0113si performance
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0113si performance Presentation Transcript

  • 1. Webinar on “Performance Assessment” 23rd January, 2013All materials are Copyrighted 2013 by Strategic Human Resources Management India, Pvt. Ltd. or Society for Human Resource Management unless otherwise expressly noted. All rights expressly reserved.
  • 2. Structure 1. Tanuja Sharma  Effective Self‐ Appraisals   Effectively rating an employee’s performance   Managing differences in Manager & Employee Assessments of  the employee’s performance  2. Vijayan Pankajakshan  The process of normalization   Dealing with poor performance   Applying the assessment process to improve employee  performance & development 3. Question & Answer Session 2
  • 3. Performance Management PMS process Boss and Dyads Organizational  Goals Aligned  Goals Aligned Roles 3
  • 4. PMS Process Overview Goal Management: Ongoing  Mid‐Year Update: Enhances  process of aligning individual  the frequency of feedback. objectives with organizational  objectives. Development Planning:  Performance Assessment:  Allows employees to continuously  Annual, end of the year assessment  learn and grow by creating  that leads to incentives for motivation  Development plan.  and retention Enhanced Effectiveness and Efficiency of the work 4
  • 5. Performance Assessment What is Performance Assessment • Performance assessment‐a critical component of the performance  Management System (PMS), also termed as Performance  Appraisal/Performance Evaluation • Dyadic Performance – manager and the boss together constitute the Dyad. In  a dyad, they may have shared responsibilities and individual accountabilities  for goal alignment. What it is not • Stand alone practice‐ Stand alone Performance assessment/will not work as  the objective of the process is to help individual in achieving her/his goals for  departmental and organizational goals. • A blame game‐ Past practice of finding gaps and ‘boss blaming the manager’  needs to be dropped as performance management is about “win‐win”, for  achieving the goals together. 5
  • 6. Performance Assessment Performance Assessment Process Involves  Self Assessment: Identifying Facilitators and Inhibitors on the job  Boss Assessment  Review process (Senior Manager and HR involvement)  Feedback from other sources (e.g., peers, customers, etc. in 360 Degree)  Assessment of the work done in Past (performance cycle) in terms of – Behaviors and results Present – Compensation to be received Future – New goals and development plans   Good assessment process will always ensure that both outcomes/results and how is the work done (behaviors/ competencies ) are also measured and assessed. 6
  • 7. Performance Assessment Desirable Features for All Assessment Forms  Simplicity  Relevancy  Descriptiveness  Adaptability Researches in PMS show that when employees are involved  in selecting  Which sources to evaluate  Which performance dimensions This results into  Higher acceptance of results  Perception that system is fair 7
  • 8. Effective Self- Appraisals IF  Objectives/goals/KRA’s – set timely -beginning of review period – proposed by individual employee- direct Manager to confirm sharpness of focus, allocation of priority/ weightage & relevance/reliability of metric  Sufficient time given – for employee to complete his/her self assessment + time for direct manager to prepare for the discussion  Necessary information – MIS/other sources- for employee to engage in meaningful self assessment  Learning /Continuous Improvement led organisation culture- encourages employees – even when some goal/objective has not been met  Ensure ‘end of review’ assessment- only culmination of timely, ongoing performance related feedback from direct manager  Enabling Managers – improve skills - minimize the gap between self assessment and the Manager assessment. 8
  • 9. Effectively rating an employees performance- PlanningPeriod commencementEnsuring :  The ‘What’ & ‘ How’ elements of Performance is built into & agreed- setting goals/KRA’s- beginning of year  ‘What’ & ‘How’ elements- have more than one ‘performance level’  Relative weightage - ‘what’ and ‘how’ - rating of the employee- setting goals/KRA’s  Team KRA/Goal- tied in- intra and inter team 9
  • 10. Effectively rating an employees performanceEnd of review periodEnsuring :  Results/outputs- beyond written goals/KRA’s- must be factored- if not rewarded, recognised  Focus on ‘performance’ and not on ‘person/personality’  Focus on achieved results first- then the ‘misses’- close with a positive future focused feedback  Focus on the ‘context (enablers / derailers) that led to achievements and ‘ misses’  If employee is new/first year in the job- while results are important, temper with assessment of learning agility  If Project environment- Project Manager to complete rating@ end of Project- input into Direct Manager 10
  • 11. Managing differences in Manager & EmployeeAssessments of the employees performanceEnsuring: Assess if employee assessment- is completely ‘out of touch with ground reality’ Compliment and acknowledge- wherever- assessment of both are in agreement Negotiate- where difference in assessment- is limited /and or- is a lower weight KRA Ask probing questions- those assessments -there is a ‘significant gap’ – provide perspective, reflect principles Assert- when ‘how’ of the result- is walking the ‘thin line’ between legal/illegal, ethical/non ethical and/or upholding company value/violating the company value Redirect conversation- towards- employee ‘competing with himself/herself’ Avoid- ‘agree to disagree’ ending- unless the situation calls for it 11
  • 12. Accountability for delivering performance canbe assigned to each role for Performance-to beassessed and rewarded 12
  • 13. The Most Important Minute-Performance Assessment for maintaining People(Book-One Minute Manager)The best minute spent is the one invested in people People expenses: Most organizations spend upwards  of 80% on salary and benefits and less than 1% on  training. Most companies spend more resources on maintaining  buildings and equipment than on maintaining people. 13
