ighlights of the Management Performance and Reward ProgramDocument Transcript
Highlights of the
This document has been prepared to provide you—a management
employee within the State System of Higher Education—with an
overview of some of the key aspects of the System’s Management
Performance and Reward Program. If you have questions about the
program, please do not hesitate to discuss them with your supervisor or
contact your human resources office.
The Program’s Objectives
This program has been developed to achieve a number of important objectives.
Specifically, it has been designed to:
n Refocus the performance assessment as a management process designed to
achieve System goals, drive necessary organizational change, and directly link
each System manager’s objectives to System/university goals.
n Establish clear and measurable performance goals and objectives against which
accountability will be established and performance assessments will be
n Define a common set of behavioral expectations that are linked to System
values and support the achievement of System goals and objectives.
n Attract, retain and motivate high-quality management employees who, along
with faculty and staff, are critical to the overall achievement of the System’s
mission, vision and goals.
n Provide compensation levels that accurately reflect the relative value of
positions within the System.
n Provide externally competitive compensation relative to appropriate national
and regional labor markets.
n Reward superior individual and/or team performance measured by
organizational results, the demonstration of desired behaviors, and the
achievement of personal/team goals.
n Be clearly and consistently communicated to all management employees.
n Be administered through a common framework with flexibility for local
Alignment of Individual, University, and System Goals
Aligning personal performance to the goals of the System/university is an
important concept that is captured below.
System’s Strategy/ Work Culture Rewards &
University’s How we think and Recognition/
Performance and act to support the Performance
Outcomes Plan strategies and plans Management
Essentially, there needs to be alignment between the strategies and plans of the
System/university, the culture of the organization, and the program used to
measure and reward performance. When these components are properly aligned,
the System’s/university’s desired results can be optimally achieved.
The illustration below shows how this alignment supports the State System’s
achievement of goals, and how results achieved reflect the mission, vision, and
goals of the System/university.
State System Health of the Customers/ Continuous Other
University Stakeholders Improvement
Work Unit Results Objective
Components of the Program
There are three core components to the program—job classification, pay delivery,
and performance management.
Pay Delivery Job Classification
Job classification is the process of evaluating the System’s jobs and determining a
pay grade level based on a job’s relative value. Elements included in determining
the level of contribution a job makes to the System include:
n the know-how necessary to perform the job’s duties,
n the problem-solving required of the position,
n the impact of the job on the success and end results of the organization as a
n the position’s accountability for delivering that success.
Levels of contribution and the pay grades aligned with each level are as follows:
Level of Contribution Grades
Executive Leadership 270
260 III, II, I
Strategic Leadership 250 II, I
240, 230, 220
Tactical Leadership/Senior Professional 210, 200, 190
Operation Leadership/Professional 180, 170, 160
Management Support Staff 150, 140
Pay Delivery relates to providing appropriate and competitive performance-based
rewards. The System uses the following methods for providing performance
n Merit increase pool– performance-based awards driven by the achievement of
goals and behavioral competencies.
n Special performance awards– performance-based awards for extraordinary
individual or team contribution.
Performance management is the process of planning, measuring and assessing
performance. The Management Performance and Reward Program supports the
System’s performance and reward philosophy by effecting a process that
establishes clear and accountable goals for all managers against which
performance assessments will be conducted.
Setting Goals/Evaluating Performance
The Management Performance and Reward Program focuses on both WHAT work
is done and HOW that work is done. A manager or supervisor can best determine
performance outcomes and their impact on the success of the organization by
considering both components.
“WHAT” “HOW” the Performance
Work Is x Work is = Outcomes
Objectives Competencies Organization
and Results 4
Both Performance Results (goals and objectives) and Competencies (behaviors) are
integral components of each manager’s performance.
Under the Management Performance and Reward Program, performance is
measured in two key ways:
n Core and Job-Specific Performance Results Areas—With these measures,
the focus is on WHAT goals and objectives are accomplished during the
n Core and Job-Specific Competencies—With these measures, the focus is on
HOW results are achieved, or the application of skills and behaviors.
Core Performance Results Areas and Competencies provide for continuity
throughout the System, and Job-Specific Performance Areas and Competencies
provide for appropriate flexibility for unit/team/individual goals and objectives.
Let’s examine each of these performance measures in a bit more detail.
Performance Results (What Work Is Done)
Performance results focus on goals and objectives —WHAT you are supposed to
accomplish. Each management employee should set between five and eight goals.
As appropriate, certain goals should be identified as “primary” goals, meaning they
take on heightened importance during the year.
Setting goals is different than writing the job duties and responsibilities that form a job
Typically, the goals of management support and operational leadership managers may be more
directly linked to their job descriptions. This may result in job-specific goals being more
important than goals in the core performance areas. Higher level managers may often have
significant project assignments in support of the core goals, which align with the job, but may
extend outside the normal scope of the job.
