There is no “one size fits all” solution to succeed in the demanding area of managing people. Most managers have their own styles and some are more effective than others.
What is certain is that people management must be an active part of every business owner’s daily role; it’s so important that it can’t be done on an occasional basis. Here are some techniques of active management that can be applied in any organization.
Have Regular Performance Reviews
From the day a new team member is appointed you should have a date scheduled for their first performance review. This gives both of you a target by which time specified levels of performance must be reached.
New hires should be reviewed after a short period — three months is often used, so they get feedback on how satisfactorily they’re handling their responsibilities. After this initial review a subsequent one can take place at their first anniversary, followed by one every twelve months thereafter.
Performance reviews don’t necessarily have to be for the purpose of determining an increase in the rate of pay someone receives, although this can and usually is incorporated. The main reason is to let the person know where they’re doing well and where their performance is below where it should be.
It also gives them a chance to raise any issues they’re concerned about, giving you an early warning system so you can take corrective action before problems develop or get worse.
Base Increases on Merit
Annual increases were once a part of every job. Active management relates increases to improved performance or greater effort rather than simply treating it as a “right” just because someone shows up for work every day.
Where it can be applied, use a bonus system that rewards a person’s contribution to the organization’s success. Establish milestones for every position that, if reached, can be used as the basis for paying a bonus on top of the annual salaries.
Bonuses don’t have to be a financial matter; they can be based on other benefits such as health plan payments, other forms of insurance, provision of a motor vehicle, flexible working hours, a paid holiday or any other means of reward (subject to prevailing taxation legislation).
There’s More than Money
People naturally work to earn an income, but this is just one way of keeping good people with your business. They’re motivated by a number of factors, most of which relate to satisfaction with the work they do.
The members of your team want to feel that they make a real contribution to your business and that it�s appreciated by management. They want to grow and develop in their jobs and not just perform their tasks repetitiously.
If you work to develop the people in your business rather than just letting them get on with their jobs you�ll keep good people longer; this means taking the time to understand something about them.
If they’re not performing exceptionally well they might be motivated by training that gives them greater skills. If they are already performing at a high level they might respond to a promotion that involves handling greater responsibilities.
Everyone’s different but if you listen to them carefully they’ll tell you what will keep them happy and keep them with your business, and it’s not going to be just about money.
Apply Correction, Not Punishment
When one of your team makes a serious mistake or causes a problem, work to correct the situation and not simply punish the person at fault. Work out exactly what happened and what is needed to ensure that the situation isn’t repeated.
New people often make mistakes while they’re learning the details of their jobs and the problem could be caused by inexperience. Additional training might be needed or there could be other factors involved, such as poor relationships with other team members.
The important thing to remember is that it’s up to you to find the solution and implement it. Take charge of the situation and do whatever’s necessary to fix it; don’t depend on disciplinary action to solve anything.
Good people management requires constant attention and action. If you fail to do this you’ll also fail to make the most of the people in your business. Manage your team actively and everyone will come out ahead.
Copyright 2005, RAN ONE Inc. All rights reserved. Reprinted with permission from www.ranone.com.
Chris’ combination of academic credentials, career experience and temperament ideally suit his calling as a business development advisor. Clients say he has a mind for business and a heart for service.