HOW TO

MANAGE POOR

PERFORMERS

ghazali.mdnoor@gmail.com1-Jul-15

Why We Hate Performance

Appraisals

Collective Ambition

3 Phases Of Appraisal

Mid-Appraisal

Final Appraisal

Alignment

2

As an Appraisee

Bias

Different Standards

Surprise

Subjective

No linkage*

No differentiation

Secretive

No follow up

No control

Complaints about

Performance AppraisalsAs an Appraiser

Cannot remember

Tedious

Subjective

Right targets

Scoring Competencies*

Defensive staff

No $$ to differentiate

Prejudices

Results or Activities

Flexible or Control?

MBO or Character?

Best Practice or Fit Culture?

Backward or Forward?

Quarterly Results or Long-term?

No $$ to differentiate*

Perfect System, Bad performance

Recency and Halo effects

Untrained Appraisers

Mgmt/HR

3

Monitor?

What is Performance

Appraisal used for?

Reward?

Discipline?

Development?

Motivation?

Promotion?4

Extrinsic motivators

became the standard..

Extrinsic motivators assume that people are driven to

maximize rewards and minimize punishment

Manufacturing quotas Sales targets Behavioral ultimatums

.. and are very effective at aligning

effort behind routine tasks

6

$2.34

$5.00

$0

$1

$2

$3

$4

$5

Old New

Avera

ge D

ail

y W

ag

e @

Fo

rd

170

202

0

50

100

150

200

250

Year before Year after

Cars

per

year

(000s)

Ford announced that he would voluntarily double the

average daily wage while reducing the workday

Extrinsic motivators are far less effective with non-

routine tasks and the reasons for this are numerous..

7

Dim

inis

h pr

oble

m

solv

ing

abili

ty

Drive: The Surprising Truth About What Motivates Us, by Daniel Pink, April 2011

Foster short term thinking

Enc

ou

ra

ge ch

eatin

g

Discourage charitable

behaviour

Create dependence

Support for a change?

8

Purpose

9

Adam Grant • “Give and Take” Book

• Three types of people

"Whereas takers strive to get as much as possible from others,

and matchers aim to trade evenly, givers are the rare breed of people who

contribute to others without expecting anything in return. These styles have a dramatic

impact on success. Although some givers get exploited and burn out, the rest achieve

extraordinary results across a wide range of industries."

Subsequent research led to a more complete

understanding of intrinsic motivation

10

Components of intrinsic motivation1. Desire for autonomy

2. Desire to master skills

3. Desire to belong to a something

4. Desire for sense of purpose

1. Desire for autonomy

11

Toyota was responsible for leading operations but GM insisted

that all employees had to come from

previous Fremont talent pool

Toyota’s operating philosophy emphasized human

development, empowerment, continuous

improvement and mutual trust

If problems emerged on the floor, Toyota expected workers to

act like owners and stop the line to fix the

problem

2. Desire to master new skills

12

Pursuits like Karate are an excellent example

3. Desire to belong to something

13

4. Desire for sense of purpose

14

There are three different drivers of human motivation:

1. The physiological drive for food, water and sex

2. The extrinsic drive to maximize rewards and minimize punishment

3. The intrinsic drive for self actualization

Dan Pink

Autonomy: condition of self

control or freedom

Mastery: the pursuit of

comprehensive knowledge or

skills

Purpose: a clear intention or

objective to strive toward

The new system:

15

69% of employees would work

harder if they were better recognized.

The bottom line:The impact of employee engagement on company performance

16

“Employee

recognition

is the number one factor

when motivating employees

in the workplace.”

No.1

Implementing

Core Values

18

“…in the past 18 months, we have heard that profit is

more important than revenue, quality is

more important that profit, people are more important than profit, customers are more important than our

people, big customers are more important

than small customers, and that growth is the

key to our success. No wonder our performance is

inconsistent"CEO, Anonymous

19

Elements that comprise our

organisation’s COLLECTIVE AMBITION:

20

VISIONBRAND

PROMISE

CORE

VALUES

PROJECT

MANAGEMENT

DISCIPLINE

PURPOSE

:To create a WORLD

CLASS user

experience for

CUSTOMERS

through inspired

EMPLOYEES

PLANNING, ORGANISING,

SECURING AND MANAGING

RESOURCES

•within the time, cost, scope and exceeding

quality

•building leadership through LEARNING,

DEVELOPING SELF & OTHERS

•deliver the best product using the BEST

PRODUCTS & SERVICES

USING LATEST SOPS

LEADER BEHAVIOURS

: How leaders will act, day-by-day TO IMPLEMENT vision and strategy as they strive to fulfill their brand promise and live up to their values.

