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Executive Human Resource Program
The Promise of Performance Management
Hay Group
Boston
The Current Challenge of Performance
Management
The HR process—
Is completely 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
0109-9271-HAYG Lemaire 2
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 your organization has
Improve the decisive dialogue that occurs in your
organization
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
0109-9271-HAYG Lemaire 3
Improving Performance Management
Improves Business Results
Number of
Employees
Source: Hay/McBer Performance
Optimizing the performance of your people will have a
positive impact on business performance
0109-9271-HAYG Lemaire 4
Human Resource Management Practices
Drive Profitability and Productivity
Source: Sheffield Effectiveness Programme
Percentage of variation in change in company performance
accounted for by managerial practices
0109-9271-HAYG Lemaire 5
Improving Performance Management
Improves Business Results
Highly Successful
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