One day open training event held in Toronto, Canada.

1. Managing performance
by Toronto Training and HR
January 2012

2. 3-4 Introduction to Toronto Training and HR
5-6 Definition
Contents
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. Introduction
Page 3

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. Definition
Page 5

6. Definition
What is performance management?
Page 6

7. Issues to address
Page 7

8. Issues to address 1 of 2
Line management commitment and capability
Performance management is difficult
Poorly designed performance management
processes
Unitary and pluralistic frames of reference
Rhetoric and reality
System factors are ignored
Appraisal is an inconsistent process
Page 8

9. Issues to address 2 of 2
Performance management is wrongly focused in
financial rewards
Performance management is a means of
oppressive or coercive control
Line managers and employees tend to be
disenchanted about performance management
Page 9

10. High performance
Page 10

11. High performance 1 of 2
Definitions
Dimensions of a high-performance work system
Flexible work practices
HR practices
Page 11

12. High performance 2 of 2
HIGH-PERFORMING ORGANIZATIONS
Leadership
Design
People
Change management
Culture and engagement
Possible interventions
Page 33

13. Learning opportunities
created
Page 13

14. Learning opportunities created
1 of 2
To be developed so that it becomes more
challenging from the viewpoint of new tasks to be
accomplished, but also that the need to acquire or
extend knowledge and skills in order to carry out
those tasks is revealed
Agreement is reached between the managers and
individuals on ‘stretch goals’ which can be
achieved only if additional learning takes place
Page 14

15. Learning opportunities created
2 of 2
Specific areas where performance must be
improved are identified and the learning required
to achieve these improvements is agreed
Discussions take place on career opportunities and
the learning required to realise them
Agreement is reached on how any learning needs
can be met
Page 15

16. Performance measures for
teams
Page 16

17. Performance measures for
teams 1 of 3
OUTPUT/RESULT MEASURES
Achievement of team goals
Customer satisfaction
Quantity of work
Quality of work
Process knowledge
Maintenance of technical systems
Page 17

18. Performance measures for
teams 2 of 3
INPUT/PROCESS MEASURES
Support of team process
Participation
Oral and written communication
Collaboration and collective effort
Conflict resolution
Planning and goal-setting
Participative decision-making
Page 18

19. Performance measures for
teams 3 of 3
INPUT/PROCESS MEASURES
Problem-solving and analytical skills
Credibility and trust
Interdependence
Interpersonal relations
Acceptance of change
Adaptability and flexibility
Page 19

20. 360 degree feedback
Page 20

21. 360 degree feedback 1 of 4
Definition
Uses of 360 degree feedback
Rationale for 360 degree feedback
Page 21

22. 360 degree feedback 2 of 4
MOST LIKELY TO BE SUCCESSFUL WHEN:
It has the active support of top management
whom themselves take part in giving and receiving
feedback and encourage everyone else to do the
same
There is commitment everywhere else to the
process based on briefing, training and an
understanding of the benefits to individuals as well
as the organization
Page 22

23. 360 degree feedback 3 of 4
MOST LIKELY TO BE SUCCESSFUL WHEN:
There is real determination by all concerned to use
feedback data as the basis for development
Questionnaire items fit or reflect typical and
significant aspects of behaviour
Items covered in the questionnaire can be related
to actual events experienced by the individual
Comprehensive and well-delivered communication
and training programs are followed
Page 23

24. 360 degree feedback 4 of 4
MOST LIKELY TO BE SUCCESSFUL WHEN:
No one feels threatened by the process
Feedback questionnaires are relatively easy to
complete
Bureaucracy is minimized
Page 24

25. Using performance
management data
Page 25

26. Using performance
management data
1 of 2
Demonstrate an organization’s ability to raise
levels of competence
Assess how long it takes for a new employee to
reach optimum performance
Provide feedback on development programs in
terms of increased performance or capacity to take
on new roles
Assess commitment to values and mission
Assess understanding of strategy and contribution
Page 26

