Performance Management

What is Performance ?
Maybe

this sounds a silly question, but its not. We live in a business society dominated by demands for ever greater performance. Yet until were clear what performance is, focusing on it will produce only confusion and frustration.

What is Performance ?
Simple,

some people say. Performance is getting the job done. Producing the result that you aimed at. Nothing else matters. There are no prizes for coming second.

What is Performance ?
This

is a seductive way of thinking. It sounds tough and practical. After all, if you dont achieve what you want, what have you done? And in todays ultra-macho business culture, sounding tough is important, even if the reality is rather different. (e.g. Navy Seals)

What is Performance ?

Looking a little closer, however, this approach to performance is simplistic and bound to cause trouble. No one can ensure a favorable outcome from their efforts. There are too many chance events to intervene between what someone does and what happens as a result. As the Scottish poet Robert Burns remarked more than two centuries ago: The best laid schemes o mice an men often go awry.

What is Performance ?
The

future is full of unexpected events. Near impossible chances happen all the time. You do the best you can, then something unpredictable happens to frustrate your efforts. (e.g. Lance Armstrong and his present predicament).

What is Performance ?
Are

you responsible for this? Or for other people who mess up, or fail to deliver on their promises? Or the weather? The gyrations of the stock market? Wars and terrorist attacks? Examples from my experience

What is Performance ?
Obviously

not. So treating performance as unsatisfactory based on the outcome alone is neither reasonable nor fair. Management by objectives may be a useful way to focus effort towards a needed result, but appraisal by results is a poor strategy. There are too many variable left unaccounted for; too many areas that have major impacts on results ignored.

What is Performance ?
It

doesnt work well in the rest of life either. If you set your heart on a particular outcome, and can find no satisfaction in anything else, youre taking a notable gamble. Try as you may, the result can still be negative.

Why Performance Management Is Important?

There

are several factors behind the need to manage performance: The need to improve company performance ( e.g. The Dabbawallas, The Arvind Hospital experience, The Narayana Hrudayalaya Hospital growth story, The RBI Dy. Directors Advice to Bankers, The HSBC Story, The Reebok Case, The Enron Case, The Satyam Scam )

Why Performance Management Is Important?

The need to improve employee productivity The concern of attracting and retaining top talent by failing to develop employees Sure, its easy to understand the first two from an employer perspective. However, attracting and retaining top talent is of particular concern of managers for a variety of reasons:

1. Global shortage of talent means there will be less workers than jobs.

Being able to provide year-round coaching and development to employees leads to higher employee satisfaction, morale and productivity. Failing to do this, employees are more likely to leave. Having an open job posting during a talent shortage means you will be fighting harder (and spending more time & money) attracting candidates to your open jobs vs. all of the other open jobs in the market.(Cost of an Ad, Hiring factors)

2. Cost to replace an employee.

If you have to replace an employee, you will experience both significant hard and soft costs. Hard costs include: search fees, job posting fees to job boards, signing-bonus, new hire stock, etc. Soft costs (which are harder to quantify) include: cost of your time to interview and find right candidate, cost of training your new employee, not too mention the cost of work piling during your search. And again based on the global talent shortage brewing, the fight to get top talent is only going to increase all costs to replace an employee.

3. Loss of intellectual capital to competitors

In our current economy, when you lose an employee, chances are they will not do a massive career change. As a result, they are likely go into a similar field or industry (YOU SAY COMPETITOR).

As much as you try to protect your intellectual capital, by losing an employee to a competitor, you not only lose an employee. You potentially give your competitor a boost of information that can be used to sell against your company.

Loss of intellectual capital to competitors

So..

when you do performance management correctly everyone wins. The company gets a more productive employee - which can help improve company performance. The employee feels a sense of growth, development and accomplishment which is a boost for morale and productivity.

