3.1. perfromanace management admin

8/19/2019 3.1. Perfromanace Management Admin

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Performance ManagementIshwar K. KarkiApex College


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ADMINISTRATION OFPERFORMANCE

APPRAISALS


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Administration ProcessS!age A$!io's Respo'si"ili!ies Ti&e li'e

Pla''i'g

1. PerformanceManagement ProcessManuals (Formats, tools,procedural guidelines,Corporate strategy etc.)

2. Communication memo3. ollout sessions!. Meeting "et#een sta$

and managers % align#it& corporate goals

'. Sta$ decide performanceplan (A %SMA goals)

*. +iscuss #it& immediatesuperisor , plan fore-pectation gaps

/. Agreement Sign o$ 0. Follo# up for completion. For#ard to 1.Compilation of raining

1. + % opmanagement

2. +3. + %4ine

Managers!. Sta$ and

5mmediateSuperisor

'. Sta$

*. Sta$ and5mmediateSuperisor %6+

/. Sta$

7eginning oft&e eie#period % 8ear


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Administration ProcessS!age

s

A$!io's Respo'si"ili!ies Ti&e

li'eTra$ki'g

1. Coac&ing % Mentoring2. Periodic eie# and

feed"ac93. :ote do#n critical incidents!. ealign, if re;uired.'. rainings (in


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SETTIN- -OALS ANDEPECTATIONS

5:55A5:? > P>F6A:C> MA:A?>M>: P6C>SS


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?oal setting


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?oal Alignment


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Criteria

5n order to goals to "e measured, a critical component in#riting e$ectie goals, one &as to consider t&e follo#ing

measurement or success criteria


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ypes of 5ndiidual ?oal


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A

al u

e s

a nd

C o m p e t e

n c i e s


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+>>46PM>: P4A::5:?


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4in9age


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Per+or&a'$eMa'age&e'!

Ma'age&e'! / ge!!i'g work)o'e !hrogh o!hers

Ma'ager0s per+or&a'$e is o'lyas goo) as his1her e&ployee0s

per+or&a'$e

Ma'ager0s #o" /per+or&a'$e

&a'age&e'! o+ o!hers


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Per+or&a'$e

Ma'age&e'!Orga'i2a!io'al sys!e&

Fo$si'g o' e&ployeeper+or&a'$e

Co'sis!e'!ly applie) !hrogho!orga'i2a!io'

3i!h a sppor!i'g s!r$!re


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Na&es o+ Sys!e&s

Per+or&a'$e Ma'age&e'!

Per+or&a'$e Appraisals

E%ala!io' Sys!e&s

4o" Re%iew Sys!e&s

567 Degree Fee)"a$k Sys!e&s

+


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Per+or&a'$eMa'age&e'!

E'sri'g appropria!eper+or&a'$e "y all e&ployees!hrogh8

*Rei'+or$e&e'! *Rewar)s *Mo)eli'g *Coa$hi'g

*Trai'i'g *De%elop&e'!

9si'g a $o'sis!e'! +ee)"a$k


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3orki'g o+ Per+or&a'$eMa'age&e'!

Ma'agers Speaks wi!h E&ployee regar)i'gper+or&a'$e

Co'!i'osly

O'$e per ,ear

For&al goals

Orga'i2a!io'al Repor!i'g Sys!e&

Tie) !o Orga'i2a!io'al O!$o&es


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O!p!

3or)s a') 3ha! They Mea'

Ex$ep!io'ally well :ali;e) Ma)e 'o &a#or errorsye!A$!i%e so$ially Par!ies < )ri'ks !oo&$hFa&ily is a$!i%e so$ially Fa&ily )ri'ks !oo &$hPla's +or a)%a'$e&e'! =ys )ri'ks +or all o+

!he "oysAggressi%e O"'oxios9ses logi$ o' )i>$l! #o"s -e!s so&eo'eelse !o )o i!Expresses hi&sel+ well Speaks !he lo$al

la'gage?as Lea)ership :ali!ies Is !all or has a lo)%oi$eKee' se'se o+ h&or K'ows lo!s o+ )ir!y

#okes

Career*&i')e) =a$k*s!a""erRelaxe) a!!i!)e Sleeps a! work


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PERFORMANCE /Doi'g prese'! #o" a! a

$er!ai' le%el @high or lowas &easre) "y a +or&al

sys!e&POTENTIAL /

I'$l)es +!re ser%i$e(lear'i'g i'!eres!(&o!i%a!io' le%el


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PRO=LEM /

Deviation from expectations

Do so&e!hi'g i' )iBere'! way

No! )o so&e!hi'g

so&e!hi'g 'o! expe$!e)1'ee)e


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PERFORMANCEMANA-EMENT

*=ase) o' S$ie'!i;$ Ma'age&e'!$o'$ep!s*Fo$s o' o"ser%a"le per+or&a'$e

*-oal )ire$!e)*Pla''i'g re:ire) a') +or&ali2e)*Co'sis!e'!( $o'!i'os $olle$!io'(a'alysis(

a') $olle$!io' o+ )a!a*ale o+ +ee)"a$k rei'+or$e)*Fa$ili!a!es "e'$h&arki'g


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Per+or&a'$e Ma'age&e'!Tre')s

Shi+! +ro& %iewi'g ;'a'$ial;gres as &ai' $ri!eria !o o'e

o+ &l!iple i')i$a!ors

More weigh! o' i')i$a!ors o+

e>$ie'$y a') eBe$!i%e'ess

Cha'ge !o %iewi'g PM as o'*

goi'g( e%ol%i'g pro$ess


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Asso$ia!e) Cos!s

S!aB Cos!s

Pro)$!io' a') Pro$essi'gCos!s

Trai'i'g Cos!s

A$!io' Cos!s

O or!'i! Cos!s


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Key PM es!io's

. 3hy assess per+or&a'$e. 3ha! per+or&a'$e !o asses

5. ?ow !o assess per+or&a'$eG. 3ho )o assess

per+or&a'$e

H. 3he' !o assessper+or&a'$e6. ?ow !o $o&&'i$a!e

per+or&a'$e assess&e'!

Th 3?, + P +


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The 3?, o+ Per+or&a'$eMa'age&e'! Sys!e&s

*A)&i'is!er Salary < 3ages*Corre$! Per+or&a'$e1=eha%ior

*Pla' +or F!re ( promotion, transfer, career dev)

*Fa$ili!a!e De$isio'*Maki'g (counseling,terminations)*Fa$ili!a!e ?&a' Resor$e

Pla''i'g

*Crea!e Cl!re*=il)i'g -oo) Rela!io'ships

*I'$rease Orga'i2a!io'al Loyal!y

*De!er&i'e EBe$!i%e'ess o+


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3?AT !o Assess

Skills1A"ili!ies1Nee)s1Trai!s o+I')i%i)als

Tha! I'!era$! wi!h !he

Orga'i2a!io' !o Pro)$e=eha%iors 3hi$h


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Skills/Abilities/

Needs/Traits

Behaviors Results

Job Knowledge Perform Tasks Sales

Strength Obe !nstru"tions Produ"tion #evels

$oordination Re%ort Problems Produ"tion &ualit

Business Knowledge 'aintain ()ui%ment S"ra%/*aste+esire to A"hieve ,ollow Rules A""idents

+e%endabilit Submit Suggestions ()ui%ment Re%airs

$reativit ,ollow-u% $ustomers Served#eadershi% *rite Re%orts $ustomer

Satisfa"tion

.onest $om%letes Reviews ,eedba"k


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Measres Fo$s

Co'sis!e'! i')i$a!ors a$rossi')s!ry or si&ilar

orga'i2a!io's

Co&pariso' o+ i')i$a!ors

o%er !i&e i' orga'i2a!io'

Co&pariso's wi!h pre*)e!er&i'e) s!a')ar)


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Approa$hes !o PM

Co&para!i%e

A!!ri"!e

=eha%ioral

?O3 !o Assess


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?O3 !o AssessPer+or&a'$e

Tra)i!io'alMa'age&e'!*"y*O"#e$!i%e

Assess&e'! Ce'!er

Peer Re%iew Pa'el

Cri!i$al E%e'!s

9pwar) Fee)"a$k

567 Degree


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Te$h'i:es o+ PM

Essay @ope'*e')e)Ma'age&e'! "y O"#e$!i%eRa'ki'g

Paire) Co&pariso's

For$e) Choi$eFor$e) Dis!ri"!io'

Ra!i'gs8

*Che$klis!*S$ales

*=eha%iorally A'$hore)

Ra!i'gs @=ARS


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Essay Te$h'i:e

Des$ri"e i' )e!ail !he :a'!i!y a') :ali!yo+ !hee&ployee0s per+or&a'$e )ri'g !he pas!!wel%e

&o'!hs.Des$ri"e !he e&ployee0s s!re'g!h a')

weak'ess.?ow )o yo )es$ri"e !he e&ployee0spo!e'!ialwi!hi' !he $o&pa'y3ha! lea)ership skills )oes !he e&ployee

"ri'g


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Morga' S!a'ley0s EssaySys!e&

Consider o"Becties identi=ed in prior years Summary as #ellas t&is years o"Becties.