27. Using performance
management data
2 of 2
Demonstrate the success of internal recruitment
programs
Track skills levels and movement in any skills gap
in the organization
Indicate how successful an organization is at
achieving its objectives at individual, team and
department level
Match actual behaviour against desired behaviour
Page 27

28. The balanced scorecard
Page 28

29. The balanced scorecard 1 of 2
Financial perspective
How should we appear to our shareholders or
stakeholders?
Customer perspective
How should we appear to our customers?
Page 29

30. The balanced scorecard 2 of 2
Innovation and learning perspective
How will we sustain our ability to change and
improve?
Internal business perspective
What business process or processes must we excel
at?
Page 30

31. Performance management
processes
Page 31

32. Performance management
processes 1 of 4
Performance planning
Defining expectations
Objectives
Measuring performance
The continuing process of performance
management
Page 32

33. Performance management
processes 2 of 4
Reviewing performance
Providing feedback
Assessing performance
Rating performance
An alternative visual approach to rating
Coaching
Documentation
Page 33

34. Performance management
processes 3 of 4
INFORMAL
Continuous feedback
FORMAL
Design
Training
Annual implementation
Self-evaluation
Supervisor’s evaluation
Page 34

35. Performance management
processes 4 of 4
FORMAL
Performance discussion
Acknowledgement
Record keeping
Page 35

36. Principles of performance
management
Page 36

37. Principles of performance
management 1 of 5
It translates organizational goals into individual,
team, department and divisional goals
It helps to clarify organizational goals
It is a continuous and evolutionary process, in
which performance improves over time
It relies on consensus and co-operation rather
than control and coercion
Page 37

38. Principles of performance
management 2 of 5
It creates a shared understanding of what is
required to improve performance and how it will
be achieved
It encourages self-management of individual
performance
It requires a management style that is open and
honest, encouraging two-way communication
between managers and employees
It requires continuous feedback
Page 38

39. Principles of performance
management 3 of 5
Feedback loops enable the experiences and
knowledge gained on the job by individuals to
modify corporate objectives
It measures and assesses all performance against
jointly agreed goals
It should apply to all employees
It is not primarily concerned with linking
performance to financial reward
Page 39

40. Principles of performance
management 4 of 5
APPLYING THESE PRINCIPLES
A management tool which helps managers to
manage
Driven by organizational purpose and values
To obtain solutions that work
Only interested in things you can do something
about and get a visible improvement
Focus on changing behaviour rather than
paperwork
Page 40

41. Principles of performance
management 5 of 5
APPLYING THESE PRINCIPLES
It’s about how we manage people-it’s not a system
Performance management is what managers do; a
natural process of management
Based on accepted principles but operates flexibly
Success depends on what the organization is and
needs to be in its performance culture
Page 41

42. Handling criticism
Page 42

43. Handling criticism 1 of 2
Get reviewees to know that their frankness in
identifying any shortcomings is appreciated
Get reviewees to produce their own ideas on
remedial action
Provide reviewees with reassurance if they
mention as aspect of their performance which falls
below their own standards but you think is
satisfactory
Page 43

44. Handling criticism 2 of 2
If reviewees do not agree that there is a problem,
be firm but specific and give examples
Confine comments to weaknesses that can be put
right; do not try to alter the reviewee’s personality
Do not tackle more than two weaknesses in one
meeting
Page 44

45. Self-efficacy
Page 45

46. Self-efficacy 1 of 2
Self-efficacy and self-esteem
Dimensions of self-efficacy
Level
Strength
Generality
Page 46

47. Self-efficacy 2 of 2
SELF-EFFICACY EXPECTATIONS
Performance accomplishments
Modelled exposure
Verbal persuasion
Physiological arousal
Page 47

48. Engagement &
performance management
Page 48

49. Engagement & performance
management 1 of 2
Prepare
Communicate
Empower
Monitor
Manage
Page 49

50. Engagement & performance
management 2 of 2
When things go right
When things go wrong
Danger signs
Progressive discipline
Page 50

