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
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