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Managing performance January 2012
This document discusses key aspects of performance management. It addresses issues that can arise, defines high performance, and describes learning opportunities and performance measures for teams. It also covers topics like 360 degree feedback, using performance management data, balanced scorecards, and performance management processes. Principles of performance management are outlined, emphasizing continuous feedback and measuring performance against agreed upon goals. The overall purpose is to help translate organizational goals into individual and team objectives to improve performance over time.
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Managing performance January 2012
- 1. Managing performance by Toronto Training and HR January 2012
- 2. 3-4 Introduction to Toronto Training and HR 5-6 Definition Contents 7-9 Issues to address 10-12 High performance 13-15 Learning opportunities created 16-19 Performance measures for teams 20-24 360 degree feedback 25-27 Using performance management data 28-30 The balanced scorecard 31-35 Performance management processes 36-41 Principles of performance management 42-44 Handling criticism 45-47 Self-efficacy 48-50 Engagement & performance management 51-62 Poor performance 63-68 Ways of improving performance 69-70 Outstanding performers who fail 71-73 Automated performance management systems 74-75 Common performance rating errors 76-78 Performance management and line managers 79-81 Questions to ask 82-83 Performance criteria 84-85 Types of performance management systems 86-88 Designing a performance management program 89-92 Two way conversations 93-94 Business execution characteristics 95-97 Typical difficulties with performance management 98-99 Case study
- 3. Introduction Page 3
- 4. Introduction to TorontoTraining and HR • Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden • 10 years in banking • 10 years in training and human resources • Freelance practitioner since 2006 • The core services provided by Toronto Training and HR are: - Training event design - Training event delivery - Reducing costs - Saving time - Improving employee engagement & morale - Services for job seekers Page 4
- 5. Definition Page 5
- 6. Definition What is performancemanagement? Page 6
- 7. Issues to address Page 7
- 8. Issues to address1 of 2 Line management commitment and capability Performance management is difficult Poorly designed performance management processes Unitary and pluralistic frames of reference Rhetoric and reality System factors are ignored Appraisal is an inconsistent process Page 8
- 9. Issues to address2 of 2 Performance management is wrongly focused in financial rewards Performance management is a means of oppressive or coercive control Line managers and employees tend to be disenchanted about performance management Page 9
- 10. High performance Page 10
- 11. High performance 1of 2 Definitions Dimensions of a high-performance work system Flexible work practices HR practices Page 11
- 12. High performance 2of 2 HIGH-PERFORMING ORGANIZATIONS Leadership Design People Change management Culture and engagement Possible interventions Page 33
- 13. Learning opportunities created Page 13
- 14. Learning opportunities created 1 of 2 To be developed so that it becomes more challenging from the viewpoint of new tasks to be accomplished, but also that the need to acquire or extend knowledge and skills in order to carry out those tasks is revealed Agreement is reached between the managers and individuals on ‘stretch goals’ which can be achieved only if additional learning takes place Page 14
- 15. Learning opportunities created 2 of 2 Specific areas where performance must be improved are identified and the learning required to achieve these improvements is agreed Discussions take place on career opportunities and the learning required to realise them Agreement is reached on how any learning needs can be met Page 15
- 16. Performance measures for teams Page 16
- 17. Performance measures for teams 1 of 3 OUTPUT/RESULT MEASURES Achievement of team goals Customer satisfaction Quantity of work Quality of work Process knowledge Maintenance of technical systems Page 17
- 18. Performance measures for teams 2 of 3 INPUT/PROCESS MEASURES Support of team process Participation Oral and written communication Collaboration and collective effort Conflict resolution Planning and goal-setting Participative decision-making Page 18
- 19. Performance measures for teams 3 of 3 INPUT/PROCESS MEASURES Problem-solving and analytical skills Credibility and trust Interdependence Interpersonal relations Acceptance of change Adaptability and flexibility Page 19
- 20. 360 degree feedback Page 20
- 21. 360 degree feedback1 of 4 Definition Uses of 360 degree feedback Rationale for 360 degree feedback Page 21
- 22. 360 degree feedback2 of 4 MOST LIKELY TO BE SUCCESSFUL WHEN: It has the active support of top management whom themselves take part in giving and receiving feedback and encourage everyone else to do the same There is commitment everywhere else to the process based on briefing, training and an understanding of the benefits to individuals as well as the organization Page 22
- 23. 360 degree feedback3 of 4 MOST LIKELY TO BE SUCCESSFUL WHEN: There is real determination by all concerned to use feedback data as the basis for development Questionnaire items fit or reflect typical and significant aspects of behaviour Items covered in the questionnaire can be related to actual events experienced by the individual Comprehensive and well-delivered communication and training programs are followed Page 23
- 24. 360 degree feedback4 of 4 MOST LIKELY TO BE SUCCESSFUL WHEN: No one feels threatened by the process Feedback questionnaires are relatively easy to complete Bureaucracy is minimized Page 24
- 25.
