The Five Elements in Performance Agreements with Employees

Sometime in November 2009, I wrote an article on the Five Tips to Remember When Setting Performance Targets with Employees.  This is to guide you in effectively managing performance of your employees.

In his book, The 7 Habits of Highly Effective People, Stephen Covey shares with us the following five elements to be present during performance agreements with employees:

1.  Desired Results

2.  Guidelines

3.  Resources

4.  Accountability

5.  Consequences

Desired Results. Identify the output and when it is accomplished.   Focus on results not methods.

Let us not fall into the activity trap, which means we are so entangled in activity that we lose sight of the reason of the activity.  The activity, thus, become an end in itself.  The means has become the end.  The goal is lost in a bout of methods.  That is why we have employees who are so busy working daily but could not achieve the desired result at the targeted time because they are so busy with so many activities and methods which are counterproductive and even harmful.

Guidelines. Specify the parameters in terms of quantity, quality and time, principles, policies, etc., within which the results are to be achieved.

Resources. Identify the human, financial, technical, or organizational support available to help accomplish the results.  Tell the employees to whom or to where shall they go for help when they find problem in accomplishing their desired results.

Accountability. Set up the standards of performance and the time of evaluation.

Consequences. Specify – good and bad, natural and logical – what does and will happen as a result of the evaluation.

In performance agreements, Stephen Covey says: consequences become the natural or logical result of performance rather than a reward or punishment arbitrarily handled out by the person in charge.

If these elements are mutually understood and agreed upon by you and your employees,  performance appraisal would be easy, as the employees could judge and evaluate their own performance based on these criteria.

A Regional Director is conducting Performance Agreement discussion with her supervisors.

I’m inviting you to give your views on this article by leaving your comments below this post.

Your friend,

Nimia Acebes

4 thoughts on “The Five Elements in Performance Agreements with Employees”

  1. Hi nimia,

    It was a good article to read but i have a few questions please.

    Would you would categorize work ethics and proper work culture under accountability?

    Also where does organisational behaviour (fronted by policies, managerial style/approach……) come in to play. I believe these two factors mentioned contribute to the performance of employees.

    Finally where does job satisfaction come in? I am sure that affects performance output. Uk statistics say 37% of workers re satisfied with their jobs(CIPD). Surely this would have an effect on performance.

    It would be great to have your comments on this!!!

    Take care

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