Loss of intellectual capital to competitors

Rising

costs, increased competition and time necessary to hire and train new talent have made retention of your top performers imperative to the bottom line. Recognizing gaps and developing skills enables managers to properly map out succession plans while employees develop attainable career paths

Loss of intellectual capital to competitors

And by spending the time year-round to do whats necessary to manage performance, you dont have to compete with all of the open jobs fighting for a smaller pool of workers. You save the company money (which is good for your budget) and you dont arm the competition with your companys intellectual capital. By adding all of this together, its easy to see why having a year-round performance management process and culture is critical to being a successful manager.

So, What is Performance Management

Performance management includes processes that effectively communicate company aligned goals, evaluate employee performance and reward them fairly. Clear goal planning, skill development and a true pay-for-performance culture are talent management practices that successful companies use to demonstrate their employees are valued.

So, What is Performance Management

Performance

Management has been defined as a series of organizational processes and applications designed to optimize the execution of business strategy. Feedback, Compensation and Reward, Learning and Development

So, What is Performance Management

Feedback

is important to us, because it helps us to further understand why we may or may not be meeting specific targets. Feedback can also be used to modify our expectations, and to set new objectives over the course of the program. In business, a similar process takes place:

So, What is Performance Management

Planning

what we would like to happen, based on insights from analysis of trends in our industry and events that impact our business. Executing, by making decisions and taking action, based on the outcomes of planning activities.

So, What is Performance Management

Monitoring

our progress towards a certain time-limited target or objective. Analyzing further to understand why we may or may not be on-track to meet a specific target or objective.

So, What is Performance Management

Forecast

what we think will happen, based on what we have analyzed. Here we build one or more scenarios to help us predict certain outcomes. These outcomes help us to confirm or refute our choice of tactics to meet our objectives.

The Performance Management Cycle

Performance Management is not Performance Appraisal

PM is NOT performance appraisal

Performance Management Strategic business considerations Driven by line manager Ongoing feedback
So employee can improve performance

PM is NOT performance appraisal

Performance Appraisal Driven by HR Assesses employee
Strengths & Weaknesses

Once a year/twice a year Lacks ongoing feedback

CONTRIBUTIONS OF PERFORMANCE MANAGEMENT

Contributions of Performance Management

For Managers
Communicate

supervisors views of performance more clearly Managers gain insight about subordinates Better and more timely differentiation between good and poor performers Employees become more competent

Contributions of Performance Management

For Employees
Clarify

definitions of

job success criteria

Increase

motivation to perform Increase self-esteem Enhance self-insight and development

Contributions of Performance Management

For Organization/HR Function

Clarify

organizational goals Facilitate organizational change Fairer, more appropriate administrative actions Better protection from lawsuits

Disadvantages/Dangers of Poorly-implemented PM Systems

Disadvantages/Dangers of Poorly-implemented PM Systems

For Employees
Lowered

self-esteem Employee burnout and job dissatisfaction Damaged relationships Use of false or misleading information

Disadvantages/Dangers of Poorly implemented PM Systems

For Managers
Increased

turnover Decreased motivation to perform Unjustified demands on managers resources Varying and unfair standards and ratings

Disadvantages/Dangers of Poorlyimplemented PM Systems

For Organization
Wasted

time and money Unclear ratings system Emerging biases Increased risk of litigation

REWARD SYSTEMS

Reward Systems

Definition
Set of mechanisms for distributing Tangible returns
and
Intangible

or relational returns

As part of an employment relationship

Reward Systems

Tangible returns
Cash

compensation

Base pay Cost-of-Living & Contingent Pay Incentives (short- and long-term)

Reward Systems

Tangible returns (continued)

Benefits,

such as

Income Protection Allowances Work/life focus

Reward Systems

Intangible returns
Relational

returns, such as

Recognition and status Employment security Challenging work Learning opportunities