Core Performance Areas
During each performance cycle, all managers will set performance goals in three
n Health of the University, which relates to financial health. Metrics include but
are not limited to: revenues, productivity, costs, asset allocation, budgetary
flexibility and financial audits.
n Customers and Stakeholders, which relates to quality and value. Metrics
include but are not limited to: enrollment, retention, enrollment quality, student
diversity, student and alumni satisfaction, and stakeholder surveys.
n Continuous Improvement, which relates to operational efficiency and
improvement. Metrics include but are not limited to: core processes,
organization learning and growth, program review, and accreditations.
The actual goals to be set for the performance cycle should be mutually agreed
upon by the management employee and his/her supervisor.
Job Specific Performance Areas
To supplement goals set in the three Core Performance Areas, up to five additional
performance goals that are applicable to a position and its responsibilities can be
established for an individual. These additional performance goals are known as Job
Specific Performance Areas.
Competencies (How Work Is Done)
A competency is “an underlying characteristic of an individual that causes or
predicts effective and/or superior performance in a job or situation.” Think of a
competency as a skill or behavior that a superior performer employs in the
performance of a task.
It is important to note that there is a distinct difference between performance goal setting and
determining behaviors that support goal achievement.
To determine behaviors, perhaps the best approach is to talk about a performance results based
goal, step back from it, and reflect on and identify behavior(s) that will support the achievement
of that goal. Once you can identify these behaviors, you can define the appropriate level of the
identified behavior(s). Keep in mind that learning to use behaviors is a gradual process—it often
takes organizations two to three years to become fully comfortable and proficient with
competency-based assessment systems.
The “Competency Dictionary” was developed to further define and describe
competencies in a variety of areas for different contribution levels in the
organization. These definitions are based on research on the most successfully
performing managers and organizations.
Competencies focus on levels of behavior that are expected to be demonstrated on
the job—HOW you achieve results. Each management employee should identify
and be measured on between five and eight competencies during the performance
Just as there are Core Performance Areas that are applicable to all
System/university managers, there are also Core Competencies that are universally
applied across the System/university.
Core Competencies extend from the System’s philosophy, and reflect the desired
work culture. They are intended to describe essential behaviors that ALL
managers, regardless of position, should demonstrate in the performance of their
duties to foster System/university success. The Core Competencies are:
n Results Orientation
n Customer Service Orientation
n Valuing Diversity
n Continuous Improvement
n Teamwork and Collaboration
Job Specific Competencies
Fourteen additional competencies have been provided that could be selected to
reinforce important behaviors that support effective performance in a particular
job. Management employees and their supervisors should select one or more of
these additional job-specific competencies to evaluate how work is performed. The
additional competencies are:
Analytical Thinking* Interpersonal Understanding
Change Leadership** Organization Awareness
Conceptual Thinking Relationship Building
Developing Self and Others* Self-Confidence
Flexibility/Adaptability Strategic Orientation**
Impact and Influence* System Thinking**
Initiative* Team Leadership
* These competencies may be more critical for supervisory roles.
** These competencies may be more critical for Strategic Leadership level positions.
During the planning phase each year, management employees and their supervisors
should review expected performance in the areas of results and competencies and
identify any developmental activities that can help to achieve the desired levels of
performance. These activities can then be documented on the Performance
Appraisal and Development Form and evaluated at the end of the performance
Putting It All Together
At the end of each performance cycle, performance should be discussed in relation
to each of the four performance components:
n Core Performance Areas
n Job Specific Performance Areas
n Core Competencies
n Job Specific Competencies
The supervisor should provide honest and helpful feedback to the management
employee. To foster necessary improvements, this feedback must be understood
and accepted by the management employee.
Important areas to be assessed and discussed include:
n Actual performance compared with expected results
n Trends in performance
n How performance can be improved
Accomplishments related to development plan goals and objectives should also be
The Management Performance and Reward Program uses a three-point scale to
measure performance as follows:
3—Significantly Exceeds Expectations
2—At or Above Expectations
Supervisors will provide a rating in each of three Core Performance Areas and in
up to five additional Job Specific Performance Areas. From this, an “Overall
Results Rating” will be determined.
Supervisors also will rate each of the five Core Competencies and any additional
Job Specific Competencies identified. From this, an “Overall Rating for
Competencies” will be determined.
Once this is done, supervisors will rate total overall performance and provide a
comprehensive overall rating for the performance period. The supervisor can
discuss with the management employee this overall rating and how it was
determined. If the manager disagrees with the overall rating, there are provisions
for having the rating reviewed further.
Everyone Has a Role to Play
Supervisors and management employees share joint accountability for making sure
the four steps of the performance management process are carried out each year.
First is the planning component, where supervisors and management employees
work together to set SMART (Specific, Measurable, Attainable, Relevant, and
Time-based) goals for the year ahead, identify appropriate behavioral competency
levels to be observed, and identify developmental activities that should take place.
During the performance cycle, supervisors should coach management employees.
Activities include keeping track of progress being made, holding interim review
meetings as necessary, and working to ensure any obstacles to achievement are
addressed. In the review process, management employees and their supervisors
should jointly discuss the year’s performance and identify ways in which that
performance could be improved in the months and years ahead. Finally, the reward
cycle enables a determination to be made about performance-based pay
IV. Rewarding II. Coaching
If you have any questions about the Management Performance and Reward
Program, be sure to discuss them with your supervisor or address them through
your human resources office.