Implementing a Performance Management System

PREPARATION

A successful implementation of the Performance Management System requires…

A clear understanding of how the system works

A clear understanding of its benefits from the different perspectives of all involved

Wide organizational supportAcceptance

Before Performance Management System…

SUCCESSFUL COMMUNICATION PLAN

System Acceptance

Description of the appeals

process Training for raters in evaluating

performance and giving feedback

System testing and Pilot Test

Ongoing monitoring and

evaluation of the system

COMMUNICATION PLAN

COMMUNICATION PLANA good communication plan answers:

What is performance management?How does performance management fit

into our strategy?What’s in it for me?How does it work?What are my responsibilities?How is performance management

related to other initiatives?

THREE TYPES OF BIASES THAT AFFECT THE EFFECTIVENESS OF A COMMUNICATION PLAN

1. Selective Exposure- is a tendency to expose our minds

only to ideas with which we already agree.

THREE TYPES OF BIASES THAT AFFECT THE EFFECTIVENESS OF A COMMUNICATION PLAN

2. Selective Perception- is a tendency to perceive a piece of

information as meaning what we would like it to mean even though the information, as intended by the communicator, may mean the exact opposite.

THREE TYPES OF BIASES THAT AFFECT THE EFFECTIVENESS OF A COMMUNICATION PLAN

3. Selective Retention- is a tendency to remember only those

pieces of information with which we already agree.

SEVERAL WAYS TO MINIMIZE THE NEGATIVE IMPACT OF THE THREE BIASES AND HELP GAIN SUPPORT FOR THE

SYSTEM

Involve employees.

Understand employee needs.

Strike first.

Provide facts and consequences.

SEVERAL WAYS TO MINIMIZE THE NEGATIVE IMPACT OF THE THREE BIASES AND HELP GAIN SUPPORT FOR THE

SYSTEMPut it in writing.

Use multiple channels of communication.

Use credible communicators.

Say it, and then say it again.

APPEALS PROCESS

APPEALS PROCESS

• JUDGMENTAL ISSUES– Center on the validity of the performance

evaluation

• ADMINISTRATIVE ISSUES– Involve whether the policies and procedures

were followed

APPEALS PROCESS

• Level 1/Level A appeal– The first time an appeal is filed– Appeal is sent to the HR department

Roles of the HR Department: Suggest a corrective action to the supervisor

ORInform the employee that the decision or procedures

were correct

APPEALS PROCESS

• Level 2/Level B appeal– If the supervisor does not believe action should

be takenOR

– The employee does not accept the HR decision A final and binding resolution is made by an

unbiased arbitrator outside the HR department Arbitrator – consist of a panel of peers and

managers

APPEALS PROCESS• Level 2/Level B appeal–A final and binding resolution is made

by an unbiased arbitrator outside the HR department Arbitrator – consist of a panel of

peers and managers

Roles of the panel:1. Review the case2. Ask questions3. Interview witnesses4. Research precedents5. Review policies6. Take a vote to make the

decision

Training Programs For The Acquisition Of Required Skills

Implementing a Performance Management System

Training Programs for the Acquisition of Required Skills

Helps increase the satisfaction with the system

Step necessary in preparing for the launching of the performance management system

Training Programs For The Acquisition Of Required Skills

1. Reasons for implementing performance management system

2. Information on the appraisal form and system mechanics

3. How to identify and rank job activities

4. How to observe, record, and measure performance

5. How to minimize rating errors6. How to conduct an appraisal

interview7. How to train, counsel, and coach

Content Areas That Can Be Included In Rater Training Programs:

RATER ERROR TRAINING

RATER ERROR TRAINING

• Wei dynasty in China• Philosopher Sin Yu

“an Imperial Rater of Nine Grades seldom rates men according to their merits, but always according to his likes or dislikes.”

RATER ERROR TRAINING

• To make raters aware of what rating errors they are likely to make and to help them develop strategies to minimize those errors

• RET programs:– Definitions of the most typical errors and a

description of possible causes

RATER ERROR TRAINING1) Showing videotapes

2) Filling out appraisal forms

3) Comparing ratings by the trainees and the correct ones

4) The trainer will explain: why, which & ways

“RET does not guarantee increased accuracy.”

Errors Likely to Be Made in Providing Performance RatingsUNINTENTIONAL INTENTIONAL

Similar to me Leniency

Contrast Severity

Halo Central Tendency

Primacy

Recency

Negativity

First Impression

Spillover

Stereotype

Attribution

• SIMILAR TO ME ERRORWe tend to favor those who are similar to us.

