Performance Management Systems

HRM

Basic Concepts in Performance Management and Appraisal

Comparing Performance Appraisal and Performance Management

Performance Appraisal:
Setting work standards, assessing performance, and providing feedback to employees to motivate, correct, and continue their performance.

Performance Management:
An integrated approach to ensuring that an employees performance supports and contributes to the organizations strategic aims.
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Why Performance Management?

Total Quality

The Performance Management Approach

Appraisal Issues

Strategic Focus

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The Building Blocks of an Effective Performance Management Process

Direction sharing

Role clarification

Goal setting and planning

Goal alignment

Developmental goal setting

Ongoing performance monitoring

Ongoing feedback

Coaching and support

Performance assessment (appraisal)

Rewards, recognition, and compensation Workflow, process control, and return on investment management
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Defining the Employees Goals and Work Standards

Guidelines for Effective Goal Setting

Assign Specific Goals

Assign Measurable Goals

Assign Challenging but Doable Goals

Encourage Participation

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Setting Goals
SMART

Goals:

Specific, and clearly state the desired results. Measurable in answering how much. Attainable, and not too tough or too easy. Relevant to whats to be achieved.

Timely in reflecting deadlines and milestones.

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Performance Appraisal Roles

Supervisors
Usually do the actual appraising. Must be familiar with basic appraisal techniques.

Must understand and avoid problems that can cripple appraisals.

Must know how to conduct appraisals fairly.
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Performance Appraisal Roles

The

HR Department

Serves a policy-making and advisory role. Provides advice and assistance regarding the appraisal tool to use. Trains supervisors to improve their appraisal skills. Monitors the appraisal system effectiveness and compliance with relevant laws and guidelines.

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An Introduction to Appraising Performance

Why Appraise Performance?
1

Is basis for pay and promotion decisions. Plays an integral role in performance management.

2 3

Helps in correcting deficiencies and reinforcing good performance.

Is useful in career planning.

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(Un)Realistic Appraisals
Motivations

for Soft Appraisals

The fear of having to hire and train someone new. The unpleasant reaction of the appraisee. An appraisal process thats not conducive to candor.

Hazards

of Soft Appraisals

Employee loses the chance to improve before being forced to change jobs.

Lawsuits arising from actions involving inaccurate performance appraisals.

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An Introduction to Appraising Performance

Steps in Appraising Performance
1

Defining the job Appraising performance

2
3

Providing feedback

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Designing the Appraisal Tool

What

to Measure?

Work output (quality and quantity) Personal competencies Goal (objective) achievement

How

to Measure?

Generic dimensions Actual job duties Behavioral competencies

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Performance Appraisal - A Sample Appraisal System

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Performance Management
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GAP
Actual Performance
(Where you are)

Optimal Performance
(Where you want to be)

Performance Plan

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What are the benefits?

For For For

the supervisor?

Employees?
the Department/Organization

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Benefits
Employee

Supervisors

Dept/Organization
Better knowledge of talent pool
Coaching, Training, & Development needs Succession planning HR planning to achieve Universitys strategic goals as they evolve. Adapt more quickly and easily to change A more engaged and focused work force A fair way to link performance to rewards. Retain top performers Greater department morale and community spirit Learn more about the effectiveness of our selection procedures. Administer fair incentives
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Clear sense of what you are to do and why youre doing it Capitalize on your strengths

Greater communication Better employee relations Awareness of employee career interests and strengths

Know what you need to do differently

Understand how you contribute to the department and organization Recognition and appreciation of your contributions More engaged in what you do Are possibly happier at work Further your career interests

Determine progression to roles that better utilize skills

Enhanced effort in quality and productivity Less absenteeism

Have a more unified team

Less costly turnovers Improved leadership skills Know what kind of help your employees need from you Good grasp of workloads Historical record and comparisons
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Increased job satisfaction

Clearly defined expectations

Focus on future goals and development

Employee Evaluation Tools

Annual Statement of Achievements and Results Performance Factors
Recommendation and Plans

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Annual Statement of Achievements and Results

List

the WORK Describe RESULTS Concrete EXAMPLES Avoid unsubstantiated Statements or opinions

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Examples (A-1)

Training

(50 Hrs)

Emily delivered 23 workshops, with just over 200 participants. The pre and post testing scores from this years participants showed an increase in the retention of the material presented by Emily (last year 54% retention-this year 65% retention) her increased knowledge and confidence have enabled her to more efficiently deliver her training sessions on file systems, records retention, transferring records to Records Management and retrieving records from storage. Emily has exceeded the expectations

Annual and month end reports

12-15 days/yr

Kate has kept a close eye on monthly readings to ensure accuracy for monthly billings and the annual report. Although all reporting procedures have been completed accurately and independently only 8 of the 12 were on time. Kate is concerned about the missed deadlines and has agreed to a solution (see perf. plan) that will help her to meet the time expectations.

