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Performance Management
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Performance Management



Performance Management

Performance Management



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Performance Management Presentation Transcript

  • 1. Performance Management Is it Worth It? YES Orlando Moreno omoreno@hotmail.com 408.656.2498
  • 2. Executive Summary Coaching and performance feedback are two essential skills needed by those leading their organizations into the 21st century. In work environments where conditions change quickly it is essential that we all have ways of measuring how we are doing, of reinforcing successful performance and correcting where improvement is needed. Performance appraisals, performance reviews, appraisal forms, whatever you want to call them, have a limited success by themselves. As a stand-alone tool to measure an employee’s success or performance, they most often offer little more information than the anxiety they elicit. However, a well-constructed performance review, used as part of a complete Performance Management System, makes employee development and organizational improvement the true goal. 408.656.2498 omoreno@hotmail.com 2
  • 3. Reality of annual evaluations In the majority of organizations, performance management is limited to an annual event where even if the employee understands the evaluation process, at the end they still are not sure how they can improve moving forward. The manager typically writes his/her opinions of an employee and assigns an overall “score” for the employee, which will determine if the employee receives an annual pay increase. Most of the time the appraisal either reflects only what the manager can remember or is not truthful for fear that a “negative” evaluation will cause the employee to become defensive or damage the relationship the manager has with the employee. 408.656.2498 omoreno@hotmail.com 3
  • 4. Reality of annual evaluations Furthermore, due to a lack of training, managers are forced to rate the employee based on numeric values or terms, which may have a different meaning to them than to other managers, causing inconsistencies throughout the organization. For the above reasons a poorly constructed performance management process can actually create more issues and discourage development instead of improving employee development and organizational improvement. 408.656.2498 omoreno@hotmail.com 4
  • 5. Steps to improve Performance Management One of the common mistakes employers make when reviewing their performance management process is that they focus solely on revising the appraisal form and feel this will solve their problems. Often employers feel that if they research and find an appraisal form, which works for another organization within the same industry, that this will work for them as well. However, this typically does not work since the best human resources practices are firm specific and are tailored to your unique business. Although the appraisal form is a key component to the performance management process, it is just one element of what makes a well- designed performance management process effective. 408.656.2498 omoreno@hotmail.com 5
  • 6. Steps to improve Performance Management It takes a lot of work on the front end to improve a traditional employee appraisal process. In fact, unless the goals and value of the process are explained to managers they may feel as if the new process is too time consuming. However, once the foundations of developmental goals are in place, time to administer the system decreases. For best results, each of the following steps is taken with the participation and cooperation of the employee. Define the purpose of the job, job duties, and responsibilities. Define performance goals with measurable outcomes. 408.656.2498 omoreno@hotmail.com 6
  • 7. Steps to improve Performance Management Define the priority of each job responsibility and goal. Define performance standards for key components of the job. Hold interim discussions  Provide positive and constructive feedback about employee performance, preferably daily, summarized and discussed, at least, quarterly.  Maintain a record of performance through critical incident reports. (Jot notes about contributions or problems throughout the quarter, in an employee file.) 408.656.2498 omoreno@hotmail.com 7
  • 8. Steps to improve Performance Management  Provide the opportunity for broader feedback. Use a performance feedback system that incorporates feedback from the employee's peers, customers, and people who may report to him/her.  Develop and administer a coaching and improvement plan if the employee is not meeting expectations. Even after completing the above steps, the process is not complete. Performance management is an ongoing process. This process should reflect the current and emerging business challenges you face and be adjusted to align with changing priorities as your business and workforce change. 408.656.2498 omoreno@hotmail.com 8
  • 9. Steps to improve Performance Management If companies want to improve their performance management programs, managers will need to be trained how to effectively run such programs and commitment to performance management needs to come from the top down. 408.656.2498 omoreno@hotmail.com 9
  • 10. Return on Investment Within a well-designed system, feedback to each staff member occurs on an ongoing basis and there are no surprises at review time. Individual performance objectives are measurable and based on prioritized goals that support the overall company goals. By focusing on developing your employees and working with them to seek out opportunities, the performance of your company overall will increase. Depending on your budget and need, our consultants can provide the support you need to revise your performance management process during any step of the process, from helping identify the correct appraisal form to training and implementation. 408.656.2498 omoreno@hotmail.com 10
  • 11. Return on Investment Our goal is to provide the tools necessary to turn a demoralizing or anxiety-ridden experience into a positive goal oriented experience, with the potential for creating a significant financial return. Orlando Moreno omoreno@hotmail.com 408.656.2498 408.656.2498 omoreno@hotmail.com 11