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  • Peter Scholtes used to say unpack your performance appraisal system. It does too much!!!!
  • Designing_a_Performance_Management_System.ppt

    1. 1. Designing a performance management system Mary I. Voelker, Ph.D., SPHR Friday, October 13, 2006 10:30 a.m. – 12:00 noon
    2. 2. Good and Bad <ul><li>Think of the best performance appraisal you’ve ever experienced yourself. Describe what made it so great! </li></ul><ul><li>Think of the worst performance appraisal you’ve ever experienced yourself. Describe what made it so bad! </li></ul>
    3. 3. Fact or fiction?????? <ul><li>Does your performance appraisal ……. </li></ul><ul><ul><li>Feel like paperwork to keep HR happy? </li></ul></ul><ul><ul><li>Tell most good employees they are “average”? </li></ul></ul><ul><ul><li>Focus on the past rather than the future? </li></ul></ul><ul><ul><li>Promote fear and defensiveness in employees? </li></ul></ul>
    4. 4. Reciprocal expectations <ul><li>Employees want from you </li></ul><ul><ul><li>What you expect from them </li></ul></ul><ul><ul><li>How they are doing on your expectations </li></ul></ul><ul><li>You (and your organization) want from employees </li></ul><ul><ul><li>Work that is aligned with the mission and goals </li></ul></ul><ul><ul><li>Maximum performance and growth </li></ul></ul>
    5. 5. Performance management <ul><li>Definition: </li></ul><ul><li>Employee performance management is the process of involving employees in accomplishing your agency’s mission and goals. </li></ul><ul><li>Employee performance management includes: planning work and setting goals, monitoring performance, developing capacity, reviewing performance, and rewarding good work. </li></ul>
    6. 6. Designing the performance management system <ul><li>What will be the purpose? </li></ul><ul><li>What will be the sequential stages? </li></ul><ul><li>What performance will be measured? </li></ul><ul><li>Who will assess employee performance? </li></ul><ul><li>What will be on the form? </li></ul><ul><li>Will a rating scheme be used? </li></ul><ul><li>What support systems need to be in place? </li></ul>
    7. 7. Job Performance Model A performer In a given situation Engages in certain behaviors That produce various results Grote, D. (1996). The complete guide to performance appraisal. New York: Amacom
    8. 8. Managing performance for … <ul><li>Accountability </li></ul><ul><li>Performance target setting and outcome/results review </li></ul><ul><li>AND / OR </li></ul>
    9. 9. Managing performance for … <ul><li>Employee </li></ul><ul><li>Development </li></ul><ul><li>Competence assessment and development </li></ul>
    10. 10. Stages of performance management Plan Monitor Develop Review Reward
    11. 11. Stage 1 – Individual Performance Planning <ul><li>Stage 1 – Planning </li></ul><ul><li>Work goals </li></ul><ul><li>Competencies </li></ul><ul><li>Learning </li></ul>Performance planning at the start of the year and then periodically is the core of the performance management process. The performance plan should be a written document. Plan
    12. 12. Performance planning <ul><li>How is what I do on a daily basis tied to the success of this organization? </li></ul><ul><li>What are my performance goals for the next time period? </li></ul><ul><li>How are my goals aligned with the organizational goals? </li></ul>
    13. 13. Performance Planning <ul><li>Performance results – the what </li></ul><ul><ul><li>Performance outcomes or standards – from job description </li></ul></ul><ul><ul><li>Performance objectives for the next time period </li></ul></ul><ul><li>Performance behavior – the how </li></ul><ul><ul><li>Competencies, performance factors, or behavior expectations </li></ul></ul><ul><li>Development objectives </li></ul>
    14. 14. Stage 2/3 – Monitor and Develop Daily performance management! Monitoring includes measuring performance and giving feedback. Two way communication between the manager and employee throughout the performance period is critical to the performance management process. <ul><li>Stage 2/3 – Monitor and Develop </li></ul><ul><li>Feedback </li></ul><ul><li>Coach </li></ul><ul><li>Adjust goals </li></ul>Monitor Develop
    15. 15. Daily performance management <ul><li>Feedback and coaching – informal </li></ul><ul><li>Monitoring and tracking performance against standards and progress toward goals. </li></ul><ul><li>Quarterly performance planning and performance discussions </li></ul><ul><li>Development through coaching, training, challenging or visible assignments, improving work processes </li></ul>
