Presentation is loading. Please wait.

Presentation is loading. Please wait.

Erlet Shaqe www.dualibra.com Performance Management Cycle.

Similar presentations


Presentation on theme: "Erlet Shaqe www.dualibra.com Performance Management Cycle."— Presentation transcript:

1 Erlet Shaqe www.dualibra.com Performance Management Cycle

2 Performance Planning Staff and the Organisation Performance and Development Reviewing Enabling staff to deliver Taking stock of achievements, diagnostics Setting Objectives, defining what is needed Action Reset objectives Make changes

3 The Performance Cycle »Major Areas of Responsibility »Individual Priorities »Knowledge, Skills and Behaviors »Development plan »Reaching agreement »End-of-cycle review »Continuous progress and development »Ongoing Feedback »Coaching »Interim reviews

4 Alignment Model Your Organizational Priorities Your Major Areas of Responsibility and Individual Priorities Mission Values Departmental Priorities Knowledge, Skills and Behaviors Performance Development Process UNIT OR DEPARTMENT HARVARD COLLEGE LIBRARY PERSONAL “What” “How”

5 The Performance Cycle »2001: December 21 »2002: June-July »2002: May »2002: April- May »2002: March »2002: December- January

6 What Is “Good Performance”? More than just activities, effort, good intentions, or results Working hard and staying busy are not necessarily high performance Attending training sessions and studying hard does not necessarily lead to good performance Strong commitment may not lead to good performance Even accomplishing some goals may not be high performance

7 Performance Management – Broader Than Performance Appraisal Begins with a look at goals & strategies of the organization

8 Organizational Alignment All efforts must be aligned with overall goals and strategies of the organization. …a key to Performance Management

9 Performance Management a Cascading Process Mission, goals, and strategies should be defined, and clearly understood by everyone How do all tasks contribute to overall plans for the organization?

10 Annual Plans Should Create Performance Standards for Each Department These should translate into performance goals for each worker Quantity Quality Time Cost

11 What Are the Three Steps in Performance Management? Defining Performance Facilitating Performance Encouraging Performance

12 Performance Appraisal Developmental and Administrative Decision Processes

13 Performance Appraisal continues to be one of the most criticized HR functions in organizations

14 Performance Appraisal We all measure our subordinates’ performance whether we do it formally or informally Very important to document what we evaluate Also necessary to show a clear link between what we evaluate and job requirements

15 What Purposes Can P.A. Serve in an Organization? Any potential conflicts here? Explain.

16 How Frequently Should Performance Appraisal Be Done? Why?

17 Performance Appraisal - a Continuing Process Is not a once-a-year or once-a-quarter experience Effective appraisal occurs frequently There should be no surprises when an employee is given his or her formal appraisal interview Essential for coaching & positive motivation

18 The Main Point Be sure that what is measured is documented & can be shown to match job expectations

19 A Key to All of This: Supervisors must have the support & encouragement of higher management to make all this work

20 Behavior - Oriented Systems Ranking Methods Strait Ranking High-Low (Alternate Ranking) Paired Comparison Forced Distribution (similar to ranking) Graphic Rating Scales

21 Ranking Method Straight ranking Alternation ranking Paired comparison

22 Explain Each of the Ranking Methods Preference Among Them?

23 Attractions? Limitations?

24 Forced Distribution Design? Purpose? Do you recommend or not recommend? Why or why not?

25 Graphic Rating Scale Single Most Popular Method of Appraisal

26 Graphic Rating Scale Explain how it works Give an example Potential strengths? Potential weaknesses?

27 Critical Incidents Based on Observation of Behaviors Positive Negative Written Notation of Behaviors is Made & Placed in Each Employee’s File

28 Critical Incidents Each Observation is Discussed With the Employee at the Time of Occurrence A Portfolio of Observed Events is Collected Over Time

29 Any Problems With Critical Incident Method for Appraisal?

30 Behaviorally Anchored Rating Scales (BARS) A form of graphic rating scale How is different from traditional rating scale?

31 Behaviorally Anchored Rating Scales (BARS) Attractions? Limitations?

32 Results (Outcome) Based Appraisal Management by Objectives (MBO) in Some Form is Commonly Used Focuses on Measurable Results of Mutually Agreed-Upon Goals for a Work Cycle

33 MBO Steps in development and usage? Potential strengths and weaknesses?

34 Factors to Consider in Choice of a P. A. System Cost Usefulness in employee development Usefulness in administrative decisions Validity

35 What Do You Think? What Form of Performance Appraisal Would You Recommend? What Criteria Have You Used in Making Your Recommendation? What Limitations (As Well As Strengths) Does Your Recommended Method Have?

36 Who Appraises? Supervisor Peers Subordinates Self Appraisal Customers

37 Usefulness of Each? Explain

38 360 Degree Appraisal Best Known Book on the Subject: Edwards & Ewen, 360 (degree) Feedback, Amacom, 1996.

