This category describes the management of the performance of people, teams and groups in order to meet pre-determined objectives and achieve key performance indicators. It can be defined as process based management against targets.

Common measures

Feedback breadth: a ratio of people undergoing feedback process¹.

Number of employees in performance review process : total number of employees

Performance goal success rate: a measure of the percentage of performance goals which have been met by employees. An indication of overall employee performance against objectives.

Number of performance goals met or exceeded / total number of performance goals set

Performance management effectiveness: Percentage of people finding positive satisfaction from the performance management process¹. 

 % employees rating their performance management activity as good or very good

Performance management efficiency: a measure of whether jobs or objectives are delivered in line with organisational plans (see more information here) 

(Budgeted hours / actual delivered hours) *100%

Performance against objectives: a measure of whether performance goals are being met by employees (find more information here)

% of objectives met during defined period (performance against benchmarks per role)

New hire high-performer rate: this measures the quality of new hires entering the organisation.

% new hires rates at highest level of quality

Further research

Research suggests that over 2,000,000 hours are consumed annually in providing performance management at Deloitte. A Harvard Business Review article describes the rethink of performance management at Deloitte and how they shifted their system to focus on who their high performers were, and how they could life performance.

Find out more here: Reinventing performance management

Resources description

Measuring and reporting on performance management data can help businesses to identify their high performers, focus their learning and development strategy and improve their workforce and succession planning, enabling organisations to gain the best from their employees and remain resilient in the face of change.

For an overview of performance management strategy and some of the tools available, visit the CIPD factsheet:

Performance management 

 

For practical guidance on conducting performance appraisals and how to use 360 degree feedback, download the CMI checklists below.

Conducting a performance appraisal 

Using 360 degree feedback 

Resources

Case study

Related categories