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ighlights of the Management Performance and Reward Program
 

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    ighlights of the Management Performance and Reward Program ighlights of the Management Performance and Reward Program Document Transcript

    • Highlights of the Management Performance and Reward Program
    • 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 conducted. 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. 1
    • 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 administration. 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. Alignment System’s Strategy/ Work Culture Rewards & System’s University’s How we think and Recognition/ Desired Performance and act to support the Performance Results 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. 2
    • 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 University Objective University Department Department Objective Results Work Unit Work Unit Results Objective Individual Individual 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 Performance Management 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 whole, and n the position’s accountability for delivering that success. 3
    • 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 Pay Delivery relates to providing appropriate and competitive performance-based rewards. The System uses the following methods for providing performance rewards: 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 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 Done Done Objectives Competencies Organization and Results 4 Impact
    • 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 performance cycle. 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. Important! Setting goals is different than writing the job duties and responsibilities that form a job description. 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 CORE areas: 5
    • 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. Important! 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 6
    • 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 cycle. Core Competencies 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. 7
    • Development Plans 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 cycle. 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 assessed. 8
    • Rating Performance 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 1—Below 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. 9
    • 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 recognition. I. Planning IV. Rewarding II. Coaching III. Reviewing 10
    • Questions 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. 11