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Performance Management


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Performance Management

  1. 1. Introduction: Performance ManagementPerformance management is about achieving results in a manner that isconsistent with organizational expectations.Integrating competencies within the performance management processsupports the provision of feedback to employees not only on:1.“what” they have accomplished (i.e., performance goals), but also.2.“how” the work was performed, using competencies for providing feedback.Assessing competencies as a part of performance management is animportant means of assisting employees in understanding performanceexpectations and enhancing competencies. 2
  2. 2. Why manage performance? 3
  3. 3. Effective Performance managementEffective performance management include the following features: • Linking individual goals to the corporate and work unit business plans and goals; • Focusing on results (what) and behaviors (how); • Regular reviews and updating of performance plans to address changing demands; • Training for both managers and employees on how to effectively give and receive feedback, including providing feedback to employees who experience challenges in performing to the standards required in their jobs / roles; • Training for managers on how to provide performance evaluations that are valid, fair and unbiased 4
  4. 4. Confusion about “competency”Ineffectiveness of performance management is often related tomisunderstanding and -use of terms and concepts, especially the use of theword competency.When talking about competencies, it is important to distinguish occupationalskills and knowledge from psycho-social characteristics.“Competences” are first of all associated with micro-level job performanceon one hand, and competencies with higher management attributer on theother hand.A “competency” is a characteristic of an individual that has been shown todrive superior job performance. It includes both visible competencies ofknowledge and skills and underlying elements of competencies, likepersonal motives and behavior. It is therefore difficult to use “competence”as an overarching term. 5
  5. 5. Confusion about “competency”Therefore, competency-based behavioral anchors are defined asperformance capabilities needed to demonstrate knowledge, skill and ability(competency) acquisition’. According to this construction, competency is asub-set of itself. 6
  6. 6. A model for performance management Wh Ho at w Basic Performance Management Competence based performance (Temp)Breakdown Breakdown Learning Development Learning Development devision/ Organization/ indiviual Roles/JD’s Business Individual Goals (Job) Goals 7
  7. 7. Some intermediate recommendationsCurrently, I would recommend to:•Validate and communicate about the relation between Values andDesired Behaviors•Not to introduce “competency” as a term within performancemanagement vocabulary, until the basic performance managementprocess is in place, accepted and part of the performance culture•Not to relate performance to merit or performance based pay, until apolicy is in place to clarify the relation between performance and pay.•Currently relate “desired behaviors” to the overall performance results ofan individual, until a competency-based performance process is in place.•Ensure that all business and job goals for each staff member are set onindividual level and independent from other staff goal settings. 8
  8. 8. Basics of Performance ManagementA performance management program is set up to provide feedback toemployees on how effectively they are performing in their jobs.In a first phase this includes a set of business goals and individualobjectives the employee must accomplish within the review period as wellas the standards or criteria for determining whether the defined goalshave been accomplished.In a second phase the competencies can be integrated into the regularPerformance Management (PM) process in one of two ways: • By defining the competencies needed to perform each Performance Goal / Objective • By integrating the competencies for the employee’s job into the PM process 9
  9. 9. Performance Management maturity Pay for results Pay for skills Competences can be: 1.Part of each set goal (1 to 3), or 2.Additional to Goal setting 10
  10. 10. Proposed approach for implementationAssuming strategy, vision, mission and departmental objectives are inplace, the implementation of the Performance Management Processwill be in 2 phases:Phase 1: Basic Performance management1.Develop processes, key communication and training on settingbusiness goals and individual objectives on management andindividual level.2.Adapt company values into defined desired behaviors, manners andwork styles, as a first level of key competence types for individualobjective setting.3.Coach the manager in feedback, conflict and listening skills. Reviewthe objective setting.4.Coach the manager and staff in the review and appraisal process5.Relate results of appraisals to the personal development and nextyear performance planning. 11
  11. 11. Proposed approach for implementationPhase 2: Integrate the Competencies into the basic performance review andappraisal. Some conditions need to be considered, before implementingphase 2:1.Full understanding, acceptance and capability of staff in setting goals,reviewing and appraising the performance2.A competency framework approved and in place3.Competency framework integrated in the Job Descriptions and Positions,the succession/replacement planning, career development plans and overallworkforce planning4.Agreement between manager and employee on his or her “actual” levelsof competence.5.Ratings for Competencies in place6.Updated performance appraisal forms, process and tools7.Competences framework supporting the personal development plans 12
  12. 12. Timing versus approachPhased implementation of the competence based performance process Ensuring that: -Managers are trained -Expectations are managed (communication) -Leadership walks the talk -We allow a first year of error, without penalty (missed merit pay) 13
  13. 13. Some points of attentionSome points of attention, before starting on this project:1.Be prepared to answer the question “what’s in for me”. Money is a mainmotivator, but employee engagement should be key to long termcommitment and willingness to perform better and grow as professional2.Assess if staff understands, before we assume the accepted3.Conflict handling skills are crucial when performance reviews andappraisals take place4.In case the bonus is not linked to the results of performance appraisals,this needs to be communicated in advance. merit pay or performance-based pay are often a source for a failing performance process.5.Ratings on performance need to be clear, transparent. HR needs to auditthis regularly. What is the “weight” between goals- and competence-basedperformance.6.The most important factor in implementing a competency-basedperformance management system is training managers to provide thiscoaching and developmental assistance. 14