Returns and Their Degrees of Dependency on the Performance Management System

Returns with Low Dependency on the Performance Management System

Cost of Living Adjustment Income Protection

Returns with Moderate Dependency on the Performance Management System

Work/Life Focus Allowances Relational Returns Base Pay

Returns with High Dependency on the Performance Management System

Contingent Pay Short-term Incentives Long-term Incentives

Purposes of PM Systems

Purposes of PM Systems:

Overview
Strategic Administrative Informational Developmental

Organizational

maintenance Documentational

Strategic Purpose
Link

individual goals with organizations goals Communicate most crucial business strategic initiatives

Administrative Purpose
Provide

information for making decisions re:

Salary adjustments Promotions Retention or termination Recognition of individual performance Layoffs

Informational Purpose
Communicate to Employees: Expectations What is important How they are doing How to improve

Developmental Purpose
Performance

feedback/coaching Identification of individual strengths and weaknesses Causes of performance deficiencies Tailor development of individual career path

Organizational Maintenance Purpose

Plan

effective workforce Assess future training needs Evaluate performance at organizational level Evaluate effectiveness of HR interventions

Documentation Purpose
Validate

selection instruments Document administrative decisions Help meet legal requirements

An Ideal PM System: 14 Characteristics

1.

2.
3. 4. 5. 6. 7.

Congruent with organizational strategy Thorough Practical Meaningful Specific Identifies effective/ ineffective performance Reliable

An Ideal PM System: 14 Characteristics (continued)

8. 9. 10.

11.
12. 13. 14.

Valid Acceptable and Fair Inclusive Open (No Secrets) Correctable Standardized Ethical

Congruent with organizational strategy

Consistent

with organizations strategy Aligned with unit and organizational goals

Thorough
All

employees are evaluated All major job responsibilities are evaluated Evaluations cover performance for entire review period Feedback is given on both positive and negative performance

Practical
Available

Easy

to use Acceptable to decision makers Benefits outweigh costs

Meaningful
Standards

are important and relevant System measures ONLY what employee can control Results have consequences Evaluations occur regularly and at appropriate times System provides for continuing skill development of evaluators

Specific
Concrete and detailed guidance to employees Whats expected How to meet the expectations

Identifies effective and ineffective performance

Distinguish

between effective and

ineffective

Behaviors Results

Provide

ability to identify employees with various levels of performance

Reliable
Consistent

Free

of error Inter-rater reliability

Valid
Relevant

(measures what is important) Not deficient (doesnt measure unimportant facets of job) Not contaminated (only measures what the employee can control)

Acceptable and Fair

Perception of Distributive Justice Work performed Evaluation received Reward Perception

of Procedural Justice

Fairness of procedures used to:

Determine ratings Link ratings to rewards

Inclusive
Represents

concerns of all

involved

When system is created, employees should help with deciding

What should be measured How it should be measured

Employee should provide input on performance prior to evaluation meeting

Open (No Secrets)

Frequent, ongoing evaluations and feedback 2-way communications in appraisal meeting Clear standards, ongoing communication Communications are factual, open, honest

Standardized
Ongoing

training of managers to

provide Consistent evaluations across

People Time

Ethical
Supervisor

suppresses self-interest Supervisor rates only where she has sufficient information about the performance dimension Supervisor respects employee privacy

Integration with other Human Resources and Development Activities

 PM

provides information for:

Development of training to meet organizational needs Workforce planning Recruitment and hiring decisions Development of compensation systems

Quick Review

Definition of Performance Management (PM) The Performance Management Contribution Disadvantages/Dangers of Poorly Implemented PM Systems Definition of Reward Systems Aims and Role of PM Systems Characteristics of an Ideal PM System Integration with Other Human Resources and Development Activities

Performance Management Factors

Performance management involves monitoring key performance indicators (KPIs) that measure whether an organization is meeting its objectives and overarching strategy. A KPI in this sense is a measure defined by a business that allows for observation of actual values, as they may emerge from line-ofbusiness (LOB) applications and their comparison to established targets (or budgeted values).