>aluation@ Strengt&s Comments 1. 2. 3.

+eelopment Areas Comments

1. 2. 3.

Exa&ples o+ essays o'


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Exa&ples o+ essays o'PMsJ.

?is &e' wol) +ollow hi& a'ywhere( "! o'ly o! o+ $riosi!y.

I wol) 'o! sgges! "ree)i'g +or !his perso'.

3he' she ope's her &o!h( i! see&s !ha! i! is o'ly !o $ha'ge !he +oo! !ha! was pre%iosly !here.

?e has $arrie) o! ea$h o+ his )!ies !o his e'!ire sa!is+a$!io'.

?e wol) "e o! o+ his )ep!h i' a $ar park p))le.

This perso' is like a gyros$ope8 always spi''i'g a! a +as! pa$e("! 'o! really goi'g a'ywhere.

This perso' has )elsio's o+ a)e:a$y.

Co'!i'e) exa&plesJ.


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Co'!i'e) exa&plesJ.

Si'$e &y las! repor!( he has rea$he) ro$k "o!!o& a') is)iggi'g.

She se!s low perso'al s!a')ar)s a') !he' $o'sis!e'!ly +ails!o

&ee! !he&.

?e has !he wis)o& o+ yo!h < !he e'ergy o+ ol) age.

This perso' shol) go +ar. A')( !he soo'er he s!ar!s( !he"e!!er.

I' &y opi'io'( !his pilo! shol) 'o! "e a!hori2e) !o y"elow

H7 &e!ers.

This perso' works well ')er $o's!a'! sper%isio' a') whe'$or'ere).

This &a' is )epri%i'g a %illage so&ewhere o+ i!s i)io!.


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Ma'age&e'!*"y*O"#e$!i%e

Exa&ples

E&ployee will $o'!ri"!e !o orga'i2a

pro;! &argi' "y lower $os!s i' )ep "y 5.Hper$e'!.

To i&ple&e'! 'ew re$ri!&e'! sys!e e&ployee will e%ala!e !he eBe$!i% !he a)%er!ise&e'!s pla$e) )ri'g !


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Ra'ki'g Exa&ple

Ma'ager ra'ks all e&ployees +ro& "

O%erall per+or&a'$e

O' spe$i;$ $ri!eria @$o&&'i$a!i

$s!o&er rela!io's skills( e!$.

Paire) Co&pariso's


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Paire) Co&pariso'sExa&ple

Ra'k ea$h e&ployee gropi'g o%erao' a $hara$!eris!i$8

E&ployee A a') E&ployee =

E&ployee = a') E&ployee CE&ployee A a') E&ployee CE&ployee C a') E&ployee D

E&ployee D a') E&ployee AE&ployee D a') E&ployee =

e!$.


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For$e) Dis!ri"!io'Exa&ple

Pa$e ea$h o+ !he e&ployees i' yor)epar!&e'! i' !he +ollowi'g$a!egories "ase) po' o%erall or

spe$i;$ $a!egory per+or&a'$e8

Top 7 per$e'!8 7*Gper$e'!8

H7 per$e'!8 =o!!o& 7per$e'!8

O!s!a')i'g8 A%erage8


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?eneral >lectrics+istri"ution

The Vitality Curve Pro&o!a"ili!y ?igh Me)i& Li&i!e)

Top Per+or&ers 7

?ighly ale) 7

Leas! EBe$!i%e 7


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Ra!i'gs Exa&ple8

Che$klis!sProgram Auditor@

DDDDD 1. Ena"le to separate important from irreleantdata.

DDDDD 2. 6mits important info from summaries.

DDDDD 3. Cross


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Ra!i'gs Exa&ple8 S$ales

ate t&e employees "e&aior on t&e scale proided.

>-cellent ?ood Fair Poor :%A! 3 2 1 DDD

easoning a"ility ! 3 2 1 DDD

+ecisieness in +ecision


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an s er ormanceScorecard'easurements Below

ParPar Above

Par

Standards Manager’s assessment

Leadership,

Ethics/Integrity

Customer Interaction

Community Involvement

Contribution to Overall Business

eople Manager’s assessment

er!ormance

"eam#or$

"raining % &evelopment

Employee Satis!action

Control 'uditors’ standards

'udit

Legal

(egulatory

Citi"an9s Performance


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Citi"an9 s PerformanceScorecard..

'easurements Below

Par

Par Above

Par

Customer Satis!action E)ternal company survey

*oal o! +-

Strategy Implementation Ob.ective standards

ouseholds

Cross0sell, splits, mergers

(etail asset balances

Mar$et share

1inancial Ob.ective stadards

(evenue

E)pense

Margin


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Citi"an9s 4in9 to

Compensation atings 7onus

A"oe ParG 3H

ParG 1'H

7elo# ParG H


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Mi$roso+!0s PA Sys!e&

6erall >mployee ating@' I >-ceptional performance rarely ac&ieedJ precedent settingresults

!.' IConsistently e-ceeds all re;uirements e-pectations #or9 &ig&ly alued! IConsistently e-ceeds position re;uirements and e-pectationsJ

#or9 often note#ort&y3.' I>-ceeds position re;uirementsJ successful in all o"Becties3 IMeets position re;uirements and e-pectationsJ meets most or all o"BectiesJ needs some deelopment for ;uality2.' IFalls "elo# performance standards and e-pectationsJ &as

performance de=ciencies

1.


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Microsoft@Adding +istri"ution to

an9ings

G.7 Q / 5H o+

e&ployees5.H / G7 o+e&ployees5.7 or lower / H o+e&ployees

R !i E l =ARS


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Ra!i'gs Exa&ple8 =ARS

5ndicate t&e appropriate leel of performance on eac& factor@

a'!i!y o+ work

ali!y o+ work

4)g&e'!

ol&e low <erra!i$

Sa!is+a$!ory s!ea)y %ol&e

ol&e a"o%eexpe$!a!io's

Resl!s always a$$ra!e &o)el work

Resl!s a$$ra!e a') !horogh

Resl!s ge'erallyi'a$$ra!e a') 'o! !horogh

Sys!e&a!i$(a'aly!i$al( goo) wi!h $o&plex

pro"le&s

Pra$!i$al #)g&e'!(

sol%es pro"le&s(

)i>$l!y wi!hassessi' rela!i%e

Does 'o! alwaysshow goo)

#)g&e'! pro"le&

a'alysis'o! alwa s a)e a!e

Microsoft Competenc ool9it


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Microsoft Competency ool9it

#evel #evel 0 #evel 1 #evel 2

Structures basic

in!o accurately2 dra#sin!ormed conclusions

'naly3es % organi3escomple) in!o !rom speci!iccontent area, identi!ying

$ey issues, assessingimpact, dra#ing reasonableconclusions

'naly3es, e)plains % dra#slogical conclusions basedupon comple) data !rom

multiple content areas

(apidly identi!ies thesigni!icance o! in!o %insight!ully determines

strategic action4

5ith guidance, learns6uic$ly on the .ob

Learns ne# s$ills % ideasrapidly

(apidly learns %assimilates comple) in!oinvolving un!amiliarsituations % circumstances

