copyright © 2009 by jay liebowitz, ph.d.1 performance management training managing a diverse...

Copyright © 2009 by Jay Liebowitz, Ph.D. 1

Performance Management Training

Managing a Diverse Workforce

Jay Liebowitz, Ph.D., SPHR

Duquesne University


Today’s topics

Employee discipline Performance Management Providing effective feedback Performance appraisal Perception


Progressive disciplineThe traditional approach

Verbal warning Written warning Second written warning One-day suspension Three-day suspension Termination

Copyright © 2009 by Jay Liebowitz, Ph.D.

Games People PlayTransactional Analysis

Manager

Parent

Adult

Child

Employee

Parent

Adult

Child4


Progressive disciplinehas several side effects

It rarely leads to the employee being motivated to improve his/her behavior

It often makes the employee angry and vengeful

It often leads to the employee being more crafty about avoiding getting caught again


Positive disciplineThe modern approach

Oral reminder Written reminder Second written reminder One day decision-making leave Termination

(Dick Grote, Discipline without Punishment, 2006)


One day decision-making leave

It’s a paid day off! The employee is asked to think seriously

about his/her future with the company (even while golfing or fishing!)

The employee either contacts the manager to quit, or to return the next morning to meet with the manager to create an action plan to eliminate the problem

Ex. Wal-Mart


Games People PlayTransactional Analysis

Manager

Parent

Adult

Child

Employee

Parent

Adult

Child


Conducting a Performance Appraisal Interview with an Employee

How many of you have conducted formal performance appraisal interviews with employees of yours?

How many of you expect to do this in the future?


Purposes of Performance Evaluations

To reinforce the organization’s mission and values To help achieve the strategic objectives and

critical success factors of the business To recognize the employees’ strengths, and to

motivate them to improve continuously To communicate developmental feedback for

improvement To provide documentation to help make

administrative decisions fairly (“due process”), equitably, and legally


Reinforcing the core values

The performance appraisal rating system should reinforce the organizations’ core values, such as:

Having ethics & integrity Being employee-oriented Supporting diversity Being customer service-oriented Encouraging innovation Focusing on quality by rating employees on observable behaviors

(i.e. behavioral competencies) that reflect the core values


GE Model

Make your numbers?

Live the values?

Terminate Need coaching & training

Need coaching & training

High Potential

YesNo

No

Yes

Welch, BW, Nov. 13, 2006


Allegheny County Airport Authority’s Mission Statement

“To provide the best experience in the industry for passengers and airport users, and to become the premier economic generator for the region.”


ACAA’s Mission Statement (con’d)

We will achieve this by:Making safety and security our highest priorityFostering a professional, ethical and customer-oriented organization committed to the best interests of the community Engaging, empowering and developing all Authority staff as contributors to our business success Providing the highest level of customer service for both originating and connecting passengers Responding effectively to immediate opportunities in the context

of a well-conceived, long-term development plan Listening to our customers, measuring our performance, and continuously improving our business.


The Performance Management Cycle1. Agree on updated job description, goals, & expectations for the coming time period

2. Informal, on-going feedback & coaching throughout the time period

3. Semi-formal feedback midway through the time period (Modify goals?)

4. Performance appraisal rating

5. Performance review meeting to discuss ratings, goals, training, & career plans

6. Compensation decision


at Continental Airlines

Every manager was ranked on the quality of their work and whether they were team players, with 1 being as good as it got, and 4 being someone who was not treating people the way we wanted them to be treated at all. Then, all through 1995 we talked to them about their performance, giving them a chance to either get on board or not. Then at the end of the year, we simply asked all the 4’s to leave.

(ref. From Worst to First: Continental Airlines, p. 141)


Set MBO Goals (quantitative) with each employee, to be achieved

during the upcoming time period, which are SMART:

Specific (Not, “Well, do your best!”)

Measurable (Playing a game without keeping score is just practicing.),

Action-oriented (What should he/she do to help the department and

organization?)