Performance Management Factors

If

a KPI reveals an actual value that deviates too far from (or in many cases, closely approaches) a predefined target, then further analysis is warranted.

Performance Management Factors

Discoveries

made during analysis should help us plan our next steps, set new (or adjust existing) expectations, and predict what may happen based on our decisions.

Performance Management Factors

In

larger organizations, data from multiple LOB( Line of Business) systems are often centralized within a single version of the truth business intelligence (BI) system to optimize KPI monitoring, detailed analysis, and performance reporting.

Performance Management Factors

BI

systems often (but not always) consist of several layers that work together, helping businesses to: Integrate and refine data from a variety of applications, systems, and documents into a centralized data mart or data warehouse.

Performance Management Factors

Analyze

refined data to gain insight into current performance (monitoring KPIs), potential causes for specific KPI variances (or deviations of actual values from target values). Report past, current, or forecast conditions to stakeholders.

Performance Management Factors

The goal of a BI system is to ultimately help business people make better, faster decisions. Classically, such decision-making has occurred at higher levels of an organization and been limited to a relatively small number of individuals. However, corporate culture has changed significantly over the last decade, and themes of transparency, accountability, and empowerment have emerged.

 Performance

management frameworks, like Kaplan and Nortons Balanced Scorecard method, build on these notions by making all steps in the cycle occur at executive, departmental, and operational layers of the modern organization.

Developing performance goals and objectives

Goals describes in general terms what an organization, a subunit of the organization, a program, a project, a team of employees, an individual employee or a private person would like to achieve. Searching the internet, you will find many goals related terms: Overall goal, long-term goals, organizational goals, strategic goals, departmental goals, operational goals Team goals, individual goals, personal goals Financial goals, capacity goals, production goals, performance goals,etc.

Developing performance goals and objectives

You

will also notice that there are differing definitions of these terms. It is therefore essential that you define clearly your understanding of goal related terms when you are involved in this topic within your organization.

Developing performance goals and objectives

Performance goals describe an output, outcome or impact that Somebody within or outside the organization will see as a success or as acceptable. This could be a direct superior, the head of a department, the Chief Executive Officer, a customer, a donor etc. Performance goals should be expressed in clear, declarative sentences.

Developing performance goals and objectives

If

you want to make it clear on which organizational level a performance goal applies, you could use terms like Organizational performance goals Strategic performance goals Departmental performance goals Individual performance goals,etc.

Performance Appraisal

Performance Appraisal Defined

Formal

system of review and evaluation of individual or team task performance negative, disliked activity that seems to elude mastery

Often

Appraisal Data Is Needed For...

Assessment of current employee performance

are performance standards being met? Training needs what does the employee need to learn in order to improve current work performance? Career planning and development assessing an employees strengths and weaknesses to determine advancement Compensation programs provides a basis for rational decisions regarding pay adjustments (raises and bonuses) Internal employee relations used for decisions in several areas of internal employee relations, including promotion, demotion, termination, layoff, and transfer (transfers, layoffs, terminations) Recruitment and selection generates data to validate selection criteria Human resource planning assessment data is helpful in building replacement or succession charts

Performance Appraisal Process External Environment Internal Environment

Identify Specific Performance Appraisal Goals

Establish Performance Criteria (Standards) and Communicate Them To Employees

Examine Work Performed Appraise the Results Discuss Appraisal with Employee

PERFORMANCE APPRAISAL REPONSIBILITY

HUMAN RESOURCE DEPARTMENT

Designs the performance appraisal system Establishes and monitors a reporting system Trains managers in how to conduct appraisals Safeguards performance appraisal records
MANAGERS & SUPERVISORS

Evaluates employee performance Completes the appraisal documents and forms Reviews appraisals with employees

WHAT IS THE PURPOSE OF THE APPRAISAL?