(apidly learns ne#concepts % ideas2 integrates% assimilates highlycomple) in!o across broad,

multi0!unctional contentareas

ic$s up ne# s$ills %understands ideas #henstructured

7uic$ly ad.usts thin$ing !orne# in!o or ideas

Learns e!!ectively !rome)perience

Is able to apply % e)plainlogic related to problems

FAC6@ 5ndiidual >-cellenceC6MP>>:C8@ 5ntellectual orsepo#er (is bright, intellectual sharp, l



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#evel #evel 0 #evel 1 #evel 2

'ssigns challenging tas$sand assignments that #illhelp people develop theirs$ills

"a$es time to learn aboutand understand directreports2 career goals

'ctively coaches directreports ho# to get the mostlearning !rom their currentassignments

olds managersaccountable !or developing

people in their group/

organi3ation

rovides direction incorrect per!ormance o!tas$s and assignments

rovides stretch .obs andassignments !or directreports to help them

develop their s$ills

*ives direct reportscandid, thought!ul!eedbac$ on their strengths

and #ea$nesses

Identi!ies $ey people inhis/her organi3ation toassume high0level

managementresponsibilities, and is anadvocate !or them #henopportunities !oradvancement occur

FAC6@ 4ong>:C8@ +eeloping people (provides job-relevant learning, deve

eercises, and feedback to enhance individual performance)

Cri!i$al I'$i)e'! Exa&ple


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Cri!i$al I'$i)e'! Exa&ple>mployee :ame@DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD +ate of 5ncident@DDDDDDDDDDDDDDDDDD

ype of 5ncident@DDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDDD

5ndiiduals 5noled@

+escription of 5ncident@

6utcome of 5ncident@

ecommendations@

+ate +iscussed #it& >mployee@DDDDDDDDDDDD Superisor Signature@DDDDDDDDDDDDDDDDDDDDDDDDDDDDDD >mployee Signature@ DDDDDDDDDDDDDDDDDDDDDDDDDDDDDD


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,o"us Judgmental +evelo%mental

Time

orientation

Past %erforman"e Pre%aration for

future %erforman"e

'ethod !m%roving%erforman"e b"hanging behavior

through rewards

!m%roving%erforman"e b self-learning 3 %ersonal

growth

Su%ervisor4sRole

Judge who a%%raises $ounselor wholistens5 hel%s5en"ourages 3 guides

Subordinate4s

Role

#istener5 rea"tor to5defender of %ast%erforman"e

A"tivel involved in"harting future %lans


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Cri!eria +or Per+or&a'$e

Measres

Rele%a'!

Relia"le

Dis$ri&i'a!i'g

Pra$!i$al


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Pro"lems #it& Performance

MeasuresCo'!rolla"ili!y

Mo!i%a!io'al i&pa$!Fallo!

Role Mo)eli'g I&pa$!Relia"ili!y

Rele%a'$eCo'!rol

3?O Shol) Assess


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3?O Shol) AssessPer+or&a'$e

Sperior O'lyS"or)i'a!e@s

Peers1CoworkersSel+

Cs!o&ersO!hers

S"or)i'a!esAll S!akehol)ers

3?EN !o Assess


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3?EN !o AssessPer+or&a'$e

Pro"a!io' Perio)

A''ally @a''i%ersary )a!e( assig'e)

)a!e( se! )a!e +or all

Se&i*a''ally

For Case

O'*goi'g

As 'ee)e)

?ow !o Co&&'i$a!e


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?ow !o Co&&'i$a!ePM I'+o

Orally

I' 3ri!i'g

For&ally

I'+or&ally

P"li$

Pri%a!e

?a')li'g Per+or&a'$e


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?a')li'g Per+or&a'$eIsses

3ha! !o )o

3here !o s!ar!

?ow !o )o i!


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&an9 you


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PRO=LEM /

Deviation from expectations

Do so&e!hi'g )iBere'!ly

No! )o so&e!hi'g

so&e!hi'g 'o! expe$!e)1'ee)e

P + P "l


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Per+or&a'$e Pro"le&s

Research shows that there is a huge performancegap between high and low performers in anyorganisation –

between 30%-50% for unskilled jobs

and up to 100% for highly technical ones

From : Why people do not get fired: the psychology of discipline avoidance- http://www.workrelationships.com/site/articles/performance_management.htm

PRO=LEM ID


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PRO=LEM ID

PRELIMINAR, SCANK&at s&ouldnt "e &appeningL

5mpact of t&isLKort& pursuingL

OR-ANIUATIONAL SCANMatc& strategic planL

Critical functions missingL

Culture and performance gapsLF9NCTIONAL 4O= ANAL,SIS

Speci=c Bo" de=cienciesL

o" 9no#ledge and trainingL


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CA9SAL ANAL,SIS

ID83he' pro"le& "ega'

3ha! else has $ha'ge)

PARETO0S LA38 Rle o+

717“80% of any problem is

caused by 20% of possible”

CA9SES OF


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PERFORMANCEPRO=LEMS*La$k o+ a"ili!y

*Low &o!i%a!io'*Poor work e!hi$

*S"s!a'$e a"se*Perso'al pro"le&s*La$k o+ !i&e

*Poor peer rela!io'ships

*9'+a&iliari!y wi!h e:ip&e'! orpro$ess

PERFORMANCE


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PERFORMANCEOPPORT9NITIES

P o o r P e r +

E x $ e l l e ' !

P e r +

No1Low K'owle)ge ?igh K'owle)ge

PERFORMANCE


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PERFORMANCEOPPORT9NITIES

*** OK

Trai'i'g

Org

De%elop&e'!

P o o r P e r +

E x $ e l l e ' !

P e r +

No1Low K'owle)ge ?igh K'owle)ge

ALTERNATIE


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SOL9TIONS.Re!r' !o ol) sys!e&

.Fire( !ra's+er( hire 'ew5.Trai'G.Reassig' or isola!e

RATE EAC? =,8 -Contribution to Obectives

!"i#"$ medium$ lo& -Cost to 'x and to i#nore !"i#"$ medium$ lo

RANK IN ORDER

Trai'i'g < De%elop&e'!


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Trai'i'g < De%elop&e'!

De;'i!io'8 planned$ continuous e(ort bymana#ement to improve employeecompetency levels and or# performance.

)*+,,/ provide learners it"noled#e 1 sills for ob

D34O56)/ prepare or#ani7ation and

employees to eep pace it" industryand 'elds of expertise

T < D TRENDS


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T < D TRENDSSkill re:ire&e'!s $ha'ge wi!h &ore work $o&plexi!y

3orkers &ore e)$a!e)

3orkers &ore )i%erse

Org res!r$!ri'g $o'!i'es

Trai'i'g o+!e' o!sor$e)

More !e$h'ology se i' Trai'i'g

Trai'i'g Depar!&e'!s / =rokers

4*I*T a') 4*3*I*N Trai'i'g -row

I'$rease o' h&a' per+or&a'$e

Fa$!ors I'e'$i'g T


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Top &a'age&e'! sppor!

