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Performance Management. Performance Management is one of the most important aspects of a manager’s role. “It’s enabling and encouraging the right people.

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Presentation on theme: "Performance Management. Performance Management is one of the most important aspects of a manager’s role. “It’s enabling and encouraging the right people."— Presentation transcript:

1 Performance Management

2 Performance Management is one of the most important aspects of a manager’s role. “It’s enabling and encouraging the right people to do the right things at the right time.”

3 An iterative process of goal-setting, communication, observation and evaluation to support, retain and develop exceptional employees for organizational success. Performance Management Communicate ObserveEvaluate Set Goals

4 Contributions of Performance Management For Employees Clarify definitions of WorkWork success criteriasuccess criteria Increase motivation to perform Increase self-esteem Enhance self-insight and development For Managers Communicate supervisors’ views of performance more clearlyCommunicate supervisors’ views of performance more clearly Managers gain insight about subordinatesManagers gain insight about subordinates Better and more timely differentiation between good and poor performersBetter and more timely differentiation between good and poor performers Employees become more competentEmployees become more competent

5 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

6 Contributions of Performance Management For Organization/HR Function Clarify organizational goals Facilitate organizational change Fairer, more appropriate administrative actions Better protection from lawsuits

7  Strategic  Administrative  Informational  Developmental  Organizational maintenance  Reporting Purposes of PM Systems

8 An Ideal PM System: Characteristics 1. Congruent with organizational strategy 2. Thorough 3. Practical 4. Meaningful 5. Specific 6. Identifies effective/ ineffective performance 7. Reliable 8. Valid 9. Acceptable and Fair 10. Inclusive 11. Open (No Secrets) 12. Correctable 13. Standardized 14. Ethical

9 Effective Performance Management A 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

10 Developing Goals SMART Goal Model- Planning – Specific – Measurable – Accountable – Realistic – Time-bound

11 Performance Management: A four step process Step 1: Performance Planning and Communication Step 2: Training/Feedback Step 3: Performance Review Step 4: Staff Development

12 Purpose of the Institute’s 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.

13 Why Manage Performance? Curb or redirect non-productive activities Curb or redirect non-productive activities Encourage and reward behaviors aligned with organizational mission and goals Encourage and reward behaviors aligned with organizational mission and goals To reach organizational mission and goals To reach organizational mission and goals

14 An Overview of the CAI 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.

15 What do Employees Expect? Clear expectations Clear expectations Positive/constructive feedback on a regular basis Positive/constructive feedback on a regular basis Involvement in goal setting Involvement in goal setting Be treated fairly and consistently Be treated fairly and consistently Sharing of information and resources Sharing of information and resources Job/career enrichment opportunities Job/career enrichment opportunities

16 Rating Scale 4 - Excellent (Exceeds Standards) 3 - Good (Fully Meets Standards) 2 – Acceptable (Usually Meets Standards) 1 – Unsatisfactory (Fails to Meet Standards)

17 The first part of the Performance Evaluation Form 1. 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.

18 Ratings for the Position Description and Objectives Section Consistently exceeds Often exceeds Achieves expectations Below expectations

19 The actual performance evaluation form is divided into 3 main sections 1. Job Performance 2. Job Delivery 3. Interpersonal communications Feel free to list other performance indicators from the reference guide.

20 Performance Characteristics A 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.

21 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.

22 Conducting the Meeting Review rating system Review rating system Discuss employee’s self review Discuss employee’s self review Let employee talk Let employee talk Be aware of all three parts of the messages you send: Be aware of all three parts of the messages you send: – Words – Tone – Body Language Stay focused on performance Stay focused on performance

23 This section is on staff development 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?

24 Organizing your thoughts and material 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?)

25 Preparing 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.)

26 Meeting 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.

27 Conducting the performance meeting 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.

28 Coaching 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.

29 Beware: 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.

30 The key to good performance 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.

31 Objective setting: Be sure it’s S.M.A.R.T. Specific Measurable Achievable Results Oriented Time bound

32 5 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.

33 Tip 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.

34 When Feedback works: Feedback from the employee’s perspective. ( adapted from 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.

35 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


37 Performance Management Organizational system Focusing on employee performance Consistently applied throughout organization With a supporting structure

38 Names of Systems Performance Management Performance Appraisals Evaluation Systems Job Review Systems Feedback Systems

39 Performance Management Ensuring appropriate performance by all employees through: -Reinforcement -Rewards -Modeling -Coaching -Training -Development Using a consistent feedback system

40 Working of Performance Management Managers Speaks with Employee re: performance Continuously Once per Year Formal goals Organizational Reporting System Tied to Organizational Outcomes

41 POTENTIAL = Includes future service, learning interest, motivation level PERFORMANCE = Doing present job at a certain level (high or low) as measured by a formal system

42 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

43 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

44 Associated Costs Staff Costs Production and Processing Costs Training Costs Action Costs Opportunity Costs

45 1. Why assess performance 2. What performance to asses 3. How to assess performance 4. Who do assess performance 5. When to assess performance 6. How to communicate performance assessment Key PM Questions

46 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 and Placement Methods The WHY of Performance Management Systems

47 Skills/Abilities/ Needs/Traits BehaviorsResults Job KnowledgePerform TasksSales StrengthObey InstructionsProduction Levels CoordinationReport ProblemsProduction Quality Business KnowledgeMaintain EquipmentScrap/Waste Desire to AchieveFollow RulesAccidents DependabilitySubmit SuggestionsEquipment Repairs CreativityFollow-upCustomers Served LeadershipWrite ReportsCustomer Satisfaction HonestyCompletes ReviewsFeedback

48 Approaches to PM Comparative Attribute Behavioral

49 Rank each employee grouping overall or on a characteristic: Employee A and Employee B Employee B and Employee C Employee A and Employee C Employee C and Employee D Employee D and Employee A Employee D and Employee B etc. Paired Comparisons Example

50 WHO Should Assess Performance Superior Only Subordinate(s) Peers/Coworkers Self Customers Others Subordinates All Stakeholders

51 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

52 Performance Management Process that significantly affects organizational success Managers and employees work together to set expectations, review results and reward performance.

53 Purposes of Performance Mangement Strategic – Aligning employee performance with organizational objectives Administrative – Making employment-related decisions Developmental – Aiding employee growth

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