Performance Management 23779

8/2/2019 Performance Management 23779

1/83

Performance Management Cycle

Performance Planning

Staff and the Organisation

Performance and DevelopmentReviewing

Enabling staffto deliver

Taking stock of achievements, diagnostics

Setting Objectives, defining what is needed

Action

Reset objectives

Make changes


2/83

The Performance Cycle Major Areas of

Responsibility Individual Priorities Knowledge, Skills and

Behaviors

Development plan Reaching agreement End-of-cycle

review Continuous

progress and

development OngoingFeedback

Coaching Interim reviews


3/83

Alignment Model

Your

Organizational

Priorities

Your Major Areas of

Responsibility andIndividual Priorities

Mission

Values

Departmental

Priorities

Knowledge, Skills

and Behaviors

Performance Development Process

UNITOR

DEPARTMENT

HARVARD

COLLEGE

LIBRARY

PERSONAL

What How


4/83

The Performance Cycle 2001: December 21 2002: June-July

2002: May 2002: April-

May

2002: March 2002:

December-

January


5/83

What Is Good Performance?

More than just activities, effort, good intentions, or

results

Working hard and staying busy are not necessarily high

performance Attending training sessions and studying hard does not

necessarily lead to good performance

Strong commitment may not lead to good performance

Even accomplishing some goals may not be highperformance


6/83

Performance Management

Broader ThanPerformance Appraisal

Begins with a look at goals &

strategies of the organization


7/83

Organizational Alignment

All efforts must be aligned with

overall goals and strategies of theorganization.

a key to Performance

Management


8/83


a Cascading Process

Mission, goals, and strategies should be

defined, and clearly understood by

everyone How do all tasks contribute to overall

plans for the organization?


9/83

Annual Plans Should CreatePerformance Standards for

Each Department These should translate into performance

goals for each worker

Quantity

Quality Time

Cost


10/83

What Are the Three Steps in

Performance Management?

Defining Performance

Facilitating Performance

Encouraging Performance


11/83

Performance Appraisal

Developmental and Administrative

Decision Processes


12/83


continues to be one of the most

criticized HR functions inorganizations


13/83


We all measure our subordinatesperformance whether we do it formally orinformally

Very important to document what weevaluate

Also necessary to show a clear link between

what we evaluate and job requirements


14/83

What Purposes Can P.A. Serve in

an Organization?

Any potential conflicts here? Explain.


15/83

How Frequently Should

Performance Appraisal Be

Done?

Why?


16/83

Performance Appraisal -

a Continuing Process

Is not a once-a-year or once-a-quarter experience

Effective appraisal occurs frequently There should be no surprises when an employee is

given his or her formal appraisal interview

Essential for coaching & positive

motivation


17/83

The Main Point

Be sure that what is measured isdocumented & can be shown to

match job expectations


18/83

A Key to All of This:

Supervisors must have

the support &

encouragement of higher

management to make all

this work


19/83

Behavior - Oriented Systems

Ranking Methods

Strait Ranking High-Low (Alternate Ranking)

Paired Comparison

Forced Distribution (similar to ranking) Graphic Rating Scales


20/83

Ranking Method

Straight ranking

Alternation ranking

Paired comparison


21/83

Explain Each of the Ranking

Methods

Preference Among Them?


22/83

Attractions? Limitations?


23/83

Forced Distribution

Design?

Purpose?

Do you recommend or not recommend?

Why or why not?


24/83

Graphic Rating Scale

Single Most Popular Method of Appraisal


25/83

Graphic Rating Scale

Explain how it works

Give an example

Potential strengths?

Potential weaknesses?


26/83

Critical Incidents

Based on Observation of Behaviors

Positive Negative

Written Notation of Behaviors is Made &

Placed in Each Employees File


27/83

Critical Incidents

Each Observation is Discussed With the

Employee at the Time of Occurrence

A Portfolio of Observed Events is Collected

Over Time


28/83

Any Problems With Critical

Incident Method for Appraisal?


29/83

Behaviorally Anchored Rating

Scales (BARS) A form of graphic rating scale

How is different from traditional rating scale?


