Managing performance January 2012


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One day open training event held in Toronto, Canada.

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Managing performance January 2012

  1. 1. Managing performance by Toronto Training and HR January 2012
  2. 2. 3-4 Introduction to Toronto Training and HR 5-6 DefinitionContents 7-9 Issues to address 10-12 High performance 13-15 Learning opportunities created 16-19 Performance measures for teams 20-24 360 degree feedback 25-27 Using performance management data 28-30 The balanced scorecard 31-35 Performance management processes 36-41 Principles of performance management 42-44 Handling criticism 45-47 Self-efficacy 48-50 Engagement & performance management 51-62 Poor performance 63-68 Ways of improving performance 69-70 Outstanding performers who fail 71-73 Automated performance management systems 74-75 Common performance rating errors 76-78 Performance management and line managers 79-81 Questions to ask 82-83 Performance criteria 84-85 Types of performance management systems 86-88 Designing a performance management program 89-92 Two way conversations 93-94 Business execution characteristics 95-97 Typical difficulties with performance management 98-99 Case study
  3. 3. Introduction Page 3
  4. 4. Introduction to Toronto Training and HR• Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden• 10 years in banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
  5. 5. Definition Page 5
  6. 6. DefinitionWhat is performance management? Page 6
  7. 7. Issues to address Page 7
  8. 8. Issues to address 1 of 2Line management commitment and capabilityPerformance management is difficultPoorly designed performance managementprocessesUnitary and pluralistic frames of referenceRhetoric and realitySystem factors are ignoredAppraisal is an inconsistent process Page 8
  9. 9. Issues to address 2 of 2Performance management is wrongly focused infinancial rewardsPerformance management is a means ofoppressive or coercive controlLine managers and employees tend to bedisenchanted about performance management Page 9
  10. 10. High performance Page 10
  11. 11. High performance 1 of 2DefinitionsDimensions of a high-performance work systemFlexible work practicesHR practices Page 11
  12. 12. High performance 2 of 2HIGH-PERFORMING ORGANIZATIONSLeadershipDesignPeopleChange managementCulture and engagementPossible interventions Page 33
  13. 13. Learning opportunities created Page 13
  14. 14. Learning opportunities created 1 of 2To be developed so that it becomes morechallenging from the viewpoint of new tasks to beaccomplished, but also that the need to acquire orextend knowledge and skills in order to carry outthose tasks is revealedAgreement is reached between the managers andindividuals on ‘stretch goals’ which can beachieved only if additional learning takes place Page 14
  15. 15. Learning opportunities created 2 of 2Specific areas where performance must beimproved are identified and the learning requiredto achieve these improvements is agreedDiscussions take place on career opportunities andthe learning required to realise themAgreement is reached on how any learning needscan be met Page 15
  16. 16. Performance measures for teams Page 16
  17. 17. Performance measures for teams 1 of 3OUTPUT/RESULT MEASURESAchievement of team goalsCustomer satisfactionQuantity of workQuality of workProcess knowledgeMaintenance of technical systems Page 17
  18. 18. Performance measures for teams 2 of 3INPUT/PROCESS MEASURESSupport of team processParticipationOral and written communicationCollaboration and collective effortConflict resolutionPlanning and goal-settingParticipative decision-making Page 18
  19. 19. Performance measures for teams 3 of 3INPUT/PROCESS MEASURESProblem-solving and analytical skillsCredibility and trustInterdependenceInterpersonal relationsAcceptance of changeAdaptability and flexibility Page 19
  20. 20. 360 degree feedback Page 20
  21. 21. 360 degree feedback 1 of 4DefinitionUses of 360 degree feedbackRationale for 360 degree feedback Page 21
  22. 22. 360 degree feedback 2 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:It has the active support of top managementwhom themselves take part in giving and receivingfeedback and encourage everyone else to do thesameThere is commitment everywhere else to theprocess based on briefing, training and anunderstanding of the benefits to individuals as wellas the organization Page 22
  23. 23. 360 degree feedback 3 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:There is real determination by all concerned to usefeedback data as the basis for developmentQuestionnaire items fit or reflect typical andsignificant aspects of behaviourItems covered in the questionnaire can be relatedto actual events experienced by the individualComprehensive and well-delivered communicationand training programs are followed Page 23
