How Effective Manager-Employee Conversation Enhances Organization Performance

When it comes to performance management, managers must constantly challenge their assumptions and some of the received wisdom. Workforce performance managers now know that regular feedback is better than annual feedback. They have realized that conversations improve performance. They know that when they and their reportees understand each other better, they can develop a more effective working relationship. But different companies have different ways of implementing a conversation-led approach and the effect on their people, competitiveness, and bottom line. 

OpenBlend recently conducted a study to identify how performance should be thought about. It also wanted to test a theory that the best way to achieve high performance is by creating an ecosystem of influences that allow people to perform at their best and not through a process-driven top-down approach.

Based on the study, seven factors or enablement dimensions may be intrinsic to creating a high-performance culture and a model that could help companies judge and refine their own efforts.

See more: Using Continuous Performance Management To Guide and Empower Teams

The Seven Enablement Dimensions

While all companies strive for performance, they have different ways to do it. According to the studyOpens a new window , seven factors were consistent with all the respondents. These factors cover traditional, legacy, and process-driven themes as well as the softer, more human themes recognizing an individual’s importance.

On the one hand, it can be seen that many of the traditional elements are present and correct. Of course, clarity over objective delivery, development through training and support, and the tools necessary to do the job form part of even the most basic performance discussion. On the other hand, there is an increased focus on wellbeing and a sense of purpose an individual gets from the company, its goals, and how employees contribute to them. How a person interacts with work, given the current circumstances, is a prominent theme.

Knitting all these factors together is the manager. The notion that the manager cares for all these factors is central to delivering almost all these factors.

Here are what the seven enablement dimensions mean.

The seven enablement dimensions

Source: Performance Enablement 2022Opens a new window

The Amplifying Factors

The study further went into in-depth research into how well companies are doing on each factor. Alongside this is the confidence each company has in the ability of their managers to have effective conversations about each dimension.

According to the study, managers find it easiest to talk about more formal dimensions, such as setting delivery expectations and hardest to talk about more informal dimensions, such as connecting the company’s and individual’s purpose. Managers like processes, but a one-size fits all approach does not help entirely.

When confidence was mapped against companies with the highest success levels, it was found that the more confident a company is that its managers can have grassroots conversations, the more likely it is to exhibit high performance.

Simply put, managers are more comfortable with talking about some things than others. But ignoring the human side affects business performance. On a more positive note, this observation can provide a framework for developing the line manager.

See more: Shift to Human-Centric Approach Is a Must To Propel Employee Performance: Gartner Research

The Success Equation

Based on the study, we have an equation that illustrates the factors companies should look at when improving performance culture and how the enablement dimensions manifest to the employee. The formula is:

PE = 7D x M

Where PE=performance enablement, D=enablement dimension, and M=effective manager dialogue

Some factors are naturally led by the company and its functions, while some should be led directly by the manager and individual. Crucially though, all these initiatives are supported and made to work at the grassroots level, with frequent conversations between employees and managers. Without ownership and honesty in the relationship, the process becomes mechanical and doesn’t aid performance.

While hybrid working has made it challenging for managers, it also provides an opportunity to alter the narrative, inspiring managers to have more human conversations. While the pandemic did create an opportunity, managers still need to create the conversation and take action. They just need to do it in an environment that sees the importance of these performance enablers.

Conclusion

The world of work has changed significantly over the last two years. What hasn’t changed is the importance of the manager-employee relationship and the honesty and clarity both need to give each other to help each other. And that can happen only through formal and informal conversations. The right framework can give managers and employees the structure to have these conversations, build stronger relationships, and create the conditions for a high-performance culture. 

What steps have you taken to build stronger manager-employee relationships and enhance performance? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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