30/83

Behaviorally Anchored Rating

Scales (BARS)

Attractions?

Limitations?


31/83

Results (Outcome) Based Appraisal

Management by Objectives (MBO) in Some

Form is Commonly Used

Focuses on Measurable Results of Mutually

Agreed-Upon Goals for a Work Cycle


32/83

MBO

Steps in development and usage?

Potential strengths and weaknesses?


33/83

Factors to Consider in Choice of a

P. A. System Cost

Usefulness in employee development

Usefulness in administrative decisions

Validity


34/83

What Do You Think?

What Form of Performance Appraisal Would YouRecommend?

What Criteria Have You Used in Making Your

Recommendation?What Limitations (As Well As Strengths) DoesYour Recommended Method Have?


35/83

Who Appraises?

Supervisor

Peers

Subordinates Self Appraisal

Customers


36/83

Usefulness of Each?

Explain


37/83

360 Degree Appraisal

Best Known Book on the Subject:Edwards & Ewen,

360 (degree) Feedback, Amacom,

1996.


38/83

Three Types of Appraisal

Interviews

Tell & Sell

Tell & Listen

Problem Solving


39/83

Performance management

Definition:

Employee performance management is the process ofinvolving employees in accomplishing your

agencys mission and goals.

Employee performance management includes:planning work and setting goals, monitoringperformance, developing capacity, reviewingperformance, and rewarding good work.


40/83

Designing the performance

management system

What will be the purpose?

What will be the sequential stages?

What performance will be measured? Who will assess employee performance?

What will be on the form?

Will a rating scheme be used?

What support systems need to be in place?


41/83

Managing performance for

Accountability

Performance target

setting and

outcome/results review

AND / OR


42/83

Managing performance for

Employee

Development

Competence assessment

and development


43/83

Stages of performance management

Plan

Monitor

Develop

ReviewReward


44/83

Stage 1 Individual Performance Planning

Stage 1 Planning

Work goals

Competencies

Learning

Performance planning at the start of the year and thenperiodically is the core of the performance

management process. The performance plan should be

a written document.

Plan


45/83

Performance planning

How is what I do on adaily basis tied to thesuccess of thisorganization?

What are myperformance goals forthe next time period?

How are my goalsaligned with theorganizational goals?


46/83

Performance Planning

Performance results the whatPerformance outcomes or standards from job

description

Performance objectives for the next time period

Performance behavior the howCompetencies, performance factors, or behavior

expectations Development objectives


47/83

Peter Drucker

Management by Objectives was first outlined by PeterDrucker in 1954 in his book 'The practice of Management'.According to Drucker managers should avoid 'the activity trap',getting so involved in their day to day activities that they forgettheir main purpose or objective. One of the concepts ofManagement by Objectives was that instead of just a few top-managers, all managers of a firm should participate in thestrategic planning process, in order to improve theimplementability of the plan. Another concept of MBO was that

managers should implement a range of performance systems,designed to help the organization stay on the right track.


48/83

MBO is a system in which specific

performance objectives are jointly

determined by subordinates and their

superiors, progress toward objectives isperiodically reviewed, and rewards are

allocated on the basis of this progress.


49/83

MBO Principles

Cascading of organizational goals and

objectives

Specific objectives for each member

Participative decision making

Explicit time period

Performance evaluation and feedback


50/83

Objectives should be specific, attainable, yet

challenging.

Is the objective appropriate for the business at this time?Does it take the organization in the direction it wants to go?

Does it support the overall mission of the business?

Is it compatible and complementary with the other objectives?

Is it acceptable and understandable to the majority who willbe charged with implementing it?

Is it affordable for the organization?

Is it measurable and achievable?

Is it ambitious enough to be challenging?


51/83

Hierarchy of objectives

Vision

Mission

Goals

Objectives

Policies

Procedures


52/83

MBO substitutes for good intentions a process that

requires rather precise written description of objectives

(for the period ahead) and time-lines for their

monitoring and achievement. The process requires thatthe manager and the employee agree to what the

employee will attempt to achieve in the period ahead,

and (very important) that the employee accept and buy

into the objectives (otherwise commitment will belacking).


