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PERFORMANCE MANAGEMENT 1 WCU HR 698, Spring 2009 C. David Crouch Lindsay Handsel Ryan Mitchell Angela Trull Frank Wheeler A journey into the abyss of employee.

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Presentation on theme: "PERFORMANCE MANAGEMENT 1 WCU HR 698, Spring 2009 C. David Crouch Lindsay Handsel Ryan Mitchell Angela Trull Frank Wheeler A journey into the abyss of employee."— Presentation transcript:

1 PERFORMANCE MANAGEMENT 1 WCU HR 698, Spring 2009 C. David Crouch Lindsay Handsel Ryan Mitchell Angela Trull Frank Wheeler A journey into the abyss of employee evaluations

2 Introduction 2 Our group chose performance management as our topic to explore. In that exploration process, we discovered that the topic itself is much too broad for this assignment. Realizing that there has been much research and data presented in relation to organizational and team performance management, i.e. balanced scorecards and the like, we chose to narrow our focus to performance management of employees, typically referred to as the employee evaluation process. This area carries with it much debate, confusion and frustration in American business. It seems though well engrained in American business, the employee evaluation process is questioned and viewed as non-valued by many. Why is that? Our group decided to investigate best practices and processes and explore any alternative perspectives we could find. We invite you to join us on a journey into the abyss of employee evaluations and the frustrations leaders face with this highly polemic issue. HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

3 Your Perception 75% of you said the leaders in your organizations dont like employee evaluations or are neutral to them 92% of you said your leaders have only one conversation per year with their employees about their performance 58% of you said your current system does not improve team or organizational outcomes 83% of you said your leaders do not use the process on a daily basis to encourage desired performance From the Zoomerang survey week of March 24, HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

4 Whats good about it? They dont have to determine pay raises Its quick, easy and standardized Requires leaders to have a conversation at least once/year with their employees about their performance Determining future goals Eval form guides them thru the process First step in building a case against the employee According to you… 4 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

5 Whats bad about it? Too time consuming No consistency manager to manager Employees dont value it either Forced bell curve of performance Just more paperwork Doesnt accurately represent performance No one pays attention to it Too many to do According to you… 5 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

6 What would you change? Remove the link to pay Make it relate to pay Require more frequent conversations Reduce subjectivity Stop holding people accountable for things they have no control over Use a different rating scale Use cameras periodically Everything! 6 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

7 Generally speaking, Our leaders and employees place little, if any, value on our own employee evaluation processes Those processes do little to help us accomplish our team and organizational outcomes Leaders dont use the process on a daily basis to encourage desirable performance In other words, we seem to be wasting our time, and a lot of it! You seem to be saying… 7 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

8 What do others say? The importance of supervisors communicating to employees throughout the performance appraisal cycle with clarity and ensuring mutual understanding was emphasized in Salary.com's 2006 Performance Review Survey. The survey showed significant gaps between employer and employee views on performance management. For example: 82% of managers believe they provide clear goals to their employees prior to their formal performance review, but only 46% of employees say the same 83% of employers say that they include the input of their employees in the review process but only 43 % of employees feel their input is valued and included Nearly half of the 2,000 employees surveyed said their performance has at some time been reviewed against goals that were not previously communicated 8 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

9 Introduction 9 Its apparent theres a problem with the way we attempt to manage performance in America. In our presentation, well first define performance management and clarify its intended purpose and benefits. Well try to identify the elements of effective evaluation processes and then look at some of the problems. Finally, well suggest alternative approaches that some believe are better than the current methods commonly in practice today. Join us now as we journey into the abyss of the employee evaluation process…. HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

10 Table of Contents Performance management defined The history of performance management The purpose of performance management, why we do it & the underlying assumptions Elements of an effective performance management system Problems with performance management Should evaluations be abolished altogether? What could we do instead? Unanswered questions & key take-aways Conclusion 10 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