  24. 24. 360 degree feedback 4 of 4MOST LIKELY TO BE SUCCESSFUL WHEN:No one feels threatened by the processFeedback questionnaires are relatively easy tocompleteBureaucracy is minimized Page 24
  25. 25. Using performancemanagement data Page 25
  26. 26. Using performance management data 1 of 2Demonstrate an organization’s ability to raiselevels of competenceAssess how long it takes for a new employee toreach optimum performanceProvide feedback on development programs interms of increased performance or capacity to takeon new rolesAssess commitment to values and missionAssess understanding of strategy and contribution Page 26
  27. 27. Using performance management data 2 of 2Demonstrate the success of internal recruitmentprogramsTrack skills levels and movement in any skills gapin the organizationIndicate how successful an organization is atachieving its objectives at individual, team anddepartment levelMatch actual behaviour against desired behaviour Page 27
  28. 28. The balanced scorecard Page 28
  29. 29. The balanced scorecard 1 of 2Financial perspectiveHow should we appear to our shareholders orstakeholders?Customer perspectiveHow should we appear to our customers? Page 29
  30. 30. The balanced scorecard 2 of 2Innovation and learning perspectiveHow will we sustain our ability to change andimprove?Internal business perspectiveWhat business process or processes must we excelat? Page 30
  31. 31. Performance management processes Page 31
  32. 32. Performance management processes 1 of 4Performance planningDefining expectationsObjectivesMeasuring performanceThe continuing process of performancemanagement Page 32
  33. 33. Performance management processes 2 of 4Reviewing performanceProviding feedbackAssessing performanceRating performanceAn alternative visual approach to ratingCoachingDocumentation Page 33
  34. 34. Performance management processes 3 of 4INFORMALContinuous feedbackFORMALDesignTrainingAnnual implementationSelf-evaluationSupervisor’s evaluation Page 34
  35. 35. Performance management processes 4 of 4FORMALPerformance discussionAcknowledgementRecord keeping Page 35
  36. 36. Principles of performance management Page 36
  37. 37. Principles of performance management 1 of 5It translates organizational goals into individual,team, department and divisional goalsIt helps to clarify organizational goalsIt is a continuous and evolutionary process, inwhich performance improves over timeIt relies on consensus and co-operation ratherthan control and coercion Page 37
  38. 38. Principles of performance management 2 of 5It creates a shared understanding of what isrequired to improve performance and how it willbe achievedIt encourages self-management of individualperformanceIt requires a management style that is open andhonest, encouraging two-way communicationbetween managers and employeesIt requires continuous feedback Page 38
  39. 39. Principles of performance management 3 of 5Feedback loops enable the experiences andknowledge gained on the job by individuals tomodify corporate objectivesIt measures and assesses all performance againstjointly agreed goalsIt should apply to all employeesIt is not primarily concerned with linkingperformance to financial reward Page 39
  40. 40. Principles of performance management 4 of 5APPLYING THESE PRINCIPLESA management tool which helps managers tomanageDriven by organizational purpose and valuesTo obtain solutions that workOnly interested in things you can do somethingabout and get a visible improvementFocus on changing behaviour rather thanpaperwork Page 40
  41. 41. Principles of performance management 5 of 5APPLYING THESE PRINCIPLESIt’s about how we manage people-it’s not a systemPerformance management is what managers do; anatural process of managementBased on accepted principles but operates flexiblySuccess depends on what the organization is andneeds to be in its performance culture Page 41
  42. 42. Handling criticism Page 42
  43. 43. Handling criticism 1 of 2Get reviewees to know that their frankness inidentifying any shortcomings is appreciatedGet reviewees to produce their own ideas onremedial actionProvide reviewees with reassurance if theymention as aspect of their performance which fallsbelow their own standards but you think issatisfactory Page 43
  44. 44. Handling criticism 2 of 2If reviewees do not agree that there is a problem,be firm but specific and give examplesConfine comments to weaknesses that can be putright; do not try to alter the reviewee’s personalityDo not tackle more than two weaknesses in onemeeting Page 44