JUDGMENTAL To make administrative decisions (To justify rewards given for performance) DEVELOPMENTAL To improve performance (To provide feedback for learning and work improvement) You cannot accomplish both purposes equally well with a single appraisal system. Some appraisal tools are better at generating good feedback than providing a consistent rationale for a judgment. Similarly, negative feedback generated by judgmental appraisals is unlikely to motivate the employee to work harder to improve performance. If both appraisal objectives are important, separate assessment systems should be created.

HOW OFTEN SHOULD APPRAISALS BE DONE?

ANNUALLY (Once a year) SEMI-ANNUALLY (every 6 months) QUARTERLY (every 3 months) MONTHLY CONTINUOUSLY

WHEN SHOULD APPRAISALS BE DONE?

DO ALL THE APPRAISALS AT ONE TIME A lot of work to do at one time..overworks the supervisor All appraisals cover the same time period DO EACH ONE ON THE EMPLOYEES ANNIVERSARY The appraisal process is spread over the whole year Appraisals are not comparablethey dont cover the same time period

WHO SHOULD CONDUCT THE APPRAISAL?

IMMEDIATE SUPERVISOR SUBORDINATES COWORKERS (Peers) OUTSIDERS

Customers Constituents Consultants

SELF-APPRAISAL GROUPS or TEAMS

360 degree appraisal from above & below; insiders & outsiders 720 degree appraisal a second layer above and below

AN APPRAISER MUST:

BE AWARE OF THE OBJECTIVES & REQUIREMENTS OF THE EMPLOYEES JOB HAVE THE OPPORTUNITY TO FREQUENTLY OBSERVE THE EMPLOYEE OR HIS/HER WORK BE CAPABLE OF EVALUATING AND RECORDING OBSERVED WORK BEHAVIOR OR PERFORMANCE AVOID OR MINIMIZE POTENTIAL APPRAISAL ERRORS AND BIAS

THE FUNDAMENTAL ATTRIBUTION ERROR

POOR WORK PERFORMANCE BY OTHERS THEIR POOR WORK PERFORMANCE IS CAUSED BY PERSONAL FACTORS (No effort, laziness, they didnt try)
THE PERSON IS THE REASON FOR FAILURE

MY POOR WORK PERFORMANCE MY POOR WORK PERFORMANCE IS DUE TO SITUATIONAL FACTORS BEYOND MY CONTROL (Poor support, uncooperative coworkers, unforeseen events)
THE ENVIRONMENT IS THE REASON FOR FAILURE

Note the self-serving biaswe are not responsible for our failures, but others are responsible for theirs!

ATTRIBUTION THEORY
IS THE CAUSE OF BEHAVIOR SEEN AS INTERNAL (PERSONAL) OR EXTERNAL (SITUATIONAL)? WE LOOK FOR THREE INDICATORS TO DECIDE. DISTINCTIVE IS THIS PERSONS PERFORMANCE DIFFERENT ON OTHER TASKS AND IN OTHER SITUATIONS? (YES = EXTERNAL, NO = INTERNAL) CONSISTENT OVER TIME, IS THERE A CHANGE IN BEHAVIOR OR RESULTS ON THIS TASK BY THIS PERSON? (YES = EXTERNAL, NO = INTERNAL) CONSENSUS DO OTHERS PERFORM OR BEHAVE SIMILARLY WHEN ASSIGNED A SIMILAR POSITION OR TASK? (YES = EXTERNAL, NO = INTERNAL)

Consistent Yes answers lead us to external attributions Environmentally caused No answers lead us to internal attributions -- The person is responsible

ATTRIBUTIONAL MODEL OF FAILURE

INTERNAL ATTRIBUTION Person Responsible?
LACK OF ABILITY LACK OF EFFORT

EXTERNAL ATTRIBUTION Situation Responsible?

