1. Performance Management Managing, Measuring and Rewarding Human Performance

2. 19 September 2002NICSA Human Resources Forum2 Performance Management: Why is it so important? A managers most sacred responsibility Corporate results Employee satisfaction and retention Fairness Litigation and documentation

3. 19 September 2002NICSA Human Resources Forum3 Performance Management: Why is it so hard? ~ plain and simple ~ its just human nature to want to be liked

4. 19 September 2002NICSA Human Resources Forum4 What is a goal? S pecific M easurable A ttainable R ealistic T ime-based ~ activity ~

5. 19 September 2002NICSA Human Resources Forum5 Effort statements I tried my best Im in early and stay late every day I work so hard I spent all weekend on this I trained 98 people on Retirement Plans this month I made 7 sales calls this week

6. 19 September 2002NICSA Human Resources Forum6 Result statements I sold 3 memberships this month The new Retirement Plan reps, whom we trained last month, answered 100 calls last week, with a 92% accuracy rate. Southwest Airlines had an 87.1% on time arrival rate for June 2002.

7. 19 September 2002NICSA Human Resources Forum7 Measuring Performance Measure against a standard, not against another performer Use hard data –statistics –tasks/projects completed –results identified –end user satisfaction ratings

8. 19 September 2002NICSA Human Resources Forum8 Measuring Performance cont. Use anecdotal information if representative Be objective in thought and language ~ activity~

9. 19 September 2002NICSA Human Resources Forum9 Measuring Performance via BARS Behaviorally Anchored Rating Scales Quality of Work: Leaps tall buildings at a single bound Leaps tall buildings with a running start Can leap short buildings if prodded Bumps into buildings Cannot recognize buildings

10. 19 September 2002NICSA Human Resources Forum10 BARS cont. Promptness: Is faster than a speeding bullet Is as fast as a speeding bullet Would you believe a slow bullet? Misfires frequently Wounds self when handling guns

11. 19 September 2002NICSA Human Resources Forum11 Three Major Rules of Thumb 1. Dont gloss over negative performance –those niggling annoyance factors –at least record it, even if it doesnt lower the rating –this years annoyance will only blossom into next years problem

12. 19 September 2002NICSA Human Resources Forum12 2. Dont emptily praise –Shes the best thing to hit the company since the Founding Fathers. –Hes an exceptional performer. –Youre doing a great job.

13. 19 September 2002NICSA Human Resources Forum13 3. Be specific –You exceeded your sales quota by 17%. –Your funds performance has been in the lowest quartile for its peer group for the past three quarters. –Your java script enabled us to roll out Account Access by the deadline.

14. 19 September 2002NICSA Human Resources Forum14 Giving feedback Effective feedback is: Frequent Immediate Specific Understandable

15. 19 September 2002NICSA Human Resources Forum15 Effective Feedback cont. Positive vs. punitive Meant to separate the great performer from the OK performer from the poor performer

16. 19 September 2002NICSA Human Resources Forum16 Factors that can distort performance appraisals Bias Rating personality rather than performance Overcrediting their personal background

17. 19 September 2002NICSA Human Resources Forum17 Distorting Factors cont. Halo or Horn effect Lack of clear standards; measuring against outdated standards Leniency/severity

18. 19 September 2002NICSA Human Resources Forum18 Distorting Factors cont. Limited use of the rating scale Inadequate observation Inappropriate time span

19. 19 September 2002NICSA Human Resources Forum19 Distorting Factors cont. Contrast effect Overemphasis on uncharacteristic performance

20. 19 September 2002NICSA Human Resources Forum20 Improvement-based feedback Recognize/name the problem Show its impact/result Name the remediation Ask if thats reasonable; gain agreement

21. 19 September 2002NICSA Human Resources Forum21 Writing a sound, balanced appraisal Be specific Be balanced Document, document, document These are the things that go to court when you do

22. 19 September 2002NICSA Human Resources Forum22 The Performance Appraisal what not to do Copy last years; just change the date Make everyones the same Use them to punish past wrongs Use them to champion your friends Use them to shake the proverbial dust from the proverbial footwear

23. 19 September 2002NICSA Human Resources Forum23 Performance Appraisal Systems - the secret There is no perfect system People hate being rated You might as well label them as Goldfinch, Blue Jays, Robins, and Sparrows Its the conversation that counts.

24. 19 September 2002NICSA Human Resources Forum24 Writing the appraisal Have quarterly/weekly? performance chats Keep notes on performance observations

25. 19 September 2002NICSA Human Resources Forum25 Writing the appraisal See performance feedback as an ongoing process, not a yearly event NEVER let the performance appraisal be the first time someone hears of a problem Or, conversely, some worthy achievement

26. 19 September 2002NICSA Human Resources Forum26 Writing the appraisal Famous last words: dont wait til the last moment Do the hard ones first Schedule time to write these

27. 19 September 2002NICSA Human Resources Forum27 Delivering the appraisal It is nowhere more clear than during a performance appraisal, who holds the power in the relationship

28. 19 September 2002NICSA Human Resources Forum28 Tips for delivery Schedule a time; let them suggest a time Allow at least one hour Find a private spot

29. 19 September 2002NICSA Human Resources Forum29 Tips for delivery Ask the employee: How would you like to do this? Be aware of where you sit Dont become alarmed/tyrannical if employee disputes the appraisal

30. 19 September 2002NICSA Human Resources Forum30 Pay for Performance Rewards Performance

31. 19 September 2002NICSA Human Resources Forum31 Pay for Performance Rewards Performance Performance low; rewards low

32. 19 September 2002NICSA Human Resources Forum32 Pay for Performance Rewards Performance Performance high; rewards low

33. 19 September 2002NICSA Human Resources Forum33 Pay for Performance Rewards Performance Performance low; rewards high

34. 19 September 2002NICSA Human Resources Forum34 Pay for Performance Rewards Performance Performance high; rewards high