Co&&i!&e'!s +ro& Spe$ialis!s a') -e'eralis!s

Te$h'ologi$al A)%a'$es

Orga'i2a!io'al Co&plexi!y

=eha%ioral S$ie'$e K'owle)ge

Lear'i'g Pri'$iples

Per+or&a'$e o+ O!her ?&a' Resor$e

gD

TRAININ- < DEELOPMENT


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TRAININ- < DEELOPMENTMET?ODS

Coa$hi'g Me'!ori'g

=si'ess -a&es Case S!)ies

Role Playi'g i)eo!apes

I'*=aske! Trai'i'g I'!er'ships

o" Ro!a!io' Co& !er*

Me!ho)s !continued&


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Cy"erlear'i'g8

*I'!er'e!1I'!ra'e!*ir!al Reali!y

*Dis!a'$e Lear'i'g

*i)eo Co'+ere'$i'gClassroo& Progra&sCorpora!e 9'i%ersi!ies Colleges < 9'i%ersi O'*!he*4o" Trai'i'g Appre'!i$eship Trai Si&la!ors

es!i"le Trai'i'g

DEELOPMENT


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DEELOPMENT

. ?ARD3ARE

*e:ip&e'! *spa$e*&o'ey

*people *!ra'spor!a!io'

. SOFT3ARE*poli$ies < pro$e)res *rewar)

sys!e&s

*$o&&'i$a!io' sys!e&s *s!r$!re

5. =E?AIORAL*sper%isio' *peer

rela!io'ships

EMPLO,EES PERFORMANCE 8


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EMPLO,EES PERFORMANCE 8CATE-ORIES AND STRATE-IES

DEAD3OOD8 No !rai'i'g )e&o!io's or re&o%al

re&e)ial work !rai'i'g !o pre%e'! loss

orie'!a!io' !olower #o" )i%es! 3ORK?ORSES8

Trai'i'g s!ressi'g i&pro%e&e'!(orie'!a!io' or

&ai'!ai'i'g skills $areer $o'seli'g o'li&i!s

PRO=LEM C?ILDREN8

IMPLEMENTATION PLAN


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IMPLEMENTATION PLAN

Priori!ies Op!io's=)ge! De%elop&e'!Sele$!io' o+ Me!ho)s

Pla' wi!h =e'$h&arksPilo! Progra&

E%ala!io'

A)#s!&e'!s a') New Pla'Fll I&ple&e'!a!io'

O'*-oi'g < Perio)i$ E%ala!io's

!,s it orin# ,f no$ "y not&

3hy PM Is Di>$l!


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3hy PM Is Di>$l!

4o"1O!$o&es 'o! :a'!i;e)

Perso'al rela!io'ships wi!h e&ployees

9'a"le !o gi%e $ri!i$is&

Perso'ali!y "iases

Poor $o&&'i$a!io'

Co'i$!i'g -oals

Playi'g -o)

Errors i' Per+or&a'$e


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Measre&e'!

S!ri$!'ess or Le'ie'$y

Ce'!ral Te')e'$y

?alo Error

Re$e'$y Error

Sper%isor =ias

O%erall Ra!i'gs


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Corre$!i'g PM Errors

Isola!e 4o" AreasO"ser%e Reglarly

Mi'i&i2e N&"er o+ Ra!i'gs Co&ple!eTrai' Ra!ers

De;'e Di&e'sio's =e!!er-i%e Fee)"a$k

9se Co'!i'al Fee)"a$k I'$l)e O!her Sor$es

De$rease -e'erali!ies( I'$l)e Spe$i;$

EBe$!i%e PM Sys!e&s


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EBe$!i%e PM Sys!e&sSys!e& a$$ep!a"le !o e&ployees

Ma'agers se sys!e& reglarly < $orre$!ly

Per$ep!io' o+ "ei'g !rea!e) +airly "y sys!e&

9se+l +ee)"a$k pro%i)e)

Fo$s o' pro"le& sol%i'g( 'o! "la&e

Ser%e !o i'$rease pro)$!i%i!y < sa!is+a$!io'

Sys!e& se) "y orga'i2a!io'

Trai'i'g +or PM


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gI'!er%iews

?a%e )o$&e'!a!io'

=e o"#e$!i%e

ud#e ob$ notindividual

9se spe$i;$ exa&ples

Share $o'!rol

rainingN.continued

Soli$i! < gi%e +ee)"a$k


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Soli$i! < gi%e +ee)"a$k -Clear -Constructive

-Descriptive$ not ud#mental

A%oi) arg&e'!s

S!ri%e +or $o'sis!e'$y

-e! i! )ow' i' "la$k a')

whi!e

=y*!he*"ook

PRIOR TO PM


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PRIOR TO PMINTERIE3

De$i)e o' "es!!i&e

De$i)e o' "es!pla$e

Prepare +a$ili!ies

-a!her i'+o a')&a!erialsPrepare e&ployeePla' !he ope'i'g

A+! PM I ! i


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A+!er PM I'!er%iew

Mee! )ea)li'es

Soli$i! i'p!

Rei'+or$e( rewar)( p'ish

@+ollow !hrogh

Re%iew reglarly

?ow !o Des!roy PMS


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Sys!e&Do 'o! +ollow poli$ies

=e i'$o'sis!e'! i' appli$a!io'

Trea! i! as 'i&por!a'!

Do 'o! +ollow*p

Repri&a') i' p"li$ Rewar)i' pri%a!e

Co')$! whe' a'gry

The 3?, o+ Per+or&a'$e


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Ma'age&e'! Sys!e&s

*A)&i'is!er Salary < 3ages*Corre$! Per+or&a'$e1=eha%ior

*Pla' +or F!re ( promotion, transfer, career dev)

*Fa$ili!a!e De$isio'*Maki'g (counseling,terminations)*Fa$ili!a!e ?&a' Resor$e

Pla''i'g

*Crea!e Cl!re*=il)i'g -oo) Rela!io'ships

*I'$rease Orga'i2a!io'al Loyal!y

*De!er&i'e EBe$!i%e'ess o+


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PERFORMANCE

MANA-EMENT

>$ectie performance managementsystems ena"le an organiOation too"Bectiely and systematically rate

employee performance, #&ile proiding

t&e tools necessary to ta9e t&atperformance leel and e;uate it to

compensation actions.

PERFORMANCE MANA-EMENT


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PERFORMANCE MANA-EMENT O%er%iew8

&e core of any organiOation is its sta$. o#e$ectiely an organiOation maintains a

;uality team of employees is lin9ed to its

a"ility to manage its sta$ and recogniOet&e contri"utions of eac& player.



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O C - O%er%iew8

>mployees &ae al#ays e-pressed t&e desire

for open feed"ac9 regarding t&eir

performance. More and more companies areem"racing t&e pay for performance concept

and its tie to compensation. A #ell


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PERFORMANCE MANA-EMENT -oals8

• ecogniOe t&e e$orts and contri"utions of current sta$

• e#ard sta$ #it& compensation directly lin9ed to

performance

• Motiate sta$ to improe performance

• 6rient sta$ to#ards goal ac&ieement

• etain 9ey employees t&roug& t&e use of competitie

compensation programs• Attract ;uality employees #it& an e$ectie

performance management system



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PERFORMANCE MANA-EMENT -oals8

&e 9ey elements of a PerformanceManagement System include t&e

follo#ing@

1. A formal Compensation P&ilosop&y Statement

2. Salary Administration Program3. A Formal Audit%Success ating oerie# on an annual or

periodic "asis #it& disclosure of results to management.

&e ey >lements of a


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yPerformance Management System

1. A Formal Compensation P&ilosop&y Statement

• 5t is t&e policy of t&e o"ert eeley Construction to deelop andimplement a fair, consistent and industry competitieCompensation Program so as to attract, motiate and retain;uali=ed employees. &is program is speci=cally designed to

compensate employees on t&e "asis of t&eir performance,consistent #it& t&e Companys "usiness needs and =nancialcapa"ilities.

• &e Company #ill administer its compensation programs #it&outregard to race, religion, national origin, color, se-, age or disa"ility. &e Company #ill ad&ere to all federal and state and city la#s andregulations regarding Bo" classi=cation, amount of pay, ande;uita"le compensatory treatment of employees.

• Ke #ill design an oerall Salary Administration Program t&at #illproide t&e Company #it& a competitie, easy to use,performance


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2. Salary Administration Program

>lements@

• o" >aluations• Performance Appraisals• Pay


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3. A Formal Audit%Success ating on an annual orperiodic "asis #it& disclosure of results to 9eymanagement.

&is is most e$ectiely performed "y an outside consultant or consulting =rm, #&oseo"Bectiity allo#s t&em to o"sere and identify

strengt&s and #ea9nesses t&at are not al#ayso"sera"le from #it&in.

