Presentation on theme: "Performance Management"— Presentation transcript:
1Performance Management Managing People in a Global EnvironmentWayne F. CascioOctober 10, 2008
2Challenges of Performance Review In forced ranking, all employees are ranked against each other and grades are distributed along a bell-shaped curveDo you support the use of forced rankings?If the criteria used to determine an employee’s rank are more qualitative than quantitative, does this undermine the forced-ranking system?Suppose all the members of a given team are superstars. Can forced ranking deal with that situation?
3Facts About Performance Appraisals Employees are often less certain where they stand after the appraisal interview than before itEmployees tend to evaluate their supervisors less favorably after the interview than before itEmployees feel that the authoritarian, “tell-and-sell” approach to appraisal is out of sync with today’s democratic business structure
4What is Performance Management? A willingness and a commitment to focus on improving performance at the level of the individual or team every day
5Key Elements of a P. M. System Sr. Management involvement in the processEmployee involvement in the processCommon performance measuresAn emphasis on coaching and feedback
6Why Do P. M. Systems Fail? Focusing on the wrong things Ignoring sr. managers, operating managers, and employeesPoor communication about the process and changes in itMaking the process difficultImplementing “flavor-of-the-month” programs
7Hewitt Assoc. Study of 437 Firms Firms with successful P. M. systems outperformed those without them on every financial and productivity measure used in the study:ProfitsCash flowStock market performance
8Firms with Successful P. M. Systems Measure what really mattersFoster open communication among employees about what really counts
12How Often? Once or twice a year is not enough Difficult to remember specifics over a 6- or 12-month periodMany organizations require more frequent, informal “progress” reviews90-day plans
13Effective Appraisal Systems Are RelevantAcceptableSensitiveReliablePractical
14Acceptability Do raters use standardized procedures? Do employees believe results are fair & accurate?Does the form accommodate special or unique circumstances?Do you get feedback
15Acceptability Does the rater suggest how you could improve? Do you get resources to improve?Does management care about how appraisals are done?
16Legal Issues in Appraisal ID essential functions using job analysisBase all ratings on essential job functionsTrain supervisorsHave formal appeal mechanisms + higher-level reviewDocument appraisals + any reasons for terminationProvide counseling for poor performers
17Strategic Dimension of Appraisal What kind of behavior do you want to encourage?Short-term: bottom-line results for current quarterLong-term: customer satisfaction, market shareRemember: Managers get the kind of performance they reward!
19Which Method Is Best?None is an unqualified success when used for merit pay or promotion
20Who Should Evaluate? Immediate supervisor Peers Subordinates Self-appraisalCustomersComputers
21To Improve 360-Degree Feedback Be clear about the purpose of the appraisal – employee developmentTrain raters to understand the overall process, show them how to complete forms, and to avoid common rating errorsSeek a variety of types of information about performanceMake all raters accountable to upper-level review
22To Improve 360-Degree Feedback Help employees interpret and react to the ratings, and include goal setting.Implement 360-degree reviews regularly, so employees can track their progress over timeTake the time to evaluate the overall system
23Managers Who Excel in This Area Do the Following Listen wellRelinquish control, encourage employee participation + open communicationApproach “negative” information slowly and with caution
24Managers Who Excel in This Area Do the Following Focus on observable behavior & give specific examplesAvoid arguments; allow the employee to save faceFocus on problems and solutions, not on the employee’s personality
25Things to Do Before Appraisal Communicate frequently with subordinates about their performanceGet training in appraisal interviewingUse a problem-solving approach, not “tell and sell”Encourage subordinates to prepare for review sessions
26Things to Do During Appraisal Encourage participationJudge performance, not personality and mannerismsBe specificBe an active listenerSet goals for future improvementsAvoid destructive criticism
27Things to Do After Appraisal Communicate frequently with subordinates about their performancePeriodically assess progress toward goalsTie rewards to performance
28How to Give Feedback Develop an agenda Take the time to listen; no interruptionsCommunicate that you genuinely want to helpBe accepting and non-judgmentalWatch for verbal and non-verbal cues
29How to Give Feedback Focus on the future Summarize what was said Record responses immediatelyNever betray a confidence
30Basic Rules of Performance Counseling Be preparedBe factualSupport the employee’s good performanceHelp the employee improve performancePlan for the future
31How to Document Performance-Related Incidents Describe what led up to the incident - the problem & the settingWhat actually happened that was so effective or ineffective? (Names, dates, times, facts)Describe the consequences of the effective or ineffective behavior
32Managing Your BossRecognize that your boss needs you in order to do his or her job wellUnderstand his or her goals + how you can help the boss reach themAppreciate the pressures & problems the boss facesTell the boss your aspirations & goals
33Managing Your Boss Learn how the boss likes to receive information Keep the boss informed about your successes & problemsMaking working with you efficient & enjoyable for the bossMake it easy for the boss to discuss problems & conflicts
34Managing Your Boss Assess yourself + your needs: Your strengths & weaknessesYour personal styleAre you a dependent or an independent person?
35Managing Your Boss Develop & maintain a relationship that: Fits both your needs & stylesIncludes mutual expectationsKeeps your boss informedIs based on dependability & honestyUses your boss’s time & resources selectively
36Do Not Assume That: The boss knows your aspirations, problems, & needs You can talk to your boss only when he/she asksThe boss will start a discussion when there are problemsThe boss gets paid so well that he/she doesn’t have to be thanked