51. Poor performance
Page 51

52. Poor performance 1 of 11
QUESTIONS TO ASK
How can this be communicated to individuals?
How do we collect factual information?
Reasons for problem performance
Ways of dealing with the poor performer
Page 52

53. Poor performance 2 of 11
REASONS FOR POOR PERFORMANCE
Lack of ability or
Insufficient motivation
Page 53

54. Poor performance 3 of 11
ROLE FOR MANAGERS
Exercising effective leadership
Developing systems of work that do not place
impossible demands on people
Allocating work to people that is within their
capacity, subject possibly to additional training
Acting as coaches
Using performance management to deal with
these issues
Page 54

55. Poor performance 4 of 11
STEPS TO TAKE
Identify and agree the problem
Establish the reasons for the shortfall
Decide on and agree on the action required
Resource the action
Monitor and provide feedback
Page 55

56. Poor performance 5 of 11
FOUR DIMENSIONS INVOLVED
It’s the employee
It’s the supervisor/poor employee preparation
It’s the job
It’s the workplace atmosphere
Page 56

57. Poor performance 6 of 11
POST-RECESSION TRAUMATIC RESIDUE
Screw-ups
Slackers
Page 57

58. Poor performance 7 of 11
Just cause
The test for cause in poor performance
Page 58

59. Poor performance 8 of 11
HELPING POOR PERFORMERS
Say something
Give it to them straight
Check they understand
Make a plan
Have hope
Avoid assumptions
Share your vision
Be there
Page 59

60. Poor performance 9 of 11
ADDRESSING POOR PERFORMANCE
Assess capability
Set clear standards
Provide feedback
Don’t delay
Focus on the facts
Give time to improve
Clarify duty to act
Page 60

61. Poor performance 10 of 11
ADDRESSING POOR PERFORMANCE-KEY POINTS
Communicate clear and measurable standards
Monitor performance
Give feedback for early correction
Investigate fully and create a performance
improvement plan
Provide sufficient time to improve and escalate to
a formal process if standards are not met
Page 61

62. Poor performance 11 of 11
ADDRESSING POOR PERFORMANCE-KEY POINTS
Dismiss the employee if they cannot meet the
standard required and no further adjustments can
be made to help them
Page 62

63. Ways of improving
performance
Page 63

64. Ways of improving performance
1 of 5
Reasons
Objectives
External and internal
Systems
Design
Measures
Outcome
Monitoring
Costs
Page 64

65. Ways of improving performance
2 of 5
QUESTIONS TO ASK
Why are we assessing this person?
How important is it that the assessment is highly
accurate?
Is the assessment compulsory?
How much time and effort are we prepared to put
into the process?
How frequently do we want the assessment
completed?
Page 65

66. Ways of improving performance
3 of 5
QUESTIONS TO ASK
Who should do the judging?
What sort of evidence is needed?
Who has sight of the conclusions of the
assessment?
What will happen as a result of the assessment?
Who is responsible for ensuring that any follow-up
takes place?
Page 66

67. Ways of improving performance
4 of 5
PERFORMANCE IMPROVEMENT PLANS
Definition
Define the problem
Define the competencies or behaviours where
improvement is required
Establish the priorities of the consequences
Identify the standards upon which performance
will be measured for each of the competencies
identified
Page 67

68. Ways of improving performance
5 of 5
PERFORMANCE IMPROVEMENT PLANS
Establish short-range and long-range goals and
timetables for accomplishing change in
performance/behaviour
Develop an action plan
Establish periodic review dates to measure actual
performance against expectations
Create a file for each employee
Define the consequences of failing to meet achieve
standards
Page 68

69. Outstanding performers
who fail
Page 69

70. Outstanding performers who
fail
Engaged dreamers
Disengaged stars
Misaligned stars
Page 70

71. Automated performance
management systems
Page 71

72. Automated performance
management systems 1 of 2
What 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. Automated performance
management systems 2 of 2
What are the alternatives?
What is the financial significance?
What is the plan of execution?
Page 73

