Performance ManagementPerformance Management

Performance Management is Performance Management is one of the most important one of the most important

aspects of a manager’s role.aspects of a manager’s role.

“It’s enabling and encouraging the right people to do the right things at

the right time.”

An iterative process of goal-setting, communication, An iterative process of goal-setting, communication,

observation and evaluation to support, retain and develop observation and evaluation to support, retain and develop

exceptional employees for organizational success.exceptional employees for organizational success.

Performance ManagementPerformance Management

CommunicateCommunicate

ObserveObserveEvaluateEvaluate

Set GoalsSet Goals

Contributions of Performance ManagementContributions of Performance Management

ForFor EmployeesEmployees

Clarify definitions of Clarify definitions of • WorkWork• success criteriasuccess criteriaIncrease motivation to perform Increase motivation to perform Increase self-esteemIncrease self-esteemEnhance self-insight and developmentEnhance self-insight and development

For ManagersFor Managers

•Communicate supervisors’ views of performance more Communicate supervisors’ views of performance more clearlyclearly•Managers gain insight about subordinatesManagers gain insight about subordinates•Better and more timely differentiation between good and Better and more timely differentiation between good and poor performerspoor performers•Employees become more competentEmployees become more competent

Definition of PM

1. Continuous Process of Identifying Measuring

Developing The performance of individuals and teams

2. 2. Aligning performance

3. with

Strategic Goals of the organization

Contributions of Performance Management For Organization/HR Function

Clarify organizational goals Facilitate organizational change Fairer, more appropriate administrative actions Better protection from lawsuits

Strategic Administrative Informational Developmental Organizational maintenance Reporting

Purposes of PM SystemsPurposes of PM Systems

An Ideal PM System: Characteristics

1. Congruent with organizational strategy2. Thorough3. Practical4. Meaningful5. Specific6. Identifies effective/ ineffective performance7. Reliable8. Valid9. Acceptable and Fair10. Inclusive11. Open (No Secrets)12. Correctable13. Standardized14. Ethical

Effective Performance ManagementA comprehensive process maximizing

engagement, development, and performance of all employees in the employment lifecycle by:

• Proactively focusing on employee development, talent and succession management

• Aligning employee work to department goals and objectives (line of sight), defining and communicating performance expectations regularly

• Linking performance to compensation, recognition, and rewards

• Remaining flexible, efficient, measurable, fair, and transparent

Developing Goals

SMART Goal Model- Planning– Specific– Measurable– Accountable– Realistic– Time-bound

Performance Management: Performance Management: A four step processA four step process

Step 1: Performance Planning and Communication

Step 2: Training/Feedback

Step 3: Performance Review

Step 4: Staff Development

Purpose of the Institute’s Purpose of the Institute’s Performance Evaluation Program.Performance Evaluation Program.

Promote communication Assure employee goals are aligned with

supervisor’s and Institute’s goals. Assess past performance. Assure position description is up to date. Set objectives and goals.

Why ManageWhy Manage P Performance?erformance?

Curb or redirect non-productive Curb or redirect non-productive activitiesactivities

Encourage and reward behaviors aligned with Encourage and reward behaviors aligned with

organizational mission and goalsorganizational mission and goals

To reach organizational mission and To reach organizational mission and goalsgoals

An Overview of the An Overview of the CAI ProcessCAI Process

Supervisor completes evaluation and sends draft to HR.

Supervisor reviews the form with her/his own supervisor for approval and signature.

Supervisor schedules a meeting with staff. Supervisor provides copy of evaluation to staff

prior to meeting.

What do Employees Expect?What do Employees Expect?

Clear expectationsClear expectations

Positive/constructive feedback Positive/constructive feedback on a regular basison a regular basis

Involvement in goal settingInvolvement in goal setting

Be treated fairly and consistentlyBe treated fairly and consistently

Sharing of information and Sharing of information and resourcesresources

Job/career enrichment Job/career enrichment opportunitiesopportunities

Rating ScaleRating Scale

4 - Excellent 4 - Excellent (Exceeds Standards)(Exceeds Standards)

3 - Good 3 - Good (Fully Meets Standards)(Fully Meets Standards)

2 – Acceptable 2 – Acceptable (Usually Meets Standards)(Usually Meets Standards)

1 – Unsatisfactory 1 – Unsatisfactory (Fails to Meet Standards)(Fails to Meet Standards)

The first part of the The first part of the Performance Evaluation FormPerformance Evaluation Form1. Supervisors must comment on and rate

how the employee met the responsibilities outlined in the position description.

