Lesson 4 performance management
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Performance is often defined simply in output term .i.e. the achievement of quantified objectives. -It is however not only the matter of what people achieve but how they achieve it. -Performance means both behaviors and results. Behaviour emanates from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviors are also outcomes in their own right – the product of mental and physical effort applied to tasks – and can be judged apart from results. performance management – considers inputs (behaviour) and outputs (results).
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Lesson 4 performance management
- 1. PERFORMANCE MANAGEMENT LESSON 4 KATOPOLA, D.A © 2015: NIT 7/27/2015 1NIT _ 2015
- 2. Contents: • At the end of this module, students will: • Relate individual performance appraisal to the organization wide performance management process. • Identify a variety of appraisal methods. • Explain HR’s role in the performance management process. • Revise performance appraisal statements. • Practice performance appraisal interviewing techniques. • Have the skills necessary to use the performance appraisal process as a positive enhancement to employee performance. 7/27/2015 2NIT _ 2015
- 3. Definition of key terms • Performance is often defined simply in output term .i.e. the achievement of quantified objectives. -It is however not only the matter of what people achieve but how they achieve it. -Performance means both behaviors and results. Behaviour emanates from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviors are also outcomes in their own right – the product of mental and physical effort applied to tasks – and can be judged apart from results. - performance management – considers inputs (behaviour) and outputs (results). 7/27/2015 3NIT _ 2015
- 4. Contd. • Performance appraisal: A formal and systematic procedure for planning, managing and evaluating the performance of an individual employee for effecting performance improvement through learning and development. 7/27/2015 4NIT _ 2015
- 5. Contd. • 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. • Is a strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. 7/27/2015 5NIT _ 2015
- 6. Contd. • Performance management (PM) can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. 7/27/2015 6NIT _ 2015
- 7. Performance management Overview • Effective performance management builds and nurtures a high- performance organization culture where employees: • Know where the organisation is headed; • Know what is expected of them; • Know how to achieve results; • Expend effort to achieve those results; and • Performance management enables optimal long-term value creation • The overall aim of performance management is to establish a high performance culture in which individuals and teams take responsibility for the continuous improvement of business processes and for their own skills and contributions within a framework provided by effective leadership. Its key purpose is to focus people on doing the right things by achieving goal clarity. 7/27/2015 NIT _ 2015 7
- 8. Effective performance management include the following features: • Linking individual goals to the corporate and work unit business plans and goals; • Focusing on results, behaviors (competencies) as well as process improvement; • 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. 7/27/2015 8NIT _ 2015
- 9. Performance Management Vs Performance Appraisal • Is there a difference between Performance Management and Performance Appraisal? 7/27/2015 9NIT _ 2015
- 10. Contd. Appraisal Management One time event Ongoing Retrospective Prospective Short Term Long Term Correction oriented Progress steps Completing form Planning/goal setting 7/27/2015 10NIT _ 2015
- 11. Performance management goals • Communication between supervisor and employee. • Feedback on performance. • Documentation. • Development Goals. • Alignment with strategic planning goals. 7/27/2015 11NIT _ 2015
- 12. Who’s Involved? What Are Their Needs? • Organization: • Information. • Documentation. • Supervisor: • Documentation. • Motivation. • Employee: • Feedback. • Support for career growth. • Increased compensation. 7/27/2015 NIT _ 2015 12
- 13. HR’s role in performance management • Participate in strategic planning. • Conduct job analysis. • Support performance management. • Design appraisal system. • Train and support managers. • Maintain documents. • Provide employee due process. • Ensure integrity of the system. • Ensure compliance with nondiscrimination laws. 7/27/2015 13NIT _ 2015
- 14. Performance Management Process 1. Prerequisites. 2. Performance planning. 3. Performance execution. 4. Performance assessment. 5. Performance review. 6. Performance renewal and re-contracting. 7/27/2015 14 Plann ing Exec ution Asses sment Revie w Rene wal NIT _ 2015