39 Three Types of Appraisal Interviews Tell & Sell Tell & Listen Problem Solving

40 Performance management Definition: Employee performance management is the process of involving employees in accomplishing your agency’s mission and goals. Employee performance management includes: planning work and setting goals, monitoring performance, developing capacity, reviewing performance, and rewarding good work.

41 Designing the performance management system What will be the purpose? What will be the sequential stages? What performance will be measured? Who will assess employee performance? What will be on the form? Will a rating scheme be used? What support systems need to be in place?

42 Managing performance for … Accountability Performance target setting and outcome/results review AND / OR

43 Managing performance for … Employee Development Competence assessment and development

44 Stages of performance management Plan Monitor Develop ReviewReward

45 Stage 1 – Individual Performance Planning Stage 1 – Planning Work goals Competencies Learning Performance planning at the start of the year and then periodically is the core of the performance management process. The performance plan should be a written document. Plan

46 Performance planning How is what I do on a daily basis tied to the success of this organization? What are my performance goals for the next time period? How are my goals aligned with the organizational goals?

47 Performance Planning Performance results – the what –Performance outcomes or standards – from job description –Performance objectives for the next time period Performance behavior – the how –Competencies, performance factors, or behavior expectations Development objectives

48 Peter Drucker Management by Objectives was first outlined by Peter Drucker in 1954 in his book 'The practice of Management'. According to Drucker managers should avoid 'the activity trap', getting so involved in their day to day activities that they forget their main purpose or objective. One of the concepts of Management by Objectives was that instead of just a few top-managers, all managers of a firm should participate in the strategic planning process, in order to improve the implementability of the plan. Another concept of MBO was that managers should implement a range of performance systems, designed to help the organization stay on the right track.

49 MBO is a system in which specific performance objectives are jointly determined by subordinates and their superiors, progress toward objectives is periodically reviewed, and rewards are allocated on the basis of this progress.

50 MBO Principles Cascading of organizational goals and objectives Specific objectives for each member Participative decision making Explicit time period Performance evaluation and feedback

51 Objectives should be specific, attainable, yet challenging. Is the objective appropriate for the business at this time? Does it take the organization in the direction it wants to go? Does it support the overall mission of the business? Is it compatible and complementary with the other objectives? Is it acceptable and understandable to the majority who will be charged with implementing it? Is it affordable for the organization? Is it measurable and achievable? Is it ambitious enough to be challenging?

52 Hierarchy of objectives Vision Mission Goals Objectives Policies Procedures

53 MBO substitutes for good intentions a process that requires rather precise written description of objectives (for the period ahead) and time-lines for their monitoring and achievement. The process requires that the manager and the employee agree to what the employee will attempt to achieve in the period ahead, and (very important) that the employee accept and buy into the objectives (otherwise commitment will be lacking).

54 SMART Management by Objectives introduced the SMART method for checking the validity of Objectives, 'SMART': Specific Measurable Achievable Realistic, and Time-related.

55 Stage 2/3 – Monitor and Develop Daily performance management! Monitoring includes measuring performance and giving feedback. Two way communication between the manager and employee throughout the performance period is critical to the performance management process. Stage 2/3 – Monitor and Develop Feedback Coach Adjust goals Monitor Develop

56 Daily performance management Feedback and coaching – informal Monitoring and tracking performance against standards and progress toward goals. Quarterly performance planning and performance discussions Development through coaching, training, challenging or visible assignments, improving work processes

57 What performance will be measured? Behaviors – how the work is done –Performance factors / competencies –Required behaviors –Behaviors supporting desired organizational culture Results – what is achieved –Performance outcomes –Performance compared to job standards –Performance goals and/or objectives

58 Stage 4 – Performance Review The formal process of documenting results the employee has achieved and behaviors and /or competencies displayed should occur at least once a year. Stage 4 – Review At least annually Discuss Document Review

59 Performance Review Summary of performance over a period of time Evaluate performance results and behaviors Conducted face-to-face with a written record. While rating and ranking has both pros and cons, a summary rating of each employee may be useful.

60 If a rating scheme will be used Number of levels: three, four, five, or six Rating labels –Numerical: e. g. 1, 2, 3, 4, 5 –Behavioral frequency: e. g. always, usually, frequently, sometimes, rarely –Evaluation: e. g. distinguished, superior, competent, fair, marginal –Performance against a standard: e. g. exceeds, meets, does not meet

61 Who will assess performance? Immediate supervisor only In addition to the immediate supervisor –Employee (self) –Peers and coworkers –Internal and external customers –Subordinates Choices include:

62 Approaches to designing an appraisal form Trait based Behavior based –Competencies (or performance factors) –Behaviors Results based –Performance outcomes –Objectives

63 What will be on the form? Identifying information Instructions Performance outcomes and/or results achieved (or not achieved) on objectives Performance factors / competencies / work behaviors Employee signature and approvals

64 Other information Employee comments Summary of one to three major achievements Strengths / areas for development Overall rating Plan for development (if not elsewhere) Performance plan for next period (if not elsewhere)

65 Stage 5 – Reward Good performance should be rewarded. Recognition and non-monetary rewards are an important part of the reward structure. These include job- related rewards such as visible project assignments. Even thank you and recognition for a job well done are rewards!! Stage 5 – Reward Monetary Non-monetary Recognition Reward

66 Rewards, recognition, and compensation Recognizing employees for performance –Non-monetary rewards –Informal and ongoing acknowledgements of good work Compensation –Merit increases? –Pay to market? –Increases added to base pay or lump sum? Separate conversation about pay from conversation about performance!!!!!