- 26. Using performance management data 1 of 2 Demonstrate an organization’s ability to raise levels of competence Assess how long it takes for a new employee to reach optimum performance Provide feedback on development programs in terms of increased performance or capacity to take on new roles Assess commitment to values and mission Assess understanding of strategy and contribution Page 26
- 27. Using performance management data 2 of 2 Demonstrate the success of internal recruitment programs Track skills levels and movement in any skills gap in the organization Indicate how successful an organization is at achieving its objectives at individual, team and department level Match actual behaviour against desired behaviour Page 27
- 28. The balanced scorecard Page 28
- 29. The balanced scorecard1 of 2 Financial perspective How should we appear to our shareholders or stakeholders? Customer perspective How should we appear to our customers? Page 29
- 30. The balanced scorecard2 of 2 Innovation and learning perspective How will we sustain our ability to change and improve? Internal business perspective What business process or processes must we excel at? Page 30
- 31. Performance management processes Page 31
- 32. Performance management processes 1 of 4 Performance planning Defining expectations Objectives Measuring performance The continuing process of performance management Page 32
- 33. Performance management processes 2 of 4 Reviewing performance Providing feedback Assessing performance Rating performance An alternative visual approach to rating Coaching Documentation Page 33
- 34. Performance management processes 3 of 4 INFORMAL Continuous feedback FORMAL Design Training Annual implementation Self-evaluation Supervisor’s evaluation Page 34
- 35. Performance management processes 4 of 4 FORMAL Performance discussion Acknowledgement Record keeping Page 35
- 36. Principles of performance management Page 36
- 37. Principles of performance management 1 of 5 It translates organizational goals into individual, team, department and divisional goals It helps to clarify organizational goals It is a continuous and evolutionary process, in which performance improves over time It relies on consensus and co-operation rather than control and coercion Page 37
- 38. Principles of performance management 2 of 5 It creates a shared understanding of what is required to improve performance and how it will be achieved It encourages self-management of individual performance It requires a management style that is open and honest, encouraging two-way communication between managers and employees It requires continuous feedback Page 38
- 39. Principles of performance management 3 of 5 Feedback loops enable the experiences and knowledge gained on the job by individuals to modify corporate objectives It measures and assesses all performance against jointly agreed goals It should apply to all employees It is not primarily concerned with linking performance to financial reward Page 39
- 40. Principles of performance management 4 of 5 APPLYING THESE PRINCIPLES A management tool which helps managers to manage Driven by organizational purpose and values To obtain solutions that work Only interested in things you can do something about and get a visible improvement Focus on changing behaviour rather than paperwork Page 40
- 41. Principles of performance management 5 of 5 APPLYING THESE PRINCIPLES It’s about how we manage people-it’s not a system Performance management is what managers do; a natural process of management Based on accepted principles but operates flexibly Success depends on what the organization is and needs to be in its performance culture Page 41
- 42. Handling criticism Page 42
- 43. Handling criticism 1of 2 Get reviewees to know that their frankness in identifying any shortcomings is appreciated Get reviewees to produce their own ideas on remedial action Provide reviewees with reassurance if they mention as aspect of their performance which falls below their own standards but you think is satisfactory Page 43
- 44. Handling criticism 2of 2 If reviewees do not agree that there is a problem, be firm but specific and give examples Confine comments to weaknesses that can be put right; do not try to alter the reviewee’s personality Do not tackle more than two weaknesses in one meeting Page 44
- 45. Self-efficacy Page 45
- 46. Self-efficacy 1 of2 Self-efficacy and self-esteem Dimensions of self-efficacy Level Strength Generality Page 46
- 47. Self-efficacy 2 of2 SELF-EFFICACY EXPECTATIONS Performance accomplishments Modelled exposure Verbal persuasion Physiological arousal Page 47
- 48.