- 15. 1. Prerequisites • Strategic planning. • Job analysis. 7/27/2015 15NIT _ 2015
- 16. 2. Performance planning • Employees must have thorough knowledge of the performance management system. • Meeting between employee and manager. • Set SMART goals and measurement standards: • Results. • Behavior. • Developmental plans. 7/27/2015 16NIT _ 2015
- 17. Writing Performance Objectives • Practice writing SMART performance objectives: • S – Specific. • M – Measurable. • A – Attainable. • R – Realistic. • T – Timely. 7/27/2015 17NIT _ 2015
- 18. SMART 7/27/2015 NIT _ 2015 18 Specific: clearly identify the work to be done Measureable : the quanitity or quality of work to be done Attainable: both manager and staff member agree on goals / objectives to be achieved Realistic : agreed goals / objectives are able to be completed during the specified time frame Timed: deadlines for achieving goals / objectives should be specific and realistic
- 19. 3. Performance execution • Shared responsibility • Employee responsibility: • Commitment to established goals. • Communication and update with manager. • Manager responsibility: • Feedback, coaching and reinforcement. • Resource support. • Accurate observation and documentation. 7/27/2015 19NIT _ 2015
- 20. 4. Performance assessment and appraisal • Who should appraise? • Supervisors. • Peers and team members. • Subordinates. • 360 degree feedback. 7/27/2015 20NIT _ 2015
- 21. What About the Employee? Should employees do self-appraisals? 7/27/2015 NIT _ 2015 21
- 22. Performance appraisal methods • Graphic rating scale. • Ranking method. • Forced distribution method. • Critical incident method. • Essay method. • BARS–behaviorally anchored rating scale. • MBO–management by objectives. 7/27/2015 NIT _ 2015 22
- 23. Performance appraisal problems • Appraiser discomfort. • Strictness/leniency. • Bias and lack of objectivity. • Manipulating the evaluation. • Halo/horns effect. • Central tendency error. • Recent behaviour. • Supervisor unable to observe behaviour. 7/27/2015 NIT _ 2015 23
- 24. 5. Conducting the performance interview • Explain the purpose of the interview. • Discuss self-appraisal. • Share ratings and explain rationale. • Discuss development plans. • Employee summary. • Rewards discussion (if appropriate). • Set follow-up meeting. • Employee signature. • Supervisor recap. • Appeals process. 7/27/2015 NIT _ 2015 24
- 25. 6. Performance Renewal and Re- Contracting • Final step in performance management process. • Readjust based on insight from completed process. • Plan for next performance management cycle. 7/27/2015 NIT _ 2015 25
- 26. Problems with assessment • Tied to compensation. • Employees lack motivation. • Manager and employee don’t agree on results. • Management reluctance. • No performance documentation. 7/27/2015 NIT _ 2015 26
- 27. Characteristics of a good performance management system (PMS) 1) It is a planned process of which the primary elements are agreement, measurement, feedback, positive reinforcement and dialogue. 2) It is concerned with inputs and values. The inputs are the knowledge, skills and behaviours required to produce the expected results. 3) It is a continuous and flexible process that involves managers and those whom they manage acting as partners within a framework that sets out how they can best work together to achieve the required results. 4) It focuses on future performance planning and improvement rather than on retrospective performance appraisal. 7/27/2015 NIT _ 2015 27
- 28. Issues with performance management • Legal issues. • Untrained raters. • Rater errors. • Rater distortion. • No grievance procedure. 7/27/2015 NIT _ 2015 28
- 29. Ways to overcome the challenges • The following strategies are identified as means to overcoming obstacles: Relying on Objective Assessments; Coordinating Project Planning Centrally; Adopting Performance Management Policies; Honesty and Transparency; Incentivizing Participation without Punishing Poor Results; Incremental Improvements; Dedicating Staff and Resources; and Clearly Defining Organization Direction 7/27/2015 NIT _ 2015 29
- 30. Poorly implemented PMS • False and misleading information. • Increased turnover. • Wasted time and money. • Damaged relationships. • Decreased motivation. • Job dissatisfaction. • Risk of litigation. • Unfair standards. 7/27/2015 NIT _ 2015 30
- 31. Performance management skills • Communication. • Coaching. • Giving feedback. • Empathy. • Teamwork. 7/27/2015 NIT _ 2015 31
- 32. Student Role Play 7/27/2015 NIT _ 2015 32
- 33. Q & A 7/27/2015 NIT _ 2015 33
- 34. 7/27/2015 NIT _ 2015 34
Editor's Notes