Transport UH & UCA waste to compactor at SU

15%

Tanner was able to meet the daily waste removal requirements. He made sure that the transportation runs between all 15 stations were according to schedule and collection areas were left clean and in order

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Discussion Points (A-2)

Be

prepared Organize thoughts Collaboration

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Examples (A-2)

This past year has been exceptionally good for Janet as far as reconciliation procedures are concerned. She has a very good understanding of her responsibilities and has successfully completed her first year-end without assistance. However, she has had a few issues regarding compliance with the cataloging of materials. Kathy has tremendous energy and enthusiasm which has energized the department. Her handling of the OSA project in particular was very effective and impressive. She has also been able to deal with all requests for data in a cooperative and timely way.

As the department has taken on four major projects, responsibilities have increased for managers and staff in addition to their regular duties. To help minimize workflow interruptions, I would rather that Rudy keeps the length of socializing with dept employees to a reasonable minimum.

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Performance Factors

Measures behaviors and actions: HOW the work is done.

Performance Factors:

1.Quality and Quantity 2.Attitude and Reliability 3.Working Relations 4.Communication 5.Knowledge and Versatility 6.Planning and Initiative 7.Judgment and Problem Solving 8.Supervision and Leadership
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Gary completes his schedule of assigned cleaning tasks to the required standards every shift. Given the high amount of traffic and use in the common areas this isnt always easy to do.

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Gary completes his schedule of assigned cleaning tasks to the required standards every shift. Given the high amount of traffic and use in the common areas this isnt always easy to do.

Alexis has a good grasp of her serials binding, receiving, basic map cataloguing, and general services desk responsibilities. After receiving some initial training sessions in monograph cataloguing in May she has begun to learn/develop those skills. I am confident she will make good progress over the coming year as her experience increases.

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Gary completes his schedule of assigned cleaning tasks to the required standards every shift. Given the high amount of traffic and use in the common areas this isnt always easy to do. Alexis has a good grasp of her serials binding, receiving, basic map cataloguing, and general services desk responsibilities. After receiving some initial training sessions in monograph cataloguing in May she has begun to learn/develop those skills. I am confident she will make good progress over the coming year as her experience increases.

Josh ends each day by reviewing what he needs to accomplish in the next. He always gets right to work, time is seldom wasted fixing problems as he does things right the first time (eg LAR event program and agenda, Basal document plan, dept retreat materials, etc.) He has good intuition on whats needed for different meetings or presentations, whether its certain equipment or background information. Paper and duplicating costs in the main office have been positively affected with Joshs no wasting paper rule.

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I complete all of my assigned tasks, and I am committed to the quality of my work. I have never missed a deadline and there have never been any problems with quality I have a good grasp of serials binding, receiving, basic map cataloguing, and general services desk responsibilities. After my initial training sessions in monograph cataloguing in May I have started to learn and develop those skills. I know that there are still things that I dont know how to do but I am worki ng on them.
Josh ends each day by reviewing what he needs to accomplish in the next. He always gets right to work, time is seldom wasted fixing problems as he does things right the first time (eg LAR event program and agenda, Basal document plan, dept retreat materials, etc.) He has good intuition on whats needed for different meetings or presenta tions, whether its certain equipment or background information. Paper and duplicating costs in the main office have been positively affected with Joshs no wasting paper rule.

As noted in A-1 Samantha has accomplished a lot. Keep up the good work Samantha, as you become more familiar with the RP stuff I think this will be much easier.

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Row is 2 (meets expectations) 2 Row is 1 (needs improvement) 1 Row is 3 (exceeds expectations) 3 Row is 2 (meets expectations) 2 Total rating 8 Total rating 8 divided by 4 rows = 2.00

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2 1.5 3 2 Total rating 8.5 Total rating 8.5 divided by 4 rows = 2.13

Row is 2 (meets expectations) Row is 1 and 2 (Half Mark) Row is 3 (exceeds expectations) Row is 2 (meets expectations)

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2 -3 2 Total rating 7 Total rating 7 divided by 3 rows = 2.33

Row is 2 (meets expectations) Row is NOT APPLICABLE Row is 3 (exceeds expectations) Row is 2 (meets expectations)

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Recommendatio ns
Total Performance Factor rating. Variable weighting based on job relevance.

Summarize strengths and weaknesses.

Plan for next year.

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Weighting based on importance to position Default weight is 3 Can create standard weightings for each group you have
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Performance Plan
Clarify responsibilities and expectations

Both Supervisor and Employee sign this sheet and accept as a template for upcoming year.
Change as necessary. Use to for next years performance Evaluation.

