Performance management-23779(1)
Transcript of Performance management-23779(1)
Performance Management Cycle
Performance Planning
Staff and the Organisation
Performance and Development Reviewing
Enabling staff to deliver
Taking stock of achievements, diagnostics
Setting Objectives, defining what is needed
Action
Reset objectivesMake changes
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 » Ongoing
Feedback» Coaching» Interim reviews
Alignment Model
Your
Organizational Priorities
Your Major Areas of Responsibility and Individual Priorities
Mission
Values
Departmental Priorities
Knowledge, Skills and Behaviors
Performance Development Process
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“What” “How”
The Performance Cycle» 2001: December 21» 2002: June-July
» 2002: May» 2002: April-
May
» 2002: March» 2002:
December-January
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 high performance
Performance Management –
Broader Than Performance Appraisal
Begins with a look at goals & strategies of the organization
Organizational Alignment
All efforts must be aligned with overall goals and strategies of the
organization.
…a key to Performance Management
Performance Management 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?
Annual Plans Should Create Performance Standards for
Each Department• These should translate into performance
goals for each worker• Quantity• Quality• Time• Cost
What Are the Three Steps in Performance Management?
Defining PerformanceFacilitating Performance
Encouraging Performance
Performance Appraisal
• We all measure our subordinates’ performance whether we do it formally or informally
• Very important to document what we evaluate
• Also necessary to show a clear link between what we evaluate and job requirements
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
A Key to All of This:
Supervisors must have the support &
encouragement of higher management to make all
this work
Behavior - Oriented Systems
• Ranking Methods• Strait Ranking• High-Low (Alternate Ranking)• Paired Comparison
• Forced Distribution (similar to ranking)
• Graphic Rating Scales
Graphic Rating Scale
• Explain how it works• Give an example
• Potential strengths?
• Potential weaknesses?
Critical Incidents
• Based on Observation of Behaviors• Positive• Negative
• Written Notation of Behaviors is Made & Placed in Each Employee’s File
Critical Incidents
• Each Observation is Discussed With the Employee at the Time of Occurrence
• A Portfolio of Observed Events is Collected Over Time
Behaviorally Anchored Rating Scales (BARS)
• A form of graphic rating scale
• How is different from traditional rating scale?
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
Factors to Consider in Choice of a P. A. System
• Cost
• Usefulness in employee development
• Usefulness in administrative decisions
• Validity
What Do You Think?
What Form of Performance Appraisal Would You Recommend?
What Criteria Have You Used in Making Your Recommendation?
What Limitations (As Well As Strengths) Does Your Recommended Method Have?
360 Degree Appraisal
Best Known Book on the Subject: Edwards & Ewen,
360 (degree) Feedback, Amacom, 1996.
Performance management
Definition:
Employee performance management is the process of involving employees in accomplishing your agency’s mission and goals.
Employee performance management includes: planning work and setting goals, monitoring performance, developing capacity, reviewing performance, and rewarding good work.
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?
Managing performance for …
Accountability
Performance target setting and outcome/results review
AND / OR
Stage 1 – Individual Performance Planning
Stage 1 – Planning
•Work goals
•Competencies
•Learning
Performance planning at the start of the year and then periodically is the core of the performance management process. The performance plan should be a written document.
Plan
Performance planning
• How is what I do on a daily basis tied to the success of this organization?
• What are my performance goals for the next time period?
• How are my goals aligned with the organizational goals?
Performance Planning
• Performance results – the what– Performance outcomes or standards – from job
description– Performance objectives for the next time period
• Performance behavior – the how– Competencies, performance factors, or
behavior expectations
• Development objectives
Peter Drucker
Management by Objectives was first outlined by Peter Drucker 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 forget their main purpose or objective. One of the concepts of Management by Objectives was that instead of just a few top-managers, all managers of a firm should participate in the strategic planning process, in order to improve the implementability 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.
• MBO is a system in which specific performance objectives are jointly determined by subordinates and their superiors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.