2 Salary Administration Program


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2. Salary Administration Program

• o" >aluations

• Performance Appraisals

• Pay


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Salary Administration Program o" >aluations

o" ealuation is t&e process t&at esta"lis&es eery positions

internal relatie #ort& to a company "y measuring a

positions potential ful=llment of duties against t&e amount

of alue "eing gien "y t&e present employee. o"ealuation measures Bo" #ort& in an internal sense, as #ell

as in an economic one.

+etermines@

• o" +escription• o" responsi"ilities of t&is Bo" description (position)• as9s, s9ills and 9no#ledge t&at fall under Bo" responsi"ilities

(from t&is formula comes all training t&at applies to eerycompany position)

Salary Administration Program


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Performance Appraisals

efers to t&e ealuation of an employees Bo" is t&e esta"lis&mentof indiidual performance o"Becties at t&e "eginning of

eac&. An employees performance may "e ealuated into

one of four (!) leels of performance as follo#s, for t&e

purposes of determining personnel actions@



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A Performance >aluation ool (P>)

• O!s!a')i'g8 Performance su"stantially and consistently a"oe

re;uired standards for t&e position.

• Co&pe!e'!8 Consistently meets o"Becties and produces t&e desiredresults t&at are e-pected for a ;uali=ed employee in t&is position.

Performance meets re;uired standards for t&e position.

• Nee)s I&pro%e&e'!8 Areas of improement are noted. Performance is

less t&an e-pected, and "elo# re;uired standards for t&e position.

Consideration must "e gien to pro"ationary status pendingimproement of performance.

• 9'sa!is+a$!ory8 +oes not meet o"Becties. Performance su"stantially

and consistently "elo# re;uired standards for t&e position. 5f signi=cant

improement is not made, termination #ill follo#.



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&e performance ealuation is conducted "et#een t&e

employee and &is%&er immediate superisor, in #&ic& t&e

superisor ealuates t&e performance of t&e employee.

&e superisor proides feed"ac9 to t&e employee

regarding &is%&er performance and areas of concern. &e

ealuated performance leel during t&e ealuation #ill "eused for Bustifying personnel actions relatie to

promotion, transfer, and salary adBustments.



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1. 5t is t&e intent of t&e Company to ma9e salary increases

and related personnel actions "ased on an employees

ealuated performance in &is%&er assigned position, and

t&e indiiduals oerall contri"ution. Performance

ealuations are to "e conducted at t&e completion of t&e

introductory period, on an as


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2. &e prime consideration in t&e performance appraisalsystem is en&ancement in oerall performance. &e

process is e-pected to en&ance t&e deelopment of

meaningful communication "et#een t&e employee and

&is%&er superisor, #&ic& in turn s&ould lead to suc&

improement in t&e employees oerall performance.



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• o" >aluations


• Pay


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Pay


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Pay


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Pay


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Payliminates lengt& of serice as a signi=cant paydeterminant. &is initially negatiely impacts t&e concept

of Qloyalty "ecause it diminis&es t&e impact of t&e eer<

present ?ood 6l7oyG system.



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• o" >aluations


• Pay


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?roup 5ncentie Plans

A ?roup 5ncentie Plan is a type of team


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+esign Features@

• Performance targets are esta"lis&edJ re;uiring t&atstandards "e esta"lis&ed and t&e planning process is #elldocumented.

• Funding re;uires a systematic mec&anism for setting

aside suRcient monies to fund re#ards.• 5ncludes a consistent and accepta"le met&od for

allocating re#ards among eligi"le participants.



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&ese #or9 "est for management and superisors

Adantages@

• Focuses t&e group on speci=c performance targets.• Since re#ards are controlla"le "y indiiduals, t&e

programs can "e ery motiational.

• &e program can "e integrated #it& ot&er corporateinitiaties (i.e., ;uality, product%serice introduction, costsaings, etc.).

• 4eads to improed communication and employeerelations.



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?roup 5ncentie Plans+isadantages@

• ?roup 5ncentie Plans can "e costly to install and

administer.

• +e


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• o" >aluations


• Pay


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5ndiidual 5ncentie Programs

&ese #or9 "est for =rst


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• o" >aluations


• Pay


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e#ard Programs &e follo#ing information proides an oerie# of alternatie

re#ard approac&es, including a de=nition of eac& approac&,

and t&e in&erent adantages and disadantages.

raditional alternatie re#ard programs fall into one of t#ocategories@

I')i%i)al E&ployeeOrie'!e) Progra&s8 Pay


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e#ard Programs < 5ndiidual >mployee 6rientedPrograms@

Pay


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Salary Administration Programe#ard Programs < 5ndiidual >mployee 6riented Programs@

+esign Features@

Performance standards are esta"lis&ed for actiities t&at employees can impact or control.

raditional Cost of 4iing and Seniority increase s are eliminated.

5ncreases are #it&&eld from poor performers until t&eir ealuated performance improes.

5ncreases may ta9e t&e form of additional salary and%or cas& "onuses.



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Adantages@

5ncreases are tied to productiity and results, rat&er t&an lengt& of serice, etc.

5mproes employee communication and team#or9.

Proides greater Bo" satisfaction.

Additional compensation dollars result in attainment of desired results.



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+isadantages@

e;uires considera"le e$ort to install and monitor.

5s "ased on a foundation of trust and credi"ility "et#een management and employees.

e;uires an accurate and #ellaluation System.

>liminates lengt& of serice as a signi=cant pay determinant. &is negatiely impacts t&e concept of QloyaltyQ.



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Salary Administration Programe#ard Programs 7roadmployees moe t&roug& salary ranges #it&out traditionalpromotions or Bo" delineation, "ased on indiidual s9ill attainment, and e-pansion of duties, rat&er t&an on any prescri"ed time pattern.



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Sa a y d s a o og ae#ard Programs < 7road "anding@

+esign Features@

Su"stantially fe#er grade leels and titles.Multiple Bo" leels are com"ined into a single range.

4arge range spreads, e.g., /'H, 1H or more s. !H to 'H.

Proides a met&od to recogniOe dual career t rac9s (management and professional).



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y ge#ard Programs < 7road "anding@

Adantages@

7etter accommodates a Tat organiOational &ierarc&y.

>mp&asiOes s9ill deelopment rat&er t&an ertical promotions.>liminates need to esta"lis& arti=cial Bo" titles and &ierarc&y.

Proides greater organiOational Te-i"ility since t&e organiOation is not encum"ered "y narro#ly focused Bo" titles.

Simpli=es salary administration "y eliminating promotions t&at are not "ona =de c&anges in duties and responsi"ilities.



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y ge#ard Programs < 7road "anding@

+isadantages@

May not "e compati"le #it& t&e organiOations culture and is less successful in &ig&ly structured organiOations.4oss of control points for salary planning and may result in oerpaid employees, re;uiring greater emp&asis on monitoring.

+iRcult to use as management tool for determining relations&ip "et#een Bo"s.

4imits promotional opportunities



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y ge#ard Programs < S9ill 7ased Programs@

A program t&at re#ards employees for attainment of additional s9ills and 9no#ledge on a formaliOed "asis.

+esign Features@>sta"lis&es an enironment in #&ic& attainment of s9ill and 9no#ledge is considered to "e &ig&ly desira"le.

Proides increased compensation and%or re#ards for s9ill attainment

Clari=es career pat& for eac& position and t&e associated educational support.



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Adantages@

>ncourages s9ill ac;uisition and commitment "y indiidual employees.

Permits Te-i"ility in #or9er assignments #&ic& may result in reduced staRng re;uirements.

ypically results in increased Bo" sati sfaction and lo#er turnoer o f s9illed employees



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+isadantages@

ery complicated program to install and maintain, re;uiring considera"le time, resources, and money.

raining is ery e-pensie a nd can easily "e underestimated .>mp&asis is on attainment of s9ills and 9no#ledge, and is not necessarily results oriented.

Enless carefully monitored, may end up #it& too many &ig& s9illed, &ig& priced employees.

+oes not en&ance team#or9 .