- 49. Engagement & performance management 1 of 2 Prepare Communicate Empower Monitor Manage Page 49
- 50. Engagement & performance management 2 of 2 When things go right When things go wrong Danger signs Progressive discipline Page 50
- 51. Poor performance Page 51
- 52. Poor performance 1of 11 QUESTIONS TO ASK How can this be communicated to individuals? How do we collect factual information? Reasons for problem performance Ways of dealing with the poor performer Page 52
- 53. Poor performance 2of 11 REASONS FOR POOR PERFORMANCE Lack of ability or Insufficient motivation Page 53
- 54. Poor performance 3of 11 ROLE FOR MANAGERS Exercising effective leadership Developing systems of work that do not place impossible demands on people Allocating work to people that is within their capacity, subject possibly to additional training Acting as coaches Using performance management to deal with these issues Page 54
- 55. Poor performance 4of 11 STEPS TO TAKE Identify and agree the problem Establish the reasons for the shortfall Decide on and agree on the action required Resource the action Monitor and provide feedback Page 55
- 56. Poor performance 5of 11 FOUR DIMENSIONS INVOLVED It’s the employee It’s the supervisor/poor employee preparation It’s the job It’s the workplace atmosphere Page 56
- 57. Poor performance 6of 11 POST-RECESSION TRAUMATIC RESIDUE Screw-ups Slackers Page 57
- 58. Poor performance 7of 11 Just cause The test for cause in poor performance Page 58
- 59. Poor performance 8of 11 HELPING POOR PERFORMERS Say something Give it to them straight Check they understand Make a plan Have hope Avoid assumptions Share your vision Be there Page 59
- 60. Poor performance 9of 11 ADDRESSING POOR PERFORMANCE Assess capability Set clear standards Provide feedback Don’t delay Focus on the facts Give time to improve Clarify duty to act Page 60
- 61. Poor performance 10of 11 ADDRESSING POOR PERFORMANCE-KEY POINTS Communicate clear and measurable standards Monitor performance Give feedback for early correction Investigate fully and create a performance improvement plan Provide sufficient time to improve and escalate to a formal process if standards are not met Page 61
- 62. Poor performance 11of 11 ADDRESSING POOR PERFORMANCE-KEY POINTS Dismiss the employee if they cannot meet the standard required and no further adjustments can be made to help them Page 62
- 63. Ways of improving performance Page 63
- 64. Ways of improvingperformance 1 of 5 Reasons Objectives External and internal Systems Design Measures Outcome Monitoring Costs Page 64
- 65. Ways of improvingperformance 2 of 5 QUESTIONS TO ASK Why are we assessing this person? How important is it that the assessment is highly accurate? Is the assessment compulsory? How much time and effort are we prepared to put into the process? How frequently do we want the assessment completed? Page 65
- 66. Ways of improvingperformance 3 of 5 QUESTIONS TO ASK Who should do the judging? What sort of evidence is needed? Who has sight of the conclusions of the assessment? What will happen as a result of the assessment? Who is responsible for ensuring that any follow-up takes place? Page 66
- 67. Ways of improvingperformance 4 of 5 PERFORMANCE IMPROVEMENT PLANS Definition Define the problem Define the competencies or behaviours where improvement is required Establish the priorities of the consequences Identify the standards upon which performance will be measured for each of the competencies identified Page 67
- 68. Ways of improvingperformance 5 of 5 PERFORMANCE IMPROVEMENT PLANS Establish short-range and long-range goals and timetables for accomplishing change in performance/behaviour Develop an action plan Establish periodic review dates to measure actual performance against expectations Create a file for each employee Define the consequences of failing to meet achieve standards Page 68
- 69. Outstanding performers who fail Page 69
- 70. Outstanding performers who fail Engaged dreamers Disengaged stars Misaligned stars Page 70
- 71. Automated performance managementsystems Page 71
- 72. Automated performance management systems 1 of 2 What are you proposing? Why is there a need for change? What are the benefits of changing? How are we going to do it? What are the costs of changing? What are the risks involved? What resources are required? Page 72
- 73. Automated performance management systems 2 of 2 What are the alternatives? What is the financial significance? What is the plan of execution? Page 73