74. Common performance
rating errors
Page 74

75. Common performance rating
errors
Lack of differentiation
Recency effect
Halo effect
Horns effect
Personal bias and favouritism
Inaccurate information and preparation
Page 75

76. Performance management
and line managers
Page 76

77. Performance management and
line managers 1 of 2
Leadership from the top
Involvement in design and development of
processes
Inclusion of the ability to manage performance as
a key criterion in assessing performance
Use of 360 degree feedback to assess performance
abilities of line managers
Conduct of employee surveys and their reactions
to performance management
Page 77

78. Performance management and
line managers 2 of 2
Systematic formal training in the performance
management skills managers need to use
Coaching and guidance for managers to
supplement formal training
HR operating as a genuine business partner
alongside line managers so they can appreciate
the significance of performance management to
them
Page 78

79. Questions to ask
Page 79

80. Questions to ask 1 of 2
What do we mean by ‘high performance’?
Do our people understand what is expected of
them in terms of performance?
How can we align individual and organizational
objectives?
To what extent is performance management about
supporting the core values of the organization?
Can we identify good and poor performance?
Page 80

81. Questions to ask 2 of 2
Can we establish the reasons for good or not so
good performance?
How can we develop and motivate people to
perform well?
How can we do all that fairly, consistently and
without discrimination?
Page 81

82. Performance criteria
Page 82

83. Performance criteria
SMART goals
Examples of effective goals:
Increase revenue by 10% during the first quarter
Reduce office expenses by 25% as compared with
the prior year actual costs
Decrease employee absences from three days to
one day per quarter
Page 83

84. Types of performance
management systems
Page 84

85. Types of performance
management systems
Ranking
Forced distribution
360 degree feedback
Competency-based
Management by objectives
Graphic rating scales
Behaviourally anchored rating scales
Page 85

86. Designing a performance
management program
Page 86

87. Designing a performance
management program 1 of 2
SHOULD ENSURE
That all employees have an opportunity to discuss
their future goals/training needs with their
manager to help develop to their fullest potential
That strengths and weaknesses of all employees
are recorded regularly so that the organization can
make informed and accurate decisions regarding
an employee’s contribution, career development,
promotional opportunities, pay increases, etc.
Page 87

88. Designing a performance
management program 2 of 2
MAJOR UNDERLYING ELEMENTS
Supervisor responsibility
Performance criteria
Communication
Continuous feedback
Developmental coaching
Link to compensation
Career path
Page 88

89. Two-way conversations
Page 89

90. Two way conversations 1 of 3
The employee knows exactly where he or she
stands in relation to achieving goals and reaching
performance milestones that contribute to career
development, promotions, etc.
Page 90

91. Two way conversations 2 of 3
The manager gains insights into the motivations of
the people working for him or her through the
required conversations
Page 91

92. Two way conversations 3 of 3
The organization retains motivated employees who
understand their role and the roles of others in
contributing to the overall success of the
organization
Page 92

93. Business execution
characteristics
Page 93

94. Business execution
characteristics
Goal number dimension
Alignment
System usage dimension
Ratings scale
Page 94

95. Typical difficulties with
performance management
Page 95

96. Typical difficulties with
performance management
1 of 2
Quality of one-to-one manager/employee
discussions
Complaints at standardized, jargon-filled,
prescriptive and overly-detailed paperwork
Line managers lacking the required competence
and commitment for the process
Employees having a poor understanding of the
goals and point of the process
Page 96

97. Typical difficulties with
performance management
2 of 2
Rating and pay agendas tending to dominate and
irritate, driving out feedback and development
planning
Lack of follow-up and practical action being taken
between the formal reviews
Page 97

98. Case study
Page 98

99. Case study
Page 99

100. Conclusion & Questions
Page 100

101. Conclusion
Summary
Videos
Questions
Page 101