Realistic (set participatively) Time-oriented (set deadlines) (Lebediker, 1995)


Set MBO Goals (qualitative)

with each employee, to be achieved during the upcoming time period, which are CAR:

Circumstances (In which situations should the behavior occur?)

Action (What exactly should the employee do?)

Result (What effect should the employee’s behavior have?)


Providing Effective Feedback

This is a “foundation-level” managerial skill that must be mastered for an individual to become an effective manager of diverse employees.

This skill is needed for providing feedback to employees throughout the year, and during the performance evaluation process. (Kinicki, p. 73)



Working without feedback is like bowling in the dark!

(ref. Herman & Goia, 1998, p. 170)



Don’t have a “gotcha” win-lose attitude.

Develop a win-win supportive attitude, because when the employee does well it makes you, the manager, look good.


at Continental Airlines

Never emasculate someone publicly for making a mistake…That kind of treatment encourages people to hide their mistakes. (Praise in public. Punish in private.) Otherwise, they’d learn real quick that all our talk about teamwork and employees being our most important asset was just talk.

(ref. From Worst to First: Continental Airlines, pp. 178-179)


The Smarter They Are…

Are you worried that your people are smarter than you?

Relax. They’re supposed to be! You should be hiring people who are

smarter than you. How else would your organization be

able to improve? (Welch, BW, July 24, 2006)



Don’t dwell on problems beyond the employee’s control.

Focus your feedback on behavior that the employee is able to change.



Don’t save all your feedback for the annual appraisal interview.

(called “gunnysacking”)

(No surprises!)

Provide your +/-feedback shortly after the occurrence.



Don’t force your feedback on an employee who isn’t ready for it.

Check to make sure that the employee is psychologically ready for your feedback. How?



Don’t rely on second-hand information.

Make sure the information you have is accurate and valid, before you provide your feedback.

Say, “It looks to me like… Is that the case?”



Don’t gloss over performance problems. This perpetuates mediocrity.

Be honest and candid with your feedback. (to provide due process)

“Dealing with “C” players” Be prepared for some

“push back.” (“Tough love.”) “Iron hand in a

velvet glove.”


at Southwest Airlines

At Southwest, Colleen Barrett has very little patience for habitual mediocrity. “I will tell you what you need to know because I want you to succeed. I’m willing to trade popularity for the truth.” It’s tough love. (ref. Nuts! p. 231)


Good to Great

If a poor performing employee came to tell you that he or she is leaving to pursue an exciting new opportunity, would you be disappointed, or relieved?

(ref. Good to Great, p. 58)



Don’t always be negative.

Make sure you are providing a balance of +/- feedback which reflects the employee’s +/- work.



Don’t be vague or general.

Focus on specific examples of good or poor performance. Keep a file of “critical incidents.” (Robbins pp. 258 & 260)

(ex. Giant Eagle)

(ex. Halogen’s e-appraisal software)



Don’t be judgmental or evaluative. Stay away from emotion-laden adjectives like “sloppy” or “slow.” Don’t attack the person with “You!” statements.

(Kinicki p. 137)

Describe the behavior you observed that you are not happy with, and how that impacts others. Keep your cool. Reaffirm their value as a person.



Don’t dwell on the past. First, ask if he/she has any suggestions for the future.

Encourage the person to be receptive to your suggestion.

Offer a suggestion. “feedforward” (Marshall Goldsmith)

Ask how you can help. (Holly Maurer-Klein)



Don’t let the employee leave without making sure whether he/she understood your feedback.

Check to make sure that the employee completely understood your feedback. How?



Don’t have negative expectations that the employee will fail.

Let the employee know that you have faith in them, that you believe he/she can succeed.


at Southwest Airlines

When you believe in people, they will rise to greatness… They will act and perform according to the image you have of them.

(ref. Nuts! pp. 322-3)

The Self Fulfilling Prophecy The Pygmalion Effect



Don’t control the entire conversation.

Ask the employee for his/her reaction to your feedback.

Many people have difficulty accepting criticism (see next slide).


Receiving feedback

Feedback is the breakfast of champions!

