Performance Management by Jonathan Westover


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Performance Management by Jonathan Westover

  1. 1. Strategic Human Capital Leadership Training Series—Session 3Productive Work Environments: Creating a High Performance Work Culture
  2. 2. IntroductionJonathan H. Westover, Ph.D. Visiting Fulbright Scholar Belarusian State UniversitySchool of Business and Management of Technology MBA ProgramAssistant Professor of Management, Woodbury School of Business Email:; About Me:
  3. 3. What we will CoverThis session will address proven best practices and principles of productivework environments with a focus on creating a high performance work culture.We will:1. Define high-performance work systems and identify the elements of such a system.2. Summarize the outcomes of a high-performance work system.3. Describe the conditions that create a high-performance work system.4. Explain how human resource management can contribute to high performance and the purposes of performance management systems.5. Compare the major methods for measuring performance.6. Explain how to provide performance feedback effectively and summarize ways to produce improvement in unsatisfactory performance.
  4. 4. How Are We Doing? –We are confident that:1. We know where strategic improvements are needed and we ARE making them.2. We have a performance appraisal system that is both accurate and fair.3. When our best employees choose to leave, our exit evaluation process identifies with great clarity why we suffered this loss.4. Our middle management supervisors possess the skills required to develop the people entrusted to them and have earned the trust of those they serve.
  5. 5. The Challenge of Utilizing Human Capital• How can I get the right people into the right job?• How can I reduce employee turnover?• How can I improve my performance management process?• How can I create a high- engagement work culture?• How can I best tap the full potential of my employees?
  6. 6. Maximizing Your Human Capital Potential
  7. 7. Performance Management• Performance management: Stages of the Performance the process through which Management Process managers ensure that employees’ activities and outputs contribute to the organization’s goals.• This process requires: – Knowing what activities and outputs are desired – Observing whether they occur – Providing feedback to help employees meet expectations
  8. 8. Performance Management
  9. 9. Basic Approaches toPerformance Measurement
  10. 10. Types of Performance Measurement Rating Errors• Contrast errors: the rater compares an individual, not against an objective standard, but against other employees.• Distributional errors: the rater tends to use only one part of a rating scale. – Leniency: the reviewer rates everyone near the top – Strictness: the rater favors lower rankings – Central tendency: the rater puts everyone near the middle of the scale• Rater bias: raters often let their opinion of one quality color their opinion of others. – Halo error: when the bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area. – Horns error: when the bias involves negative ratings. This can cause employees to feel frustrated and defensive.
  11. 11. Principles of Justice
  12. 12. Progressive Discipline Hot-Stove Rule Progressive DisciplinePrinciple of discipline that says A formal discipline process indiscipline should be like a hot which the consequences becomestove, giving clear warning and more serious if the employeefollowing up with consistent, repeats the offense.objective, and immediateconsequences.
  13. 13. Giving Performance Feedback• Scheduling Performance Feedback – Performance feedback should be a regular, expected management activity. – Annual feedback is not enough. – Employees should receive feedback so often that they know what the manager will say during their annual performance review.• Preparing for a Feedback Session – Managers should be prepared for each formal feedback session.
  14. 14. Giving Performance Feedback—Cont.• Conducting the Feedback Session – During the feedback session, managers can take any of three approaches: 1. “Tell-and-Sell” – managers tell employees their ratings and then justify those ratings. 2. “Tell-and-Listen” – managers tell employees their ratings and then let the employees explain their side of the story. 3. “Problem-Solving” – managers and employees work together to solve performance problems.
  15. 15. Improving Performance
  16. 16. High-Performance Work Systems• High-performance work system – the right combination of people, technology, and organizational structure that makes full use of the organization’s resources and opportunities in achieving its goals.• To function as a high-performance work system, each of these elements must fit well with the others in a smoothly functioning whole.
  17. 17. Outcomes of a High-Performance Work System
  18. 18. Key Features of Learning Organizations1. Continuous learning – each employee’s and each group’s ongoing efforts to gather information and apply the information to their decisions.2. Knowledge is shared – one challenge is to shift the focus of training away from teaching skills and toward a broader focus on generating and sharing knowledge.3. Critical, systemic thinking – is widespread and occurs when employees are encouraged to see relationships among ideas and think in new ways.4. Learning culture – a culture in which learning is rewarded, promoted, and supported by managers and organizational objectives.5. Employees are valued – the organization recognizes that employees are the source of its knowledge. It therefore focuses on ensuring the development and well-being of each employee.
  19. 19. The 10 Key Steps in Developing an Effective Performance Management Strategy1. Define whats driving the need for a performance management solution2. Determine your strategy for moving forward.3. Align your business units with your strategy.4. Agree on what kind of people you have in the company and what kind of people you need5. Evaluate employees on consistent criteria.6. Close the loop and give workers a sense of how they fit into the companys strategy, or dont.7. Give employees an opportunity for career growth.8. Link workers skills to the job roles.9. Encourage people to behave in a way that will carry the companys goals forward.10. Identify gaps and monitor these over time. Source:
  20. 20. QUESTIONS?Jonathan H. Westover, Ph.D. Visiting Fulbright Scholar Belarusian State UniversitySchool of Business and Management of Technology MBA ProgramAssistant Professor of Management, Woodbury School of Business Email:; About Me: