The General Accounting Office (GAO) report, released in October 2000, found that results-based performance agreements between agency leaders and senior political and professional leaders have improved organizational results. The report, Emerging Benefits from Selected Agencies` Use of Performance Agreements, focused on the implementation of performance agreements in three organizations – the Veterans Health Authority, the Department of Transportation and the Department of Education`s Office of Student Financial Assistance. Since performance contracts are designed to help employees grow, you at least create an extra chance to meet expectations. Agreements that are too harsh may seem inappropriate and contradict the spirit of supporting employees` efforts to improve your organization and add value. Without an agreement based on the organization`s goals, you may have to rely on defending your instructions with „Because I`m the boss.“ This probably won`t help build trust and respect with the person whose performance you want to improve. However, with formal agreements, the management and direction of your employees can become more objective and simpler. Performance contracts are a great addition to a performance management system. They improve the accountability of employees and managers and set clear expectations that employees can use to take responsibility for their own performance. This is the communication advantage of service contracts. You are much more likely to be involved in the development and performance of your employees if you accept and commit to regular performance meetings. In performance agreements, the agreed objectives and their measurement must be clearly defined.

Document these things to avoid future disagreements about what exactly you expected from the person. Identify specific points along the way to make sure the goal is still relevant and the person is still on track. The main reason for executing a performance contract is to maximize success. Do what you can to make success as achievable as possible. They sit down with Bill to talk about his performance. Again. You talk at length about what you both need to be satisfied with the work he does. Maybe you`re discussing some adjustments in the workplace to motivate him, maybe you`re offering coaching in one aspect of his work. And you clearly describe your expectations for an improvement in its performance. The Annual Performance Agreement (APA) cycle provides a framework for performance management that facilitates the effective communication of work requirements, alignment of specific activities and objectives, performance improvement, training and development requirements. Whenever you establish a contract, the other person probably expects to get something to fulfill the terms of that contract. In the case of performance contracts, it can be a bonus or reward, or simply continuous employment.

But a few weeks go by, and you haven`t seen any improvement in Bill`s performance. It just doesn`t seem to be able to get away with it and make the improvements you`ve discussed. Before you throw in the towel or follow a disciplinary path, what else can you do? Mix! Service agreements are one-way. If you simply dictate what the person will do, you may be disappointed with the outcome. When goals are agreed together, you`re more likely to see progress. Take the time to develop goals together and be prepared to discuss the „why“ in detail. It is a joint process – it needs the consent of both parties for it to work. Milestones form the basis of accountability.

If people know you`re going to follow up, they`re much more likely to work quickly on the goal. If they think you`re just going to forget about it, they probably will too. Schedule regular meeting times to review goals, discuss what`s going on, and make adjustments as needed. The GAO report notes that performance agreements can support communication on organizational progress toward achieving organizational objectives if these agreements are effectively implemented, made available to executives in a timely manner, and provide useful performance information to executives. Just as performance agreements provide a roadmap for leaders to achieve organizational objectives, performance appraisal plans provide the same type of guidance to supervisors and employees. Supervisors can have a big impact on how their employees see how their efforts directly impact the organization`s purpose. By aligning employee performance appraisal plans with executive performance agreements and communicating contractual goals directly to employees, supervisors can show employees how their performance affects company goals. .