How To Conduct A Manager Performance Review

Effective people management is a key driver of organizational success. We all remember the great managers we’ve had, those who provide clear direction and support and make work more enjoyable.

On the flip side, it’s probably safe to say most people can name a bad manager or two whose impact on team performance was unfortunately negative.

So, while managers play a pivotal role in conducting performance reviews for their teams, evaluating their own effectiveness is equally essential.

Managerial performance reviews reinforce accountability and help align leadership behaviors with organizational goals. So, without further ado, use this guide to conduct an effective manager performance review.

Why Conduct A Manager Performance Review?

When it comes to those in a managerial role, performance reviews are important for:

Improving leadership quality

Reviews allow organizations to evaluate a manager’s leadership skills, decision-making abilities, and effectiveness in fostering a sustainable working environment.

Enhancing team performance

Since managers directly impact team performance, assessing their contributions ensures that they are providing the guidance, support, and resources their team needs to succeed.

Aligning with organizational goals

Reviewing managers ensures they’re aligned with the company’s goals and strategic objectives, which is crucial for cohesive organizational progress and success.

Stay up-to-date on all things HR & leadership

Get weekly insights and how-tos on leadership and HR’s biggest and most pressing topics—right to your inbox.

Your email*

By submitting this form, you agree to receive our newsletter, and occasional emails related to People Managing People. You can unsubscribe at any time. For more details, please review our privacy policy. We're protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Email

This field is for validation purposes and should be left unchanged.

Increasing accountability

Performance reviews promote accountability for managers, encouraging them to meet established standards, set clear goals, and continually improve.

Identifying development needs

Reviews can highlight skills gaps and growth opportunities, informing future training and development plans to better equip managers in their roles.

Supporting succession planning

Manager performance data can be useful in identifying potential candidates for higher-level roles, ensuring a pipeline of prepared leaders.

Manager Performance Review Vs Individual Contributor

A manager’s performance review requires a different approach vs individual contributor because of the increased responsibilities and influence managers hold within an organization.

When evaluating a manager, it’s important to look beyond traditional performance metrics and consider leadership qualities, communication skills, and the ability to motivate and guide their team toward goals.

This is why 360 degree feedback is particularly useful for assessing a manager’s performance.

Additionally, managers often have unique insight into the operational challenges and strategic objectives of the organization. 

Their review should involve a two-way dialogue where they can share their perspectives, discuss challenges they face, and receive actionable feedback that aligns with broader organizational goals.

Addressing this level of complexity and influence requires a review that is not just evaluative but developmental, aiming to support managers in enhancing their leadership capabilities and achieving the organization’s vision.

How To Evaluate A Manager’s Performance: 7-Step Process

A manager’s performance review will closely mirror that of an individual contributor with the likely addition of 360-degree feedback.

1. Set clear objectives

Begin by defining the purpose of the review. Establish what you want to assess and the areas to focus on, such as team performance or team member satisfaction or development.

2. Collect 360-degree feedback

Gather feedback from various sources, including the manager’s team members, peers, any senior leaders who interact with them regularly, and even clients. As this can be somewhat time-consuming, 360-degree feedback can be useful here.

3. Review performance data and goals

Look at measurable outcomes related to the manager’s responsibilities, such as team performance metrics, project outcomes, and how well they met established objectives. 

This can be combined with qualitative data that assesses their leadership qualities and ability to foster a positive environment.

4. Prepare a structured review format

Create a structured format for the review session with a self-assessment element. 

Include discussion points such as strengths, areas for improvement, progress on goals, performance gaps, and specific examples. 

Performance management software is particularly useful for providing customizable review templates and capturing and sharing feedback.

5. Hold a two-way review meeting

Schedule a private, focused meeting with the manager. Start by discussing their self-assessment to understand their perspective.

Then, share your observations, feedback, and insights from other team members. Encourage open dialogue to address any concerns and clarify points.

6. Identify development opportunities

Based on the discussion, work with the manager to outline specific areas for improvement and growth. This could include enhancing communication skills, improving conflict resolution, or taking a coaching course.

7. Set goals

Collaboratively set Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) goals to provide clear direction for future performance. These goals should align with both the manager's development needs and organizational objectives.

