An executive tells me he would be conducting performance reviews this week, including an employee we’ll call Betty. I asked how Betty’s performance affected him. He replies, it doesn’t. I probe further, and as it turns out, Betty is a direct managerial report of his who, in turn, manages about 12 employees including a couple of assistant managers.

He continues this dialogue by stating that if it was up to him, he’d clean house and fire everyone because, Betty had given most of her reports a score of two but that Betty is doing a good job. I expect my head to stop spinning sometime next week. I think it’s safe to assume that this executive has no performance management program (PM) in place. What if he did? What would a PM do for him, his reports, and the organization?

Implementing a PM system can provide many benefits. An article by Aileen MacMillan serves to illustrate ow a PM benefits the organization, managers, and supervisors, and employees. For example, the article suggests such elements as accountability, performance, and productivity enjoy higher levels. Clearly, my executive friend could use these and more. So, what does a good PM system look like?