We envision to be and outstanding PROFITABLE

group by CREATING

GROUND BREAKING standards in all our

deliverables with PASSION

AND FULFILLING COMMITMENT

TO BE THE GOLD

STANDARD OF

CUSTOMER SERVICE…

through

• Dedication to the highest STANDARDS

• Culture of employees

INSPIRED to deliver

extraordinary value in products and

service to the customer

TARGETS & MILESTONES

:The MEASURABLE KPIS used to assess the extent to which the organisation has progressed

toward its vision.

Core Values

21

179

100

7

Employees

Job

Descriptions

Core Values

Employee Lifecycle

22

Staff Requisition

& Hiring Approval

Interview

Assessment

Staff

Onboarding

KPI Plan/

Achievements

Performance

Competencies

Core Values

Dictionary

Performance Management Plan

5 Key Components – a constant cycle

Planning

Monitoring

DevelopingRating

Rewarding

Set measures, establish &

communicate standards

Measure

performance, offer

regular feedback,

performance

reviews

Address poor and

improve good

performance

Summarize

employee

performance,

assign rating

Recognize and

reward good

performance

23

Before we start…In the old days of HR…

Average training hours per staff

What’s wrong with this picture?24

%o

fsta

ff

atte

nd

in

g

tra

in

in

g# of training programmes

% of training

programmes

conducted

Tra

in

in

g n

ee

ds

an

alysis

co

nd

uc

te

d

Competency models developed

Tra

in

in

g

bu

dg

et

as %

o

f

pa

yro

ll

Financial

“To satisfy our

stakeholders, what Financial

objectives must we

accomplish?”

Internal Process

“To satisfy our customers, in

which internal business

processes must we excel?"

Customer

“Who are our target

customers?

What is our value

proposition?”

Learning & Growth

“What capabilities and tools do

our employees require to help

them execute our strategy?

..Focus on corporate alignment

25

Department BSC

Financial Perspective

Goals Measures Targets CAPEX OPEX

Quality

Innovation

On Time

Delivery

26

Individual performance

1.0 Key Results

Area (Max 6)

2.0 Goals and

Targets for Q1

3.0

Achievements

and Efforts for

Q1

4.0 Merit*5.0 Rating (Merit x

Weight)

6.0 Appraiser

Overall

Comments/

Feedback

27

Performance Competencies and..

28

Tries to measure your actions and

conduct: HOW you do your work

Core Values:

PASSION FOR RESULTS

ACT WITH INTEGRITY

SERVING THE COMMUNITY

TEAMWORK AND RESPECT

FULFILLING THE SPIRIT TO SERVE

ALWAYS INNOVATING

BEST IN QUALITY

..HRD professional’s role in coaching

Encouragement

of employee

Higher

motivation

Development of

KSAs

Increase in org.

efficiency

29

31

3 Steps:Coaching To Improve Poor Performance

A 2-way conversation between employee and supervisor.

A clarification and explanationExamples of going “above and beyond”

Employee’s signature denotes discussion,

not necessarily agreement.32

No Surprises!

33

Both the appraisal process and progressive

discipline are in place in order that at the time of the final

appraisal there should be no surprises to the employee. During the appraisal period the employee is to be made aware

by the rating supervisor of weaknesses in

their performance or undesired behaviour.

The employee starts the appraisal year

at a 2 performance level!

In order to excel, the employee needs to know

the game rules.

34

Pre-appraisal

Step 1: define “poor performance”

Employee behaviour must be evaluated using an organisational standard that clearly defines

“good” and “bad” performance

Poor performance- “specific, agreed-upon deviations from expected behaviour”

2 types of standards used to measure employee performance:

1. Absolute- same standards used to evaluate all employees

2. Relative- compares employee performance to their colleagues

Deviant workplace behaviour- “voluntary behaviour that violates significant

organisational norms, and in doing so threatens the well-being of an organisation, its

members, or both”35

Choose Your Words Wisely

ACTION VERBS OBJECT WEAK WORDS EVALUATION

Produce …plan, system Assist Outstanding

Create …method, procedure Support Superior

Improve …process, performance Lead Excellent

Complete …project Oversee Peerless

Repair …equipment, system Monitor Weak

Learn …task, procedure Coordinate Poor

Collect …data, input, consensus Help Unique

Document …procedure Manage

Inspect …equipment, system Multiple

Solve …problem Various

Develop …training, solution Quality

Implement …program, process Expert

Eliminate …backlog, problem Often36

MBO target setting -

objectives and measures

Specific (definite objective and purpose to be achieved)

Measurable (by definite observation and a certain time one should be able

to tell whether or not it is attained)

Achievable (Must be within reach of the employees, e.g. to meet stated

deadlines, neither too high nor too low)

Rewarding (Rewarding means it must be satisfying to you, no one else)

Time phased (per quarter, per year. By end of fiscal year, by 15th of

November)

37

SignificantIs it worth doing, or is it just busy work?

