1. Organization Development and Change
Performance & Talent
Management

2. A Performance Management Model
Business Strategy
Reward
Systems
Goal
Setting
Individual
and Group
Performance
Workplace Technology
Employee Involvement
Performance
Appraisal

3. Characteristics of Effective Goals
Goals are Challenging
Challenging but realistic
Goals are set participatively
Goals are Clear
Goals are specific and operationally defined
Resources for goal achievement are negotiated

4. Management by Objectives (MBO)
MBO attempts to align personal goals with business strategy through increased communications and shared perceptions between managers and subordinates
MBO programs may go beyond manager and subordinate roles to address individuals, work groups, and to reconcile conflicts.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

5. Performance Appraisal Elements
Cummings & Worley, 9e (c) South-Western/Cengage Learning

6. Performance Appraisal Application Stages
Select the appropriate stakeholders
Diagnose the current situation
Establish the system’s purposes and objectives
Design the performance appraisal system
Experiment with implementation
Evaluate and monitor the system
Cummings & Worley, 9e (c) South-Western/Cengage Learning

7. Characteristics of Effective Appraisal Systems
Timely
Accurate
Accepted by the users
Understood
Focused on critical control points
Economically feasible
Cummings & Worley, 9e (c) South-Western/Cengage Learning

8. Reward System Design Features
Definition
Person/Job Based vs.
Performance Based
The extent to which rewards are based on the person, the job or the outcomes of the work
Market Position
(External Equity)
The relationship between what an organization pays and what other organizations pay
Internal Equity
The extent to which people doing similar work within and organization are rewarded the same
Hierarchy
The extent to which people in higher positions get more and varied rewards
Centralization
The extent to which reward system design, decisions and administration are standardized
Rewards Mix
The extent to which different types of rewards are available and offered to people
Security
The extent to which work is guaranteed
Seniority
The extent to which rewards are based on length of service

9. Characteristics of Effective Reward Systems
Availability
Timeliness
Performance Contingency
Durability
Equity
Visibility

10. Types of Rewards Pay Promotions Benefits Skill-based pay plans
Performance-based pay systems link pay to performance
Gain sharing involves paying bonuses based on improvements in the operating results
Promotions
Benefits

11. Performance Appraisal
The evaluation of an employee’s current and potential levels of performance to allow managers to make objective human resource decisions
Uses of performance appraisal
Let workers know how they are doing and how they can do better
Provide the basis for distributing rewards
Help the organization monitor selection, training, and development activities

12. Common Eval Techniques
Objective methods
Their basis is a measurable quantity (e.g., units of output, sales volume, number of defective products).
Judgmental methods
Managerial estimates of employee performance levels
Ranking
Ordering employees from best to worst
Difficult to use because there is no absolute standard and differences in performance of ranked employees is not apparent
Rating
Using a predetermined scale (standard) to evaluate each employee’s performance

13. Copyright © Cengage Learning. All rights reserved
Performance Appraisal Form
Copyright © Cengage Learning. All rights reserved
Source: Courtesy 3M.

14. Performance Appraisal Form
Source: Courtesy 3M.

15. Copyright © Cengage Learning. All rights reserved
Interview Prep
Can you make cause-effect linkages between your subordinates’ strengths and weakness and tangible outcomes?
How often and to what extent have you intervened in your subordinates’ areas of responsibility?
To what extent are your own actions a source of your subordinates problems?
When diagnosing performance are you able to identify root causes (e.g., motivation, ability, resources)?
Which are your subordinates limitations CANNOT be corrected?
move them out of job or retain them?
On what strengths can your subordinate capitalize to further increase their effectiveness?
Copyright © Cengage Learning. All rights reserved

16. Avoiding Appraisal Errors
Use the entire evaluation instrument; avoid focusing on one portion
Do not let an employee’s poor performance in one area influence the evaluation of other areas of performance
Evaluate the entire performance period and not the most recent behaviors of the employee
Guard against any form of personal bias or discrimination in the evaluation

17. Common Feedback Errors
Focusing on the person, rather than the behaviors
Overwhelming the person with a laundry list of areas to improve, rather than focusing on a select few.
Focusing on what you don’t want, rather than on what you do want.
Being hurtful while claiming to just be “honest”
Leaving the discussion with vague goals.
Not making the feedback timely or frequent.

18. Coaching and Mentoring
Goals
Assist in execution of a transition
Address a performance problem
Develop new behavioral skills with leadership development
Application Stages
Establish the principles of the relationship
Conduct an assessment
Coach and client debrief the results
Develop and Implement an action plan
Assess the results

19. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Do good…
Many employees are driven not by pay, but the opportunity to grow and develop.
Help those around you to reach their full potential!
Cummings & Worley, 9e (c) South-Western/Cengage Learning

20. Team member appraisal & feedback
Major areas of responsibility
Goals/Expectations – both task and team process focused
Contributions/Results
Level of Contribution: Below Average; Average; Exceptional
Areas of strengths
Developmental priorities
Goal setting for the rest of the semester

21. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Debriefing:
What was it like to be evaluated?
What was it like to give feedback?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

22. Behavioral Coaching- 360 Feedback: Before you begin…
The person you’re coaching is not willing to make a sincere effort to change. Behavioral coaching will only work if the manager you are coaching is willing to make the needed commitment.
The person has been written off by the company. Sometimes, organizations are really just documenting a case to get rid of someone. If that’s the case, don’t bother going through this process.
The person lacks the intelligence or functional skills to do the job. If a manager does not have the capacity or experience required, don’t expect behav­ioral coaching to help.
The organization has the wrong mission. Behavioral coaching is a “how to get there” process, not a “where to go” process. If the organization is headed in the wrong direction, behavioral coaching will not make it change course.

23. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
360 Feedback: An Overview
1. Clarify the purpose for every member of the organization
2. Clarify rater anonymity, accountability, and selection
3. Prepare participants
4. Review and interpret feedback results
5. Develop an action plan
6. Follow-up
Cummings & Worley, 9e (c) South-Western/Cengage Learning

24. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
360 Feedback: Steps…
Identify attributes for the manager you are coaching. Once you’ve determined the behav­ioral characteristics of a successful manager in a given position—such things as accessibility to colleagues, recognition of others, and listen­ing—ask that manager if he or she agrees that these are the right kinds of behaviors.
Determine who can provide meaningful feedback. Key stakeholders may include direct reports, peers, customers, suppliers, or members of the man­agement team. Strive for a balanced mix that does not stack the deck for or against the manager, and gain agreement that these are the ap­propriate reviewers.
Collect feedback. Assessment is often best handled in a written, anonymous survey, compiled by an outside party into a summary report and given directly to the manager. Analyze results. Talk with the manager about the results of his or her peers’ feedback. The manager may choose not to disclose individual stakeholders’ comments or numerical scores. Dis­cuss the manager’s key strengths and areas for improvement.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

25. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
360 Feedback: Steps…
Develop an action plan. The most helpful—and appreciated—outcome of any assessment is specific advice. Developing “alternatives to consider” (rather than mandates) should not be difficult. If, for exam­ple, you asked the manager to suggest things you could do to be a bet­ter listener, you would probably receive a pretty good list, such as:
Don’t interrupt people;
Paraphrase what they say;
Make eye contact;
Pause five seconds before responding to their remarks;
Recognize that the problem isn’t figuring out what to do; the prob­lem is doing it; and
Focus on one or two key behaviors and develop a few action steps to improve each.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

26. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
360 Feedback: Steps…
Have the manager respond to stakeholders. The manager being reviewed should talk with each member of the review team and collect additional sug­gestions on how to improve on the key areas targeted for improvement.
Develop an ongoing follow-up process. Within three or four months conduct a two- to six-item mini-survey with the original review team. Respon­dents should be asked whether the manager has become more or less effective in the areas targeted for improvement.
Review results and start again. If the manager has taken the process seriously, stakeholders almost invariably report improvement. Build on that suc­cess by repeating the process quarterly for the next twelve to eighteen months. This type of follow-up will assure continued progress on initial goals and uncover additional areas for improvement.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

27. The Role of HR: From HRM to Org Effectiveness
If we think about HR departments as a business which products would they offer?
Basic administrative services and transactions involved in compensating, hiring, training, and staffing
Business partner services involved with developing effective HR systems and helping implement business plans, talent management
Strategic partner role contributing to business strategy based on considerations of human capital, organizational capabilities, readiness, and developing HR practices as strategic differentiators
Cummings & Worley, 9e (c) South-Western/Cengage Learning

28. What does it mean to make HR a strategic business partner?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

29. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
What would help executives to see HR as having the capability to be a strategic partner?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

30. Leading Change at Simmons
Should Eitel and his team roll out the Great Game of life at Simmons?
Who is in favor? Why?
Who is against it? Why?
What is the context that management is facing in late 2001?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

31. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
GGOL Video
As you watch the video, what do you observe?
What new information do you get about the program and about how it might affect the workplace?
Ask yourself, does this change your decision about GGOL?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

32. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
GGOL Video:
Why are the participants so excited? Why is this important?
What is going on in the team meetings?
Anyone want to change their mind? How come?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

33. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
GGOL After the Video:
Why are the participants so excited? Why is this important?
What is going on in the team meetings?
Anyone want to change their mind? How come?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

34. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Implementing GGOL?
What specific ideas and plans for structuring a set of follow-on activities could be used to ensure that the emotion and insight generated during the program is applied to real change in the workplace?
Discuss in groups of 3.
Hints: How do you set the stage? Implement? Follow-up?
Cummings & Worley, 9e (c) South-Western/Cengage Learning

35. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Implementation
Channeling the emotional energy
Make a continuous investment in systems, processes and structures to align cultural transformation with strategic and operational goals.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

36. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
So, what happened?
An estimated 80% completed GGOL.
Post GGOL Simmons significantly increased its investment in people:
Systems for training & tracking employee development.
Increased breadth of employee training
Implemented PayPlus making some pay contingent on performance
Implemented Team Growth Process structure
Cummings & Worley, 9e (c) South-Western/Cengage Learning

37. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
What happened?
Won coveted awards:
Fortune’s best companies to work for 2004, 2005
Decrease in:
Legal fees, Workers comp, Workplace accidents
Financially successful:
Fenway Partners doubled their initial investment of 513 Million in a sale to Thomas Lee Partners.
Cummings & Worley, 9e (c) South-Western/Cengage Learning

38. Cummings & Worley, 9e (c) 2008 South-Western/Cengage Learning
Next Week
Team Presentations: SMA: Micro-Electronic Products Division
Cummings & Worley, 9e (c) South-Western/Cengage Learning