DIFFICULT TASK BAD LUCK

ENLIGHTENED SUPERVISOR RESPONSE

LACKS ABILITY LACKS EFFORT DIFFICULT TASK BAD LUCK ----Training or Transfer Reprimand or Motivational Strategy Job Redesign Sympathy and Support

APPRAISAL ERRORS
FUNDAMENTAL ATTRIBUTION ERROR HALO & HORN EFFECTS RECENCY EFFECT CONTRAST EFFECT STATUS EFFECT PROJECTION EVALUATOR PREJUDICE DISTRIBUTION (RANGE) ERRORS Leniency, Strictness, or Central Tendency USE OF INVALID APPRAISAL MEASURES

Problems in Performance Appraisal

Appraiser

discomfort

Lack of objectivity Halo/horn error Leniency/strictness Central tendency Recent behavior bias Personal bias Manipulating the evaluation Employee anxiety

Appraiser Discomfort
Performance

appraisal process cuts into managers time Experience can be unpleasant when employee has not performed well

Lack of Objectivity
In

rating scales method, commonly used factors such as attitude, appearance, and personality are difficult to measure Factors may have little to do with employees job performance Employee appraisal based primarily on personal characteristics may place evaluator and company in untenable positions

Halo/Horn Error

Halo error - Occurs when manager generalizes one positive performance feature or incident to all aspects of employee performance resulting in higher rating Horn error - Evaluation error occurs when manager generalizes one negative performance feature or incident to all aspects of employee performance resulting in lower rating

Leniency/Strictness
Leniency

- Giving undeserved high ratings Strictness - Being unduly critical of employees work performance Worst situation is when firm has both lenient and strict managers and does nothing to level inequities

Central Tendency
Error

occurs when employees are incorrectly rated near average or middle of scale May be encouraged by some rating scale systems requiring evaluator to justify in writing extremely high or extremely low ratings

Recent Behavior Bias

Employees

behavior often improves and productivity tends to rise several days or weeks before scheduled evaluation Only natural for rater to remember recent behavior more clearly than actions from more distant past Maintaining records of performance

Personal Bias (Stereotyping)

Managers

allow individual differences such as gender, race or age to affect ratings they give Effects of cultural bias, or stereotyping, can influence appraisals Other factors Example: mild-mannered employees may be appraised more harshly simply because they do not seriously object to results

Manipulating the Evaluation

Sometimes,

managers control virtually every aspect of appraisal process and are in position to manipulate system Example: Want to give pay raise to certain employee. Supervisor may give employee a undeserved high performance evaluation

Employee Anxiety
Evaluation

process may create anxiety for appraised employee Opportunities for promotion, better work assignments, and increased compensation may hinge on results

Reasons for Intentionally Inflating Ratings

Believe

accurate ratings would damage subordinates motivation and performance. Improve employees eligibility for merit raises. Avoid airing departments dirty laundry. Avoid creating negative permanent record that might haunt employee in future.

Reasons for Intentionally Inflating Ratings( contd.)

Protect

good workers whose performance suffered because of personal problems. Reward employees displaying great effort even when results were relatively low. Avoid confrontation with hard-to-manage employees. Promote a poor or disliked employee up and out of department.

Reasons for Intentionally Lowering Ratings

Scare better performance out of employee. Punish difficult or rebellious employee. Encourage problem employee to quit. Create strong record to justify planned firing. Minimize amount of merit increase a subordinate receives. Comply with organizational edict that discourages managers from giving high ratings.

Establishing Performance Criteria (Standards)

Traits Behaviors Competencies Goal

Achievement Improvement Potential

THREE FOCAL POINTS OF APPRAISAL 1. PERSONAL TRAITS AND CHARACTERISTICS

+ inexpensive to develop and use + not specialized by position; one form for all employees - high potential for bias and rating errors - not very useful for feedback or development - not easily justifiable for reward/promotion decisions

2. JOB BEHAVIOR AND ACTIVITY

+ can focus on specific duties listed in the job description + intuitively acceptable to employees and superiors + useful for providing feedback + seem fair for reward and promotion decisions - are time consuming to develop and use - can be costly to develop - have some potential for rating error and bias

THREE FOCAL POINTS OF APPRAISAL CONTD

3.

