1. Performance Management Cycle
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
2. 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
3. Alignment Model
Your
Organizational
Priorities
Your Major Areas of
Responsibility and
Individual Priorities
Mission
Values
Departmental
Priorities
Knowledge, Skills
and Behaviors
Performance Development Process
UNITOR
DEPARTMENT
HARVARDCOLLEGE
LIBRARY
PERSONAL
“What” “How”
4. The Performance Cycle
» 2001: December 21
» 2002: June-July
» 2002: May
» 2002: April-
May
» 2002: March
» 2002:
December-
January
5. 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
8. 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?
9. Annual Plans Should Create
Performance Standards for
Each Department
• These should translate into performance
goals for each worker
• Quantity
• Quality
• Time
• Cost
10. What Are the Three Steps in
Performance Management?
Defining Performance
Facilitating Performance
Encouraging Performance
13. 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
14. What Purposes Can P.A. Serve in
an Organization?
Any potential conflicts here? Explain.
16. 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
17. The Main Point
Be sure that what is measured is
documented & can be shown to
match job expectations
18. A Key to All of This:
Supervisors must have
the support &
encouragement of higher
management to make all
this work
19. Behavior - Oriented Systems
• Ranking Methods
• Strait Ranking
• High-Low (Alternate Ranking)
• Paired Comparison
• Forced Distribution (similar to ranking)
• Graphic Rating Scales
25. Graphic Rating Scale
• Explain how it works
• Give an example
• Potential strengths?
• Potential weaknesses?
26. Critical Incidents
• Based on Observation of Behaviors
• Positive
• Negative
• Written Notation of Behaviors is Made &
Placed in Each Employee’s File
27. Critical Incidents
• Each Observation is Discussed With the
Employee at the Time of Occurrence
• A Portfolio of Observed Events is Collected
Over Time
31. 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
32. MBO
• Steps in development and usage?
• Potential strengths and weaknesses?
33. Factors to Consider in Choice of a
P. A. System
• Cost
• Usefulness in employee development
• Usefulness in administrative decisions
• Validity
34. 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?
37. 360 Degree Appraisal
Best Known Book on the Subject:
Edwards & Ewen,
360 (degree) Feedback, Amacom,
1996.
38. Three Types of Appraisal
Interviews
• Tell & Sell
• Tell & Listen
• Problem Solving
39. 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.
40. 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?
41. Managing performance for …
Accountability
Performance target
setting and
outcome/results
review
AND / OR
44. 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
45. 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?
46. 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
47. 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.
48. • 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.
49. MBO Principles
Cascading of organizational goals and
objectives
Specific objectives for each member
Participative decision making
Explicit time period
Performance evaluation and feedback
50. 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. 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).
53. SMART
Management by Objectives introduced the
SMART method for checking the validity of
Objectives,
'SMART':
• Specific
• Measurable
• Achievable
• Realistic, and
• Time-related.
54. 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
55. 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
56. 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
57. 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
58. 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.
59. 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
60. 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:
61. Approaches to designing an
appraisal form
• Trait based
• Behavior based
– Competencies (or performance factors)
– Behaviors
• Results based
– Performance outcomes
– Objectives
62. 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
63. 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)
64. 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
65. 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!!!!!
66. 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)
67. Communication
• Timeframe for the
performance management
cycle
• Instructions for the
supervisor
• Instructions for the
employee
• Tie to other systems
• Support available
68. 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
69. 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