  45. 45. Self-efficacy Page 45
  46. 46. Self-efficacy 1 of 2Self-efficacy and self-esteemDimensions of self-efficacyLevelStrengthGenerality Page 46
  47. 47. Self-efficacy 2 of 2SELF-EFFICACY EXPECTATIONSPerformance accomplishmentsModelled exposureVerbal persuasionPhysiological arousal Page 47
  48. 48. Engagement &performance management Page 48
  49. 49. Engagement & performance management 1 of 2PrepareCommunicateEmpowerMonitorManage Page 49
  50. 50. Engagement & performance management 2 of 2When things go rightWhen things go wrongDanger signsProgressive discipline Page 50
  51. 51. Poor performance Page 51
  52. 52. Poor performance 1 of 11QUESTIONS TO ASKHow can this be communicated to individuals?How do we collect factual information?Reasons for problem performanceWays of dealing with the poor performer Page 52
  53. 53. Poor performance 2 of 11REASONS FOR POOR PERFORMANCELack of ability orInsufficient motivation Page 53
  54. 54. Poor performance 3 of 11ROLE FOR MANAGERSExercising effective leadershipDeveloping systems of work that do not placeimpossible demands on peopleAllocating work to people that is within theircapacity, subject possibly to additional trainingActing as coachesUsing performance management to deal withthese issues Page 54
  55. 55. Poor performance 4 of 11STEPS TO TAKEIdentify and agree the problemEstablish the reasons for the shortfallDecide on and agree on the action requiredResource the actionMonitor and provide feedback Page 55
  56. 56. Poor performance 5 of 11FOUR DIMENSIONS INVOLVEDIt’s the employeeIt’s the supervisor/poor employee preparationIt’s the jobIt’s the workplace atmosphere Page 56
  57. 57. Poor performance 6 of 11POST-RECESSION TRAUMATIC RESIDUEScrew-upsSlackers Page 57
  58. 58. Poor performance 7 of 11Just causeThe test for cause in poor performance Page 58
  59. 59. Poor performance 8 of 11HELPING POOR PERFORMERSSay somethingGive it to them straightCheck they understandMake a planHave hopeAvoid assumptionsShare your visionBe there Page 59
  60. 60. Poor performance 9 of 11ADDRESSING POOR PERFORMANCEAssess capabilitySet clear standardsProvide feedbackDon’t delayFocus on the factsGive time to improveClarify duty to act Page 60
  61. 61. Poor performance 10 of 11ADDRESSING POOR PERFORMANCE-KEY POINTSCommunicate clear and measurable standardsMonitor performanceGive feedback for early correctionInvestigate fully and create a performanceimprovement planProvide sufficient time to improve and escalate toa formal process if standards are not met Page 61
  62. 62. Poor performance 11 of 11ADDRESSING POOR PERFORMANCE-KEY POINTSDismiss the employee if they cannot meet thestandard required and no further adjustments canbe made to help them Page 62
  63. 63. Ways of improving performance Page 63
  64. 64. Ways of improving performance 1 of 5ReasonsObjectivesExternal and internalSystemsDesignMeasuresOutcomeMonitoringCosts Page 64
  65. 65. Ways of improving performance 2 of 5QUESTIONS TO ASKWhy are we assessing this person?How important is it that the assessment is highlyaccurate?Is the assessment compulsory?How much time and effort are we prepared to putinto the process?How frequently do we want the assessmentcompleted? Page 65
  66. 66. Ways of improving performance 3 of 5QUESTIONS TO ASKWho should do the judging?What sort of evidence is needed?Who has sight of the conclusions of theassessment?What will happen as a result of the assessment?Who is responsible for ensuring that any follow-uptakes place? Page 66
  67. 67. Ways of improving performance 4 of 5PERFORMANCE IMPROVEMENT PLANSDefinitionDefine the problemDefine the competencies or behaviours whereimprovement is requiredEstablish the priorities of the consequencesIdentify the standards upon which performancewill be measured for each of the competenciesidentified Page 67
  68. 68. Ways of improving performance 5 of 5PERFORMANCE IMPROVEMENT PLANSEstablish short-range and long-range goals andtimetables for accomplishing change inperformance/behaviourDevelop an action planEstablish periodic review dates to measure actualperformance against expectationsCreate a file for each employeeDefine the consequences of failing to meet achievestandards Page 68
  69. 69. Outstanding performers who fail Page 69
  70. 70. Outstanding performers who failEngaged dreamersDisengaged starsMisaligned stars Page 70
  71. 71. Automated performance management systems Page 71
  72. 72. Automated performance management systems 1 of 2What are you proposing?Why is there a need for change?What are the benefits of changing?How are we going to do it?What are the costs of changing?What are the risks involved?What resources are required? Page 72