67 What support systems need to be in place? Senior management support Management accountability Communication about the process Training Process for new employees Process for dealing with poor performance Monitoring and evaluating the process (HR) Appeals process (HR)

68 Communication Timeframe for the performance management cycle Instructions for the supervisor Instructions for the employee Tie to other systems Support available

69 Sample schedule for the performance management cycle Complete operating plan Update quarterly performance plan form with major agency objectives Conduct training for supervisors (and employees) Communication before, during, after Timeframe for completion of appraisal Timeframes for quarterly performance plans Interface with compensation schedule

70 Dissatisfaction with Appraisals 95% of companies use appraisals, majority are dissatisfied with them (Wall Street Journal) 90% of appraisal systems unsuccessful (SHRM, 1995, DDI, 1993) “I’d rather kick bricks with my bare feet than do appraisals” (manager at Digital Corp) Many companies abolished ratings: Pratt & Whitney Blockbuster IBM Albany Intern

71 Performance Appraisal Purpose Control Behavior Set Standard Measure Performance Compare Performance Against Standard If Discrepancy Exist, Take Corrective Action Used to Provide Feedback Used as Basis of Reward & Punishment Systems Used for System Improvement

72 Performance Management Reward or Take Corrective Action Reward or Take Corrective Action Set Standards Provide Feedback Measure Performance

73 Conflicts in Performance Appraisal Conflicting Goals of Appraisal Create Problems Organization Seeks Information To Improve Systems Individual Seeks Valid Performance Feedback Individual Seeks Extrinsic Rewards Organization Seeks Information On Which To Base Rewards © Dr. Dianna Stone

74 Requirements of Effective Performance Management Relevant to job performance Distinguishes Effective & Ineffective Performance Fair & Acceptable

75 Performance Standards Managers assume standards are clear Communicate - What is to be done? How well should it be done?

76 Performance Measures Objective Measures - Hard Criteria $ SalesPersonnel DataTardiness Units ProducedAbsence Rate Error RateTurnover Weaknesses –Performance Modified by Situation - Opportunity Bias –System Responsible for 96% of Variance - Person 4% (Deming) –Objective measures do not apply to all jobs © Dr. Dianna Stone

77 Performance Measures Subjective Measures - Performance Measures Who Rates? Supervisors, Peers, Subordinates, Self Errors & Biases Halo Error Central Tendency Leniency (Positive & Negative) Goal is to Accurately Appraise Performance

78 Methods Ranking - Rank order ratees from highest to lowest Behavioral Checklist - Series of Descriptive Statements of Job-Related Behavior Example: ____ Comes to class on time ____ Courteous with clients ____ Sleeps on the job Forced Distribution 10% 20% 40% 20% 10% Poor Below Average Above Excellent Average Average

79 Methods Advantages (Forced Distribution) : Decreases Central Tendency & Leniency Errors Disadvantages (Forced Distribution): May not be accurate reflection of performance Graphic Rating Scale - Most Widely Use Quality (1)(2) (3) (4) (5) Poor Below Average Above Excellent Average Average Behaviorally Anchored Rating Scale - Based on critical incidents, Behaviors are anchors

80 Methods Behaviorally Anchored Rating Scales Police Officer: Job Knowledge High (7, 8, 9)Follows correct procedures for evidence preservation Average (4, 5, 6)Seldom has to ask other about points of law Low (1, 2, 3)Misinforms the public about laws

81 Progressive Disciplinary Systems Steps 1) Counsel Employee about Performance Problem 2) Verbal Reprimand & Warning 3) Written Reprimand & Warning 4) Disciplinary Layoff (Short-term) 5) Discharge

82 Progressive Disciplinary Systems Reasons to Avoid Discharge Unfair Labor Practice (Legal & Contractual Restrictions) Company Payments Toward Unemployment & Severance Pay Strikes Court Action - Back Pay Awards Investment in Human Resources

83 Problems with Appraisals Survey by Ernst & Young showed that 38% of employees say they are rated unfairly or not at all Deming argues that Performance Appraisal is “A Deadly Disease in Organizations” Disregards existence of system Erroneously attributes variation in performance to individuals (85-15 rule) Undermine teamwork, improvement Focuses on short-term, end product

84 Appraisal Interviews Give Feedback daily Encourage participation Judge performance not personality Be specific - provide critical incidents Set mutual goals


Download ppt "Erlet Shaqe www.dualibra.com Performance Management Cycle."

Similar presentations


Ads by Google