11 11 Performance Management Defined

12 Performance Management, in its broadest context, deals with processes to manage performance at the organizational, team, and individual levels. For the purposes of this presentation, we have chosen to focus on the individual level, the employee evaluation process. The process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. 12 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

13 Performance Management Defined (cont.) An assessment of an employee, process, equipment or other factor to gauge progress toward predetermined goals. See also organizational development (OD), performance appraisal, application performance management (APM), business performance management (BPM), operational performance management (OPM)assessmentemployeeprocessequipmentgaugeprogressgoalsorganizational development (OD)performance appraisal application performance management (APM) business performance management (BPM)performancemanagement Simply put, performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. 13 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

14 Performance Management at a Glance Managing performance is a critical focus of HR activity. Well- designed strategies to recognize and improve performance and focus individual effort can have a dramatic effect on bottom- line results. The problem is to determine what the processes, tools and delivery mechanisms are that will improve performance in your organization, as well as determine which ones are best avoided. Managing Performance will help you: - design performance management processes that reflect the context and nature of the organization; - create supportive delivery mechanisms for performance management; and - evaluate and continuously develop performance management strategies to reflect the changing business environment. (M. Armstrong and A. Baron) 14 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

15 15 The History of Performance Management

16 History of Performance Management Businesses began approximately 60 years ago to determine an employees wage based on performance. Performance appraisal (PA) systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. Performance Management (PM) was used by employers to drive employee behaviors to achieve certain outcomes. For those driven by $, this worked well. For ones who were seeking development and training it failed to drive the desired behaviors. 16 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

17 History (contd) The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay raise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a raise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. 17 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

18 History (contd) Early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence on Performance Appraisal as an attempt to drive desirable performance. 18 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

19 History (cont.) Goal setting was futilely attempted (employees set goals low to ensure achievement, managers gave common ratings to employees to avoid upsetting individuals). Employees were paid to work and not to think. Gap between pay justification and skill development and knowledge widened. Employees began to request pay increases. In the 1980s a more formalized approach was used and emphasis was placed on the Performance Appraisal as an attempt to drive desirable performance. 19 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

20 History (cont.) Employees performance tended to accelerate shortly before the next PA. In the 21 st century, PAs have been absorbed into PM. Talent Management, Career Management, MBOs and differentiation of employee performance are common. Evolved into an on-going process and not a one time or annual event. Performance Management progressed from an HR policy firmly within the remit of the HR department to a business process that is central to aligning activity with strategic goals and is as much about managing the business as it is about directing people and controlling the flow of training or rewards. 20 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

21 21 The Purpose of Performance Management Why we do it Expected benefits Underlying assumptions

22 Purpose of Performance Management Linking people to performance and profits. Drive improvement in business results through individual, group, organizational goal attainment, measurement, performance coaching and performance information sharing. To drive org and individual capability development by role clarity, establishing an environment of constructive feedback through formal developmental coaching/mentoring. Help employees understand what they should be doing, and how well they should be doing it. 22 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

23 Purpose of Performance Management (cont.) Motivate and retain high performers by providing career development programs encompassing motivational and reward strategies, challenging work assignments and other on-the-job learning initiatives that will lead to career advancement and job satisfaction. Helps prevent problems from occurring throughout the year and identify barriers to performance before they impact performance. Improve future performance. Helping people to do a great job. 23 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

24 Why do we do it? We believe it works. We believe we can accurately and objectively identify those employees whose performance is consistently above or below average. We believe that the individuals performance contributes to the bottom line, for better or worse. Source: The Leaders Handbook, by Peter Scholtes 24 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

25 Why do we do it? Our logic goes like this… There are good performers and bad performers. We can tell the good from the bad. Good performers make a positive contribution to the company. Bad performers are detrimental to the companys performance. Performance appraisal serves to clarify an individuals work responsibilities, align the worker with the organizations goals, hold each worker accountable for their part, and motivate them to continuously improve. Source: The Leaders Handbook, by Peter Scholtes 25 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