  73. 73. Automated performance management systems 2 of 2What are the alternatives?What is the financial significance?What is the plan of execution? Page 73
  74. 74. Common performance rating errors Page 74
  75. 75. Common performance rating errorsLack of differentiationRecency effectHalo effectHorns effectPersonal bias and favouritismInaccurate information and preparation Page 75
  76. 76. Performance management and line managers Page 76
  77. 77. Performance management and line managers 1 of 2Leadership from the topInvolvement in design and development ofprocessesInclusion of the ability to manage performance asa key criterion in assessing performanceUse of 360 degree feedback to assess performanceabilities of line managersConduct of employee surveys and their reactionsto performance management Page 77
  78. 78. Performance management and line managers 2 of 2Systematic formal training in the performancemanagement skills managers need to useCoaching and guidance for managers tosupplement formal trainingHR operating as a genuine business partneralongside line managers so they can appreciatethe significance of performance management tothem Page 78
  79. 79. Questions to ask Page 79
  80. 80. Questions to ask 1 of 2What do we mean by ‘high performance’?Do our people understand what is expected ofthem in terms of performance?How can we align individual and organizationalobjectives?To what extent is performance management aboutsupporting the core values of the organization?Can we identify good and poor performance? Page 80
  81. 81. Questions to ask 2 of 2Can we establish the reasons for good or not sogood performance?How can we develop and motivate people toperform well?How can we do all that fairly, consistently andwithout discrimination? Page 81
  82. 82. Performance criteria Page 82
  83. 83. Performance criteriaSMART goalsExamples of effective goals:Increase revenue by 10% during the first quarterReduce office expenses by 25% as compared withthe prior year actual costsDecrease employee absences from three days toone day per quarter Page 83
  84. 84. Types of performancemanagement systems Page 84
  85. 85. Types of performance management systemsRankingForced distribution360 degree feedbackCompetency-basedManagement by objectivesGraphic rating scalesBehaviourally anchored rating scales Page 85
  86. 86. Designing a performance management program Page 86
  87. 87. Designing a performance management program 1 of 2SHOULD ENSUREThat all employees have an opportunity to discusstheir future goals/training needs with theirmanager to help develop to their fullest potentialThat strengths and weaknesses of all employeesare recorded regularly so that the organization canmake informed and accurate decisions regardingan employee’s contribution, career development,promotional opportunities, pay increases, etc. Page 87
  88. 88. Designing a performance management program 2 of 2MAJOR UNDERLYING ELEMENTSSupervisor responsibilityPerformance criteriaCommunicationContinuous feedbackDevelopmental coachingLink to compensationCareer path Page 88
  89. 89. Two-way conversations Page 89
  90. 90. Two way conversations 1 of 3The employee knows exactly where he or shestands in relation to achieving goals and reachingperformance milestones that contribute to careerdevelopment, promotions, etc. Page 90
  91. 91. Two way conversations 2 of 3The manager gains insights into the motivations ofthe people working for him or her through therequired conversations Page 91
  92. 92. Two way conversations 3 of 3The organization retains motivated employees whounderstand their role and the roles of others incontributing to the overall success of theorganization Page 92
  93. 93. Business execution characteristics Page 93
  94. 94. Business execution characteristicsGoal number dimensionAlignmentSystem usage dimensionRatings scale Page 94
  95. 95. Typical difficulties withperformance management Page 95
  96. 96. Typical difficulties with performance management 1 of 2Quality of one-to-one manager/employeediscussionsComplaints at standardized, jargon-filled,prescriptive and overly-detailed paperworkLine managers lacking the required competenceand commitment for the processEmployees having a poor understanding of thegoals and point of the process Page 96
  97. 97. Typical difficulties with performance management 2 of 2Rating and pay agendas tending to dominate andirritate, driving out feedback and developmentplanningLack of follow-up and practical action being takenbetween the formal reviews Page 97
  98. 98. Case study Page 98
  99. 99. Case study Page 99
  100. 100. Conclusion & Questions Page 100
  101. 101. ConclusionSummaryVideosQuestions Page 101
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