53/83

SMART

Management by Objectives introduced the

SMART method for checking the validity of

Objectives,

'SMART': Specific

Measurable

Achievable

Realistic, and

Time-related.


54/83

Stage 2/3 Monitor and Develop

Daily performance

management!

Monitoring includes

measuring performanceand giving feedback. Two

way communication

between the manager and

employee throughout theperformance period is

critical to the performance

management process.

Stage 2/3 Monitor and

Develop

Feedback

Coach

Adjust goals

Monitor

Develop

D il f


55/83

Daily performance

management Feedback and coaching

informal

Monitoring and trackingperformance against standardsand progress toward goals.

Quarterly performance planningand performance discussions

Development through coaching,training, challenging or visible

assignments, improving workprocesses

Wh t f ill b


56/83

What performance will be

measured?

Behaviors how the work is donePerformance factors / competencies

Required behaviors

Behaviors supporting desired organizationalculture

Results what is achieved

Performance outcomesPerformance compared to job standards

Performance goals and/or objectives


57/83

Stage 4 Performance Review

The formal process of

documenting results the

employee has achieved

and behaviors and /orcompetencies displayed

should occur at least once

a year.Stage 4 Review

At least annually

Discuss

Document

Review


58/83

Performance Review

Summary of performanceover a period of time

Evaluate performance

results and behaviors Conducted face-to-face

with a written record.

While rating and ranking

has both pros and cons, asummary rating of eachemployee may be useful.


59/83

If a rating scheme will be used

Number of levels: three, four, five, or six

Rating labelsNumerical: e. g. 1, 2, 3, 4, 5

Behavioral frequency: e. g. always, usually,frequently, sometimes, rarely

Evaluation: e. g. distinguished, superior,competent, fair, marginal

Performance against a standard: e. g. exceeds,meets, does not meet


60/83

Who will assess performance?

Immediate supervisor

only

In addition to the

immediate supervisor Employee (self)

Peers and coworkers

Internal and external

customers

Subordinates

Choices include:


61/83

Approaches to designing an

appraisal form Trait based Behavior based

Competencies (or performance factors)

Behaviors

Results based

Performance outcomes

Objectives

Wh t ill b th f ?


62/83

What will be on the form?

Identifying information

Instructions

Performance outcomes and/or resultsachieved (or not achieved) on objectives

Performance factors / competencies / work

behaviors Employee signature and approvals


63/83

Other information

Employee comments

Summary of one to three major achievements

Strengths / areas for development Overall rating

Plan for development (if not elsewhere)

Performance plan for next period (if notelsewhere)


64/83

Stage 5 Reward

Good performance should be

rewarded. Recognition and

non-monetary rewards are an

important part of the reward

structure. These include job-related rewards such as visible

project assignments. Even

thank you and recognition for a

job well done are rewards!!

Stage 5 Reward

Monetary

Non-monetary

Recognition

Reward

Rewards recognition and


65/83

Rewards, recognition, and

compensation

Recognizing employees for

performance

Non-monetary rewards

Informal and ongoing

acknowledgements of good work

Compensation

Merit increases?

Pay to market?

Increases added to base pay or lumpsum?

Separate conversation about pay from conversation about performance!!!!!

What support systems need to be in


66/83

What support systems need to be in

place?

Senior management support

Management accountability

Communication about the process Training

Process for new employees

Process for dealing with poor performance

Monitoring and evaluating the process (HR)

Appeals process (HR)

Communication


67/83

Communication

Timeframe for theperformance management

cycle

Instructions for thesupervisor

Instructions for the

employee

Tie to other systems

Support available

Sample schedule for the performance


68/83

Sample schedule for the performance

management cycle

Complete operating plan

Update quarterly performance plan form with

major agency objectives

Conduct training for supervisors (and employees)