Manager Assessment Criteria

Assessing a manager's performance requires a well-rounded approach that evaluates their leadership, strategic impact, and interpersonal skills. Useful criteria include:

• Team performance and productivity: Evaluate how well their team meets or exceeds goals and contributes to organizational success.
• Feedback and conflict management: Review their ability to provide constructive feedback and handle conflicts in a fair and productive manner.
• Communication skills: Assess clarity, frequency, and effectiveness in communicating with their team, peers, and leadership.
• Employee development and engagement: Measure their ability to mentor, coach, and support employee growth e.g. promotions or skill advancement.
• Decision-making and problem-solving: Evaluate how effectively they analyze situations, make informed decisions, and address challenges.
• Adaptability and innovation: Assess their ability to respond to change and drive improvements or innovations in processes and strategies.
• Goal alignment and execution: Ensure their actions align with organizational objectives and measure their success in achieving key priorities.
• Cultural alignment and values: How well they embody and promote the organization's mission, vision, and values.
• Employee retention rates: High retention within a manager's team often reflects strong leadership, a supportive environment, and job satisfaction, while frequent turnover may signal potential issues.

Examples Of Positive Feedback For Managers

Here are examples of positive feedback for managers to recognize their strengths and encourage continued success:

1. Leadership skills: "Your ability to lead by example and set a positive tone for the team is truly inspiring. Your consistent support and clear direction help everyone stay motivated and focused."
2. Communication: "You communicate effectively with the team, ensuring everyone understands their roles and responsibilities. Your openness and transparency make it easy for team members to come to you with questions or concerns."
3. Team development: "I appreciate the time and effort you dedicate to each team member’s growth. Your mentorship and guidance are helping team members develop their skills and confidence, and it shows in their performance."
4. Problem-solving: "Your quick thinking and proactive approach to problem-solving have been incredibly valuable to the team. When challenges arise, you address them efficiently and always keep the team informed."
5. Employee morale: "The positive environment you foster within the team makes a noticeable difference. Your approachability and support make people feel valued, which reflects in the high morale and enthusiasm we see every day."
6. Goal orientation: "Your focus on setting and achieving goals has been instrumental to the team’s success. You ensure everyone understands the objectives and continuously check in to help the team stay on track."
7. Adaptability: "Your ability to adapt to changes and guide the team through new situations with a steady hand has been exceptional. You handle uncertainties with confidence and ease, which reassures the team."
8. Cross-department collaboration: "Your collaborative efforts with other departments have strengthened our relationships and improved efficiency. Your commitment to open communication and shared goals sets a great example for interdepartmental teamwork."
9. Conflict resolution: "You handle conflicts with fairness and tact, creating a respectful environment where team members feel heard. Your ability to mediate and find solutions that satisfy all parties involved is commendable."
10. Recognition and appreciation: "The recognition and appreciation you show to team members go a long way in keeping everyone engaged and motivated. Your acknowledgment of their hard work makes them feel valued and enhances team spirit.

Examples Of Negative Feedback For Managers

1. Leadership skills: "I’ve noticed that the team could benefit from clearer direction. Improving how you communicate expectations and lead by example could help them stay aligned with goals."
2. Communication: "There have been instances where team members felt out of the loop on key updates. Ensuring more consistent communication can help everyone stay informed and reduce misunderstandings."
3. Team Development: "It seems that team members would benefit from more coaching and mentorship. Taking time to understand each person’s strengths and areas for growth could help the team improve overall performance."
4. Problem-Solving: "When issues arise, the team could use a bit more guidance on how to address them effectively. Working on proactive problem-solving and providing clear instructions could reduce delays and confusion."
5. Employee Morale: "There’s been some feedback that the team feels pressured under tight deadlines. Finding ways to balance productivity with morale by recognizing their efforts could create a more positive work environment."
6. Goal Orientation: "Sometimes, it appears that the team’s objectives could be clarified further. Setting more specific, actionable goals might help everyone understand their roles better and stay focused."
7. Adaptability: "When unexpected changes happen, I’ve observed that the team sometimes feels uncertain. Demonstrating more adaptability and providing reassurance during these times could help them adjust more smoothly."
8. Cross-Department Collaboration: "There have been some challenges in working with other departments. Improving communication and collaboration with other teams might streamline processes and reduce friction."
9. Conflict Resolution: "There have been instances where conflicts within the team weren’t addressed right away. Taking a more proactive approach to resolving issues could help prevent tensions from impacting morale."
10. Recognition and Appreciation: "Team members have mentioned that they’d appreciate more recognition for their efforts. Taking time to acknowledge individual contributions could boost their motivation and sense of value."

Subscribe To The People Managing People Newsletter

For further guidance on performance management, subscribe to our weekly newsletter for HR and business leaders. You’ll receive all our latest insights to help you grow in your career and make greater impact in your org.