WORK RESULTS AND OUTCOMES + less subjectivity bias + acceptable to employees and superiors + links individual performance to organizational objectives + seem fair for reward and promotion decisions - are time consuming to develop and use - may encourage a short-term perspective - may use deficient or inappropriate criteria

Traits
Certain

employee traits such as attitude, appearance, and initiative are the basis for some evaluations May be either unrelated to job performance or difficult to define Certain traits may relate to job performance and, if this connection is established, using them may be appropriate

Caution on Traits:
In a performance appraisal system, general characteristics such as : leadership, public acceptance, attitude toward people, appearance and grooming, personal conduct, outlook on life, ethical habits, resourcefulness, capacity for growth, mental alertness, loyalty to organization are susceptible to partiality and to the personal taste, whim, or fancy of the evaluator as well as patently subjective in form and obviously susceptible to completely subjective treatment by those conducting the appraisals.

APPRAISAL METHODS
NARRATIVES
ESSAYS CRITICAL INCIDENTS

RANKING COMPARISONS
ALTERNATION PAIRED COMPARISONS

CHECKLISTS
SIMPLE WEIGHTED

RATING SCALES
GRAPHIC RATING SCALES BEHAVIORALLY ANCHORED RATING SCALES (BARS) BEHAVIORAL OBSERVATION SCALES (BOS)

OBJECTIVE MEASURES
NATURAL COUNTS (Quantity produced, etc) GOALSETTING STANDARDS (MBO, etc)

MANAGEMENT BY OBJECTIVES
BENEFITS A basis for effective organizational planning and control Improves communication and feedback with the supervisor Encourages participation and joint decision-making Facilitates role clarification by revealing assessment criteria PROBLEMS Are the really important (key) areas of the job included? Is the process participative or are goals set for the worker? Can the worker truly control the outcomes s/he achieves? Overemphasizes quantitative, short-term, individual objectives

GOALSETTING ISSUES
GOAL DIFFICULTY How challenging should the work objectives be? I want an easy goal, but the organization wants me to stretch. ACCEPTANCE Will workers feel committed to work toward objectives that have been assigned to them, rather than those set participatively? SPECIFICITY Precise quantitative indicators may not exist for critical elements of the job. General, open-ended goals are not easily assessed. MOTIVATION Objectives should be challenging, yet reachable. They also need to be linked to desirable rewards to successfully motivate workers.

SMART GOALS

SMART GOALS
There is absolutely no research based correlation between success and family background, race, national origin, financial status, or even educational accomplishments. There is but one correlation with success, and that is ATTITUDE.
-Harry Wong

Using Goals for Results

S- Specific and Strategic M- Measurable A- Attainable R- Results-Oriented T- Time bound

SMART Goals (e.g. for Professional Learning)

State Level, inspire, strategic far-reaching goals (5 years) School Level- Prioritize, target areas on needs of specific populations (1-3 years) Teacher Level- Focus on specific skills and knowledge (annual)

Developing Goals
When we establish clear learning goals, the effect on student achievement can be as much as a 41 percentile gain.
Marzano, R. (2003). What works in schools. Alexandra, VA: ASCD

Focused

on results not just process

A Framework for Shared Goal Setting

create shared clarity FOCUS of thought, direction, and Where do we want to be? purpose Reflection: learn from the past and identify ways of accomplishing goals Collaboration: come together to share knowledge and REFLECTION COLLABORATION ideas
Where are we now? How will we get there?
Focus:

Are you process oriented or results oriented?

Process

Goal (what is it I want to do?)

Example: Raise student achievement in JEE

Results

Goal (where do I want to be?)

