performance management HRM students related

1. Effective Performance Management
Systems
M. Usman Aleem
Lec 3
Performance
Management and
Appraisal interviewing
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2. 2
Objectives
• To recall why performance management is important
– in theory and practice
• To understand the purpose and nature of the
appraisal interview in the performance management
process
• To examine the different approaches and styles of
appraisal interviews
• To give an opportunity to gain experience in the
practical aspects of appraisal interviewing
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Performance Management and
Appraisal interviewing
• Introduction – recall the uses, objectives and
problems of Performance Management
• Performance appraisal - what is appraised?
• Appraisal interviewing - styles, structure and skills
• Interviewing practice - some guidelines
• Summing up
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4. 4
Introduction
• Performance Management …
– has a critical role to play in organisational performance
– is widespread (found in nine out of ten firms)
– is vital to all employees
– is increasingly carried out by line managers
– is one of the most difficult tasks managers have to carry
out
– (Torrington et al 2005; Grint, 1993; McGregor, 1957; Meyer, 1965)
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What do we mean by performance
management?
• ‘the policies, procedures and practices that focus on employee
performance as a means of fulfilling organisational goals and objectives’
• (Lowry (2002) in Marchington and Wilkinson (2005: 187-8))
• ‘establishing a framework in which performance by individuals can be
directed, monitored, evaluated and rewarded, and whereby the links in the
cycle can be audited’
• (Mabey and Salaman (1995) in Torrington et al (2005: 261))
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Performance Management: why is
it used?
• Key role in linking the goals of the organisation to
the individual (vertical integration)
• Gives a synergy with other HR practices eg reward
systems (horizontal integration)
• Seeking to improve performance at an
organisational and individual level
• Ritualistic aspects
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How does a performance management
system look?
Organisational
objectives
Departmental/team
objectives
Individual
competencies
Setting of
performance standards
Monitoring and Assessment
Development Reward
Career
planning
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Objectives of Performance
Management Systems
• Set objectives and review performance
against objectives/standards
• Personal development: identify training and
development needs and potential
• Linking team and organisational objectives
Source: Performance Management Survey Report September 2005 CIPD
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Performance Management: some
problems
• Conflicting purposes: judge/coach dilemma
• Role of the appraiser: competence, motivation and values
• Role of the appraisee: promotion and development
• Appraiser/appraisee relationship: quality is key
• Validity of the criteria: are they related to the job?
• What is the quality of the data collected?
• Impact of performance appraisal on performance
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10. Self-Assessment
• Four performance dimensions assessed:
– Effectiveness
– Efficiency
– Relevance
– Financial viability
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11. Ministerial Self-Assessment Cont’d.
• Two complementary steps
– Developing the organisational profile
– Conducting the organisational self-assessment
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12. Assessment of Management Team
Performance
• Use of a multi-rater (360 degree) assessment
process or as per org.culture
• Manager assessed against fourteen core
competencies required by senior managers
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13. The Competencies
Competencies for Public Service Leaders
INTELLECTUAL
Cognitive
Capacity
Creativity
RELATIONSHIP
Interpersonal
Relations
Communication
FUTURE BUILDING
Visioning
MANAGEMENT
Action
Management
Organizational
Awareness
Teamwork Partnering
PERSONAL
Stamina / Stress
Resistance
Ethics
and Values
Personality
Behavioural
Flexibility
Self-Confidence
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14. Outputs of Assessment
• Confidential Individual report
• Report on performance of management
team
• Development of individual action plan
• Development of Management Team action
plan
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15. Performance Management Objectives
The most effective methods to create constructive
performance evaluations and how to communicate with
employees during the performance process.
• To learn the basics of Performance Management
• To understand the purpose and strategies behind
Performance Appraisals
• To gain knowledge of the performance management
forms and tools
• To gain an understanding of the merit/awards process
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16. Performance Management
Performance Management
Performance management is an ongoing process of
communication between a supervisor and an employee
that occurs throughout the year, in support of
accomplishing the strategic objectives of the
organization.
The communication process includes:
• Setting Objectives
• Discussing Expectations and Performance Standards
• Identifying Goals
• Providing Feedback
• Evaluating Results
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17. 1. Develop/Review
Position Description
2. Establish Performance
Expectations
3. Identify Tools and
Training Needed
4. Ongoing Feedback and
Communication
5. Handle Issues as
they Arise.
6. Adjust Assignments
as Needed
7. Formal Performance
Evaluation (no surprises!)