Communication before, during, after

Timeframe for completion of appraisal

Timeframes for quarterly performance plans

Interface with compensation schedule


69/83


70/83


Purpose Control Behavior

Set Standard

Measure Performance Compare Performance Against Standard

If Discrepancy Exist, Take Corrective Action

Used to Provide Feedback Used as Basis of Reward & Punishment Systems

Used for System Improvement

Dr. Dianna Stone


71/83


Reward or Take

Corrective Action

Reward or Take

Corrective ActionSet Standards

Provide FeedbackMeasure

Performance

Dr. Dianna Stone

Dr. Dianna Stone


72/83

Conflicts in Performance Appraisal

Conflicting Goals of Appraisal Create Problems

Organization Seeks

Information ToImprove Systems

Individual Seeks

Valid Performance

Feedback

Individual Seeks

Extrinsic Rewards

Organization Seeks

Information On Which

To Base Rewards

Requirements of Effective


73/83

Requirements of Effective


Relevant to job

performance

Distinguishes Effective &

Ineffective Performance

Fair & Acceptable

Dr. Dianna Stone


74/83

Performance Standards

Managers assume

standards are clear

Communicate -

What is to be done?

How well should it

be done?

Dr. Dianna Stone


75/83

Performance Measures

Objective Measures - Hard Criteria

$ Sales Personnel Data Tardiness

Units Produced Absence Rate

Error Rate Turnover

Weaknesses

Performance Modified by Situation - Opportunity Bias

System Responsible for 96% of Variance - Person 4%(Deming)

Objective measures do not apply to all jobs

Dr. Dianna Stone


76/83

Performance Measures

Subjective Measures - Performance Measures

Who Rates? Supervisors, Peers, Subordinates, Self

Errors & Biases

Halo Error

Central Tendency

Leniency (Positive & Negative)

Goal is to Accurately Appraise Performance

Dr. Dianna Stone


77/83

Methods

Ranking - Rank order ratees from highest to lowest

Behavioral Checklist - Series of DescriptiveStatements of Job-Related Behavior

Example: ____ Comes to class on time____ Courteous with clients

____ Sleeps on the job

Forced Distribution

10% 20% 40% 20% 10%Poor Below Average Above Excellent

Average Average

Dr. Dianna Stone


78/83

Methods

Advantages (Forced Distribution) : Decreases CentralTendency & Leniency Errors

Disadvantages (Forced Distribution): May not be accurate

reflection of performance

Graphic Rating Scale - Most Widely Use

Quality

(1) (2) (3) (4) (5)

Poor Below Average Above ExcellentAverage Average

Behaviorally Anchored Rating Scale - Based on critical

incidents, Behaviors are anchors Dr. Dianna Stone


79/83

Methods

Behaviorally Anchored Rating Scales

Police Officer: Job Knowledge

High (7, 8, 9) Follows correct procedures for

evidence preservation

Average (4, 5, 6) Seldom has to ask other about

points of law

Low (1, 2, 3) Misinforms the public about laws

Dr. Dianna Stone


80/83

Progressive Disciplinary Systems

Steps

1) Counsel Employee about Performance Problem

2) Verbal Reprimand & Warning3) Written Reprimand & Warning

4) Disciplinary Layoff (Short-term)

5) Discharge

Dr. Dianna Stone


81/83

Progressive Disciplinary Systems

Reasons to Avoid Discharge

Unfair Labor Practice (Legal & Contractual

Restrictions)

Company Payments Toward Unemployment &

Severance Pay

Strikes

Court Action - Back Pay Awards

Investment in Human Resources

Dr. Dianna Stone


82/83

Problems with Appraisals

Survey by Ernst & Young showed that 38% of

employees say they are rated unfairly or not at all

Deming argues that Performance Appraisal is

A Deadly Disease in Organizations

Disregards existence of system

Erroneously attributes variation in performance to

individuals (85-15 rule) Undermine teamwork, improvement

Focuses on short-term, end product

Dr. Dianna Stone


83/83

Appraisal Interviews

Give Feedback daily

Encourage

participation

Judge performance

not personality

Be specific - provide

critical incidents

Set mutual goals

Performance Management 23779

Documents

Transcript of Performance Management 23779