Accept the criticism with grace. Thank the person for providing you

with some feedback. View the feedback as an opportunity to

improve, not as a threat. View the feedback as a key unlocking

the door to success.



Don’t forget about this conversation.

Follow-up with the person in a week or so and “Catch them doing something

right!” (The One-Minute Manager)


Steps for Conducting a Performance Evaluation

Interview with an Employee Prior to the meeting, gather all pertinent

information & documentation (e.g. recently updated job description, progress reports, critical incidents, attendance records).

(ref. Modified version of guidelines in Osland, Kolb, Rubin, & Turner, 2008, p. 585)



Interview with an EmployeeComplete the rating form, making sure to

avoid the following perceptual biases: Leniency bias - “Everyone gets A’s or

B’s! Everyone’s great!”

(ex. Siemens)

(Dealing with “C” players) (Kinicki p. 24)


Appraisal Rating ScaleRate employees on:

Behaviors that reinforce the core values Quantitative results (but not on personality traits) (Robbins pp. 255 & 259)


Appraisal Rating Scale Exceeds Expectations - A small percentage of

employees who go way out of their way to perform way above expectations. “Knocks your socks off!” “A”

Meets Expectations - The overwhelming majority of employees who perform fine. “B”

Needs to improve - A small percentage of employees who everyone agrees is not carrying their weight. “C”




avoid the following perceptual biases:

Central tendency bias - “Everyone gets C’s.”

Severity bias - “Nobody gets an A!”


Dilbert




avoid the following perceptual biases: Halo effect - “The employee does

everything great! (Although, I only really noticed one great thing.)”

Rusty halo effect - “The employee can’t do anything right! (Although, I only really noticed one bad thing.)”

(Kinicki p. 24)




avoid the following perceptual biases: Similar-to-me bias - “This employee

must be good! After all, we both like to go golfing, fishing, bowling, etc.”

Stereotyping - “This employee isn’t any good! After all, he/she is a … (name of a demographic group)”




avoid the following perceptual biases: Rating employees you hired, higher -

“This employee is better than those others! After all, I hired him/her!”

Recency effect - “I’m going to give that employee a (high/low) annual rating because of what he did last month.”




avoid the following perceptual biases: Picking a % raise, and working

backwards - “I want to give that employee a 4% pay raise. Now let me see, which performance rating should I pick to guarantee him/her that 4%?”




avoid the following biases: Forced distribution - “Now, I must only

give 5% of my people a top rating, and I must give 5% of my people a bottom rating.”– (See BW Jan. 9, 2006)



Interview with an EmployeeAlso, be aware of a bias that affects many

employees’ self-ratings: The Self-Serving Bias – when things go

poorly, the employee blames it on external reasons, but when things go well, the employee takes personal credit for it.

(Kinicki p. 28)


Level 5 Leaders

Level 5 Leaders look outside of themselves when things go well and give credit to others or to good luck; but when things go poorly, they look in the mirror and shoulder the blame themselves.

(ref. Collins, Good to Great, p. 35)


Lincoln on Leadership

Lincoln’s strategy of “leading while being led” was to always give credit where credit was due and, conversely, to accept responsibility when things went wrong. It made them feel good about their jobs. It also encouraged innovation. (pp. 100)


These biases could lead to:

Motivation & morale problems stemming from favoritism.

Legal problems stemming from charges of age/race/sex/religious/national origin discrimination from members of protected groups, or reverse discrimination, or wrongful discharge.



Interview with an Employee Ask the employee to independently

complete a “self-rating” using the same form you are using to rate the employee, but NOT before you fill out your ratings of the employee.

Schedule the performance appraisal interview at a mutually convenient time.



Interview with an Employee Choose a private location for your

meeting, preferably your subordinate’s office, or a neutral area such as a conference room. (Not your office!)

Block out enough time on your calendar for this meeting (about an hour).

Informally rehearse your comments. Can you document your statements?



Interview with an Employee Do not be late for this meeting! This is

a high priority activity for managers. Performance management is a powerful management tool, if you do it right!