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y ge#ard Programs

&e success of any 5ndiidual e#ard Program (5P) re;uires t&at a num"er of di$erent areas "e addressed@>lements t&at must "e present@

U 6pen communication

U Capacity to administer

U Commitment to success

U Patience and perseerance

U Management commitmentU Clear


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y ge#ard Programs

&e success of any 5ndiidual e#ard Program (5P) re;uires t&at a num"er of di$erent areas "e addressed@

ey +esign Steps of A lternatie e#ard Programs U 5nitial analysis and pro"lem de=nition

U eie# of alternaties

U Selection of plan elements

U est and =naliOeU eie# and approal

U 5mplementation

U Monitoring and re=nement



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y ge#ard Programs

&e success of any 5ndiidual e#ard Program (5P) re;uires t&at a num"er of di$erent areas "e addressed@

4imitations of Alternatie e#ard Programs

U 5magination

U Fear of ne# and untested

U A"ility to accurately forecast or "udget

U Administratie a"ility of organiOation

U State of employee%management relations



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y g

• o" >aluations


• Pay


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y g

Compensation Communications

5t is a companys responsi"ility to commit to e$ectie

communication of salary administration plans and t&eir

modi=cations. At t&e minimum, a company is responsi"le for@

• proiding eac& employee #it& applica"le salary information

regarding &is%&er o#n total compensation leel, salary range,

position in range (P5), t&e met&od for determining salary

increases, and ot&er pertinent aspects of t&e total

compensation pac9age.

• communicating c&anges to policies and procedures to t&eappropriate personnel in a timely manner, and for ensuring

t&at t&e sta$ understands and can e$ectiely implement t&e

c&anges

The goal is !o )esig' a $s!o&i2e)al!er'a!i%e rewar) a') re$og'i!io'


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&e plano"Bec tiesfor t&is program #ould "eto@

ecogniO ee-traordinaryemployeecontri"utions in t&eareas ofe$ectienes s ,;ualityof #or9,cos t s aings ,andproductiity.

Strengt&en communications "et#een employees and management.

Proide as ys tematicmet&od ofidentif ying outs tanding indiidualcontri" u t ions .

Proide =nanc ialre#ards toemployees #&o&aedemons trated perf ormanceorcontri"ution in e-ces s oft&eiras s igned duties andres pons i"ilities .

>n&ance t&eCompanys a"ilityto meet or e-ceed its target goals .

progra&.

The goal is !o )esig' a $s!o&i2e)al!er'a!i%e rewar) a') re$og'i!io'


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o understand t&e employees li9ely perception of t&is program, lets ta9e a loo9 at a motiational t&eory t&at is a"out* years old@

progra&.

7efore anemployee isli9ely to perceie

training as a goal(t&e need to9no# andunderstand),t&ey must &aeall of t&eir ot&erperceied needs

met satisfactorily.6r t&e training

itself can "eperceied(presented) asmeeting some of

t&e ot&er lo#er


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Firs! Le%el8 Foo) a') wa!er( pro!e$!io' +ro& exposre !oele&e'!s


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Se$o') Le%el8 Free)o& +ro& physi$al )a'ger or +ree)o& +ro&a si!a!io' !ha! e')a'gers +oo)( wa!er( shel!er


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Thir) Le%el8 Frie')ships a') +a&ily rela!io'ships !ha! pro%i)e!he se$ri!y o+ &!al e&o!io'al a') physi$al sppor!


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For!h Le%el8 To "e well*regar)e) "y o!hers or gi%e' s!a!swi!hi' !he +a&ily a') so$ial grop @e&ployees will seek !his i'

!he workpla$e


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Fi+!h Le%el8 The a"ili!y !o sa!is+y !he 'a!ral a') lear'e)i'$li'a!io' !o explore !o i'$rease k'owle)ge a')

')ers!a')i'g o+ yor srro')i'gs


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Six!h Le%el8 The )esire !o "e srro')e) "y or !o ha%e a$$ess!o !hi'gs !ha! yo per$ei%e !o "e o+ :ali!y. sy&&e!ry( or)er(

a') "ea!y


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Se%e'!h Le%el8 The a"ili!y !o "e 'a+rai) o+ !he 'k'ow'(willi'g !o se! asi)e +ear i' sear$h o+ 'ew experie'$es a')

rewar)s( wi!h !he k'owle)ge !ha! all !ha! has "ee' a$hie%e)


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Eigh!h Le%el8 Cer!ai' !ha! "asi$ physiologi$al a') sa+e!y 'ee)swill "e &e!( a') 'o! $o'si)eri'g o+ grea! %ale !he "e'e;!s o+ !he

i'!eri& le%els( !his perso' )e%o!es !heir e'ergies solely !o pro%i)i'g +or !hose whose 'ee)s are 'o! "ei'g &e! a') who

appear !o "e 'a"le !o +e') +or !he&sel%es( !ypi$ally sppor!e)

Performance Management Cycle


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Pla''i'g!hePer+or&a'$e

Sppor!i'g!hePer+or&a'$e

Re%iewi'g !he Per+or&a'$e@O'goi'g <Cy$li$

Nee)sDe%elop&e'!

Rewar)s

'greeing to .ob

deliverables and

per!ormance

e)pectations

&elegation

Empo#erment

Coaching

In!ormal % !ormal

!eedbac$ against

per!ormance

Formal PerformanceAppraisal


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Appraisal

5. Purposes of Performance Appraisal55. Approac&es to Performance

Appraisal

555. P&ases in Performance Appraisal5. Sources of information for

Performance Appraisal

. &e factors t&at ma9e PerformanceAppraisal less e$ectie

5. Purposes of PerformanceAppraisal


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Appraisal

. A)&i'is!ra!i%e Prpose.6rganiOations use performanceappraisal information in many

administratie decisions@• salary administration

• promotions

• retention%termination

• rotation

•layo$s


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2. +eelopmental Purposes• Performance management see9s to

improe performance of t&e employees.

• &e feed"ac9 gien during aperformance ealuation processidenti=es t&e employees strengt&s and#ea9nesses, t&at ena"les t&e managers

to plan for remoing t&e #ea9nessest&roug& arious + interentions.

55. Performance AppraisalApproac&es


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Approac&es

• rait Approac&• 7e&aioral Approac&

• esults Approac&

rait Approac& (Vualitatie)


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(Vualitatie)

• &e trait approac& to performancemanagement focuses on t&e e-tentto #&ic& indiiduals &ae certain

attri"utes % c&aracteristics % traits"elieed to "e desira"le for t&ecompanys successJ suc& as@

intelligence, cleerness, initiatieta9ing, leaders&ip, andcompetitieness


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• 6erits of )rait +pproac"

raits are ;uite easy to deelop and

are generaliOa"le across a arietyof Bo"s, strategies, andorganiOations.


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• Demerits of )rait +pproac"1. Appraisals "ased on rait Approac&

are &ig&ly su"Bectie. Performancestandards "ased on t&is approac&are e-tremely ague t&at are opento di$erent raters for proiding

su"stantially di$erent ratings andran9ings.


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2. >-istence of certain traits does notmean t&at t&ey necessarily #ill "eutiliOed for &ig& performance.

3. &is approac& tends to createdefensieness among t&eemployees. For e-ample, &o##ould one feel if one #ere told t&at

on a '


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(Vualitatie)

&is approac& attempts to de=ne t&e"e&aiors an employee must e-&i"it to "ee$ectie on t&e Bo", and re;uires t&emanagers to assess t&e e-tent to #&ic&employees e-&i"it t&em.

For instance, regularity, punctuality and

conformity #it& t&e norms and alues oft&e organiOation are t&e desired "e&aiorsagainst #&ic& t&e managers may "eassessing t&e employees.


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6erits of 9e"avioral +pproac"

• &e "e&aioral approac& can lin9

t&e companys strategy to t&especi=c types of "e&aiornecessary for implementing t&atstrategy.

• 5t proides speci=c guidance andfeed"ac9 for employees a"out t&eperformance e-pected of t&em.


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Demerits of 9e"avioral +pproac"• 7ut, t&is approac& assumes t&at t&ere is

one "est #ayG to do t&e Bo" and t&at t&e"e&aiors t&at constitute t&is "est #ay

can "e identi=ed.• So it allo#s little lee#ay and latitude to

t&e employees to use t&eir o#n discretion

in adopting t&e suita"le met&od of doingt&e Bo" according to t&e situation.