8. Discuss Possible
Professional
Development Plan
9. Merit
Rewards
Process
The
Annual
Performance
Management
Process
Performance Management
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18. The Importance of Performance Planning
The purposes of the Division of Agriculture & Natural Resources
performance management program are to:
• Provide a link between work planning for individual staff
members and overall department and Division goals
• Help staff members understand their job responsibilities and
improve job performance
• Recognize and reward staff member contributions, and foster
professional development and career growth
• Increase productivity and correct problems
• Required in the determination of merit increases
Performance Management
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19. Developing Performance Goals/Objectives
Definitions of Performance Expectations
Performance expectations should be clear, brief, attainable,
and measurable, and can be expressed in terms of:
1. Quality
2. Quantity
3. Timeliness
4. Effective use of Resources
5. Manner of Performance
6. Method of Performing
Performance Management
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20. Developing Performance Goals/Objectives
Avoid Unrealistic Goals
1. Use specific examples of behaviors and of the desired results
2. Avoid using evaluative terms which do not describe behaviors
and/or outcomes, such as "good work" and "bad attitude"
3. Be wary of using terms such as "always" and "never." It is not
realistic to expect that a staff member will always perform
perfectly and will never make a mistake
4. Avoid using numbers in goals unless you actually intend to
count the behavior
5. Consider the cost/benefit of gathering data on performance
Performance Management
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21. Developing Performance Goals/Objectives
Verifying and Recording Performance
Methods of Verifying Performance
Determined at the start of the evaluation period and
discussed with the staff member.
• Direct observation
• Reports of others' observations
• Written records such as attendance, financial,
assignment logs, and status reports
• Results in the form of tangible products
Performance Management
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22. Developing Performance Goals/Objectives
Verifying and Recording Performance
Record Performance
• Record only job-related performance, avoid
making statements about an individual
• Do not try to record every event; select a
representative sample of performance
• Cross validate reports from others
• Record both positive and negative performance
Performance Management
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23. Developing Performance Goals/Objectives
Example
Problem
An employee has been making mistakes while entering
the payroll for the last month. They have had to go back
and correct their mistakes the next day, taking time
away from other projects.
Performance Need
Employee needs to prepare all work accurately and on
time in order to keep on schedule and provide the other
administrative services as part of their job.
Performance Management
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24. Developing Performance Goals/Objectives
Example
Goal
Go through PPS training refresher course, in order to
keep up to date and get a reminder of the intricacies
(details) of the system (by November 2016).
Outcome
Skills to enter payroll into the PPS system, on time,
with a lower rate of error, in order to free up time for
other administrative tasks.
Performance Management
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25. Counseling and Coaching Tips
• Share knowledge and experience
• Share feedback and observations
• Use questioning to stimulate thinking
• Facilitate by listening
• Encourage brainstorming
• Explore options and consequences together
• Allow the employee to find their own conclusions and
solve their own problems when possible
Further Motivation Tips
Motivation works best when its focus is on enhancing and sustaining performance.
The more you know your staff, their needs and desires related to their job
performance, the more you will understand what motivates them.
Performance Management
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26. After the New Hire
Probationary Period
All professional and support staff employees who
hold career appointments shall serve a probationary
period during which time their work performance
and general suitability shall be evaluated in writing.
The probationary period is completed following six
months of continuous service at one-half time or
more without a break in service.
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Probationary Period
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27. After the New Hire
Establish Performance Goals
Performance goals and objectives are what an employee
can look to, and what a supervisor can look to in order to
understand the desired outcome of each function of the
job.
Employees and managers should meet to clarify expected
outcomes and set objectives that coordinate the
employee's job to department and campus objectives.
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Probationary Period
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28. After the New Hire
Release from Employment Prior to Career Status
At any time during the probationary period an employee
may be released in accord with the appropriate personnel
program/contract policy.
Extension of Probationary Period
Under appropriate circumstances, the probationary period
may be extended at the discretion of the staff personnel
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Probationary Period
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29. Performance Appraisal
A formal performance review must be conducted each year
consisting of discussions between the supervisor and the
staff member and a written record of the appraisal.
Discussions should occur more frequently if needed, such
as when new objectives are developed, or if the staff
member requires a more structured approach in order to
encourage improved performance.
The content of the formal appraisal should not be a
surprise.
Performance Management
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30. Performance Appraisal
Guidelines
• Frequent Communication Throughout the Year
• Judge Your Own Performance
• Warm-Up Period
• Be Candid & Be Specific
• Build on Strengths
• Be a Positive Listener
• Judge Performance - Not the Person
Performance Management
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31. Performance Appraisal
Assignment of Overall Performance Rating
Overall performance ratings are qualified by four
areas:
1. Exceeds Job Expectations
2. Meets Job Expectations
3. Partially Meets Job Expectations
4. Does Not Meet Job Expectations
Performance Management
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32. The Appraisal Discussion
Discussion Tips
• Clearly state the purpose of the meeting and explain the process
• Tell staff member what can come out of meeting, including future
assignments, clear communication, and increased duties
• Help the staff member feel at ease and receptive
• Avoid criticism of personality or personal traits
• Use listening skills to separate facts from opinions
• Conclude with a summary of the main points of the discussion
• Inform staff member of the option to respond to the appraisal
• Have employee sign the form, or set a mutually agreeable date for
signing the final form
Performance Management
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33. The Appraisal Discussion
Supervisor's Self Evaluation
• Did things go well/poorly? Why?
