves Business Results 4 0109-9271-HAYG Lemaire Percentage of variation in change pany performance accounted for by managerial practices Source: Sheffield Effectiveness Programme Human Resource Management Practices Drive Profitability and Productivity 5 0109-9271-HAYG Lemaire Highly panies are defined as having— 5-year sales growth = % per year 5-year profit growth = % per year Annual equity growth = % per year 5-year dividend growth = % per year Source: D. Karvetz, The Human Resources Revolution Clear Employee Goals Participative Style Attention to Development Encourage Creativity Performance-Based Rewards Highly panies Less panies 80% 70% 67% 62% 86% 26% 4% 27% 10% 30% High-panies are better at managing, motivating, and rewarding employees Improving Performance Man