2. Supervisors of exempt staff must comment on and rate separately the success of the employee in meeting each individual objective.

Ratings for the Position Description Ratings for the Position Description and Objectives Sectionand Objectives Section

Consistently exceedsOften exceedsAchieves expectationsBelow expectations

The actual performance The actual performance evaluation form is divided into evaluation form is divided into

3 main sections3 main sections1. Job Performance2. Job Delivery3. Interpersonal communicationsFeel free to list other performance

indicators from the reference guide.

Performance CharacteristicsPerformance CharacteristicsA Reference GuideA Reference Guide

The performance evaluation form is flexible.

Utilize extra characteristics to fully measure performance for your staff.

This guide is found on the Artranet under Learn/Human Resources.

Performance indicator measurement.Performance indicator measurement.

Consistently Exceeds Expectations: Performance nearly always exceeds the requirements of the position.

Often Exceeds : Frequently exceeds the expectations of the requirements of the position.

Achieves Expectations: Fully achieves the expected .

Below Expectations: Performance is below the accepted standards in this area. Improvement is needed and expected. Requires additional training or coaching in order to consistently meet standards; completed tasks often need follow-up or an excessive amount of supervision is needed.

Conducting the MeetingConducting the Meeting Review rating systemReview rating system

Discuss employee’s self reviewDiscuss employee’s self review

Let employee talkLet employee talk

Be aware of all three parts of Be aware of all three parts of the messages you send:the messages you send:– WordsWords– ToneTone– Body LanguageBody Language

Stay focused on performanceStay focused on performance

This section is on staff This section is on staff developmentdevelopment

How can the employee enhance performance? Are there skills & abilities they could learn to help

improve what they do? Professional development conversations take

place here. It is important to ask the employee what would

they like to do? What does the employee feel would be helpful for them?

Organizing your thoughts and Organizing your thoughts and materialmaterial

Review the long range plan for this div/dept.

Any strategic initiatives for this area?

Review last year’s performance review. How does it compare? (note improve, decline, or status quo).

Review the individual’s position description. Note any changes you will want to discuss.

Review your weekly or monthly meeting notes.

Where does your dept need to be in the future? (Will they need different skills & abilities to fit into that future model?)

PreparingPreparing for the Evaluation for the Evaluation

Staff completes activity report, drafts objectives and gives to supervisor.

Staff completes supervisor evaluation form and gives to HR.

Supervisor reviews activity report and goals for the full year.

Supervisor and staff person reviews position description (P.D.)

Meeting PreparationMeeting Preparation

No interruptions Private space. Giving uninterrupted time conveys the

importance of the conversation.This is your chance to share the many

positives with staff as well as any areas where there are development opportunities.

Conducting the performance Conducting the performance meetingmeeting

Supervisor’s main responsibility is to listen in this meeting. Review P.D. Note any suggested changes from either

perspective if appropriate. Go through written evaluation with staff and share

expectations. Review goals and note any items from activity reports. Review performance indicators. Set objectives and goals for next period. Staff signs the review. Supervisor sends completed form to HR with any suggested

changes to PD.

CoachingCoaching

Note where an exceptionally good job was done. (Typically it will be repeated if it has been positively reinforced.)

Write a summary or bullet points of the above to cover in the performance meeting.

Be sure to point out items that were important and worked to move the dept. ahead.

Beware: Performance PitfallsBeware: Performance Pitfalls

An employee should not hear something negative for the first time at a performance evaluation.

Be careful of allowing one event (either overly positive or overly negative) to eclipse their performance for the year.

The key to good performance The key to good performance dialogue.dialogue.

This meeting needs to be a two way conversation.

The supervisor’s message needs to be clearly communicated.

The conversation needs to be kept on track.

Objective setting: Be sure it’s Objective setting: Be sure it’s S.M.A.R.T.S.M.A.R.T.

Specific Measurable Achievable Results Oriented Time bound

5 Coaching Steps5 Coaching Steps

1. Both agree on successes and where a problem may exist & what it is.

2. Discuss solutions.3. Agree on plan of action.4. Plan follow-up.5. Positive reinforcement

on action items or schedule more coaching.