  • 14. Structure 1. Tanuja Sharma  Effective Self‐ Appraisals   Effectively rating an employee’s performance   Managing differences in Manager & Employee Assessments of  the employee’s performance  2. Vijayan Pankajakshan  The process of normalization   Dealing with poor performance   Applying the assessment process to improve employee  performance & development 3. Question & Answer Session 14
  • 15. The Process of Normalization Understanding and Educating- Why this process  All natural processes- including performance levels of employees- are inherently ‘variable’  Performance level is not static- it is a continuously improving moving quest  Normalization- Managers to ‘force rank’ their employees- on the performance rating scale * benchmarks- could be within functions/units and /or across functions/units * the ‘senior most management teams’ collective view- performance of the entire employee group  An important “decision process” - use of the principle of applying the “Bell Curve,”- distributing a fixed number/percentage of employees- each performance category. GE – made this process very popular 15
  • 16. The Process of Normalization Understanding and Educating-Why this process Three broad methods of correlating job performance and ratings of job performance*  Single Factor: Measurement error is the main difference between performance and performance ratings and this can be dealt- correction for attenuation  Multi Factor : suggest isolating and dampening of the effect of the ‘mask’ systematic range of non performance factors’ – that influence performance ratings  Mediated Multifactor: Internal distortions are a key reason-ratings failing to reflect ratee performance Normalization – an example of Mediated Multifactor method Raters must be trained or developed  (incentivized)‐ on the tools   & measurement instruments *Kevin R Murphy (Pennsylvania University/2008/Industrial & Organisation Psychology 16
  • 17. The connect between Normalisation & Forced Distribution Performance assessment is not an exact science (it does not entirely reflect objective measurement)  Normalization- is based on Statistical distribution of data regarding a Process- the ‘bell shaped curve’  Two ‘outliers’ clusters- (performance laggards and outstanding performance)- and the large majority of employee performances- clustering -the central ‘bulge’  See next slide for diagrammatical representation- Standardised Normal Distribution- ‘Bell Curve’ 17
  • 18. Statistical Distribution of Data Points in a Process 18
  • 19. Application of Normalisation  Normalization delivers two results: a) Relative grading of employee performances b) A structured, statistically validated method- how to distribute ‘limited’ rewards  CEO, Heads of HR & Finance and other functional Heads- together to ensure that salary increases are allocated such that the total increase stays largely within a fixed figure – the budget for that year. Normalisation works effectively when..  When demand for critical talent is lower than supply  Enabling Organisation culture is one of high performance Normalisation does not work well when ..  Demand for critical talent is higher than supply  If work group is very small Need to be thoughtful and equitable is a challenge 19
  • 20. Dealing with Poor Performance Understanding and Diagnosing:  Focus on ‘Performance Gap’ – NOT on personality  ‘Gap’ – immediate past review period- where performance level has been ‘below expectations’ / ‘significantly below expectations’  Stratify- trend of poor performance v/s ‘one year blip’  Is the employee new to the job/company?  Help employee identify key causes for poor performance- Skill or Will or both or some other extraneous reason  Besides closing skill gap- identify other ‘noise factors’ – may have contributed- eg: lack of clarity in mutual expectations, consequences of good and bad performance not known, irregular dialogue with direct manager  If the performance gap is a trend – very important- identify a Performance Improvement Plan – with a fixed time frame of 3 to 6 months max:  Decision -continuation of employment and/or placing the employee in an alternate job/role - be determined end of PIP 20
  • 21. Applying the assessment process to improveEmployee Performance & Development. Ensuring: Framework for Development - Competency based Leadership & Performance Management system is in place- employee performance to be assessed against a commonly understood standard Identifying and stratify employee performances: a) good/consistent performance track record b) Of the consistent performers, those that have potential- perform at same level of complexity/higher levels of complexity c) ‘High potential’ and ‘fast trackers’ d) Those who are key/critical talent AND those that would feed into Succession Planning 21
  • 22. Applying the assessment process to improveemployee performance & development Structuring development using the chosen framework AND designing intervention- 50: 30: 20 model (updated from the 70:20:10 model)  50% focus- Job/role experience, coaching, special projects (including stretch assignments), job rotation (cross functional and vertical), feedback,  30% focus- Training, action learning, mentoring, and development planning  20% focus- ‘Outside corporate work’ (community service), exposure to stakeholders (Board Members) Facilitating employees to ‘get in touch’- what they ‘deeply desire’ to do in their lives- all need not, should not & cannot be the ‘pyramid leader’ 22
  • 23. Applying the assessment process to improveemployee performance & development. Dr. Ramcharan - ‘Talent Masters’- framework Development – evolution - Individual contributor, first time Manager of People, first time Manager of Managers, first time Manager of Business, first time Manager of Managers of Businesses, Enterprise Head etc.. Dan Pink- Career Expert (TED speaker)- three ingredients for an employee to perform well- Autonomy, Mastery & Purpose) 23
  • 24. Applying the assessment process to improveemployee performance & development.Edgar Schien - Career Anchors- eight channels for channelizing &enhancing employee performance & development 24
  • 25. Employee Engagement & Discretionary Effort Pe ak Pe rform an ce D iscretion ary E ffort Aver age Pe rform an ce 3 6 9 12 15 18 21 24 Time On The Job - Months The key to success lies in creating the environment for and then promoting discretionary effort. 25
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