MeasurableIs there a way to tell when it’s done and how

well?

AchievableIs it something the employee can really do?

RelevantDoes it support the group’s (and therefore the

Lab’s) goals?

TimelyCan it be completed within the reporting

period?

Assist in keeping ABC magnet array functioning. Line Employee

Relatively specific

Weak verbsWho is actually accountable?

Lots of room for disagreementNo standard or time frame

Take the lead in troubleshooting magnet problems. Team Leader/Supervisor

Not-so-SMART expectations..

38

SignificantIs it worth doing, or is it just busy work?

MeasurableIs there a way to tell when it’s done and how

well?

AchievableIs it something the employee can really do?

RelevantDoes it support the group’s (and therefore the

Lab’s) goals?

TimelyCan it be completed within the reporting

period?

Measurable verbs Appropriate to level of rate

Room to excelReasonable time frame

States what must be done, not how

Assist in keeping ABC magnet array functioning. Line Employee

Take the lead in troubleshooting magnet problems. Team Leader/SupervisorEnsure causes of system failures in the ABC magnet array are identified and eliminated within

24 hours of notification by Accelerator Operations. Team Leader/Supervisor

Identify and eliminate causes of system failures in the ABC magnet array within 24 hours of

notification by supervisor or Crew Chief. Line Employee

..Make it SMART

39

CommunicatingBe honest and caring

– Find something positive to say if you can

– Call a spade a spade; sweeping mediocre performance under the rug is a minefield

– Use specific examples, both good and bad• Much easier if expectation was SMART

– Focus on performance, not personality

You’re a great guy

Everyone likes you

You’re lazy

You’re not the sharpest knife in the drawer

I don’t like your attitude

You don’t seem to care about anyone else

You’ve been late 8 times in the past month

I have had to correct your work too many times

The magnet engineer says he can’t do without you

Why do you keep asking for more project funds?

You beat that deadline by 2 weeks

I’m impressed with your accuracy

40

42

1. Identify

performance

issue

2. Assess

time/effort

3. Are they aware

of the issue?

6. Do they know

how to do their

job?

5. Are there

outlying factors?

4. Do they know

what is expected

of them?

7. Do negative

consequences

follow good

performance?

8. Do positive

consequences

follow

nonperformance?

9. Could they do

it if they wanted

to?

Step 2: conducting the

coaching analysis

43

Step 3: coaching discussion

Used to maximize employee performance; used in performance appraisals/when issues arise

Two different approaches:Kinlaw Process- emotional aspect; how to deal with employee emotions and resistance

Fournies Process- rational aspect; employee that is presented with evidence of a problem will

accept its reality

If unsuccessful, supervisor can:Transfer employee

Terminate employee

Confronting

or presenting

•Limit negative emotion

•Identify performance needing improvement

•Establish goal to help employee change

Reactions to

develop info

•Employee disclosing concerns

•Use concerns to agree on problem/causes

Resolution

•Employee takes ownership

•Express commitment to establishing open relationship

44

Fournies process

45

• Define consequences for supervisor, coworkers, and the employee themselves

• Discussion should not continue beyond this point until problem is acknowledged

1. Employee acknowledges

problem

• Employees more committed to alternatives they came up with

• Supervisor should help employee come up with these/clarify them

2. Discuss alternative

solutions to problem

• Supervisor helps employee understand what should be done/what will happen

• Agree on time to follow up

3. Agree on actions to be

taken to solve problem

• Determine if employee has been progressing toward goal

• Important to let employee know that supervisor cares

4. Follow up to measure

results

• Motivates employee to continue on their path toward improvement5. Recognize achievements

when they occur

47

Responsibilities/Results

4 = Consistently Exceeds StandardsConsistently and clearly exceeded requirements for the position over the 12 months of the year

3 = Exceeds StandardsFrequently exceeded expected results with little or no supervision on routine tasks

2 = Meets StandardsPerformed in a fully competent manner and met goals.

1 = Partially Meets StandardsResults were not routinely met and supervision was often required

0 = Does Not Meet StandardsPerformance required close supervision on tasks where the employee should be operating

independently48

When is discipline appropriate?

Unsatisfactory

work habits

Policy violations

Poor performance

49

Warning

Reprimand

Suspension

Termination

4 Steps of Discipline

50

Counselingwhile formally documented,

is NOT a step in the

discipline process and does

not deduct points from the

final appraisal.