At the beginning of the meeting, convey that your intent is win-win. “You’ve helped us in many ways, and I want to help you do even better in the future.”



Interview with an Employee At the beginning of your meeting,

explain the purpose of this session - “Today, we’re going to discuss your work performance, your perceptions and mine. Then, we’ll brainstorm ideas for further improvement. I’d also like to talk about your training needs and career interests. Finally, I’ll tell you how the ratings will affect pay.”



Interview with an Employee Beginning with the first dimension (or

Performance Element), describe, in general, your expectations or performance standards - “In terms of customer service, what we like to see, in general, is…”



Interview with an Employee For each rating, ASK THE EMPLOYEE

TO TELL YOU HIS/HER SELF-RATING BEFORE YOU TELL THE EMPLOYEE THE RATING YOU CHOSE. “So tell me, how did you rate yourself on that one?”

Then, tell the employee the rating you selected. “Oh, that’s interesting, I gave you a …”



Interview with an Employee Both parties should elaborate on their

reasoning behind each rating, especially if there is a difference of opinion. (You can refer to the “critical incidents” you collected.)

Provide the employee with effective feedback, using the guidelines previously discussed.



Interview with an EmployeeFour possibilities could occur: You both rated the employee favorably.

Show your appreciation! Discuss whether the employee could take this even higher.

You both rated the employee low. “At least we both recognize there’s room for improvement here!”



Interview with an EmployeeFour possibilities could occur: You rated the employee higher than

he/she rated himself. Sometimes, an honest employee is his/her own worst critic. The employee is likely to ask that your rating on this dimension goes into the record!



Interview with an EmployeeFour possibilities could occur: You rated the employee lower than how

he/she rated himself. Here is where both of your recollections of events throughout the year are critical. (Bring critical incidents file.) Either someone will remember something the other forgot, or you might compromise. On occasion, the manager’s rating sticks.



Interview with an Employee Tactfully ask the employee (if needs be)

whether he/she has been having any serious personal problems, which might be affecting his/her work. “Anything going on outside of work which might be distracting you?” If so, refer the employee to the EAP (Employee Assistance Program).

Copyright © 2009 by Jay Liebowitz, Ph.D.


Interview with an Employee Together, brainstorm

“areas for development” for improving upon either the employee’s strengths or weaknesses.

Ask the employee, “What can I do as your manager: – to help you to do your job better?” – to keep you here, and engaged?

(the “inverted pyramid” philosophy)

69



Interview with an EmployeeSet MBO goals to be achieved during the

next time period which are SMART: Specific (Not, “Well, do your best!”)

Measurable (Playing a game without keeping score is just practicing.),

Action-oriented (What should he/she do to help the department and organization?)

Realistic (set participatively) Time-oriented (set deadlines)



Interview with an Employee Discuss the employee’s

training/development/education needs and short & long-term career interests. – This could be the precursor to a separate

meeting on the employee’s IDP (Individual Development Plan).



Interview with an Employee Keep the final version of the ratings on

file (not your original ratings), and give the employee a copy.


Performance Appraisal Interview Exercise

Now, let’s practice conducting a performance appraisal interview.

Try to use an “employees first” approach!


Debriefing the exercise

As the employee being appraised, which of the “Do’s & Don’ts for Providing Effective Feedback” did you notice the manager using?

As the employee, which of the “Steps” did you notice the manager using?



As the manager doing the appraising, which of the “Do’s & Don’ts for Providing Effective Feedback” did you try to use?

As the manager, which of the “Steps” did you try to use?



How would you describe the level of trust that developed between the two of you during this performance review meeting?

As the employee being appraised, which of you are as motivated as you were before your meeting with your boss, or even more motivated than before?


New techniques

Upward Appraisals – in which employees rate the leadership behaviors of their immediate supervisor

(ex. Tennessee Valley Authority)

360 – degree feedback – in which a manager is rated by his/her superior, peers, customers (both internal & external), and subordinates

copyright © 2009 by jay liebowitz, ph.d.1 performance management training managing a diverse...

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