TipTip

It is often helpful for the staff person to turn in a self-appraisal. It is especially useful if you feel there may be divergent views on performance.

If you want to explore this tip have your staff person turn in a self-appraisal prior to you scheduling the evaluation meeting.

When Feedback works: Feedback from When Feedback works: Feedback from the employee’s perspective. the employee’s perspective.

((adapted adapted from Tom Coens & Mary Jenkinsfrom Tom Coens & Mary Jenkins) ) The giver of feedback had my best interests at heart and that

I could benefit from it. I was open to listening at the time. The giver knew what she was talking about -I valued her

opinion. The feedback was heartfelt - sincere and I didn’t feel like I

was being judged. Their advice was specific with examples and clear advice. There was information I needed to hear -it showed me a

blind spot.

Performance Management

Management = getting work done through others

Manager’s performance is only as good as his/her employee’s performance

Manager’s job = performance management of others

Performance Management

•Organizational system

•Focusing on employee performance

•Consistently applied throughout organization

•With a supporting structure

Names of Systems

•Performance Management

•Performance Appraisals

•Evaluation Systems

•Job Review Systems

•Feedback Systems

Performance Management

Ensuring appropriate performance by all employees through:

-Reinforcement -Rewards -Modeling -Coaching -Training -Development

Using a consistent feedback system

Working of Performance Management

Managers Speaks with Employee re: performance

Continuously

Once per Year

Formal goals

Organizational Reporting System

Tied to Organizational Outcomes

POTENTIAL =Includes future service, learning interest, motivation level

PERFORMANCE =Doing present job at acertain level (high or low) as measured by a formal system

PERFORMANCE MANAGEMENT

-Based on Scientific Management concepts-Focus on observable performance-Goal directed-Planning required and formalized-Consistent, continuous collection, analysis, and collection of data-Value of feedback reinforced-Facilitates benchmarking

Principles of Performance Management

•Supports business-oriented strategy•Is values based•Communicates organizational mission•Fulfills responsibilities to organizational members•Enables employees to manage own performance•Manages expectations (clarifies roles and responsibilities)•Creates partnership between management and employee•Emphasizes importance of measurement, feedback, and reinforcement•Empowers employees•Natural extension of management

Associated Costs

Staff Costs

Production and Processing Costs

Training Costs

Action Costs

Opportunity Costs

1. Why assess performance2. What performance to asses3. How to assess performance4. Who do assess performance5. When to assess performance6. How to communicate performance assessment

Key PM Questions

Administer Salary & Wages-Correct Performance/Behavior-Plan for Future (promotion, transfer, career dev)-Facilitate Decision-Making (counseling, terminations)-Facilitate Human Resource Planning-Create Culture-Building Good Relationships-Increase Organizational Loyalty-Determine Effectiveness of Selection andPlacement Methods

The WHY of Performance Management Systems

Skills/Abilities/

Needs/Traits

Behaviors Results

Job Knowledge Perform Tasks Sales

Strength Obey Instructions Production Levels

Coordination Report Problems Production Quality

Business Knowledge Maintain Equipment Scrap/Waste

Desire to Achieve Follow Rules Accidents

Dependability Submit Suggestions Equipment Repairs

Creativity Follow-up Customers Served

Leadership Write Reports Customer Satisfaction

Honesty Completes Reviews Feedback

Approaches to PM

Comparative

Attribute

Behavioral

Rank each employee grouping overall or on a characteristic:

Employee A and Employee BEmployee B and Employee CEmployee A and Employee CEmployee C and Employee DEmployee D and Employee AEmployee D and Employee B

etc.

Paired Comparisons Example

WHO Should Assess Performance

Superior Only

Subordinate(s)

Peers/Coworkers

Self

Customers

Others

Subordinates

All Stakeholders

Top management support

Commitments from Specialists and Generalists

Technological Advances

Organizational Complexity

Behavioral Science Knowledge

Learning Principles

Performance of Other Human Resource Functions

Factors Influencing T & D

Performance Management

Process that significantly affects organizational success

Managers and employees work together to set expectations, review results and reward performance.

Purposes of Performance Mangement

Strategic– Aligning employee performance with

organizational objectivesAdministrative

– Making employment-related decisionsDevelopmental

– Aiding employee growth