• A"oe all, display of certain desired"e&aior does not necessarily result into

&e esults Approac&(Vuantitatie)


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• &e results approac& focuses onmeasuring t&e measura"le results ofa Bo".

• 5t assumes t&at@ – results are t&e closest indicator of

ones contri"ution to organiOationale$ectieness and not t&e traits and

"e&aiorsJ and – only focusing on results can minimiOe

su"Bectiity from t&e performance

appraisal


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6erits of *esult +pproac"1. 5t minimiOes su"Bectiity, relying on

o"Bectie, ;uanti=a"le indicators of

performance, ma9ing t&eperformance appraisal moretransparent.

2. 5t lin9s indiiduals performance#it& t&e company strategy andgoals


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Demerits of *esults +pproac"

1. 6"Bectie measurements can "econtaminated "ecause t&ey are a$ected "yt&ings t&at are not under t&e employeescontrol.

2. 5ndiiduals may focus only on t&oseaspects of t&eir performance t&at are

measured "y t&e seniors, neglecting t&oset&at are notJ li9e o"Bectie performancegoals may lead to &ig&er performance "utmostly t&ey lead to less &elping t&e co<

#or9ers

P&ases of Performance Appraisal


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1. Preparing P&ase2. Kriting P&ase

3. +eliering P&ase

!. Producing P&ase

Preparing P&ase

&e preparation process comprises@


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&e preparation process comprises@

1. eie#ing o#n o"seration "ygoing t&roug& t&e employee #or9record of t&e current reie# cycleis


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• &e #riting p&ase of t&e

performance appraisal processcomprises completing t&ePerformance Appraisal Form.

• 7efore =lling t&e form, t&eappraiser s&ould "e sure t&at s%&e&as got proper training in t&at

regard.

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Assessment

Rating

Factor

KeyMeasu

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Frame


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Salaries to bepaid in time

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+eliering P&ase +eliery p&ase inoles e-posing t&e


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+eliery p&ase inoles e-posing t&eappraisal report to t&e employee t&roug& a

one


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!. ma9ing necessary c&anges in t&ereport, if felt appropriate, duringt&e discussionJ

'. allo#ing t&e employee to read t&e=nal report t&roug& ample timeo$ered to do so.

Producing P&ase


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&is p&ase comprises@

1. As9ing t&e employee to sign t&ePerformance Appraisal FormJ

2. Assure t&e employee t&at &is or &er

signature indicates t&at &e or s&e &asread t&e appraisal and t&at a discussion&as ta9en place, and does not signifyt&at t&e employee agrees #it& t&e

appraisal.


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!. &e employee may ta9e a fe# days"efore signing t&e appraisal form.o#eer, if after a reasona"le periodof time t&e employee still refuses to

sign t&e form, t&e appraiser may noteon t&e form t&at t&e employee &asrefused to sign.

'. A copy of t&e =nal signed performanceappraisal s&ould "e gien to t&eemployee for &is or &er record.

555. Sources of information forPerformance Appraisal


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• Superisor• Peers

• Su"ordinates

• Customers

I. 3ha! &akes Per+or&a'$eAppraisal less eBe$!i%e


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• REL9CTANCE TO APPRAISE

• Many managers see t&eperformance appraisal process onlyas a necessary eil t&ey must got&roug& to ful=ll t&eir Bo"

re;uirements.


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• &ey feel uncomforta"le ealuatingot&ers and feeding t&em "ac9 #it&t&e ealuation. >specially #&en t&e

feed"ac9 re;uires improement inemployees performance.

• &us, t&ey tend to rate eeryone&ig&, or at least e;ual. As a result, t&eperformance appraisal e-ercise

"ecomes relatiely useless

• ?ALO EFFECT


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?ALO EFFECT

alo e$ect refers to Budging t&e targetpersons total performance on t&e "asisof a single trait suc& as degree ofintelligence, punctuality, &onesty,appearance, and dependa"ility.

7ecause of t&e &alo e$ect, t&eperceier neit&er e-plores ot&er

dimensions of t&e personality andperformance of t&e target nor gies anyfeed"ac9 to &im%&er for improement.


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• STEREOT,PIN-Stereotyping refers to t&e tendencyof generaliOing a"out ot&ers t&roug&

perceiing t&em as "elonging to aparticular class or category andignoring ariation among t&em.

Categories upon #&ic& stereotypesgenerally are "ased include age,gender, race, et&nic "ac9ground,

occupation social class etc


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ATTRI=9TIONS


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Ma9ing an attri"ution means to assigncausation for anot&ers "e&aior.For e-ample, if a superisor attri"utes anemployees good performance to e-ternalcauses, suc& as luc9, &olding an easy Bo",or receiing &elp from co


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PRIMAC, AND RECENC, EFFECTS5rimacy e(ect refers to ourtendency to rely on t&e cues t&at #eencounter early in a relations&ip


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CENTRAL TENDENC, ERROR

Central tendency error occurs #&ent&e rater aoids t&e e-tremes of t&eperformance scale and ealuates

most employees some#&ere near t&emiddle of t&e scale.

&is error results in most employees

"eing rated as aerageG. &is tendency limits t&e a"ility of t&eperformance appraisal to discriminatet&e &ig& performers from t&e rests.


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• Taki'g !he appraisal as a !ool o+p'ish&e'! a') 1 or rewar)

5n our enironment particularly,performance appraisal is ta9en as"est opportunity to settle t&e scores

or re#ard t&e c&eris&ed, t&at marst&e spirit of t&e performanceappraisal li9e trusted managementactiity.


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• Co'!a&i'a!io' a') )e;$ie'$y

+iscussion Vuestions


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1. +iscuss purposes of formal performanceappraisal &ig&lig&ting t&eir importance inmanagerial e$ectieness.

2. +iscuss rait Approac&%7e&aioral

Approac&%esult Approac& toperformance ealuation #it& t&eir meritsand demerits.

3. +iscuss Superisor%Peers%Customers%Su"ordinate as source of information forperformance appraisal #it& t&eir meritsand demerits.


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!. +iscuss arious p&ases of t&eformal Performance Appraisalprocess.

'. +iscuss at least =e factors t&atmay ma9e t&e performanceappraisal e-ercise less e$ectie.


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fundamentals of

Human Resource Management 4th editionby R.A. Noe, J.R. Hollenbeck, B. Gerhart, and .M. !right

C?APTER

Managing >mployeesPerformance


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K&at +o 5 :eed to no#L(continued)


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'. +escri"e maBor sources ofperformance information in terms oft&eir adantages and disadantages.

*. +e=ne types of rating errors ande-plain &o# to minimiOe t&em.

/. >-plain &o# to proide performancefeed"ac9 e$ectiely.

K&at +o 5 :eed to no#L(continued)


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0. SummariOe #ays to produceimproement in unsatisfactoryperformance.

. +iscuss legal and et&ical issues t&ata$ect performance management.

5ntroduction


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• Per+or&a'$e &a'age&e'!8 t&eprocess t&roug& #&ic& managers ensuret&at employees actiities and outputscontri"ute to t&e organiOations goals.

• &is process re;uires@ – no#ing #&at actiities and outputs are

desired

– 6"sering #&et&er t&ey occur – Proiding feed"ac9 to &elp employees meet

e-pectations


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Purposes of PerformanceManagement


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• :trate#ic 5urpose means e$ectieperformance management &elps t&eorganiOation ac&iee its "usiness o"Becties.

• +dministrative 5urpose refers to t&e

#ays in #&ic& organiOations use t&e systemto proide information for day


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Criteria for >$ectiePerformance Management


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Figure 0.2@ Contamination and+e=ciency of a o" PerformanceM


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Measure


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Met&ods for MeasuringPerformance


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Measuring Performance@!aking Comparisons


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Measuring Performance@"ating #ndividuals - $ttributes


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-raphi$ Ra!i'g S$ale• 4ists traits and

proides a rating scalefor eac& trait.

• &e employer uses t&escale to indicate t&ee-tent to #&ic& anemployee displays

eac& trait.