Example: Increase performance of special education students on the State JEE test by 5% in two years

Process Goals and Results Goals

Process Focuses on

Results Focus on

Means Input Capacity improvements System interventions Improvement activities Function

Process Key Words

Ends Outputs Productivity Outcomes Improvement targets Purpose Increase my ability to Increase my use of Increase my knowledge of Improve my ability to improve student behavior Improve staffs ability to improve student writing

Develop Implement Attend Design Write Create To do

Implement a reward system for behavior Develop a school-wide writing rubric

Result Key Words

Examples

Examples

Conzemius, A. & ONeill, J. (2001). Building shared responsibility for student learning. Alexandra, VA: ASCD

Developing SMART Professional Learning Goals

What

is your SMART learning goal? What are you seeking to improve? What is your rationale for selecting this goal? What is the impact or result of this goal on student learning? What artifacts or tools will you use to measure the progress of your goal?
-2006 McKay Consulting, LLC

SMART Learning Wheel

-2007 McCay Consulting, LLC

Adjust strategy, use what worked

ACT
Study the results, compare new data to baseline data

PLAN
DO

Gather baseline data, establish SMART Goal, develop a plan

STUDY

Implement the plan

Making Building Goals Smart

Improve Improve Increase

Test Scores Student Behavior Parental Involvement and

Support

Test Scores

Specific Measurable Attainable Realistic Timely

Student Behavior

Specific Measurable Attainable Realistic Timely

Parental Support

Specific Measurable Attainable Realistic Timely

Conducting the Performance Review

A

special time should be set for formal discussion of employees performance Withholding appraisal results is absurd Performance review allows them to detect any errors or omissions in appraisal, or employee may simply disagree with evaluation and want to challenge it

Due Process

Provide employees opportunity to appeal appraisal results Must have procedure for pursuing grievances and having them addressed objectively

Legal Implications
Employers

must prepare for more discrimination lawsuits and jury trials related to performance appraisals Unlikely that any appraisal system will be immune to legal challenge

Courts Normally Require

Either absence of adverse impact on members of protected classes or validation of process. System that prevents one manager from directing or controlling a subordinates career. Appraisal should be reviewed and approved by someone or some group in organization. Rater, or raters, must have personal knowledge of employees job performance. Must use predetermined criteria that limits managers discretion.

The Appraisal Interview

Achilles

heel of entire evaluation process Scheduling interview Interview structure Use of praise and criticism Employees role Use of software Concluding interview

Interview Structure
Discuss

employees performance Assist employee in setting goals and personal development plans for next appraisal period Suggesting means for achieving established goals, including support from manager and firm

Conducting Separate Interviews

There

is merit in conducting separate interviews for discussing (1) employee performance and development and (2) pay

When

the topic of pay emerges in interview, it tends to dominate conversation with performance improvement taking a back seat

Use of Praise and Criticism

Praise is appropriate when warranted Criticism, even if warranted, is especially difficult to give Constructive criticism is often not perceived that way

Employees Role
Should

go through diary or files and make notes of every project worked on, regardless of whether they were successful or not Information should be on appraising managers desk well before review

Concluding the Interview

Ideally,

employees will leave interview with positive feelings about management, company, job, and themselves Cannot change past behavior, future performance is another matter Should end with specific and mutually agreed upon plans for employees development

SUMMARY GUIDELINES FOR APPRAISALS

1. Appraisal standards are job related -based on job analysis 2. Standards are clearly communicated to employees in advance 3. Standards are responsive to actual worker behavior or effort 4. Activities performed and results achieved are both appraised 5. Acceptable vs. unacceptable results can clearly be discerned

SUMMARY GUIDELINES FOR APPRAISALS

6. Appraisal criteria are consistently applied 7. Raters are able to consistently observe work performance 8. Raters are trained in appraisal and how to feedback results 9. Developmental feedback is separated from judgmental appraisal 10. An appeal process exists to resolve (judgmental) rating disputes