8/12/2019 12 Performance Management

1/24

Performance Management

MHR 3200Dr. Larry InksDepartment of Management and Human ResourcesFisher College of BusinessThe Ohio State University

8/12/2019 12 Performance Management

2/24

2

Performance Management Overview

The Importance of Accountabilities

Performance Evaluation

Development Planning and Career Discussions

Summary Thoughts

Overview

8/12/2019 12 Performance Management

3/24

3

Performance Management

Provides a framework for aligning people resources against strategic

and tactical objectives

Provides a system for rewarding (hopefully in an equitable way!) varying

levels of performance to motivate and retain high performers

Is a fundamental means of helping each organizational member

maximize his/her current effectiveness and future potential

Serves as the starting point for career discussions and movement

Provides valuable information and feedback for use in developmental

discussions, action planning and training

Requires good leadership skills (both personal and group) to be done

most successfully

Linkage to Earlier Class Topics

8/12/2019 12 Performance Management

4/24

4

Definition of Performance ManagementThe means through which managers ensure that employeesactivities and outputs are congruent with the organizationsgoals.

or

The use of organizational systems, tools, procedures, etc. to helpensure a given organizational member is performing to his/herhighest potential and level of effectiveness.

Performance Management Basics

8/12/2019 12 Performance Management

5/24

5

The Performance Management Cycle

Informal

feedback

(ongoing)

Performance

Review

Developmental

Review

Setting

Accountabilities

Rewards

(Merit increase,

etc.)

Training and

development

(ongoing)

8/12/2019 12 Performance Management

6/24

6

Allows employees to:- Identify their strengths and recognize areas to improve- Work with their manager to identify contributions to the team- Establish a plan to develop skills

Allows managers to- Build stronger working relationships with employees- Show employees their commitment to helping them meet job

standards- Encourage employees to improve job skills- Identify and solve job performance issues

Provides a framework for making good hiring, development andcompensation decisions

Allows the organization to improve and be successful

Benefits of Performance Management

8/12/2019 12 Performance Management

7/24

7

Performance Management Cycle

Accountabilities

Developmental Review

Performance Review

Rewards Systems (merit increases, etc.)

Rating Errors

Performance Improvement Plan: bad

Career Discussion

Performance Management Terms/Concepts

8/12/2019 12 Performance Management

8/24

Setting Accountabilities

8/12/2019 12 Performance Management

9/24

9

Specific performance/job accountabilities are important for a number ofreasons:

They are each persons roadmap for success in the given fiscal year, and

are the basis for update discussions to review progress.

They provide a clear line of sight and linkage between what each individualdoes in his/her job and the organizations overall business objectives.

By helping prioritize work, they guide decision making throughout the year.

Considered at the team level, they help ensure the team is functioning

efficiently, working together effectively, and focused on critical objectives.

They are included in performance management assessments (e.g.,

performance review) at the end of the fiscal year.

The Importance of Specific Accountabilities

8/12/2019 12 Performance Management

10/24

10

You should consider the following as you develop your accountabilities:

The strategic objectives of the organization itself.

The strategic objectives for your business, function, group, etc.

The strategic goals and objectives established by your Manager andhis/her team, including his/her own accountabilities.

The important and/or critical tactical objectives you have for the year.

Any other key initiatives or actions you need to take to help drive the

success of the organization.

Developing Your Accountabilities

Accountabilities should have strong alignment within the organization

8/12/2019 12 Performance Management

11/24

11

Grounded in, and clearly aligned with, the strategic agenda andobjectives for each business and/or function as much as possible

Stretch but achievable

Limited in number (e.g., no more than 8-10), including a focus on self-

development

Aligned with those of your Manager and other members of his/her team

Developed using tools and templates for enterprise-wide consistency

SMART (Specific, Measurable, Attainable, Relevant, Time-Based)

Reviewed on a quarterly basis at all levels of the organization

Characteristics of Good Accountabilities

8/12/2019 12 Performance Management

12/24

12

Accountability/Priority Alignment Matrix

StrategicPriorities

(Priority 1)

(Priority 2)

(Priority 3)

(Priority 4)

(Priority 5)

(Priority 6)