26 What are the expected benefits? Source: The Leaders Handbook, by Peter Scholtes 1. Identifying and responding to outstanding performers 2. Creating a basis for pay 3. Providing feedback to individual employees 4. Giving direction and focus to the workplace 5. Identifying career goals 6. Identifying education and training needs 7. Identifying candidates for promotion 26 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

27 What are the expected benefits? Source: The Leaders Handbook, by Peter Scholtes 8. Identifying candidates for layoff 9. Fostering communication between employees and their supervisors 10. Creating a paper trail that will serve as a defense against suits for wrongful dismissal or other perceived unfair treatment 11. Conforming to regulatory requirements 12. Motivating employees 27 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler Go forward to Debundle the Cart

28 Underlying Assumptions Evaluation will improve an employees performance The employee being evaluated has control over the results. The employees individual contribution can be discerned from the contributions of the system and other managers and workers in the system. All processes with seemingly identical equipment, materials, training, job descriptions, etc., are, in fact, identical. The standards of evaluation are related to factors demonstrably important to the business and its customers. Source: The Leaders Handbook, by Peter Scholtes 28 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

29 Underlying Assumptions The standards are reasonable and achievable. Each system in which an employee works is stable and capable of delivering the expected results. The evaluation covers performance over the entire cycle of evaluation, not just the period recallable by recent memory. All evaluators are consistent with each other. Each evaluator is consistent from one employee to the next. Source: The Leaders Handbook, by Peter Scholtes 29 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler Go forward to Unquestioned Premises

30 30 The Elements of an Effective Performance Management System General practice Balanced measures Demings methodology Gallups best practices

31 Effective employee performance management includes: planning work and setting expectations, planning continually monitoring performance,monitoring developing the capacity to perform, developing periodically rating performance in a summary fashion, andrating rewarding good performance. rewarding General Practice 31 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

32 General Practice - individual level Using a Balanced Measures Approach affects employee performance management. Many of the best practices of balancing organizational measures cited significantly affect employee performance management methods and processes, including: Cascading Accountability Involving Employees Keeping Employees Informed Rewarding Employees 32 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

33 Balanced Organizational Measures Balancing measures is a strategic management system for achieving long-term goals. Organizations using a "family of measures" to create this balance consider the perspectives of their customers, stakeholders, and employees while achieving a specific mission or result. 33 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

34 Best practices for using balanced measures include: establishing a results-oriented set of measures that balances business goals, customer needs and satisfaction, and employee involvement, development, and satisfaction with working conditions establishing accountability at all levels of the organization, through leading by example, cascading accountability, and keeping everyone informed collecting, using and analyzing performance data, which includes providing feedback connecting performance management efforts to the organization's business plan and budget sharing the leadership role, which strengthens the continuity of the performance management process despite changes in top management 34 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

35 Demings Methodology Common characteristics of performance appraisals Focus is on the individuals work There are expectations or standards of performance Usually two sessions between employer and evaluator One to establish the standards, and Another to review performance Source: 35 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

36 Demings Methodology Common characteristics of performance appraisals Evaluator is usually the person who has line authority over the one evaluated Usually results in a written conclusion There are various consequences: Merit pay Determining promotability Basis for layoffs Source: 36 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

37 Demings Quality Systems Check Source: blog post by Terence Seamanhttp://learningvoyager.blogspot.com/2002/02/end-of-performance-reviews.html Does your performance management process support these values: Customer focus Systems thinking Teamwork Process improvement Fact-based decision making using measurement How employees are treated, motivated and developed 37 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

38 Gallups Best Practices From 20 years of research seeking the answer to the question what do the worlds greatest managers do differently, Gallups researchers have discerned a best practice in the area of performance management. The following information describes their detailed approach to high employee engagement through a process of communication and inquiry between manager and employee. Source: First, Break All the Rules by Marcus Buckingham of Gallup 38 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