- The performance management process involves all levels in an organization. Strategic goals set by the organization filter through the organization and affect the goals and activities of each employee. In addition, the performance management process gathers and updates current employee data to maintain the human resource information system (HRIS). The HRIS contains a skill bank of employee information that enables the HR department to determine if the organization has the right mix of skills and people to achieve the organization’s goals in an ever-changing world. This information is used in all areas of HR decision-making. Effective performance management requires ongoing communication between supervisors and staff. The assessment and review part of the process provides the opportunity for documentation and formal communication. It’s the time for the supervisor and the employee to set developmental goals that reinforce the organization’s strategic plan and, if there are areas of problem performance, action plans for improvement. There should be discussion of the employee’s career progress and plans made for training and long-term career growth. Many supervisors see the appraisal process as a motivation tool to improve employee performance. The employee’s main objective is to obtain feedback from the supervisor on his or her work performance. Ideally, employees receive feedback at all times and not just through the review process. The employee will also expect organizational support in his or her career growth. Together, the employee and the supervisor should identify areas for improvement and set goals for training and skill development. Anything the supervisor can do to enhance the employee’s skills will benefit both the employee and the organization. If the organization links performance appraisal to compensation, most employees will expect a raise as a result of a positive review. Though supervisors generally conduct the review, they may not have a say in the amount of compensation awarded because compensation is normally determined by organizational policy. This can be particularly problematic for supervisors who want to motivate employees through the appraisal process but find the organization’s compensation to be a de-motivator when increases are not as much as employees would like. For this reason, many supervisors prefer that compensation increases are not linked to the performance appraisal process.
- This is a good place to ask students to discuss whether employees should do self-appraisals. Ask if any of them have done a self-appraisal where they work and if so, ask them to discuss their experiences. Performance management requires that managers and the employees take responsibility to evaluate the extent to which desired behaviors have been demonstrated and whether the desired results have been achieved. In the past, the performance appraisal was simply a process of the supervisor passing judgment on the employee’s work and then presenting the judgment to the employee--much like a courtroom judge rendering a verdict and a sentence. This was not a satisfying process for either the employee or the manager. Adding employee self-ratings to the process can help identify discrepancies between the views of the manager and the employee and can often point out areas for development opportunities. Some believe the review process can be significantly improved by employee participation throughout the process. There are a number of reasons why employee participation is valuable. 1. Who knows the job better than the employee? Employees possess relevant and unique insight into the job performance that may not be observable by even the most astute evaluator. 2. Appraisal participation gives employees input into the process, making them more confident in the fairness of the process and more likely to accept performance ratings, even adverse ones. 3. Employee participation generates an atmosphere of cooperation and employee support that may reduce tension for all involved. 4. Participation gives employees ownership of the process and a stake in the system. It is a key element in intrinsic motivation that increases employee growth and development (Roberts, 2003). There are some drawbacks to the self-evaluation process. “Research indicates the self-appraisal has great appeal for managers who are primarily concerned with employee participation and development, but self-appraisal appears less useful as an evaluative tool or for compensation purposes.” (Campbell, 1988). Sources: Roberts, G. E. (Spring, 2003). Employee performance appraisal system participation: A technique that works. Public Personnel Management. Campbell, D. J. and Lee, C. (April 13, 1988). Self-appraisal in performance evaluation: Development versus evaluation. Academy of Management Review, 302-314.