• What topics were handled successfully/unsuccessfully?
• What subjects aroused the staff member's interest and
involvement?
• Were all important points thoroughly discussed?
• What remains as unfinished business?
• What points should be raised at the next meeting?
• What performance should be monitored in the future?
• What objectives should be set?
• Is the staff member a possible candidate 4 promotion?
Performance Management
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34. LESSONS LEARNT
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35. Lessons Learnt
• Need for alignment of individual employee
appraisal system with system for managing
organization performance
• Assess performance on a number of different
dimensions
• Need to develop systems to suit one’s
particular context and needs
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36. Lessons Learnt Cont’d.
• Need to utilise competency-based
management approach
• Need for a systems perspective. One aspect of
the system impacts another. E.g.
Development of core competencies has
implications for recruitment and selection,
training
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37. Lessons Learnt Cont’d.
• Need to adopt a change management
approach, inclusive of
– Research on best practices
– Involvement of key stakeholders
– Assigning dedicated leadership to change
– Review of existing processes, utilising new
technology where appropriate
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38. Lessons learnt Cont’d.
• Need to adopt a change management
approach, inclusive of:
– Developing an appropriate communications
strategy
– Building the required knowledge, skills and
attitudes
– Developing the required tools
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39. Lessons Learnt Cont’d.- Evolving Strategies in
Meeting Challenges of PMAS
• Training of Staff directly
• Training of HR Practitioners
• Coaching of HR Practitioners
• Development of Training Tools:
• PMAS Toolkit
• Training Video, “Shaping Performance: Appraising Mr
Paul”
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Conflicting aims
Organization
Seeking the
development of
individuals through
coaching
Seeking information
on which to base
reward and promotion
decisions
Individual
Seeking valid
performance
feedback for
development
Seeking rewards
and promotion
= conflict
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Performance Appraisal: What is appraised?
• Non-criteria or evidence based – personal
evaluation
• Rating traits – personal characteristics
• Objectives – performance compared with targets
• Competencies/behaviours – displayed and
desired
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Types of interaction
Enquiry
Selection
Attitude survey
Health screening
Exposition
Presentation
Lecture
Briefing
Joint problem solving
Appraisal
Counselling
Discipline
Conflict resolution
Negotiation
Arbitration
Torrington et al (2005: 71)
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Performance Appraisal:
interviewing styles
• Tell and sell: appraiser acts as a judge – tells the
appraisee the result and how to improve
• Tell and listen: communicates outcomes and
listens to reactions
• Problem solving: appraisee encouraged to discuss
problem areas and consider solutions
• (Maier, N. (1976) The Appraisal interview – the three basic approaches)
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Performance Appraisal:
interview structure
• Preparation
– Both parties need to prepare
– Appraiser: What style to adopt? gather the evidence from
all parties
– Appraisee: self assessment
• Structure
– Purpose and rapport – agree purpose and structure
– Factual review – of the known facts
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– Appraisee views – comments on the last time period
(gone well/what could be improved/likes and dislikes)
– Appraiser views - asks questions, offers views and
comments
– Problem solving – how can any differences be
resolved?
– Objective setting – what actions should be taken, by
whom and on what time scale
– (Torrington et al, 2005: 343)
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Performance appraisal: interviewing skills
• Ask the right questions: open, probing, follow up and
reflective
• Engage in active, careful listening to all forms of
communication
• Provide feedback based on evidence and examples
• Avoid: a focus on failure, control by the appraiser,
ends with disagreement
• (CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
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Ideally an appraisal meeting is where…
• Appraisees do most of the talking
• Appraisers listen actively and provide feedback
• Scope for reflection and analysis – an exchange of views
• Performance is analysed not personalities
• Whole period is reviewed not just isolated incidents –
evidence based
• Achievement is recognised and reinforced
• Identify areas for improvement – set agree objectives
• Ends positively with agreed action plans to improve
performance
• (CIPD Performance Appraisal Fact Sheet at cipd.co.uk)
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Summing up
• Key strategic and individual role of performance management
– new developments
• Key task for line managers but difficult to carry out
successfully
• Powerful influence on behaviour – both positive and negative
• Requires careful support and implementation by line
managers
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Features of Performance Management
Systems
% use % effective
Individual annual appraisal 65 83
Objective setting and review 62 82
Personal development plans 62 81
Career management 37 47
Coaching 36 46
Performance related pay 31 39
Competence assessment 31 39
Self appraisal 30 53
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% use % effective
Twice yearly 27 38
360 degree 14 20
Continuous 14 20
Subordinate 11 17
Rolling 10 21
Peer 8 12
Competence related 7 11
Team 6 10
Contribution 4 6
Team pay 3 5
Source: Performance Management Survey Report September 2015 CI
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