- 74. Common performance rating errors Page 74
- 75. Common performance rating errors Lack of differentiation Recency effect Halo effect Horns effect Personal bias and favouritism Inaccurate information and preparation Page 75
- 76. Performance management and line managers Page 76
- 77. Performance management and line managers 1 of 2 Leadership from the top Involvement in design and development of processes Inclusion of the ability to manage performance as a key criterion in assessing performance Use of 360 degree feedback to assess performance abilities of line managers Conduct of employee surveys and their reactions to performance management Page 77
- 78. Performance management and line managers 2 of 2 Systematic formal training in the performance management skills managers need to use Coaching and guidance for managers to supplement formal training HR operating as a genuine business partner alongside line managers so they can appreciate the significance of performance management to them Page 78
- 79. Questions to ask Page 79
- 80. Questions to ask1 of 2 What do we mean by ‘high performance’? Do our people understand what is expected of them in terms of performance? How can we align individual and organizational objectives? To what extent is performance management about supporting the core values of the organization? Can we identify good and poor performance? Page 80
- 81. Questions to ask2 of 2 Can we establish the reasons for good or not so good performance? How can we develop and motivate people to perform well? How can we do all that fairly, consistently and without discrimination? Page 81
- 82. Performance criteria Page 82
- 83. Performance criteria SMART goals Examplesof effective goals: Increase revenue by 10% during the first quarter Reduce office expenses by 25% as compared with the prior year actual costs Decrease employee absences from three days to one day per quarter Page 83
- 84. Types of performance managementsystems Page 84
- 85. Types of performance management systems Ranking Forced distribution 360 degree feedback Competency-based Management by objectives Graphic rating scales Behaviourally anchored rating scales Page 85
- 86. Designing a performance management program Page 86
- 87. Designing a performance management program 1 of 2 SHOULD ENSURE That all employees have an opportunity to discuss their future goals/training needs with their manager to help develop to their fullest potential That strengths and weaknesses of all employees are recorded regularly so that the organization can make informed and accurate decisions regarding an employee’s contribution, career development, promotional opportunities, pay increases, etc. Page 87
- 88. Designing a performance management program 2 of 2 MAJOR UNDERLYING ELEMENTS Supervisor responsibility Performance criteria Communication Continuous feedback Developmental coaching Link to compensation Career path Page 88
- 89. Two-way conversations Page 89
- 90. Two way conversations1 of 3 The employee knows exactly where he or she stands in relation to achieving goals and reaching performance milestones that contribute to career development, promotions, etc. Page 90
- 91. Two way conversations2 of 3 The manager gains insights into the motivations of the people working for him or her through the required conversations Page 91
- 92. Two way conversations3 of 3 The organization retains motivated employees who understand their role and the roles of others in contributing to the overall success of the organization Page 92
- 93. Business execution characteristics Page 93
- 94. Business execution characteristics Goal number dimension Alignment System usage dimension Ratings scale Page 94
- 95. Typical difficulties with performancemanagement Page 95
- 96. Typical difficulties with performance management 1 of 2 Quality of one-to-one manager/employee discussions Complaints at standardized, jargon-filled, prescriptive and overly-detailed paperwork Line managers lacking the required competence and commitment for the process Employees having a poor understanding of the goals and point of the process Page 96
- 97. Typical difficulties with performance management 2 of 2 Rating and pay agendas tending to dominate and irritate, driving out feedback and development planning Lack of follow-up and practical action being taken between the formal reviews Page 97
- 98. Case study Page 98
- 99. Case study Page 99
- 100. Conclusion & Questions Page 100
- 101. Conclusion Summary Videos Questions Page 101