51

Effects on Final Appraisal

52

Question 1Coaching is a process that encourages employees to take responsibility for their

own actions, to achieve and sustain superior performance, and

__________________________.

a) To succeed at whatever the cost

b) To treat employees as partners in working toward organisational goals and

effectiveness

c) To motivate employees by using incentives (i.e., bonuses, more PTO)53

Question 2Tim, an employee at Booz Allen Hamilton, has been consistently showing up late to work,

which has caused him to miss team and client meetings. His supervisor, Jane, calls Tim into

her office to discuss the problem in more detail. After talking for awhile, Tim admits that he’s

been having financial problems at home, requiring him to take public transit in the mornings. At which stage in the coaching analysis is Jane likely to

attribute to Tim’s performance?

a) Stage 4: Does he know what’s expected of him?

b) Stage 5: Are there outlying factors?

c) Stage 6: Does he know how to do his job?54

56

Targeting…

Group I(Talent Pool)

23

45

PE

RF

OR

MA

NC

E2 3 4 5

POTENTIALIdentify

57

..Identify and Attract

Group I(Talent Pool)

Group II( Potential)

Group III( Performance)

Group IV(Counseling)

2 3 4 5

23

45

PE

RF

OR

MA

NC

E

POTENTIALIdentify

58

What drives Reward?

The driving force behind compensation and benefits strategies

Compensation &

Benefits

ValuesStrategy

59

What’s the Difference?

Increment

Bonus

Promotion60

Compa Ratio..Use this if your company:

•Pays for Performance, and

•Pays for Job rates

Def:

Mid-Point = Mid Point of Pay Grade

Grade E2Min

RM2,000

MID

RM2,500Max

RM3,00061

< 0.7≥0.7 -

≤0.9

>0.9 -

<1.1

≥1.1 -

≤1.3> 1.3

5

4

3

2

1

62

Compa Ratio Table

< 0.7≥0.7 -

≤0.9

>0.9 -

<1.1

≥1.1 -

≤1.3> 1.3

5

4

3 5%

2

1

63

Compa Ratio Table

< 0.7≥0.7 -

≤0.9

>0.9 -

<1.1

≥1.1 -

≤1.3> 1.3

5 9

4 7

3 9 7 5% 4 3

2 2

1 0

64

Compa Ratio Table

< 0.7≥0.7 -

≤0.9

>0.9 -

<1.1

≥1.1 -

≤1.3> 1.3

5 15 12 9 8 7

4 12 9 7 5 3

3 9 7 5% 4 3

2 6 4 2 1 0

1 4 2 0 0 0

65

Employee Distinction

Average

RatingRating

Multiply

Factor

Example

Rating

Example

Increment

> 4.1 5 2 4.2 8.4%

> 3.3 – 4.1 4 1.2 3.5 4.2%

> 2.3 – 3.3 3 0.75 2.8 2.1%

> 1.3 – 2.3 2 0.5 1.8 0.9%

≤ 1.3 1 0 1.0 0%

66

Curse of the Bell Curve

‘A’ Staff ‘B’ Staff ‘D’ Staff ‘E’ Staff‘C’ Staff

67

Swing loyalty: try your best to …

Over Promote “Position” the competition

68

Lo

an

s

Sp

ot

Bo

nu

se

s

Block recruiters

The

Spo

use

ToysGlorified Titles

Fo

rc

ed

A

mb

assa

do

r

Sell

the

Dream

Give

th

em

a

Be

st Frie

nd

Internal

Trainer

1. Identify the right ‘levers’

2. Set KPIs for the right ‘levers’

3. Manage the ‘levers’ through performancesystems

4. Balance Individual vs. Team priorities

5. Manage conflicting KPIs, but don’t

eliminate them

.. manage TEAMS

69

Innovation Levers?

1. Add 10 value increasing properties to each product or service every 90 days

2. Reduce jointly held inventories and lead time required by 90% in 24 months

3. Reduce new-product/service development cycle time by 75% in next 2 years

4. Copy 10 ideas every 60 days form competitors and noncompetitors

5. Target % Revenue from New Products (previous 24 months) - start with 50%

Source: The Innovation Challenge, “Thriving on Chaos”, by Tom Peters; Alfred A. Knopf Inc.

70

3 things you have learnt today

2 things you are not sure about

1 way you can link what you have done today to your work place

Wrap Up

72

Write Down

Learn Unlearn Relearn Evaluation

73

Please rate the following aspects of the course

excellent good not good poor

1. Organisation & domestics

2. Content

3. Notes

4. Presentation

5. Overall enjoyment

Any other comments

Course Date Name