• CONTRAST ERRORSupervisors compare individuals with

one another instead of predetermined standards.

• LENIENCY ERRORRaters assign high (lenient) ratings to most or all employees.

• SEVERITY ERRORRaters assign low (severe) ratings to most or all employees.

• CENTRAL TENDENCY ERRORMost or all employees are rated as “average”.

• HALO ERRORRater generalizes an employees good behavior.

• PRIMACY ERRORPerformance is influenced mainly by Iformation collected during the initial phase of the review period.

• RECENCY ERRORPerformance is influenced mainly by information gathered during the last portion of the review period.

• NEGATIVITY ERRORRaters pace more weight on negative information than on positive or neutral information.

• FIRST IMPRESSION ERRORRaters make an initial favorable or unfavorable judgment.

• SPILLOVER ERRORScores from previous review periods unjustly influence current ratings.

• STEREOTYPE ERRORA supervisor has an oversimplified view of individuals based on group membership.

• ATTRIBUTION ERRORA supervisor attributes poor performance to an employee’s

dispositional tendencies instead of features of the situation.

FRAME OF REFERENCE TRAINING

Frame of reference training (FOR) Improves rater accuracy by thoroughly

familiarizing raters with the various performance dimensions to be assessed.

• To give raters skills• To provide accurate ratings of each employees

FOR GOALS

DISADVANTAGES

ConsistentAccurateEffective

xTime consuming

xNeeds effort

ADVANTAGES

Typical FOR Training programDiscussing of the job descriptionFamiliarizing with the performance

dimensionsUsing of the appraisal formWriting of justification for the ratingsInforming trainees of the correct ratings

FOR training program Formal steps

2.Raters are given appraisal form and instructed to read it

1.Raters evaluate the performance of three employees on three separate performance dimensions

3.Trainer discusses various employee behaviors

4.Participants are shown a videotape of a practice vignette

5.Ratings are shared with the rest of the group and discussed.

6.Trainer provides feedback to participants

BEHAVIOR OBSERVATION TRAINING

BEHAVIOR OBSERVATION TRAINING

• Implemented to minimize unintentional rating errors

• Focuses on how raters observe, store, recall, and use information about performance

• Improves raters’ skills at observing performance

• Uses observational aids:– Notes– Diaries

BEHAVIOR OBSERVATION TRAINING

BEHAVIOR OBSERVATION TRAINING

• Works best when combined with FOR (Frame of Reference) training

• Common behavioral observation errors:– First Impression– Stereotypes– Halo effects

SELF – LEADERSHIP TRAINING

• GOAL : improve a rater’s confidence in her ability to manage performance

- positive self – talk , mental imagery , positive beliefs and thought patterns

•ASSUMPTION

Self-direction

Self-motivation

Confidence

ACCURACY

Intrinsic sources of behavioral standards Doing things for intrinsic valueBeneficial for supervisorsEnhances mental processesSelf-efficacy (belief that one can do something if one tries)

STEPS IN DETERMINING SELF-LEADERSHIP PROGRAMS

1. Observe and record existing beliefs and assumptions , self-talk and imagery patterns.

2. Analyze the functionality and constructiveness of the beliefs , self-talk and imagery patterns uncovered in the previous step.

5. Continue monitoring and maintaining over time.

3. Identify or develop more functional and constructive beliefs and etc.

4. Substitute the more functional thinking for the dysfunctional thoughts experienced in the actual situations.

PILOT TESTINGPILOT TESTING

PILOT TESTING

• Evaluations are not included in the employee file.

• The system is implemented from beginning to end.

• RECORDS

Pilot Testing is done so that…

• We could gain information from the perspective of the system’s users on how well the system works

• We could learn about any difficulties and unforeseen obstacles

• We could collect recommendations on how to improve all aspects of the system

• We could understand personal reactions to it

• We need to understand that the managers who will be participating should be willing to invest the resources required to do the pilot test.

• The group should be sufficiently large and

representative of the entire organization so that reactions from the group will be generalizable to the rest of the organization.

• Pilot test provides crucial information.

• Pilot testing the system can provide huge savings and identify potential problems.

Ongoing Monitoring & Evaluation

• Effectiveness• Implemented as planned•Producing the intended

results

Evaluation Data

• Should include reactions to the system and assessment of the system’s operational and technical requirements

Additional measures to monitor and evaluate the PM system

• Number of individuals evaluated• Distribution of performance ratings• Quality of information• Quality of performance discussion meeting• System satisfaction• Overall cost/benefit ratio• Unit-level and organization level

performance

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