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Performance Evaluation Process

Set a review date
Review all Documentation EE Completes Self Evaluation and give to Supervisor

Exchange feedback throughout Year

Performance Review Meeting and Performance Plan

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Supervisor completes Employee evaluation

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One Item from an Appraisal Form Assessing Employee Performance on Specific Job-Related Duties

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Performance Appraisal Methods

Appraisal Methodologies
1 Graphic Rating Scale Method Alternation Ranking Method Paired Comparison Method Forced Distribution Method Critical Incident Method 6 Narrative Forms

2
3 4 5

7
8 9 10

Behaviorally Anchored Rating Scales (BARS) Management by Objectives (MBO)

Computerized and Web-Based Performance Appraisal Merged Methods Annual Confidential Report (ACR)

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Ranking Employees by the Paired Comparison Method

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Examples of Critical Incidents for Assistant Plant Manager

Continuing Duties Schedule production for plant

Targets 90% utilization of personnel and machinery in plant; orders delivered on time Minimize inventory costs while keeping adequate supplies on hand No shutdowns due to faulty machinery

Critical Incidents Instituted new production scheduling system; decreased late orders by 10% last month; increased machine utilization in plant by 20% last month Let inventory storage costs rise 15% last month; overordered parts A and B by 20%; underordered part C by 30% Instituted new preventative maintenance system for plant; prevented a machine breakdown by discovering faulty part

Supervise procurement of raw materials and inventory control Supervise machinery maintenance

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AppraisalCoaching Worksheet

Source: Reprinted from www.HR.BLR.com with permission of the publisher Business and Legal Reports, Inc. 141 Mill Rock Road East, Old Saybrook, CT 2004.

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Behaviorally Anchored Rating Scale (BARS)

Developing a BARS
1. Generate critical incidents

Advantages of BARS
A more accurate gauge

2. Develop performance dimensions

3. Reallocate incidents 4. Scale the incidents 5. Develop a final instrument

Clearer standards
Feedback Independent dimensions Consistency

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Example of a Behaviorally Anchored Rating Scale for the Dimension

Salesmanship Skills

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Management by Objectives (MBO)

A

comprehensive and formal organizationwide goal-setting and appraisal program requiring:

1. Setting of organizations goals.

2. Setting of departmental goals.

3. Discussion of departmental goals. 4. Defining expected results (setting individual goals). 5. Conducting periodic performance reviews. 6. Providing performance feedback.
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Using MBO
Setting unclear objectives Time-consuming appraisal process

Problems with MBO

Conflict with subordinates over objectives

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Appraising Performance: Problems and Solutions

Potential Rating Scale Appraisal Problems

Unclear Standards

Halo Effect

Central Tendency

Leniency or Strictness

Bias

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A Graphic Rating Scale with Unclear Standards

Excellent Quality of work Quantity of work Creativity Integrity

Good

Fair

Poor

Note: For example, what exactly is meant by good, quantity of work, and so forth?

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Appraising Performance: Problems and Solutions

How to Avoid Appraisal Problems

Know Problems

Use the Right Tool

Train Supervisors

Control Outside Influences

Keep a Diary

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Important Advantages and Disadvantages of Appraisal Tools Tool

Graphic rating scale BARS Alternation ranking

Advantages
Simple to use; provides a quantitative rating for each employee. Provides behavioral anchors. BARS is very accurate. Simple to use (but not as simple as graphic rating scales). Avoids central tendency and other problems of rating scales.

Disadvantages
Standards may be unclear; halo effect, central tendency, leniency, bias can also be problems. Difficult to develop. Can cause disagreements among employees and may be unfair if all employees are, in fact, excellent.

Forced distribution method

Critical incident method

End up with a predetermined number or % of people in each group.

Helps specify what is right and wrong about the employees performance; forces supervisor to evaluate subordinates on an ongoing basis. Tied to jointly agreed-upon performance objectives.
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Employees appraisal results depend on your choice of cutoff points.

Difficult to rate or rank employees relative to one another.

MBO

Time-consuming.

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Who Should Do the Appraising?

Immediate Supervisor

Self-Rating

Peers

Potential Appraisers

Subordinates

Rating Committee

360-Degree Feedback

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The Appraisal Interview

SatisfactoryPromotable

SatisfactoryNot Promotable

Types of Appraisal Interviews

UnsatisfactoryCorrectable

UnsatisfactoryUncorrectable

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The Appraisal Interview (continued)

Guidelines for Conducting an Interview

Talk in terms of objective work data.

Dont get personal.

Encourage the person to talk.

Dont tiptoe around.

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The Appraisal Interview (continued)

How to Handle a Defensive Subordinate
1

Recognize that defensive behavior is normal. Never attack a persons defenses.

2 3

Postpone action.
Recognize your own limitations.

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The Appraisal Interview

How to Criticize a Subordinate
1 2 3 4 5

Do it in a manner that lets the person maintain his or her dignity and sense of worth. Criticize in private, and do it constructively. Give daily feedback so that the review has no surprises. Never say the person is always wrong. Criticism should be objective and free of biases.

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Checklist During the Appraisal Interview

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Formal Written Warnings

Purposes

of a Written Warning

To shake your employee out of bad habits. To help you defend your rating, both to your own boss and (if needed) to the courts.

Written Warning Should:

Identify standards by which employee is judged.

Make clear that employee was aware of the standard.

Specify deficiencies relative to the standard. Indicate employees prior opportunity for correction.
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Creating the Total Performance Management Process

What

is our strategy and what are our goals?

does this mean for the goals we set for our employees, and for how we train, appraise, promote, and reward them?
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What