39 Gallups Best Practices 1. Define behavior outcome measurements that align to and drive team and organizational outcomes 2. Differentiate between high and low performers 3. Minimize rater bias in the measurements by including objectivity wherever possible 4. Maximize employee responsibility and participation through education and self- evaluation Source: First, Break All the Rules by Marcus Buckingham of Gallup 39 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

40 Gallups Best Practices (cont) 5. Train leaders how to reinforce performance on a daily basis 6. Connect with the employee at regular intervals throughout the performance year, at least quarterly 7. Identify clearly defined standards that can be fairly and consistently applied across the organization for all job roles 8. Provide a mechanism for integrating job specific performance measures Source: First, Break All the Rules by Marcus Buckingham of Gallup 40 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

41 Gallups Best Practices (contd) 10. Focus on performance excellence instead of mediocrity or minimum standards 11. Provide a valid, fair correlation to annual pay adjustments for those who desire merit based pay systems Source: First, Break All the Rules by Marcus Buckingham of Gallup 41 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

42 What great managers do Establish a simple routine void of the usual company-sponsored schemes Concentrate on what to say to each employee and how to say it Engage in frequent interaction between the manager and the employee…a minimum of once/quarter Focus on the future Employees keep track of their own performance and learning Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

43 The Basic Routine At the beginning of the year, or a week or two after the person starts, spend an hour asking the following: 1) What did you enjoy most about your previous work experience? What brought (keeps) you here? 2) What do you think your strengths are? 3) What are your weaknesses? 4) What are your goals for your current role? (Ask for scores and timelines) Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

44 The Basic Routine 5) How often would you like to meet with me to discuss your progress? Are you the kind of person who will tell me how youre feeling, or will I have to ask? 6) Do you have any personal goals or commitment you would like to tell me about? 7) What is the best praise youve ever received? What made it so good? 8) Have you had any really productive partnerships or mentors? Why do you think these relationships worked so well for you? Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

45 The Basic Routine 9) What are your future growth goals, your career goals? Are there any particular skills you want to learn? Are there some specific challenges you want to experience? 10) Is there anything else you want to talk about that might help us work well together? Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

46 The Performance Planning Meetings Once/quarter, do the following… 10 minute focus on the past What actions have you taken? What discoveries have you made? What partnerships have you built? 50 minute focus on the future What is your main focus? What new discoveries are you planning? What new partnerships are you hoping to build? Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

47 Career Discovery Questions Scatter these throughout the year 1) How would you describe success in your current role? Can you measure it? 2) What do you actually do that makes you as good as you are? What does this tell you about your skills, knowledge, and talents? 3) Which part of your current role do you enjoy the most? Why? Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

48 Career Discovery Questions Scatter these throughout the year 4) Which part of your current role are you struggling with? What does this tell you about your skills, knowledge, and talent? What can we do to manage around this? 5) What would be the perfect role for you? Why would you like it so much? Source: First, Break All the Rules by Marcus Buckingham of Gallup, p HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

49 49 Problems with Performance Management

50 Our approach to the problem To gain insight into the problems with employee evaluations, we accessed these resources: Scholarly literature Practitioner literature Current online discussions with HR/OD/T&D professionals across the globe on in several discussion groups including SHRM, ODN, ISPI, ASTD, and T&D Current survey of leaders in healthcare Personal experiences of all the team members 50 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

51 Unquestioned Premises Scholtes contends that the assumptions noted earlier are common, but seldom true. At their root, are these premises and beliefs: People cannot be trusted. People dont want to work or accept responsibility or carry their share of the load People dont want to learn or improve. They want to be left alone. People are withholding their best effort and can be induced to do better only through incentives (carrots and sticks) imposed from the outside. Source: The Leaders Handbook, by Peter Scholtes 51 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler Go back to Assumptions

