lec 3 effective performance management systems

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Effective Performance Management Systems

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Performance Management and

Appraisal interviewing

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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 andAppraisal 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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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?

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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Self-Assessment

• Four performance dimensions assessed:– Effectiveness– Efficiency– Relevance – Financial viability

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Ministerial Self-Assessment Cont’d.

• Two complementary steps – Developing the organisational profile

– Conducting the organisational self-assessment

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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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The Competencies Competencies for Public Service Leaders

INTELLECTUALCognitive Capacity Creativity

RELATIONSHIPInterpersonal

Relations Communication

FUTURE BUILDING

Visioning

MANAGEMENTAction

ManagementOrganizational

Awareness Teamwork Partnering

PERSONALStamina / Stress

ResistanceEthics

and Values Personality BehaviouralFlexibility Self-Confidence

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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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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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Performance ManagementPerformance 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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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


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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


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Developing Performance Goals/ObjectivesDefinitions of Performance Expectations

Performance expectations should be clear, brief, attainable, and measurable, and can be expressed in terms of:

1. Quality 2. Quantity3. Timeliness 4. Effective use of Resources 5. Manner of Performance 6. Method of Performing


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Developing Performance Goals/ObjectivesAvoid Unrealistic Goals

1. Use specific examples of behaviors and of the desired results2. 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


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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


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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


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Developing Performance Goals/Objectives Example

ProblemAn 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 NeedEmployee 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.


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Developing Performance Goals/Objectives Example

GoalGo 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).

OutcomeSkills 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.


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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 possibleFurther Motivation TipsMotivation 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.


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After the New Hire

Probationary PeriodAll 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.

Probationary Period

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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.

Probationary Period

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After the New Hire

Release from Employment Prior to Career StatusAt any time during the probationary period an employee may be released in accord with the appropriate personnel program/contract policy.

Extension of Probationary PeriodUnder appropriate circumstances, the probationary period may be extended at the discretion of the staff personnel unit.

Probationary Period

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Performance AppraisalA 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.


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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


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Performance AppraisalAssignment 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


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The Appraisal DiscussionDiscussion 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


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The Appraisal DiscussionSupervisor'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?


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LESSONS LEARNT

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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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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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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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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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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 aimsOrganization

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

SelectionAttitude surveyHealth screening

Exposition

PresentationLectureBriefing

Joint problem solving

AppraisalCounsellingDiscipline

Conflict resolution

NegotiationArbitration

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

lec 3 effective performance management systems

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