Performance Management by Jonathan Westover

20
Productive Work Environments: Creating a High Performance Work Culture Strategic Human Capital Leadership Training Series— Session 3

description

 

Transcript of Performance Management by Jonathan Westover

Page 1: Performance Management by Jonathan Westover

Productive Work Environments: Creating a High Performance Work Culture

Strategic Human Capital Leadership Training Series—Session 3

Page 2: Performance Management by Jonathan Westover

Jonathan H. Westover, Ph.D.Visiting Fulbright Scholar

Belarusian State University School of Business and Management of Technology MBA Program

Assistant Professor of Management, Woodbury School of Business

Email: [email protected]; [email protected] Me: about.me/jonathan.h.westover

Introduction

Page 3: Performance Management by Jonathan Westover

This session will address proven best practices and principles of productive work environments with a focus on creating a high performance work culture.

We will:1. Define high-performance work systems and identify the elements of such

a system.2. Summarize the outcomes of a high-performance work system.3. Describe the conditions that create a high-performance work system.4. Explain how human resource management can contribute to high

performance and the purposes of performance management systems.5. Compare the major methods for measuring performance.6. Explain how to provide performance feedback effectively and summarize

ways to produce improvement in unsatisfactory performance.

What we will Cover

Page 4: Performance Management by Jonathan Westover

1. We know where strategic improvements are needed and we ARE making them.

2. We have a performance appraisal system that is both accurate and fair.

3. When our best employees choose to leave, our exit evaluation process identifies with great clarity why we suffered this loss.

4. Our middle management supervisors possess the skills required to develop the people entrusted to them and have earned the trust of those they serve.

How Are We Doing? –We are confident that:

Page 5: Performance Management by Jonathan Westover

• How can I get the right people into the right job?

• How can I reduce employee turnover?

• How can I improve my performance management process?

• How can I create a high-engagement work culture?

• How can I best tap the full potential of my employees?

The Challenge of Utilizing Human Capital

Page 6: Performance Management by Jonathan Westover

Maximizing Your Human Capital Potential

Page 7: Performance Management by Jonathan Westover

• Performance management: the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals.

• This process requires:– Knowing what activities and

outputs are desired– Observing whether they occur– Providing feedback to help

employees meet expectations

Performance Management

Stages of the Performance Management Process

Page 8: Performance Management by Jonathan Westover

Performance Management

Page 9: Performance Management by Jonathan Westover

Basic Approaches to Performance Measurement

Page 10: Performance Management by Jonathan Westover

• Contrast errors: the rater compares an individual, not against an objective standard, but against other employees.

• Distributional errors: the rater tends to use only one part of a rating scale.– Leniency: the reviewer rates everyone near the top– Strictness: the rater favors lower rankings– Central tendency: the rater puts everyone near the middle of the scale

• Rater bias: raters often let their opinion of one quality color their opinion of others.– Halo error: when the bias is in a favorable direction. This can mistakenly tell

employees they don’t need to improve in any area.– Horns error: when the bias involves negative ratings. This can cause employees

to feel frustrated and defensive.

Types of Performance MeasurementRating Errors

Page 11: Performance Management by Jonathan Westover

Principles of Justice

Page 12: Performance Management by Jonathan Westover

Hot-Stove Rule Progressive DisciplineA formal discipline process in which the consequences become more serious if the employee repeats the offense.

Progressive Discipline

Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, and immediate consequences.

Page 13: Performance Management by Jonathan Westover

• Scheduling Performance Feedback– Performance feedback should be a

regular, expected management activity.

– Annual feedback is not enough.– Employees should receive feedback

so often that they know what the manager will say during their annual performance review.

• Preparing for a Feedback Session– Managers should be prepared for

each formal feedback session.

Giving Performance Feedback

Page 14: Performance Management by Jonathan Westover

• Conducting the Feedback Session– During the feedback session, managers

can take any of three approaches:1. “Tell-and-Sell” – managers tell

employees their ratings and then justify those ratings.

2. “Tell-and-Listen” – managers tell employees their ratings and then let the employees explain their side of the story.

3. “Problem-Solving” – managers and employees work together to solve

performance problems.

Giving Performance Feedback—Cont.

Page 15: Performance Management by Jonathan Westover

Improving Performance

Page 16: Performance Management by Jonathan Westover

• High-performance work system – the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals.

• To function as a high-performance work system, each of these elements must fit well with the others in a smoothly functioning whole.

High-Performance Work Systems

Page 17: Performance Management by Jonathan Westover

Outcomes of a High-PerformanceWork System

Page 18: Performance Management by Jonathan Westover

1. Continuous learning – each employee’s and each group’s ongoing efforts to gather information and apply the information to their decisions.

2. Knowledge is shared – one challenge is to shift the focus of training away from teaching skills and toward a broader focus on generating and sharing knowledge.

3. Critical, systemic thinking – is widespread and occurs when employees are encouraged to see relationships among ideas and think in new ways.

4. Learning culture – a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives.

5. Employees are valued – the organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.

Key Features of Learning Organizations

Page 19: Performance Management by Jonathan Westover

1. Define what's driving the need for a performance management solution

2. Determine your strategy for moving forward.3. Align your business units with your strategy.4. Agree on what kind of people you have in the company and what

kind of people you need5. Evaluate employees on consistent criteria.6. Close the loop and give workers a sense of how they fit into the

company's strategy, or don't. 7. Give employees an opportunity for career growth. 8. Link workers' skills to the job roles.9. Encourage people to behave in a way that will carry the company's

goals forward. 10. Identify gaps and monitor these over time.

Source: www.sumtotalsystems.com

The 10 Key Steps in Developing an Effective Performance Management Strategy

Page 20: Performance Management by Jonathan Westover

Jonathan H. Westover, Ph.D.Visiting Fulbright Scholar

Belarusian State University School of Business and Management of Technology MBA Program

Assistant Professor of Management, Woodbury School of Business

Email: [email protected]; [email protected] Me: about.me/jonathan.h.westover

QUESTIONS?