    16. 16. What performance will be measured? <ul><li>Behaviors – how the work is done </li></ul><ul><ul><li>Performance factors / competencies </li></ul></ul><ul><ul><li>Required behaviors </li></ul></ul><ul><ul><li>Behaviors supporting desired organizational culture </li></ul></ul><ul><li>Results – what is achieved </li></ul><ul><ul><li>Performance outcomes </li></ul></ul><ul><ul><li>Performance compared to job standards </li></ul></ul><ul><ul><li>Performance goals and/or objectives </li></ul></ul>
    17. 17. Stage 4 – Performance Review The formal process of documenting results the employee has achieved and behaviors and /or competencies displayed should occur at least once a year. <ul><li>Stage 4 – Review </li></ul><ul><li>At least annually </li></ul><ul><li>Discuss </li></ul><ul><li>Document </li></ul>Review
    18. 18. Performance Review <ul><li>Summary of performance over a period of time </li></ul><ul><li>Evaluate performance results and behaviors </li></ul><ul><li>Conducted face-to-face with a written record. </li></ul><ul><li>While rating and ranking has both pros and cons, a summary rating of each employee may be useful. </li></ul>
    19. 19. If a rating scheme will be used <ul><li>Number of levels: three, four, five, or six </li></ul><ul><li>Rating labels </li></ul><ul><ul><li>Numerical: e. g. 1, 2, 3, 4, 5 </li></ul></ul><ul><ul><li>Behavioral frequency: e. g. always, usually, frequently, sometimes, rarely </li></ul></ul><ul><ul><li>Evaluation: e. g. distinguished, superior, competent, fair, marginal </li></ul></ul><ul><ul><li>Performance against a standard: e. g. exceeds, meets, does not meet </li></ul></ul>
    20. 20. Who will assess performance? <ul><li>Immediate supervisor only </li></ul><ul><li>In addition to the immediate supervisor </li></ul><ul><ul><li>Employee (self) </li></ul></ul><ul><ul><li>Peers and coworkers </li></ul></ul><ul><ul><li>Internal and external customers </li></ul></ul><ul><ul><li>Subordinates </li></ul></ul>Choices include:
    21. 21. Approaches to designing an appraisal form <ul><li>Trait based </li></ul><ul><li>Behavior based </li></ul><ul><ul><li>Competencies (or performance factors) </li></ul></ul><ul><ul><li>Behaviors </li></ul></ul><ul><li>Results based </li></ul><ul><ul><li>Performance outcomes </li></ul></ul><ul><ul><li>Objectives </li></ul></ul>
    22. 22. What will be on the form? <ul><li>Identifying information </li></ul><ul><li>Instructions </li></ul><ul><li>Performance outcomes and/or results achieved (or not achieved) on objectives </li></ul><ul><li>Performance factors / competencies / work behaviors </li></ul><ul><li>Employee signature and approvals </li></ul>
    23. 23. Other information <ul><li>Employee comments </li></ul><ul><li>Summary of one to three major achievements </li></ul><ul><li>Strengths / areas for development </li></ul><ul><li>Overall rating </li></ul><ul><li>Plan for development (if not elsewhere) </li></ul><ul><li>Performance plan for next period (if not elsewhere) </li></ul>
    24. 24. Stage 5 – Reward Good performance should be rewarded. Recognition and non-monetary rewards are an important part of the reward structure. These include job-related rewards such as visible project assignments. Even thank you and recognition for a job well done are rewards!! <ul><li>Stage 5 – Reward </li></ul><ul><li>Monetary </li></ul><ul><li>Non-monetary </li></ul><ul><li>Recognition </li></ul>Reward
    25. 25. Rewards, recognition, and compensation <ul><li>Recognizing employees for performance </li></ul><ul><ul><li>Non-monetary rewards </li></ul></ul><ul><ul><li>Informal and ongoing acknowledgements of good work </li></ul></ul><ul><li>Compensation </li></ul><ul><ul><li>Merit increases? </li></ul></ul><ul><ul><li>Pay to market? </li></ul></ul><ul><ul><li>Increases added to base pay or lump sum? </li></ul></ul>Separate conversation about pay from conversation about performance!!!!!
    26. 26. What support systems need to be in place? <ul><li>Senior management support </li></ul><ul><li>Management accountability </li></ul><ul><li>Communication about the process </li></ul><ul><li>Training </li></ul><ul><li>Process for new employees </li></ul><ul><li>Process for dealing with poor performance </li></ul><ul><li>Monitoring and evaluating the process (HR) </li></ul><ul><li>Appeals process (HR) </li></ul>
    27. 27. Communication <ul><li>Timeframe for the performance management cycle </li></ul><ul><li>Instructions for the supervisor </li></ul><ul><li>Instructions for the employee </li></ul><ul><li>Tie to other systems </li></ul><ul><li>Support available </li></ul>
    28. 28. Sample schedule for the performance management cycle <ul><li>Complete operating plan </li></ul><ul><li>Update quarterly performance plan form with major agency objectives </li></ul><ul><li>Conduct training for supervisors (and employees) </li></ul><ul><li>Communication before, during, after </li></ul><ul><li>Timeframe for completion of appraisal </li></ul><ul><li>Timeframes for quarterly performance plans </li></ul><ul><li>Interface with compensation schedule </li></ul>