Performance Management Practices followed at Google

Google’s Performance management practices

Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. This process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.

Big companies like Google are open about their organisation culture and talk frequently about them as well. We can learn a lot from the practices they follow. Instead of following the usual yearlong feedback loop resulting in the annual performance review, Google follows the Google-Engineered modern, continuous performance review process. As a part of this process, radical feedback is given to the employees in order to keep the quality of performance on par with the rising organisation.

Google’s people operations are as follows:

·         Hiring only the best fit candidates among a pool of best candidates worldwide.

·     Creating a meritocratic environment where the best performances are identified and are rewarded correctly.

·     Developing employees to their full potential, through great people management and on-the-job training, peer-to-peer and outside training, and through a comprehensive 360-degree feedback collection process.

Google’s annual performance review cycle comprises of two parts: a “preview”, in the end of the first semester, and a complete review, that happens between October and November, and which happens concurrently with the company’s 360^o feedback collection process.

Managers take into consideration two main things into account while attributing their employees’ performance ratings: results attained i.e. what the employee accomplished, and behaviours i.e. how the employee attained these results. The process starts with the employees self-assessing themselves which is then followed by peer-reviews. In the review process, Google employees are asked to review each other and their direct reports, according to their Googleyness- their loyalty to Google and their work ,Problem-solving, Execution of high quality work with little guidance, Presence and Leadership.

Self –Evaluation: Rather than long term goals, Google relies on the OKR’s (one objective and n key results). They allow for undivided focus on priority tasks that will enable employees match pace with the fast growing organisation. Step one in the performance review where the employee rates himself on five grades ranging from ‘never demonstrates’ to ‘always demonstrates ’.  The employee is then asked to share examples of actions supporting these grades. These accomplishments will then appear in the next step (360^o feedback) to reviewing peers, who will then be asked to assess the employee’s impact on their results along with their contribution to the project.

360^o Feedback: This enables manager to have a holistic picture of their direct reports. The process starts with a back-and-forth conversation between employee and manager, so as to pick a representative from a fair sample of peers to participate. The employee suggests a shortlist of peers that is discussed and validated with the manager, taking into account how close the peer was to the employee’s contributions, and how fairly can he/ she assess the employee’s performance. Peers are expected to rate each other on their strengths, and areas of improvement. Finally, they are asked to comment on the employee’s contribution to specific projects.

Calibration: After all data has been collected, in the form of self-reviews and peer-reviews, managers, based on the results obtained, draft a rating for their employees, on a scale ranging from ‘Needs improvement’ to ‘Superb’.

Outputs: Once the calibration meetings resulting in every employee’s performance rating for the period are done with, the rating is closed. Managers hold two meetings: one where feedback is given, taking into account peer reviews and managers’ impressions of their employees, and another where compensation and promotion decisions are communicated.

The two conversations are held in different meetings and at least a month apart from each other in order to ensure their quality. Google understands that a compensation-focused employee is no good a listener of feedback, whether compensation expectations were not met, met, or exceeded.

Google's existing performance management practices are extremely successful. The process of Self Evaluation helps and individual to spend time in thinking in what he/she really wants to do and where they want to grow. This in line with the regular performance appraisal process does bring out desired results if not better results.

However successful the practices are in every company, there is a need for updating them at regular intervals for quality performance of the company's employees and achievement of objectives.

The management must set a positive example to the employees. The appraiser must first take the responsibility towards the work that needs to be done. If the leader sets the right example, then most of the employees establish a sense of trust in the leadership and will try to follow accordingly. This sense of trust among employees in the management paves a way for better performance and a higher result achievement rate. Also performance management must be a continuous process. Instead of just being 360 degree appraisal in two semesters, continuous review will keep the employees on their toes. This might create a positive challenging environment which pushes and motivate the employees to get better and better.
Employees need to feel the connection to their work and to the company. Involving the employees in a few decision making process and allowing them the freedom of expressing as to what can be improved is most crucial in a company. This enables them to portray citizenship behavior in the company.
The management of every company must realize the most important thing that while the training and betterment of employees is important, their experience is also important. Acknowledging the employee's experience is key to increasing motivation among employees as it makes them feel valued.
Beyond a point the management must rethink the job roles of its employees. not only does it enable the  superior to know about any areas of improvement but it also allows them to know about what the employee really wants to do and what are the avenues in which he/ she can grow. This is also called as 'job crafting'. It involves building roles around an employee's strengths and interests. This makes the employees more driven and ultimately the performance increases.
Above are a few ways in which performance of employees can be managed. A careful management of performance leads to greater achievement of results.