52 Unquestioned Premises What exists in nearly all organizations is a system of profound problems that result primarily from a system of management policies and programs. If you practice these policies and programs you will produce these problems. If you wish to get rid of these problems, you must get rid of these policies and programs. The premises hold the practices in place. The practices beget the problems. The premises are untrue and contrary to systems thinking. Source: The Leaders Handbook, by Peter Scholtes 52 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

53 Unquestioned Premises Scholtes contends that typical policies and programs are based on these premises: Problems result from individual dereliction. Successful work requires holding people accountable for the achievement of measurable goals. There is a reservoir of withheld effort that must be coaxed or coerced out of people. Managers can and must motivate and control the workforce. Source: The Leaders Handbook, by Peter Scholtes 53 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

54 The Main Problems Source: The Leaders Handbook, by Peter Scholtes 1) It doesnt work 90% of managers using performance appraisals describe them as unsuccessful. Timothy Schellhardts report in The Wall Street Journal, November 19, 1996 There is no significant data to support the effectiveness of the performance appraisal. 2) Performance appraisal focuses mostly on individuals, sometimes groups. Either one is the wrong target. 3) Performance appraisal is judgment, not feedback. 54 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

55 Other Problems with Employee Eval Low value perception by leaders & employees Once/year event to satisfy HR file needs Arbitrary and meaningless criteria for measurement Too much subjectivity & judgment required Promotes mediocrity, not excellence Failure to differentiate high/low performance Inconsistently applied across the organization Misaligned to team and organizational goals Source: LinkedIn.com discussions; personal experiences, custom survey 55 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

56 Other Problems with Employee Eval No apparent best practice or proven method available Most people dislike them which leads to poor execution and inconsistencies Lack forward thinking and developmental planning Its hard to do & takes too much time Connections to reward and recognition are weak at best One-sided, boss administered review Source: LinkedIn.com discussions; personal experiences, custom survey 56 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

57 Other Problems with Employee Eval Obstacle to straight talk relationships Prime cause of low morale Personal development is impeded Disruptive to teamwork The key question is How are you performing for me? Source: LinkedIn.com discussions; personal experiences, custom survey 57 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

58 58 Should Employee Evaluations be Abolished Altogether?

59 Should Evaluations be Abolished? According to Dr. W. Edwards Deming, the father of the quality movement, they should … Dr. Deming said Stop doing them, and things will get better. He listed them as one of his 7 deadly diseases of western management Also stated that fair rating is impossible And it runs contrary to total quality management Source: 59 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

60 Demings Methodology The case against appraisals 1) Disregards and undermines teamwork 2) Disregards the existence of a system 3) Disregards and increases variation in systems 4) Uses a measurement system that is unreliable and inconsistent 5) Encourages an approach to problem solving that is superficial and culprit-oriented 6) Tends to establish a ceiling of mediocrity 7) Creates losers, cynics & wasted human resources 8) Seeks to provide a means to administer multiple managerial functions yet is inadequate to accomplish any of them Source: 60 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

61 61 What Can We Do Instead? Change the way we think Active Questioning Theory Appreciative Inquiry Debundle the cart & rethink it

62 Change the way we think! 1. Until managers let go of their obsession with the individual worker and understand the importance of systems and processes, they will not enter the quality era. Without this change in mind-set, managers will continue to look for alternatives that are no different from what they are trying to replace. 2. When youre doing something that is demonstrably harmful, you can stop doing it without finding an alternative way to harm yourself. Source: 62 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

63 Active Questioning Inquiry Two-sided, reciprocally accountable, performance review using active questioning inquiry Whats the best way for us to compliment one another in getting work accomplished with excellence? How will you be going about it? What help do you need from me? Source: Samuel A. Colbert, UCLA Professor of Management 63 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

64 Appreciative Inquiry A different approach that seeks to create positive futures by… Choosing the positive as the focus of inquiry Inquiring into exceptionally positive moments Sharing the stories and identifying life-giving forces Creating shared images of a preferred future Innovating and improvising ways to create that future Source: The Essentials of Appreciative Inquiry, Bernard J. Mohr & Jane Magruder Watkins 64 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