Mixe)*S!a')ar) S$ale• Eses seeral

statements descri"ingeac& trait to produce a

=nal score for t&attrait.

Figure 0.3@>-ample of a ?rap&ic ating Scale


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Figure 0.!@>-ample of aMi-ed


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StandardScale


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An employees performance measurement

di$ers from Bo" to Bo". For e-ample, a cardealers performance is measured "y t&edollar amount of sales, t&e num"er of ne#customers, and customer satisfactionsureys.

Measuring Performance@"ating #ndividuals - %ehaviors

= h i ll A h )


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Cri!i$al*I'$i)e'! Me!ho)• 7ased on managers

records of speci=ce-amples of t&eemployee acting in #ays

t&at are eit&er e$ectieor ine$ectie.

• >mployees receiefeed"ac9 a"out #&at t&eydo #ell and #&at t&ey do

poorly and &o# t&ey are&elping t&e organiOationac&iee its goals.

=eha%iorally A'$hore)Ra!i'g S$ale @=ARS

• ates "e&aior interms of a scales&o#ing speci=c

statements of"e&aior t&at descri"edi$erent leels ofperformance.

Figure 0.'@>-ample of

as9< 7AS


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ating+imensionfor a Patrol6Rcer

Measuring Performance@"ating #ndividuals & %ehaviors

(continued)B h i l Ob ti S l O i ti l B h i


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Behavioral Observation Scale

(BOS)

• A ariation of a 7AS#&ic& uses all "e&aiorsnecessary for e$ectie

performance to rateperformance at a tas9.

• A 76S also as9s t&emanager to rate t&efre;uency #it& #&ic&t&e employee &ase-&i"ited t&e "e&aiorduring t&e rating period.

Organizational Behavior

Modification (OBM)

• A plan for managingt&e "e&aior ofemployees t&roug& a

formal system offeed"ac9 andreinforcement.

Figure 0.*@ >-ample of a7e&aioral 6"seration Scale(76S)


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(76S)

Measuring Performance@!easuring "esults


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• Ma'age&e'! "y O"#e$!i%es@M=O8 people at eac& leel of t&eorganiOation set goals in a process

t&at To#s from top to "ottom, so t&atall leels are contri"uting to t&eorganiOations oerall goals.

• &ese goals "ecome t&e standardsfor ealuating eac& employeesperformance.

a"le 0.2@ Management "y6"Becties #o 6"Becties for a7an9


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7an9

est 8our no#ledge


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• &e performance management systemat X8Y company currently is perceiedas unfair and is time


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• &e principles of total qualitymanagement (T'!), proide met&odsfor performance measurement andmanagement.

• Kit& VM, performance measurementcom"ines measurements of attributes and results.

– Su"Bectie feed"ac9 – Statistical ;uality control


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• Coac&es proide feed"ac9 to t&eir team

Bust as managers proide feed"ac9 to t&eiremployees.

• Feed"ac9 is important so t&at indiiduals9no# #&at t&ey are doing #ell and #&atareas t&ey may need to #or9 on.

Sources of Performance5nformation


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• 567*Degree Per+or&a'$eAppraisal8 performancemeasurement t&at com"inesinformation from t&e employees@ – Managers

– Peers

– Su"ordinates

– Self

– Customers


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Performance management is critical for

e-ecuting a talent management systemand inoles one


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ating >rrors• Co'!ras! errors8 t&e rater comparesan indiidual, not against an o"Bectie

standard, "ut against ot&er employees.

• Dis!ri"!io'al errors8 t&e rater tendsto use only one part of a rating scale. – Leniency: the reviewer rates everyone near the top

– Strictness: the rater favors lower rankings

– Central tendency: the rater puts everyone near the middle ofthe scale

ypes of PerformanceMeasurement

ating >rrors (continued)


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ating >rrors (continued)• Ra!er "ias8 raters often let t&eiropinion of one ;uality color t&eir

opinion of ot&ers. –

Halo error: when the bias is in a favorable direction.This can mistakenly tell employees they don’t need to

improve in any area.

– Horns error: when the bias involves negative ratings.

This can cause employees to feel frustrated anddefensive.

est 8our no#ledge


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• 7ill rates all of &is employees ery lo#e-cept for an. an gets a"oe aerageratings "ecause s&e consistently comesto #or9 on time. &e rating errors 7ill

ma9es are DDDDDDD and DDDDDDD,respectiely.A. 4eniencyJ orn

7. StrictnessJ aloC. Similar


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• +istorting a performance ealuationto adance ones personal goals

• A tec∋ue to minimiOe appraisal

politics is a cali"ration meeting@ – Meeting at #&ic& managers discuss

employee performance ratings andproide eidence supporting t&eir

ratings #it& t&e goal of eliminating t&einTuence of rating errors

?iing PerformanceFeed"ac9


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• S$he)li'g Per+or&a'$e Fee)"a$k – Performance feedback should be a regular, expected

management activity.

– Annual feedback is not enough.

– Employees should receive feedback so often that they

know what the manager will say during their annual

performance review.

• Prepari'g +or a Fee)"a$k Sessio' – anagers should be prepared for each formal feedback

session.

• K&en giingperformancefeed"ac9, do it inan appropriate


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meeting place.• Meet in a settingt&at is neutral andfree ofdistractions.

• K&at ot&erfactors areimportant for afeed"ac9 sessionL

?iing PerformanceFeed"ac9

(continued)


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(continued)

• Co')$!i'g !he Fee)"a$k Sessio' – !uring the feedback session, managers can take any of

three approaches"

#. $Tell%and%&ell' ( managers tell employees their ratings and

then )ustify those ratings.

*. $Tell%and%+isten' ( managers tell employees their ratings

and then let the employees explain their side of the story.

. $Problem%&olving' ( managers and employees worktogether to solve performance problems.

Figure 0./@ 5mproingPerformance


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4egal and >t&ical 5ssues inPerformance Management


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• Legal – Performance management processes

are often scrutiniOed in cases ofdiscrimination or dismissal.

• E!hi$al

– >mployee monitoring ia electronicdeices and computers may raise

concerns oer employee priacy.

4egal e;uirements forPerformance Management


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• 4a#suits related to performancemanagement usually inole c&argesof@ – +iscrimination

– EnBust dismissal

• o protect against "ot& 9inds ofla#suits, it is important to &ae alegally defensible performancemanagement system.

4egal e;uirements forPerformance Management (continued)


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• A legally defensible performancemanagement system includes@ – -ased on valid )ob analyses, with reuirements for )ob

success clearly communicated to employees.

– Performance measurement should evaluate behaviors or

results, rather than traits.

– ultiple raters /including self%appraisals0 should be used.

– All performance ratings should be reviewed by upper%levelmanagers.

– There should be an appeals mechanism for employees.

Summary

•


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•Performance management is t&e processt&roug& #&ic& managers ensure t&atemployees actiities and outputscontri"ute to t&e organiOations goals.

• 6rganiOations esta"lis& performancemanagement systems to meet t&ree "roadpurposes@ – Strategic purpose – Administratie purpose

– +eelopmental purpose• Performance measures s&ould =t #it& t&e

organiOations strategy "y supporting itsgoals and culture.

Summary (continued)


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• Performance information may come froman employees self


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6rganiOations can minimiOe appraisalpolitics "y esta"lis&ing a fair appraisalsystem, inoling managers and employeesin deeloping t&e system, allo#ing

employees to c&allenge ealuations,communicating e-pectations, and &aingopen discussion.

• Performance feed"ac9 s&ould "e a regular,

sc&eduled management actiity, so t&atemployees can correct pro"lems as soon ast&ey occur.

Summary (continued)

•


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&e performance feed"ac9 discussion s&ouldfocus on "e&aior and results rat&er t&an onpersonalities.

• Managers must ma9e sure t&at performancemanagement systems and decisions treatemployees e;ually, #it&out regard to t&eirrace, se-, or ot&er protected status.

• A system is more li9ely to "e legallydefensi"le if it is "ased on "e&aiors and

3.1. perfromanace management admin

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