TeamMember 1

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

TeamMember 2

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

TeamMember 3

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

TeamMember 4

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

TeamMember 5

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

TeamMember 6

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~

~~~~~~~~~~~~~~~~

~~~~~~~~

~~~~~~~~

8/12/2019 12 Performance Management

13/24

Performance Evaluation

8/12/2019 12 Performance Management

14/24

14

Ranking

Forced distribution

Graphic rating scales

Critical incidents

Behaviorally anchored rating scales (BARS)

Management By Objectives (MBO): most common

Generic Results approaches: most common

Approaches to Performance Evaluation

MBO/Results approaches are probably by far the most common

8/12/2019 12 Performance Management

15/24

15

Provide feedback frequently (informally and formally) during the year

Think about the atmosphere/context for the actual review discussion

Potentially ask the individual to do a self-assessment

Encourage the individual to actively participate and tell you what

he/she thinksallow candid, frank but professional conversation

Provide the right balance of positive vs. constructive feedback

Recognize mistakes but try to make it a learning experiencefocuson solving the problems in the future

Focus feedback on behaviors, NOT personal characteristics!

Agree on goals, next steps, and dates for follow up

Above all else, accurately rate performance, potential, etc.!!

Managers Role in Performance Evaluation

8/12/2019 12 Performance Management

16/24

16

Self-Assessment

Allows employees to:- Describe results (both successes and disappointments) for the year- Rate themselves against competencies or other key assessment

traits- Summarize their performance- Give themselves an overall performance rating for the year

Provides employees a say in their performance review

Helps provide a more realistic perspective on performance

May provide the Manager with information he/she wasnt aware of

Generally leads to a more effective performance discussion

Self-assessment adds a bit of complexity but the benefits are worth it

8/12/2019 12 Performance Management

17/24

17

Get ongoing, visible support from senior leadership

Establish the right number of challenging accountabilities

Ensure managers/supervisors are trained in the system and tools

Clearly communicate the total rewards system and components

Ensure managers provide regular and/or informal feedback

Set clear expectations for employee performance and development

Regularly (e.g., quarterly) review progress at multiple levels

Use performance management tools to differentiate across levels

of performance and send the right message to different people

Making Performance Management Work Well

Not rocket science; just needs focus/discipline to be effective

8/12/2019 12 Performance Management

18/24

18

Developmental Review-- Objectives

A developmental review/development discussion should have as itsobjectives candid, informative and realistic discussion of the following:

Strengths, relative weaknesses, and development needs and objectives

Career interests and work-related areas for which the employee is

passionate

Career goals, both short-term and longer-term

Discussion of potential career planning options (e.g., paths that the

employee could take within the organization)

Discussion of potential next roles

The discussion should increase individual levels of engagement

8/12/2019 12 Performance Management

19/24

19

Developmental ReviewSample Questions

- What do you see as your primary strengths? Your primary areas ofweakness?

- What do you see as your biggest development needs?

- What kinds of things are you most interested in?

- What do you like about your current job? What do you not like about it?

- What are your shorter-term (i.e., 1-2 years out) career objectives?

- What are your longer-term (i.e., 3-5 years out) career objectives?

- What is/are your ultimate career objectives?

8/12/2019 12 Performance Management

20/24

20

Discussion Skills

Setting the Climate: A positive, non-threatening tone that describes the

meetings purpose

Asking Questions: Keep them simple and to the point, and focused onthe topic at hand

Listening: Showing youre listening by paraphrasing and reflective

listening

Seeking Clarification: Asking questions that provide you necessaryadditional information

Providing Your Opinion: Discuss where you and the individual agree vs.

disagree (e.g., with regard to strengths and weaknesses, potential nextmoves, etc.)

Discussing Career Actions: These can be developmental actions, and/orpotential next movesbut avoid making explicit commitments.

8/12/2019 12 Performance Management

21/24

8/12/2019 12 Performance Management

22/24

22

Ongoing feedback throughout the year is very importanthelps

eliminate any surprises

Regular (e.g., quarterly) follow-up, review and potential revision

is also very important

Remember that performance management tools, systems, etc.

(e.g., performance review, resulting merit increases, etc.) are there

to help shape behavior and drive performance

Try to differentiate and keep separate developmental discussions and

formal performance evaluations (coaching vs. judging)

Logistical issues can be problematic (e.g., getting all reviews done on

time when on a common review date system)

Making the tough calls and having the tough discussions can be

very difficult and requires courage, strength and leadership

Summary Thoughts--Performance Management

8/12/2019 12 Performance Management

23/24

23

Performance Management Overview

The Importance of Accountabilities

Performance Evaluation

Development Planning and Career Discussions

Summary Thoughts

Review

8/12/2019 12 Performance Management

24/24

What Questions Do You Have?