65 Debundle the Cart & Re-think it! Debundle the cart of performance management Acknowledge each expected benefit as something important to accomplish Treat each benefit as a separate function For each expected benefit, ask What is the best way to successfully accomplish this? Set up separate systems and processes specifically designed to successfully accomplish that benefit Keep in mind the principles at the heart of quality when setting up the new systems Source: 65 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler Go back to expected benefits

66 Debundling the Services Source: The Leaders Handbook, by Peter Scholtes Scholtes presents alternatives to each of the 12 expected benefits noted earlier in this presentation and suggest the alternatives work more effectively to realize those benefits than the performance appraisal process does. He contends we should do away with performance appraisals altogether and re- think our HR policies and processes. 66 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler Go back to expected benefits

67 67 Unanswered Questions

68 Is it possible for an organization to achieve excellence (i.e. achieve its goals) without employee evaluations as we know them today? Is the failure of performance appraisals (PA) at least in part due to a failure of the manager to execute them effectively? What human factors inhibit the PA process? Can managers and employees truly have an honest/productive conversation about their performance or do emotions always get in the way? 68 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

69 Unanswered Questions What is next for performance appraisals? Why are we still doing them? Is the assertion to de-bundle a better approach? Is this bundling of objectives the cause of shortcomings? If not this, then what? What can be done in the future to remove subjectivity from the equation? 69 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

70 70 Key Take-Aways

71 Employee evaluations need to be at the very least overhauled, if not eliminated The need for a better system is great Objectivity, frequency, better measurements and training are all attributes that the old system is lacking and the new system needs to embody A better link to organization strategy is needed Training on how to evaluate must be given to managers 71 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

72 72 Conclusion

73 The appraisal system has been a corner stone of performance management systems we find in almost every organization. While the need for driving better performance towards strategic goals is even more important in the business world, we have found that the need to overhaul this system (if not replace or abandon it) is strong. With copious research, millions of dollars and strong debate, we still find ourselves at a loss for a better solution. While some have proposed various alternatives, we have failed to see them gain wide spread adoption or validation. The issue remains polemic and the abyss continues to deepen. 73 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

74 References Archer North and Associates (2006) Introduction performance appraisal. Retrieved March 7, 2009 from intro.htm. ASTD, ISPI, ODN, SHRM, T&D. (2009) Discussion boards. Retrieved March 5, 2009 from Bacal, Robert (2000) What are the purposes of performance management? Retrieved February 28, 2009 from – appraisals. org/faq/performancepurpose.htm. Bacal, Robert. (1999). Performance management. New York: McGraw-Hill. Buckingham, Marcus & Coffman, Curt. (1999). First, break all the rules. New York: Simon & Schuster. Culbert, Dr. Samuel (n.d.) Get rid of the performance review. Retrieved February 28, 2009 from Harvard Business Review. (2006). Performance management. Boston, MA: Harvard Business School Press. 74 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler

75 References Human Capital Management (n.d.) Explain what is performance management. Retrieved February 28, 2009 from is-performance-management.shtml. Interaction Associates. (n.d.) Your performance management system meets expectations. Retrieved March 2, 2009 from sy.php. sy.php McKenzie Consulting (n.d.) The purpose of performance management. Retrieved February 28, 2009 from contentcommon/pg-purpose-of-performance-management. Mohr, B. & Watkins, J. (2001). The essentials of appreciative inquiry. Pegasus Communications, Inc. Retrieved March, 3, 2009 from Scholtes, Peter R. (1998). The leaders handbook. New York: McGraw-Hill. Scholtes, Peter R. (n.d.) Total quality or performance appraisal: choose one. Retrieved March 2, 2009 from http;//deming-network.org/files/tqmorpa.txt. Seamon, Terrence. (2008). The end of performance reviews. Retrieved March 2, 2009 from 75 HR 698: Group 4: Crouch, Handsel, Mitchell, Trull, Wheeler


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