Formal versus Informal Performance Management

There are two sides to performance management that you need to consider with your staff. There is day to day management and there are the more formal processes, which include issues such as appraisals, setting objectives and setting standards.

Formal management

Many managers don’t like carrying out appraisals and they do have a reputation for being difficult to do and timing consuming. Done without any planning they can actually be a waste of time! However, formal, planned appraisals can be of huge benefit to your business and your staff. It gives you the chance to sit down every year with each member of your team and discuss the important issues with them.

Informal management

Don’t neglect your daily and weekly contact with your staff, thinking that you can leave everything to the annual appraisal. Make sure you keep in communication on a regular basis to iron out any issues that might arise. Don’t let minor issues develop into huge problems by ignoring them! Monitor individual and team performance so that you can give feedback at the appropriate time. Keep giving your staff regular praise and recognition for a job well done.

When you can achieve a balance of formal and informal performance management, that best suits you, your team and your business, you’ll be in the best position to create the best performance.

To find out more about formal versus informal performance management and hear me speaking at one of my interactive workshops, click here.

Do you use annual appraisals to improve the performance of your team?