MBO Principles
Cascading of organizational goals and objectives
Specific objectives for each member
Participative decision making
Explicit time period
Performance evaluation and feedback
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 will
be charged with implementing it? Is it affordable for the organization? Is it measurable and achievable? Is it ambitious enough to be challenging?
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 that the 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 be lacking).
SMART
Management by Objectives introduced theSMART method for checking the validity ofObjectives,
'SMART':• Specific• Measurable• Achievable• Realistic, and
• Time-related.
Stage 2/3 – Monitor and Develop
Daily performance management!
Monitoring includes measuring performance and giving feedback. Two way communication between the manager and employee throughout the performance period is critical to the performance management process.
Stage 2/3 – Monitor and Develop
•Feedback
•Coach
•Adjust goals
Monitor
Develop
Daily performance management
• Feedback and coaching – informal
• Monitoring and tracking performance against standards and progress toward goals.
• Quarterly performance planning and performance discussions
• Development through coaching, training, challenging or visible assignments, improving work processes
What performance will be measured?
• Behaviors – how the work is done– Performance factors / competencies– Required behaviors – Behaviors supporting desired organizational
culture
• Results – what is achieved – Performance outcomes– Performance compared to job standards– Performance goals and/or objectives
Stage 4 – Performance Review
The formal process of documenting results the employee has achieved and behaviors and /or competencies displayed should occur at least once a year. Stage 4 – Review
•At least annually
•Discuss
•Document
Review
Performance Review
• Summary of performance over 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, a summary rating of each employee may be useful.
If a rating scheme will be used
• Number of levels: three, four, five, or six• Rating labels
– Numerical: 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
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:
Approaches to designing an appraisal form
• Trait based
• Behavior based– Competencies (or performance factors)– Behaviors
• Results based– Performance outcomes– Objectives
What will be on the form?
• Identifying information
• Instructions
• Performance outcomes and/or results achieved (or not achieved) on objectives
• Performance factors / competencies / work behaviors
• Employee signature and approvals
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 not elsewhere)
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 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 lump sum?
Separate conversation about pay from conversation about performance!!!!!
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
• Timeframe for the performance management cycle
• Instructions for the supervisor
• Instructions for the employee
• Tie to other systems• Support available
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
Dissatisfaction with Appraisals
• 95% of companies use appraisals , majority
are dissatisfied with them (Wall Street Journal)
• 90% of appraisal systems unsuccessful
(SHRM, 1995, DDI, 1993)
• “I’d rather kick bricks with my bare feet
than do appraisals” (manager at Digital Corp)
• Many companies abolished ratings:
Pratt & Whitney Blockbuster IBM Albany Intern
Performance AppraisalPurpose
• 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
Performance Management
Reward or Take Corrective Action
Reward or TakeCorrective Action
Set Standards
Provide FeedbackMeasure
Performance
© Dr. Dianna Stone
Conflicts in Performance AppraisalConflicting Goals of Appraisal Create Problems
Organization Seeks Information To
Improve Systems
Individual SeeksValid Performance
Feedback
Individual Seeks Extrinsic Rewards
Organization Seeks Information On Which
To Base Rewards
© Dr. Dianna Stone
Requirements of Effective Performance Management
• Relevant to job performance
• Distinguishes Effective & Ineffective Performance
• Fair & Acceptable
© Dr. Dianna Stone
Performance Standards
• Managers assume standards are clear
• Communicate - What is to be done?
• How well should it be done?
© Dr. Dianna Stone
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
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
Methods• Ranking - Rank order ratees from highest to lowest• Behavioral Checklist - Series of Descriptive
Statements of Job-Related BehaviorExample: ____ 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
Methods• Advantages (Forced Distribution) : Decreases Central
Tendency & 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 Excellent
Average Average
• Behaviorally Anchored Rating Scale - Based on critical incidents, Behaviors are anchors
© Dr. Dianna Stone
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
Progressive Disciplinary Systems
• Steps
1) Counsel Employee about Performance Problem
2) Verbal Reprimand & Warning
3) Written Reprimand & Warning
4) Disciplinary Layoff (Short-term)
5) Discharge
© Dr. Dianna Stone
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
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